Fascinating Crypto Scam Case.

[wantviews]

Hey there BHW, hope y'all alive and well.

I'm an active Telegram user (best thing in the world), so i almost accidentally subscribed to a few crypto trading channels.
What is fascinating is that however everything in the phrase "crypto trading channel" screams scam, people i know actually benefited from it and they make money by incentivizing people to buy their private signals channel. So basically a win-win situation. They know shit, they know technical analysis and whatnot, so they leverage it, all good.

But at some point, half a year in, they come up with some top secret idea about a new coin, that's going to make everyone 100x. They say "I'm in touch with this crypto billionaire in Dubai, he says that this coin is going to be listed by binance in a few days, so hop on as early as you can. That is also approximately when they make the channel private and forbid forwarding messages from the channel.

Then the channel runs amok. They flood the channel with Fake screenshots (Elon Musk tweets about the coin, binance announcing that they gonna list the coin soon etc.)
And the Coin price skyrockets. Success is not that far ahead, is it? All your dreams fullfilled. Cars, Real estate, retirement..

There's only one con in this land of pros... You cannot sell it. Yeah, right. The smart contract of the coins only allows the initial issuer of the coin to sell it.

However, this channel owner is there to help. He says you can't sell it because it's for fraud protection, and he knows for sure, he was just on a call with that crypto billionaire. To sell ir you only have to... right, buy more. Then he sends a screenshot of his trade history (he's the issuer, he can sell it, DUH) and says "well that worked for me".

At first I was enraged. For two reasons. First: a great channel with good tips is no longer trustworthy. Second: They are so proactive in commiting the purest type of fraud ever, that i even wanted to file a lawsuit or whatever. I don't like that shit. But you can't deny their dedication. They did that with so many reputable channels, replicating the same fucking thing, using the same post design, same tricks. (if they just bulk bought it, then it's not that big of a scheme, but for whatever reason i think they created the channels in the first place)


So that's just a case study, also an advice to never engage in crypro related stuff until you learn everything about securing your finances, common fraud patterns etc.


Also if for any reason you want to try something like that i warn you: nothing is better than a good night sleep, without cops/conscience terrorizing you. Also, this is considered fraudulant under almost any legal system, so you will quickly find out that crypto is not as anonymous and safe as you think it is.

Have a good day.

 

[thedorf]

Interesting read. I appreciate you writing this up for us - one less scam I'll be falling into.

 

[Crypto Marketing]

There's only one con in this land of pros... You cannot sell it. Yeah, right. The smart contract of the coins only allows the initial issuer of the coin to sell it.

It's called Honeypot.

A honeypot, which is a type of rug pull, is a malicious token smart contract that has been programmed in such a way that only the owner (wallet) of the contract can remove the deposited tokens. Like a real pot of honey, your tokens get stuck and can’t leave.

Typically, memecoin and shitcoin investors become victims of this type of scam.

 

[wantviews]

It's called Honeypot.

A honeypot, which is a type of rug pull, is a malicious token smart contract that has been programmed in such a way that only the owner (wallet) of the contract can remove the deposited tokens. Like a real pot of honey, your tokens get stuck and can’t leave.

Typically, memecoin and shitcoin investors become victims of this type of scam.

No wonder this type of thing has a Name, it infected about 5-6 channels i'm subbed to. Thanks for explanation. Btw do you have any idea whether they just bulk buy it or do they grow the channels themselves? I'm asking because i want to know how big of a scheme this is. I follow many of them and they seemed to care a lot about reputation etc, it's weird how they can just sell out so easily

 

[Crypto Marketing]

No wonder this type of thing has a Name, it infected about 5-6 channels i'm subbed to. Thanks for explanation. Btw do you have any idea whether they just bulk buy it or do they grow the channels themselves? I'm asking because i want to know how big of a scheme this is. I follow many of them and they seemed to care a lot about reputation etc, it's weird how they can just sell out so easily

Yes, it's a common scam in the world of Binance Smart Chain tokens.

Think of Winnie the Pooh sticking his hand in a honeypot and getting stuck. He wants the honey, but when he grabs it to get it out, his hand won’t come out because his fist is bigger than the hole.

I'm sure these channels where you are subscribed on Telegram are channels and not groups because channels can hide their members, groups can't. So you can only see what the owner writes.

I'd say they are using fake subscribers to give you the feeling these channels are large or they bought these channels for a small fee where they already have a fanbase of crypto investors.

 

[Paul Q agency]

Almost all the Telegram channels for crypto signals are pump and dump schemes for crypto coins. Keep away from them please.

 

[randomstrings]

Crypto is some much complex that novice cant even tell what scam they are into although blcokchain is basically an open ledger, it take hardly 80 minutes to read an smart contract info file.

 

[wolfman1]

Yep, breaks my first rule of crypto … don’t lose custody of your funds.

These assholes are the reason why legitimate companies (like mine) are unable to advertise at affordable prices, and why we have such a skeptical public.

Still … it’s nothing compared to the wider scam of FTX.

 

[wantviews]

Crypto is some much complex that novice cant even tell what scam they are into although blcokchain is basically an open ledger, it take hardly 80 minutes to read an smart contract info file.

ye sure, but why would novice even have a slightest idea about that. it's almost like saying "it only takes 80 minutes to read terms and conditions" of some service. however smart contracts have a much steeper learning curve.

 

[donipadangsambian]

So that's just a case study, also an advice to never engage in crypro related stuff until you learn everything about securing your finances, common fraud patterns etc.

Thanks for sharing your experience mate. As a newbie to crypto your experience makes it clearer for me not to touch crypto until I fully understand it.