Topic: Crypto scams flourish most during bull runs. - page 3. (Read 284 times)

The Bitcoin ETF has started making the price of Bitcoin to flourish and very soon we may start seeing different crypto scam and fake cryptocurrency projects in the market. This is time when we have to invest wisely because there will soon be lots of scam in the market just like it happened in 2017 when there were different Ponzi schemes in the market making many investors to lose there funds because they thought it was the right decision for them. We might see something similar this season but might also be in different forms.

 It should not surprise you because everyone would be looking to gain more than the next person and scammers know this and will want to take advantage of the gullible ones and just like you mentioned that people fall easily because of their greed, I'd say some are victims of such scammers because they do not really have a background knowledge of Bitcoin and are too lazy to do their research.
 Of course during the bull season, the market is busy and Bitcoin looks more appealing to investors then but what many fail to grasp is that where there are promises of high turnover or profit with no side effects or losses, there's bound to be a catch. Fomo usually blinds most of these victims and they end up falling for scammers.

In the Bullrun market, I actually saw it not only because many fraudsters appeared. But because there will be a time when crypto hype peaks and will also attract many beginners or people who are new to crypto. Because usually the FOMO wave is also followed by many people who are also interested in crypto. And many of them also do not have sufficient literacy or insight. Because not all beginners want to be patient and do research first before entering into crypto investment. Because sometimes more people enter crypto just because they are attracted by the ongoing hype and they want to get the same profits as crypto holders who have survived since the beginning and even since the bear market. And these new adopters will usually be targeted by fraudsters. And last season, Ponzi schemes emerged. So it's not surprising that this season will be the same. More altcoin projects will also emerge and indeed most of them create projects only to be pumped and then thrown away and abandoned. But I'm sure that in this bull run market, knowledge about crypto will spread more widely. So it is also easier for beginners to learn and avoid fraud. And actually a topic like this is also needed to warn beginners of the dangers that exist in a bull run market that come from fraudsters who will target beginners. I'm not worried about novice users on this forum. But it's the beginners outside the forum who are actually more vulnerable.

Scam exists anytime in any market but it's true that in a bull market, new projects will be created with their smart contracts to scam investors.

You can use a combination of Coinmarketcap and Wayback Machine to check how many cryptocurrencies exist with each year.

2017 https://web.archive.org/web/20171231045102/https://coinmarketcap.com/ with 1514 cryptocurrencies
2018  https://web.archive.org/web/20181231023300/https://coinmarketcap.com/ with 2094 cryptocurrencies
2019 https://web.archive.org/web/20191231050641/https://coinmarketcap.com/ with 4986 cryptocurrencies
2020 https://web.archive.org/web/20201231174111/https://coinmarketcap.com/ with 8153 cryptocurrencies
2021 https://web.archive.org/web/20211231022251/https://coinmarketcap.com/ with 16224 cryptocurrencies
2022 https://web.archive.org/web/20221231010102/https://coinmarketcap.com/ with 22156 cryptocurrencies
2023 https://web.archive.org/web/20231231005016/https://coinmarketcap.com/ with 2M+ cryptocurrencies

Find old cryptocurrencies, Proof of Work if you want safety. If you are greed, want to find hidden gems, you must know that many of them are hidden scams too.

The topic has been discussed so many times here on the forum and outside the forum, and just a few minutes ago, a similar one was also created to warn users of the danger that might come afterwards.
 
To me, it's worth the discussion as something that is often discussed is good to refresh the memory of others about that issue, and there might have been many who have not seen such threads before due to their being new in the forum and others who might have disregarded the information as outdated. But what's most important is that you are passing on vital information that should be taken seriously, as the rate of crypto scams this season is going to increase and many victims will be recorded if time is not taken.
 
One thing is to create awareness of these scams, and another thing is to ask if these newbies in crypto who actually need to read about them will find the information educational, as it appears that most of them only come to this forum when they have successfully been scammed.

I think it doesn't matter if we are in a bull run or bearish trend, scammers will be scammers. Although it is just magnified in the bull run as there are a lot of newbie investors and this is the target of this cyber criminals and scammers.

So it's very important and I think this is the number 1 thing that every crypto investors need, educate themselves on every project that they put their hard earn money. And as we have said before, “If it is too good to be true it probably is". Meaning, if the offer appear too ideal or promising, it's wise to approach them with a degree of skepticism and investigate further.

With the SEC's approval of Bitcoin spot ETF and with the next Bitcoin halving around the corner, we will most likely witness a bull run that has already begun.
According to research, crypto scams flourish during bull runs. This may because the increase in price makes it easy to convince people and greed and FOMO are also other factors that make people to be easily deceived.

Rug pulls and ponzi have been among the most popular forms of scams in these periods.
Some scammers come in the form of traders or trading companies and convince people to invest with them. Don't be naive.
One thing you should know is, if the offer is too good to be true, it's most likely a fraud. Traders don't control the market so no trader can guarantee you an unbelievable profit. They can't deliver those juicy offers they offer.

I know this topic might have been discussed a couple of times on the forum but I just want to emphasize it because of the trend I've been seeing on social media. I have been seeing a lot of crypto influencers advertising shit coins and other crypto projects. Even influencers who know nothing about crypto advertise crypto projects.

It's good to invest but do it wisely and with the right knowledge. Make sure to carry out your own research before buying any coins.

Side note: Try not to keep your investment in an exchange. Make sure to keep them in a noncustodial wallet.