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This is not very right , a little people can get money . However the amount is very low and just join in the beginning .
you mean like in ponzi schemes?For most people is just the safest thing to say to just stay away.
Topic: Fee Mining - Scam? (Read 242 times)
For most people is just the safest thing to say to just stay away.
Definitely an interesting video by Nicholas.
But take note that he says that not every fee-mining exchange token isn't a scam, some just are. An example would be KuCoin and COSS' fee-mining tokens. They're pretty legit(for now, at least) and do give you access to your coins that you earned. You really just have to watch out the fee-mining tokens from shady exchanges.
But take note that he says that not every fee-mining exchange token isn't a scam, some just are. An example would be KuCoin and COSS' fee-mining tokens. They're pretty legit(for now, at least) and do give you access to your coins that you earned. You really just have to watch out the fee-mining tokens from shady exchanges.
I just ran into it myself as well. Good that people are posting warnings.
For those of you who find this post too long just read following 2 sentences and move on:
Be very careful when investing in exchange tokens for unknown low volume exchanges. Most of them are scam and you should stay far away from them.
I have recently watched a video from Data Dash https://www.youtube.com/watch?v=85D9dyUytwY about Fee Mining. IMHO he is very down to earth crypto youtuber and I would recommend that you watch some of his videos if you are interested (granted his channel is more for beginner audience, but this video I recommend for everyone).
In short Fee Mining has no connection to classic mining. It just means that an exchange is giving back a part of transaction fees to holders of their token/coin. This has become a next big thing in crypto. It seems that every exchange, no matter how small or obscure, has to have it's own token. I am not buying it, they will just perish in flames.
I am not saying all the exchange related tokens are scam, but keep in mind, there is one Binance and there is a shitload of unknown exchanges with very small volume of trading. In the video I linked above CoinBene has been used as an example of this bad practice. You can easily see that they have artificially pumped their volume (market makers volume - check this link of my previous post if you need explanation) just to incentivize a lot of people to invest into their token which has very quickly lost a lot of its value.
There is quite a lot of similar cases out there. If you have been burned by some of them please post so I can add it to OP with due credits.
Be very careful when investing in exchange tokens for unknown low volume exchanges. Most of them are scam and you should stay far away from them.
I have recently watched a video from Data Dash https://www.youtube.com/watch?v=85D9dyUytwY about Fee Mining. IMHO he is very down to earth crypto youtuber and I would recommend that you watch some of his videos if you are interested (granted his channel is more for beginner audience, but this video I recommend for everyone).
In short Fee Mining has no connection to classic mining. It just means that an exchange is giving back a part of transaction fees to holders of their token/coin. This has become a next big thing in crypto. It seems that every exchange, no matter how small or obscure, has to have it's own token. I am not buying it, they will just perish in flames.
I am not saying all the exchange related tokens are scam, but keep in mind, there is one Binance and there is a shitload of unknown exchanges with very small volume of trading. In the video I linked above CoinBene has been used as an example of this bad practice. You can easily see that they have artificially pumped their volume (market makers volume - check this link of my previous post if you need explanation) just to incentivize a lot of people to invest into their token which has very quickly lost a lot of its value.
There is quite a lot of similar cases out there. If you have been burned by some of them please post so I can add it to OP with due credits.
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