Scams continue to rise in the crypto industry. Crypto scams have the potential of affecting bitcoin prices if they are not controlled soon. Coronavirus pandemic is creating a situation that makes scammers steal from desperate individuals. Because of this, it is necessary to take care when operating in the industry. This article highlights the reasons why increase in crypto scammers could affect bitcoin prices.
Bitcoin is one of the crypto commodities and it is considered one of the most used crypto commodities. The fact that scamming is on the rise in the cryptocurrency industry is putting bitcoin users at risk of a suffering price increase. Bitcoin scams are rampant because in most cases bitcoin currency is not regulated. Because there are no banks that act as a mediator between users and the currency, scammers are using the chance to steal from the industry.
The plus token
This is the most common crypto scams in the industry. Recent reports show that plus token is crashing out. Even though it is crashing out, there is still a chance that it will affect bitcoin. A large sell-off could bring down the price of bitcoin in the future.
Malware scams
Malware scams in the crypto industry pose a great threat to the currency. This is major because of the nature of the currency and malware. It is one of the most rampant crypto scams in the industry. Malware scams are on the rise mainly because of the COVID-19 pandemic. This could affect bitcoin prices because bitcoin is the most used commodity.
Crypto clipboard malware manages 2.3 million crypto addresses. Scammers on this malware exchange address the malware controls and the ones used in crypto coins transfer. Because of this, the coins are transferred to the scammers instead. This has the potential of increasing bitcoin prices.
Fake cryptocurrency exchanges
Scammers are all over the internet with fake bitcoin exchanges. This is also one of the most common ways of stealing from investors. Scammers simply pose a fake exchange agency and convince investors that is is really. Fake exchanges could increase bitcoin prices in the future. This is because fake exchanges make investors spend money when it’s not necessary and now when they realize it was fake it becomes more expensive to invest in bitcoin.
Bump and dump crypto scams
People were steadily investing in crypto till later when the prices spiked. People started having investment fever because of this. One of the reasons why people are mostly falling victims of crypto scams is because they invest without understanding the nature and the stricture of crypto itself. Because of this, the recently reemerged crypto scams have interfered with most investors’ currencies.
An increase in bump and dump scams could affect bitcoin prices. A group of scammers get together and purchase a bunch of bitcoin. Because of this, it drives bitcoin pretty higher. The scammers then sought for outside investors, sell the bitcoin using big promises of easy money. The scammers then sell all their coins at a predetermined price. This increases the prices of bitcoin and makes investors lose all their money while scammers pocket huge amounts of cash.
More:
- Pay Attention to These 7 Bitcoin Scams
- Crypto Scams on the Rise and Can Still Affect Bitcoin’s Price
