Blockchain technology has been the buzzword for a few years now, and its impact has been felt in various industries ranging from finance, healthcare, supply chain management, to voting systems. It is the backbone of cryptocurrencies such as #bitcoin and #Ethereum and its potential applications are limitless. With the growth of the blockchain industry and the increasing number of blockchain-based startups, investing in blockchain technology has become a hot topic. However, before investing in blockchain, it is essential to understand the technology behind it and how it works. In this article, we will discuss why it is important to think smart and learn blockchain before investing in it.

What is #blockchain technology?

Blockchain technology is a decentralized, digital ledger that records transactions in a secure and transparent manner. It is a distributed ledger that is maintained by a network of computers rather than a central authority. Each block in the blockchain contains a set of transactions, and once added to the blockchain, it cannot be altered or deleted. This makes the blockchain tamper-proof and secure.

Why is it important to learn blockchain before investing in it?

Understanding the technology

Blockchain technology is complex, and it is essential to understand how it works before investing in it. Learning blockchain technology will help you understand how transactions are recorded, verified, and validated on the blockchain. You will also understand the difference between public and private blockchains, smart contracts, and consensus mechanisms. With this knowledge, you will be able to make informed decisions on the blockchain projects you choose to invest in.

Identifying potential use cases

Blockchain technology has the potential to disrupt several industries, and understanding the technology will help you identify potential use cases. With this knowledge, you can invest in blockchain-based startups that are solving real-world problems, creating new business models, and driving innovation.

Risk management

Investing in blockchain technology comes with risks, just like any other investment. Learning blockchain technology will help you understand the risks associated with investing in blockchain-based projects. You will understand the risks associated with cryptocurrencies, such as volatility and regulatory risks. You will also be able to identify potential #scams and fraudulent projects and avoid them.

Keeping up with the market

The blockchain industry is fast-moving, and new projects are launched every day. #LearningIsImportant blockchain technology will help you keep up with the market trends and understand the latest developments in the industry. You will be able to identify promising projects and invest in them before they become mainstream.

Conclusion

Investing in blockchain technology can be a rewarding experience, but it is important to think smart and learn blockchain before investing in it. Understanding the technology behind blockchain will help you make informed decisions, identify potential use cases, manage risks, and keep up with the market trends. With this knowledge, you will be able to invest in blockchain-based projects that have the potential to disrupt industries, create new business models, and drive innovation.

As #cryptocurrency gains more popularity, the number of #scams and fraudulent crypto projects continues to rise. Spotting these scams is crucial to protecting yourself and your investments in the crypto world. #antiscam

Here are five key things to look out for when evaluating a crypto project to avoid falling victim to a potential scam.

Lack of transparency: It's essential to look for a project that is transparent about its team, mission, and goals. If a project's website lacks this information, it's likely a red flag.

Unrealistic promises: Many crypto scams entice investors with promises of overnight riches or guaranteed high returns. If something seems too good to be true, it probably is.

Lack of technical details: A whitepaper is a standard requirement for any legitimate crypto project. If a project's whitepaper is lacking, it's a sign that the project may not have a solid foundation.

False endorsements: Some crypto projects may falsely claim endorsements or partnerships with well-known companies or individuals to gain credibility. It's essential to research these claims and ensure they're legitimate before investing.

Suspicious token distribution: A disproportionate token distribution heavily skewed towards the project's founders or early investors is another red flag. It may indicate that the project is more focused on enriching its founders rather than building a sustainable product.

When it comes to #investing in cryptocurrency, it's essential to remain vigilant and evaluate crypto projects carefully. By keeping an eye out for these five warning signs, investors can avoid falling victim to fraudulent projects and scams, and protect their investments in the rapidly evolving world of cryptocurrency. #CoinGabbar

The FTX Group announced on Monday, March 6th, that it is suing Michael Sonnenshein, the CEO of Grayscale Investments, as well as Barry Silbert and his Digital Currency Group. The release states that FTX's Alameda Research is attempting to recover at least $9 billion that Grayscale has locked up.

