Wettin you talk na true normally e dey tempting to dey see all this altcoin them dey pump with btc expecially as btc dey increase with like %5 naso the altcoin dey grow by %50 to %70, one funny thing be say when the dump dey come, e no dey give warning sign o. You go just see say e don drop by %35 to %50 at once and e fit no go up anytime soon because e go Must surely take time to recover. But btc no dey drop anyhow compeard to altcoin. Make we just dey careful expecially those top gainers for any exchange, them dey carry temptation of massive pump, if you try go put your money, na sorry be your name.ake we just dey careful na good advice you carry come so.
Creating cryptocurrency as become pretty easy for developers and so open doors for anyone to create shit and scam coins/tokens especially on Ethereum, binance, polygon and Solana Blockchain and now BRC-20 will be added to this list. The bull is on now but after halving things will get started properly and the rate by which these scam and shitcoins will increase tremendously especially if any meme coins do *20+ which is inevitable this time again and after that out of FOMO alot on it or other meme coins from which likely they will be at lost in the end.
One of the scam that will pop out more again is the Rug pull scam, whereby dev team or coin owners will create a coin/token and find ways of marketing it probably through social media influencers or other means by which investors will be move to invest in their coin and then use various schemes to liquidate investors and then steal their moneys. They use :
Defi scam :
This is when a scammer programs a crypto token's underlying smart contract to pull the rug out from under investors. Which includes :
- honeypot: investors are prevented from withdrawing their token from their wallet and they face not just losing the token but also the scammers getting their transaction fees
- Hidden mints: allow developers to create unlimited new tokens for themselves
- Fake ownership renunciations: this allows the scammers to have control of investors tokens
Exit scam:
This is when a scammer aggressively promotes a token before pulling the rug out from under investors. Example include:
- Create misleading marketing websites
- Announce partnerships that do not exist
- Give themselves token allocations well beyond what they claim to own in public
- Engage in wash trading to manipulate their token’s price or volume
- Use bots to give positive feedback about the token on platforms like Twitter, Discord, Reddit, Signal, and Telegram
Source:
https://www.soliduslabs.com/post/rug-pull-crypto-scams[/li[/list]
