Are Crypto Exchanges A Big Factor In How Scammers Operate?

  • Are Crypto Exchanges A Big Factor In How Scammers Operate?

    Unfortunately, one of the main factors that give bitcoin and cryptocurrency a bad name is the fact that there are a plethora of hackers throughout the industry. In fact, over the past six months of this year, around $25 million has been expected to have been lost to scams relating to bitcoin. To add insult to injury, this number is expected to increase significantly as time goes on.

    As the market of cryptocurrency starts to gain further attention by institutional investors, the scam market has also grown as its revenue has increased 20 times since 2017. One of the more securely popular scams come in the form of giveaways.

    Scammers are said to be making more than $130,000 on a day-to-day basis with these numbers going even higher depending on the level of sophistication on these scams. Furthermore, these giveaways typically imitate celebrities or prominent members of the crypto space.

    An interesting argument has been brought up on the subject saying that some of the biggest crypto platforms in the industry could be the root cause of this.

    On social media, you typically have a blue verification tick on your profile to show that it’s you, if you are a prominent figure on the network. But if you are new to the industry, you may not think that these crypto platforms or exchanges will warrant the verification tick. This makes it a lot harder for these newcomers to differentiate the legitimate platforms to the fraudulent scammers.

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