👀 Protect yourself from fake cryptocurrencies created with AI⚠️⚠️
Artificial intelligence (AI) can be a great ally of cryptocurrencies, but also a threat. Some scammers use AI to generate fake names, logos, websites and graphics that look real. Their goal is to trick investors into buying their tokens and then run away with the money or cause their value to plummet.
🟥A recent case is that of NebulaNodes (NEBU), a supposed cryptocurrency that promised rewards for buying nodes on its network. NEBU was worth $40.46 at one point, but the next day it fell to $1.90, a loss of 100%1.
🟥YAM (YAM): This was an experimental cryptocurrency that was launched in August 2020 as a decentralized governance project and had a rebase mechanism that adjusted its supply based on its price. However, on August 13, 2020, a bug was discovered in the code that prevented the rebase from working properly and caused the value of YAM to drop from $167 to $0.03, a loss of 99.98%.
🟥Bitconnect (BCC): This was one of the most famous and controversial cryptocurrencies in history, as it was a Ponzi scheme that promised its investors returns of up to 40% per month. On January 16, 2018, BCC plummeted from $431 to $5.92, a 98.6% loss, after authorities shut down its platform for being a scam
🟥TerraUSD (UST): This is a stablecoin that is pegged to the US dollar and is part of the Terra (LUNA) ecosystem, a decentralized finance platform. On May 12, 2022, UST lost its peg to the dollar and fell to $0.88, a 12% loss. This also affected the value of LUNA, which plummeted from $21.50 to $0.20, a 99% drop
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