Grayscale has violated the Trust agreements by collecting over $1.3 billion in extortionate management fees alone in the last two years.

For years, Grayscale has sheltered behind fabricated justifications to thwart shareholders' attempts to redeem their shares.

The Trusts' shares are currently selling at about a 50% discount to Net Asset Value as a result of Grayscale's activities.

The FTX Debtors' shares would be worth at least $550 million, or almost 90% more than their present value, if Grayscale cut its costs and stopped unjustly impeding redemptions.

FTX debtors are asserting that Grayscale is in violation of Trust Agreements and Fiduciary Responsibility. Also, they want the outrageous fees that, according to a press release, have already made Grayscale $1.3 billion over the last two years reduced. Moreover, John J. Ray's team asserts that the Grayscale Bitcoin Trust's substantial trading disadvantage is the result of the DCG Subsidiary's actions.

Grayscale has allegedly been hiding for years behind fabricated justifications to stop stockholders from redeeming their shares, according to the complaint. Read from the announcement, the current CEO of FTX, John J. Ray III, said that his team;

"continues to use every tool we can to maximize recoveries for FTX customers and creditors, goal is to unlock value that we believe is currently being suppressed by Grayscale's self-dealing and improper redemption ban."

He said that the decision will benefit Grayscale's investors as well as FTX's debtors.

#ftxcollapse #sbf #alamedaresearch #crypto2023 #scams

In a major development on March 15, 2023, Ho Wan Kwok, also known as “Miles Guo,” was arrested in New York City for his alleged involvement in a $1 billion fraud conspiracy.

The United States Attorney for the Southern District of New York, Damian Williams, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), announced the unsealing of a twelve-count indictment charging Ho Wan Kwok and Kin Ming Je, also known as William Je, with various charges such as wire fraud, securities fraud, bank fraud, and money laundering.

According to the charges in the indictment, Ho Wan Kwok, along with Kin Ming Je, solicited investments in various entities and programs through false statements and representations to hundreds of thousands of Kwok’s online followers. The indictment claims that Kwok and Je misappropriated hundreds of millions of dollars in fraudulently obtained funds during the course of their conspiracy.

The charges also allege that Kwok lied to his victims and promised them outsized returns if they invested or provided money to GTV, his so-called Himalaya Farm Alliance, G|CLUBS, and the Himalaya Exchange. Kwok is further charged with laundering hundreds of millions of stolen funds to conceal the conspiracy’s illegal activities and continue the fraud’s operations.

Kwok and his accomplices are accused of obtaining over $262 million in victim funds through the Himalaya Exchange, which claimed to be a cryptocurrency “ecosystem.” The exchange featured a stablecoin called the Himalaya Dollar (HDO) and a trading coin called Himalaya Coin (HCN). Kwok touted the exchange’s prospects and valuation through social media, falsely stating that HCN was backed by 20% gold and promising to compensate anyone who lost money.

The initial coin offering of HCN and HDO occurred on or about November 1, 2021. HCN’s value skyrocketed by 26,900% in two weeks, reaching a total value of approximately $27 billion. Kwok’s associate, JE, falsely claimed to media outlets that a €3.5 million Ferrari was purchased through the Himalaya Exchange, but in truth, a Himalaya Exchange employee sent the Ferrari broker an international bank wire to cover the cost, while creating the false appearance that the purchase was made using HDO to promote the exchange.

Mr. Williams announced that the U.S. government seized approximately $634 million from 21 different bank accounts between September 2022 and March 2023. The $634 million constitutes proceeds of Kwok’s alleged fraud, which the government will seek to forfeit. Today, law enforcement also seized assets that were purchased with proceeds of Kwok’s alleged fraud, including a Lamborghini Aventador SVJ Roads.

