In recent years, the rapid development of cryptocurrencies has attracted a large number of investors, but at the same time, various scams have emerged one after another. The LUNA scam evaporated $40 billion overnight, and the collapse of FTX swept away another $16 billion. These cases not only caused investors to suffer huge losses, but also put our trust in the crypto market to the test. Understanding the history and patterns of these scams can help us avoid falling into similar traps in the future. Here are the top ten crypto scams in history and their revelations:
1. PlusToken
- Time: 2018-2019
- Amount of loss: Approximately $11 billion worth of funds
- Scam model: attract investors with false promises of high returns and then abscond with the money.
2. The Squid
- Time: 2021
- Amount of loss: $3.3 million
- Scam mode: Using the popularity of Netflix (Squid Game) to quickly push up the price of the currency, and then the price instantly returns to zero, and the developer absconds with the money.
3. AnubisDAO
- Time: 2021
- Amount of loss: $60 million
- Scam model: After raising huge amounts of money in a short period of time, the funds are transferred to anonymous wallets and the project disappears quickly.
4. BitConnect
- Date: 2018
- Amount of loss: $2.5 billion
- Scam model: Under the guise of a “high-yield trading robot”, it attracts investors to buy its tokens and eventually stops paying returns.
5. WoToken
- Time: 2020
- Amount of loss: $1.1 billion
- Scam model: Under the banner of "trading robot", it expands participants through referral mechanism, which is actually a typical Ponzi scheme
6. Luna Yield
- Amount of loss: US$7 million
- Time: 2021 Yuan
- Scam mode: The funds were cleared out just two days after the project went online, and the flow of funds was concealed through the money laundering tool Tornado.
7. FSB
- Time: 2022
- Amount of loss: More than $1.3 billion
- Scam mode: Taking advantage of investors’ trust to embezzle funds, ultimately triggering market panic and causing the entire crypto market to fall into a bear market.
8. StableMagnet
- Time: 2021
- Amount of loss: $27 million
- Scam mode: Using fake smart contract code to deceive investors and subsequently transfer all funds in the protocol.
9. The Mutant Ape Planet
- Time: 2022
- Amount of loss: $2.9 million
- Scam model: Create a series of NFTs, use huge rewards as bait to attract investors, and then disappear with the money.
10. OneCoin
- Period: 2014-2017
- Amount of loss: $4 billion
- Scam model: Founder Ruja Ignatova used a Ponzi scheme to lure investors, then disappeared and is still a wanted criminal by the FBI.
Inspiration and Suggestions
1. Trust is not a guarantee: The core of all scams is the exploitation of unfounded trust.
2. The trap of high returns: The promise of sky-high returns is often the bait of a scam.
3. Due Diligence (DYOR): Understand the project team, capital flow, and the actual potential of the project before investing.
The crypto market is full of opportunities, but also hidden risks. Only by being vigilant and sober can you be invincible in this market full of temptations and traps.
in conclusion:
The future of cryptocurrency is full of possibilities, but history has proven time and again that markets lacking regulation and transparency are prone to scams. By learning from these painful lessons, we can not only better protect our funds, but also drive the entire industry in a healthier and more sustainable direction.
