$14 billion in cryptocurrency was scammed in 2021.
That’s an increase of 80% than last year.
Web3 created bountiful opportunities for entrepreneurs and cryptocurrency users.
But it also left ajar crypto’s pandora box.
Here are 6 interesting scams to date.
- Beanie, aka Charles Moscoe, was called out for taking part in various frauds and scams. He was an NFT influencer, advisor, and investor for projects like Pixel Vault and Wolf Game.
- It was said that he siphoned $40 million (12,500 Ether) and made $16 million unrealized gains, but Beanie denied all charges.
- Wonderland (@Wonderland_fi)is a decentralized reserve currency protocol, offering 80,000%+ APY. They hired Sifu (@0xSifu),an ex-felon who oversaw their treasury — but his identity was never disclosed to the community.
- Sifu sent $8.4 million to his own wallet to use as collateral to prevent liquidation. A move that fell through since TIME tokens plummeted from its peak of $10,000 to $335, after several mass liquidations.
- Sushiswap (@SushiSwap)is a DEX based on the Ethereum network. In September of 2020, founder Chef Nomi (@NomiChef) sold $13 million of tokens. Droppingthe value of SUSHI tokens from approximately $4.44 to $1.30.
- After huge backlash, Chef Nomi returned $14 million in ETH, apologizing to the community.
Squid Game Token
- Squid Coin (@SquidGameToken) was launched on November 1, 2021, inspired by a famous Korean series, Squid Game (to be clear, the coins had no affiliation with the series).
- The price hiked up to $2,861per coin, and once the currency skyrocketed, developers cashed out $3.3 million, dropping the currency value to $0. A classic ‘rug pull.’
- MonoX (@MonoXFinance)is a new DeFi protocol launched in October 2021.
- $31 million in cryptocurrency was lost because of a smart contract bug. Hackers inflated the price of $MONO tokens and used it to cash out all other deposited tokens.
- To all Minecraft lovers, this scam hit hard. Blockverse (@Blockverse_NFT) was considered “an on-chain Ethereum NFT that enables a unique P2E (play-to-earn) on Minecraft…”
- After earning $1.2 million in tokens, the creators deleted their website, game server, and official Discord. While they still claim that they’re not an exit scam, users believe otherwise.
Companies to Watch: