Published: January 21, 2025 at 11:02 pm
Updated on January 21, 2025 at 11:02 pm
The world of cryptocurrency is like a wild frontier these days. While the potential for profit is exciting, the risks are also real, especially with scams becoming increasingly sophisticated. Let’s dive into how public figures and some new cryptocurrency exchange platforms might be giving a lift to scams, and the possible ways to keep your assets safer in this turbulent environment.
The cryptocurrency landscape, which already had its fair share of scams, has seen an alarming increase in the number of scams. Take, for instance, the recent boost in scam tokens mimicking Donald Trump’s name after his official memecoin launch. According to blockchain security experts, there was a 200% uptick in scam tokens using the name Trump on the launch day alone. In short, it seems that scams are only getting better at finding ways to draw unsuspecting investors in.
Beyond launching tokens with Trump’s name on them, bad actors got crafty enough to use Melania and Barron’s names too. Overall, the number of scam tokens in the market that referenced the Trump family jumped by a staggering 592% during this time.
Imagine one of those BARRON tokens hitting a market cap of $450 million before crashing, now down more than 95%. They also rolled out a ton of fake decentralized applications (dApps) to rake in the bucks. The sheer volume of scam dApps jumped 14 times in a day after the TRUMP memecoin launch.
It’s wild how celebrities can sway perceptions of crypto legitimacy. Research from two universities shows that celebrity endorsements can boost funds for initial coin offerings (ICOs) and increase the chances of the token being listed on exchanges. But this doesn’t mean the project has long-term success, and they are usually linked to scams.
It’s all too familiar for some bad eggs who jumped at the chance to pitch scam tokens under Trump’s name. Some did it by hacking accounts to promote their fraudulent wares while others got lucky with speculation. In a twist, pretty conclusive data indicated Trump’s son, Eric Trump, quickly shot down the speculation after trying to create hype about his father’s next token to launch.
But what can you actually do to spot these scams? Start with the basics: Use established exchanges and wallet services. Never share your private keys and use hardware wallets for storage. Look out for proper URLs and apps; phishing is quite the menace.
Next, it’s crucial to verify the token’s contract address is the official one from the website. You can even check its transaction history, and the amount of market activity should reveal whether it’s legit. Red flags? How about promises of big gains and free money? Can I get a yikes?
Do your own research and comb through the project’s mission, goals, and practical use cases. Also, don’t forget to use tools like Honeypot.is and Etherscan for a better overview of the token’s legitimacy.
Diving into a new cryptocurrency exchange platform or bot can be daunting. But AI and automation tools can help.
AI crypto trading bots have risk management tools that can contain your investments. Things like stop-loss or take-profit orders come into play. They shouldn’t have to guess; the bots just buy or sell when conditions are right. They also integrate with exchanges using secure API connections, so they should be safe.
If you want to consider the AI thing, backtesting strategies using historical data can make sure they’re secure, and you can refine them further. User authentication sounds like a no-brainer, but it’s also not common practice.
The influence of public figures can swing both ways. Public figures can capably boost the perception of a crypto exchange’s legitimacy, but being compliant with regulations is the real foundation of security. Legitimate exchanges adhere to regulations like anti-money laundering (AML) and protect user data with security features like encryption and 2FA.
On the flip side, fake exchanges usually lack compliance and security measures. And let’s be honest, public figure endorsements could lend credibility to these sketchy operations.
The fumbled merger of FTX reminds us of the risks associated with public figures, and how their involvement can spark a chain reaction of problems within the industry. So, stay sharp.
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