Be aware of cryptocurrency scams.
Another cryptocurrency scam in which individuals were hurt has been stopped by the police in the Netherlands. ‘Unfortunately’, it is relatively easy to create a cryptocurrency token/coin. That in itself is not bad a bad thing at all. Though, unfortunately there’s also people that abuse this opportunity to scam people. This is done for example through pump and dump techniques.
In pump & dump scenarios, parties promise high returns by encouraging all their followers to buy a specific cryptocurrency to pump the price and lure in others. As soon as this happens, these parties themselves sell their tokens to these people for profits, leaving unknowing users behind.
The police have now arrested two people in the Netherlands who, according to the police, have carried out these pernicious practices.
According to the police, the suspects are involved with exchange/crypto trading platform Coinhouse.eu.
“As the presumed owner of this trading site, they are suspected of embezzling customer funds and swindling,” according to a police statement last week’s Friday.
This is just one of the examples of ‘scams’ we encounter these days. Similar to rug pulls where liquidity is pulled by (new) projects on Uniswap, leaving their token holders with nothing but dust. Or, exit-scams where project teams decide to steal people’s funds after they successfully raised money through e.g. their initial coin offering.
In a world full of opportunity, it becomes more important now than ever to do research to the cryptocurrency you purchase. We’re happy to help and encourage you to read through our research reports.
Also check out our exchange reviews and pages, to learn more about safely using exchanges.