TOP 4 CRYPTO MINING SCAMS: BEWARE THE GREED MERCHANTS

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Top 4 Crypto Mining Scams beware the Greed
Merchants
fastactionrefund.com/cryptocurrency-scams/crypto-m
ining-scams
When you hear of crypto mining, you perhaps let
your mind wander off to the wild Western fantasy
of cowboys and adventurers shovelling dirt inside
a mountains base and sudden riches. The
analogy is not all that far-fetched. Theres a
lot of the Wild West in the crypto mining realm.
It is every bit crazy and, as of now, sans
regulation. The Wild West is where youd expect
scammers armed with audacious schemes smacking
of shenanigans and skulduggeries. Small wonder
that crypto mining scams are becoming enough of
a nuisance to justify a systematic response from
honest consumers. Top 4 C rypto Mining Scams
would be alarming, but simultaneously,
educational since tackling these, we would know
the efficacy of our vigilance. False coins,
doubtful tokens, scammy ICOs Crypto Mining
Scams A crowd of new cryptocurrencies launches
each month, and besides these new tokens and
coins comes a series of initial coin offerings,
or ICOs. The enthusiasm among a broad pool of
investors for these opportunities has grown,
despite cryptocurrencies having been drubbed in
2018. All of these factors join together to
attract scammers. After all, if investors have
plainly given proof that they are willing to
throw money toward a highly speculative
cryptocurrency, they seem to be equally likely to
invest in fraudulent tokens or
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ICOs. The prospect can be challenging for the
cryptocurrency investor looking to make the most
of the host of new investment opportunities while
remaining safe from fraudulent ICOs and sketchy
coins and tokens. What lies behind the scammy
ICO? scrutinise the Crypto Mining Scam
Team Likely the most significant success factor
for any ICO or cryptocurrency is the developers
and administrative team behind the project. The
cryptocurrency space is ruled by prominent
names, with celebrity developers like Ethereum
founder Vitalik Buterin capable of making or
breaking new projects simply by having their
names listed on a development team.
Unfortunately, hence, its increasingly the norm
for scammers to dream up ersatz founders and
biographies for their projects. The best
protection against this dishonest tactic is to
thoroughly research the individual team members
prior to your investing. Beyond resolving
whether the development team is real, its
important to make an effort to see if their
qualifications are up to scratch. For instance,
do the founders have the experience they claim
to have? Is it relevant to the current
project? Examine the token sale scammy ICOs,
crypto mining scams Any ICO will hinge upon a
token or currency system in order to ease the
crowdfunding process. Legitimate companies and
enterprises make the system itself and token
sales progress undemanding for potential
investors to view. Carefully scrutinize the token
sale figures as the ICO is ongoing. Better
still, watch the token sale over time to note
down how it is progressing. If a company makes
it unworkable for anyone to chart the progress
of its ICO, this is a prominent red flag. Dont
get caught unawares by scammy ICOs the Crypto
Mining Scam ICOs And if you want to get in with
the minimum of fuss, the easiest option for the
average person is to purchase coins or tokens in
an ICO. Theres a huge zeal for
new cryptocurrencies in the first half of 2018,
ICOs raised a total of US11.69 billion and
with many new buyers having a bare minimum
knowledge of how the crypto industry works, its
the comfiest nesting ground for scammers. Case
in point scammy ICOs, crypto mining scams In
April 2018, the Pincoin and iFan ICOs, run by the
same Vietnam-based company, are held to have
cheated 30,000 investors out of a combined total
of US660 million.
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iFan was meant to be a social media platform for
celebrities, and Pincoin vouchsafed 40 percent
monthly returns to investors. However, both were
later proved to be multi-level marketing (MLM)
scams. Android crypto-mining apps crypto mining
scams This July itself, we came to the knowledge
of more than 170 android apps d efrauding c rypto
miners. The apps were designed just to steal
money from crypto miners. The apps scammed an
excess of 93000 folks, making away with at least
350000. The swindled were buying apps and
ancillary fake updates and services. The
investigators categorized these shady apps into
BitScam and CloudScam. The apps were
undetected for a long since there was hardly any
activity they could be pinned on. Truth to tell,
these apps do not do anything at all let alone
anything malicious. How crypto mining attracted
Android app scammers Crypto mining harnesses
computer processing power to solve complicated
math puzzles that verify crypto transactions.
Miners are subsequently rewarded with a small
crypto amount. There are a couple of mining
strategies. One is concerned with mining pools,
where individuals compute to get crypto. When
cloud miners rent cloud computing power, we have
something, not unlike cloud computing. Owing to
the latters speed and simplicity, it was
relatively easy for scammers to set up a crypto
mining service. How the scams ran crypto mining
scams Most scammy apps were paid, permitting
scammers to pocket the money from app sales. The
apps also gave subscriptions and services that
could be paid for thru the Google Play in-app
billing system. Upon logging in, an activity
dashboard would appear displaying the hash mining
rate besides the number of coins they have
earned. The hash mining rate is the quantum of
computing power being contributed to the network
via mining. The hash rate would generally be
meager so as to get users to purchase upgrades
vouchsafing speedier mining rates. Investigators
found the apps display an imaginary coin balance
rather than the number of coins mined upon
analyzing the code and the network traffic. The
displayed value is just a counter gradually
incremented in the app. As regards BitScam,
users are provided with the option to purchase
virtual hardware to speed up the mining
rate. Besides, apps were also designed so that
users were not permitted to take back any coins
until they reached a minimum balance. And even
when that quantum was reached, users were not
permitted to draw back coins.
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The app would display a message to the effect
that the withdrawal action is pending. However,
unbeknownst to the user, it resets the coin
balancer amount to zero. All this without
transferring any funds to the user. BitConnect
high ranking among crypto mining scams In its
heyday, BitConnect had a market capitalization
value of close to 2.6 billion. BitConnect
collapsed on January 16, 2018. From a daily open
of 255.91, it plunged to 19.28. BitConnect
claimed they could yield up daily returns 0.5
-1. Their bot, they claimed, could take
advantage of Bitcoin volatility. In October, they
made the unsubstantiated claim that they could
generate an average daily return of 0.89 over
the preceding 6 months. Warning signs Those
considering buying into BitConnect at that time
should have spotted the following red flags
whatever you invested was tied up for between 120
to 299 days it vouchsafed assured returns on
investments in many Reddit posts, BitConnect
promoters were connected to an MMM or a Ponzi
scheme a profitable affiliate program drive
their platform.