Recently, internet influencers have gotten into the cryptocurrency game by promoting their own altcoin to their fans, and this has brought a lot of heat on them. People across the internet have criticized these influencers for trying to scam their fans by pushing these bad cryptos.
The list of influencers involves people from different fields from Kim Kardashian to Twitch streamer FaZe Banks, and many calling for the government to do something.
Ever since Bitcoin started to gain traction, many other developers have done their best to push their cryptocurrency to become just as valid and these cryptos are known as altcoins. Some altcoins have actually managed to gain relevancy in the financial world with Dogecoin being the prime example.
Dogecoin was created as a “meme coin” but has managed to find success as a valid cryptocurrency, but this has led to others to try and copy Dogecoin’s success which unfortunately has led to the proliferation of scams.
Pump and Dump
The term “pump and dump” gets thrown around a lot when talking about crypto scams. So what it means is when someone tries to boost the value of an altcoin by creating a lot of hype around it. You get enough people to buy your crypto, and when the money has been made, you sell off your investment for a ton of money.
hey guys! you should buy my crypto that's totally legit! i will definitely not pump and dump this! it's called $pumpndump ! it's going to the moon! 🚀🚀🚀🚀
— andrew ૮₍ ˃ ⤙ ˂ ₎ა (@kellsioh) June 29, 2021
The value of the cryptocurrency inevitably drops with investors left holding the now worthless cryptocurrency and the scammer makes off like a bandit, and it’s this type of scam that is occurring right now.
On May 26, Twitch streamer Adin Ross went on stream to promote a cryptocurrency called MILF Token. Adin Ross said on stream that the developers of this token paid him a lot of money to promote it to his audience.
2ND HAND EMBARRASSMENT: Adin Ross admits on live to getting paid to promote a pump-and-dump crypto scam. Adin tells his fans "I already told you guys, don't buy that sh*t. I got paid a bag to do that sh*t. Like, I don't give a f*ck. Hope none of you guys actually bought it." pic.twitter.com/U4Eymycb3N
— Def Noodles (@defnoodles) June 18, 2021
According to CoinMarketCap, MILF Token is worth $0.00003 a coin, at the time of this writing, with a sharp drop in worth in late May of this year. Interestingly enough, on June 18, Adin Ross himself admitted that MILF Token was a scam and hoped that no one in his audience had bought it.
Chaos in Cryptocurrency
David Gerard, who writes the cryptocurrency blog Attack of the 50 Foot Blockchain, said in an interview with Mashable, “I’ve seen threads with hundreds of people saying I lost five grand, I lost my life savings.” Many people have fallen victim to altcoin scams by listening to their favorite incluencer peddle these coins.
Me asking for my job back after losing my life savings on Crypto pic.twitter.com/sNAzpfsUCf
— 🇵🇰 #FreePalestine (@AdenGFX) May 19, 2021
SEC chairman Gary Gensler is urging Congress to enact and pass laws over cryptocurrency to protect people while other governments have taken more drastic measures against cryptocurrency, such as the UK outright banning cryptocurrency exchange Binance from operating in their country.
The country has been met with a lot of anger towards this decision but the regulator who passed this rule said the company doesn’t pass the country’s anti-money laundering standards.
It’s unknown what steps Congress will take towards these altcoins or cryptocurrency in general. Laws and regulations for cryptocurrency in the United States are still in a vague position. Cryptocurrency websites and other services continue to operate unabated despite the calls for regulation. However, the longer they wait, the more scams spread.