Are Crypto Scams Going High-Tech?

It is been slightly over ten years since the crypto hype hit the digital money markets and the tech savvy are taking advantage of virtual currency investors. The platforms that the investor trusts are turning against them and scamming them left, right and center.

Mt. Gox was just a tip in the iceberg and investors are quick to forget. Then the QuadrigaCX $190million scandal; a figure that was not the exchanges reserve but user funds! Well, it has been hard to explain how the funds “just disappeared” but to many it seems like a case of high-tech crypto scam.

The recent Bitfinex-Tether crypto community scare has left many investors weighing their options on whether to trust crypto exchanges or seek alternative ways to store their digital assets. Though options are not limited, the faint hearted are not sure on which exchange to trust.

How Secure is your Crypto Exchange Service Provider?

Every crypto exchange claims to have the best and secure systems forgetting that insiders have access to the same system and have what it takes to manipulate them to work on their favor. Secondly, these exchanges are business focused and owned by individuals keen on making the extra buck.

Transactions are online and prone to vulnerabilities and hackers too are getting high-tech every new day. Tether was hit on November 19, 2017 a lapse that saw $30.9 million worth of crypto disappear into hackers’ wallet.

Who is Behind the Crypto Scams?

It is not easy to pinpoint who are responsible for the disappearance of funds entrusted to crypto exchanges by the investor but most of these are inside jobs given that the funds are not insured. The anonymous nature of transactions in the blockchain industry ia what the tech savvy are using to move user funds to unknown destinations.

It is so sad that investors are losing millions worth of crypto and are not getting compensated. As long as the funds are stored in accounts that you are not in control of; the money is not yours. A single “system lapse” can mean your crypto portfolio is gone and you have zero virtual assets to show for it.

It seems like only the risk taker will thrive in the cryptocurrency market. The only digital coins that you own are what you have control over; anything else beyond that is just a mirage. These; coupled with the market volatility, appears to be making the investor use due diligence when stashing their crypto away in an exchange.



How do you rate this article?



Having fun with Crypto and AI facts.

Is AI Taking Over Jobs? No, Not Mine
Is AI Taking Over Jobs? No, Not Mine

Is Artificial Intelligence (AI) Taking Over Your Job? Time to Smile Artificial Intelligence (AI) might not make a lot of sense to most employees now but the future might not appear so bright for some workers.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.