The exponential growth of the crypto industry has given way to a hoard of new millionaires and success stories, but things aren’t all dandy in this market. Cybercriminals have noticed the “get rich quick” trend around cryptocurrency, and have capitalized on this desire. This has given way to a lot of crypto-related cybercrime, including scam tokens.
So what is a scam token, and how can you spot one?
What Is a Scam Token?
A scam token is a cryptocurrency that is launched for the express purpose of stealing investor funds. These are often developed on a pre-existing blockchain, such as Ethereum, as it’s easier for a cybercriminal to do this instead of developing an entire blockchain.
Scam tokens are usually created as a vehicle through which a rug pull can be carried out. This scam generally involves developers pulling the plug on a project and hitting the road with the money investors put into a token that they assumed had promise.
Because cryptocurrency is highly unregulated, it’s easy for scammers to create and promote a token without any kind of license or credentials. In the crypto world, a token can become hugely successful in a matter of days and remain highly profitable in the long run, so investors are often looking for assets that are likely to blow up.
Say a crypto was worth $1, but it is suspected this price will exponentially grow in the near future. An investor will buy a small or large amount of these…