Kwok was arrested on March 15, 2023, and will be presented in court. On the other hand, Kin Ming Je, who is Kwok’s financier, is currently at large.

#Kwok #Milesguo #scams

This article was republished from azcoinnews.com

The Twitter account of American music producer and DJ Steve Aoki has been compromised and used to conduct a phishing scam that led to the loss of at least $170,000 worth of crypto assets.

According to a Friday tweet by on-chain sleuth ZachXBT, the attacker utilized their illicit access to Aoki’s account to execute the scam by falsely claiming that the musician had joined the $PSYOP token train and giving a link for users to claim free tokens.

Twitter Users Lose $170K to Scammers

Shortly after scammers posted the airdrop link using Aoki’s account, crypto influencer @eth_ben, retweeted the phishing scam post for “clout,” according to ZachXBT.

As a result, some Twitter users who clicked on the link to claim the free tokens ended up losing about $170,000 in ether (ETH) to the scammers.

Congrats to @eth_ben who decided it was a good idea to quote tweet a phishing scam posted by the compromised @steveaoki account for clout causing his followers to lose around ~$170k

0xFB2E132751628025D94a17245288364cd62532D0 pic.twitter.com/ih7e0cgjhU

— ZachXBT (@zachxbt) May 26, 2023

Phishing Scammers Targeting Crypto Users

Phishing scams are a common form of social engineering where attackers trick users into revealing their login credentials. Once the attackers obtain this information, they can access the victim’s accounts and potentially glean additional sensitive data.

The Aoki Twitter scam follows a series of sophisticated phishing frauds that have targeted crypto investors in recent months.

In February, CryptoPotato reported that hackers targeted the Ethereum Denver website to post a phishing link to dupe users out of their crypto. However, the threat was quickly detected by crypto security firm Blockfence.

A few months ago, blockchain-based metaverse company The Sandbox stated that an unauthorized third party managed to gain access to the computer of one of its employees and used the information it found to send an email falsely claiming to be from The Sandbox.

As the number and scale of cryptocurrency-related phishing scams continue to climb, investors must prioritize security and vigilance in managing their digital assets.

#scams #steveaioki #crypto #ETH

The development of the #crypto  industry has been accompanied by an increase in the number of theft #scams and “rug pulls,” both of which continue to be an issue. 

Notably, malicious actors were responsible for the theft of $313 million from DeFi during the second quarter of #2023, according to the Q2 2023 Web3 Security Report shared with Finbold on July 5 by Web3 security company CertiK.

Over one hundred incidents occurred on the #BNB Chain, resulting in user losses of roughly $71 million. Ethereum reported approximately 55 events, which resulted in user losses of approximately $66 million. 

While Avalanche had just one occurrence that resulted in a small loss of around $3,500, Arbitrum had 14 separate incidents that resulted in damages of almost $14 million, while Polygon was subject to four occurrences, which resulted in approximately $2.4 million being stolen.

2023 Q2 statistics by chain. Source: CertiK

Although the most recent statistic is quite similar to the losses sustained in the preceding quarter, it indicates a 58% decrease from the enormous $745 million lost over the same period in the previous year.

The data also showed an increase in exit scams, popularly known as “rug pulls” in the cryptocurrency industry. These scams are responsible for tripling the amount of money lost by investors, although other forms of assaults, such as flash loans and oracle manipulation vulnerabilities, witnessed a decrease.

Surge in exit scams — #rug pulls

Flash loan and oracle exploits have been mitigated thanks to implementing better security mechanisms in DeFi protocols, such as decentralized oracles and built-in defences. This might possibly result in a lower success rate for these types of attacks.

A stunning 98 exit scams were reported during the second quarter, resulting in an almost $70 million loss for unwary investors. This is a significant increase compared to the $31 million lost due to rug pulls during the first quarter.

2023 Q2 statistics by type. Source: CertiK

As it becomes more difficult for these assaults to be successful, digital criminals are resorting to different techniques, such as rug pulls.