A Recap of the Biggest Crypto Scams in 2021!

2021 was notably an exciting year for cryptocurrency enthusiasts. It is because there were a lot of ups and downs in the market, and it also made people gain and lose. The cryptocurrency investors were led to invest in many new ventures in 2021. It was because there were a lot of new coins and tokens launch day every other day, which made it a heaven for the cryptocurrency enthusiast. However, the scammers also attended these new launches apart from the cryptocurrency investors. Therefore, they got an opportunity to rob people of their money. The investors who were not paying much attention to the complete research of new crypto coins got confused by the scammers, and their money was stolen. The main reason behind this is the fear of missing out among the investors who do not wish to lose any opportunity to invest in a new coin. You can visit tesler.software for more information.

According to a blockchain firm, there will be a lot of scams in 2021 in cryptocurrencies. The scammers in different countries managed to stall seven .7 billion worth of cryptocurrencies from the investors. However, dealing with these cryptocurrencies was not one but many. If we compare the percentage of scams in 2021 with 2020, it increased by 80%. It is a very significant increase in scams in the cryptocurrency space. Also, many scammers use some of the prevalent methods like email is coming to steal cryptocurrencies from people. Also, some of them got the attention of the whole world. So, here is the information about some of the biggest cryptocurrency scams that took place in 2021.

Faze saga/ Save The kids

Social media has been one of the most important places to generate cryptocurrency scams. In 2021, some of the most prominent cryptocurrency proponents started to scam the investors. These are the influencers on the social media platforms like Instagram who perform promotion of the pump and dump schemes. Sometimes, the influencers do such things intentionally on the Internet, while they do not even know about it. These schemes create some artificial inflation for the cryptocurrency through advertising, which is not right. Also, they keep on doing a relentless promotion to sell a new cryptocurrency venture in the market. In such situations, the influencers make a lot of money while the investors keep looking at their money going down the drain.

In 2021, the FAZE clan, based on the Esports team, said that it would launch a charity-based cryptocurrency. The name of the charity-based cryptocurrency was saved the kids. Moreover, the website of this official cryptocurrency also included the image of the FAZE clan. They promoted it a lot and let the cryptocurrency gain a lot of investment from crypto enthusiasts. However, as soon as the token was launched, the primary holder of the token sold out each unit, and hence, the crypto tanked.

Squid coin

You might have heard about the top-rated Korean television show named squid game which got famous in 2021. Because of this, another viral cryptocurrency scam occurred in the last year. This popular television show gave rise to the coin named after it. The name of the coin was squid game, but many people were not at all interested in it because it malfunctioned. The squid coin also managed to fool the media as the prices went from a few dollars to $3000 within just a couple of weeks. It was a malicious rug pull by the creators in the cryptocurrency industry as they just wanted to collect the money and run with it.

However, people noticed that it was not a natural point because no officials were involved in the original show’s cryptocurrency. Also, the initial buyers of the coin could not sell it.

Poly network hack

Poly Network is not a very popular name in the world of cryptocurrencies as it is just a decentralized finance platform. However, it’s one of the most significant hacks in 2021 when a hacker spotted a flaw in the platform’s functioning. He then decided to take action in it. He transferred $600 million from the network of the decentralized platform to his account and even got away with it. However, the hacker was a white hat hacker and decided to show the company its flaws to improve its security.