A report by blockchain firm, Chainalysis, suggests scammers stole around $7.7 billion from investors through various scams and rug pulls this year. The report said crypto scams rose by over 80 percent in 2021 as compared to 2020. While there were many run-of-the-mill scams where scammers used phishing and email scams, some cons caught the world’s attention. Here’s a list of some of the biggest crypto scams of 2021.
Biggest crypto scams of 2021
Social media influencers were among the more prominent proponents of cryptocurrencies in 2021. Many of these influencers used platform and popularity to knowingly or unknowingly promote pump and dump schemes. In this scheme, proponents typically artificially inflate the price of crypto through false advertising and relentless promotion to sell their coins and pocket the profits while investors watch their money going down the drain.
One scam that completely embodied this ideology was what happened with savethekids token. In June, an e-sports team FaZe clan’s members started promoting a charity-based cryptocurrency called SaveTheKids. The members of FaZe clan went all guns blazing…