The stage is set. The market is bullish and looking to repeat the 2017 wonder. While for many holders the year was a blessing as they saw their investment grow exponentially, some had a different story. Unfortunately, it was the same year that the number of crypto scams skyrocketed. Now as the market prepares to receive the same hype and achieve the same results, market analyst and bitcoin evangelist Andreas Antonopoulos is warning that the scams are coming back. He has indicated that the scammers are coming back purporting to be genuine ICOs and IEOs.
Scammers Taking Advantage Of FOMO (Fear Of Missing Out)
As the market continues to climb, many investors especially newcomers will begin experiencing FOMO. During the bear market, the scammers were away since not many wanted to be associated with the industry. Now, however, as the market picks up pace, many will want to get back in the crypto world. Some will find prices have rocketed making it nearly impossible to make good profits. This will see many get attracted to ICOs and IEOs that are coming up.
Antonopoulos noted in a tweet:
“Just FYI: The ICO, IEO, “influencer marketing,” endorsement, “advisor” etc. emails and DMs have started flooding in again. People are offering me (and many others) $25k to $250k for endorsement, review, tweets, etc. I say no, many say yes. SCAMS are coming. Be careful,”
Antonopoulos advice his readers to be aware of any scam including Ponzi schemes and pump and dumps. In a recent event (Blockchain Week 2019 in Hong Kong), the analyst had noted that event organizers had invited influencers and models to exert influence and attract guests. Their use of influencer did not thrill the analyst and nearly caused him to cancel his attendance.
Investors Are Smarter This Time
Although some investors will be caught in the scams, the number is unlikely to be as high as it was back in 2017. At the time, crypto adoption was low and very few people knew about ICOs and IEOs. Scammers could make up anything and by ending it with a promise of astronomical returns would get naive investors. This time though, many have a basic understanding of the industry and can easily tell the bad from the good.
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