Decentralization, immutability, and anonymity. These are the key elements that make cryptocurrencies attractive to investors and traders due to their numerous advantages. However, the mentioned factors are also the key reasons why they are pulling in people who are involved in crypto scams.
In this article, we will establish the reason why decentralization, immutability, and anonymity, also form an integral part of crypto scams. Knowing how they can be exploited gives you a step up in the protection of your crypto assets.
A Trip Down the Earliest and Latest Known Major Crypto Scams
Since the accessibility of cryptocurrencies for public utilization, it also brought in a plethora of crypto scams along the way. Each comes with creative ways to cheat investors and traders of this digital commodity.
The earliest crypto scandal that caught global attention was the Mt. Gox affair wherein the company lost around 750,000 units of its customer’s Bitcoins and an estimated 100,000 coins of its own from its operations between 2010 to 2014. At that time, these were valuated to be somewhere around $473 million. The Tokyo-based exchange blamed the loss on a series of hacks.
Fast-forward to the present and more notable crypto scams along the way, the industry is once again plagued with a scandal. This time, it’s Sam Bankman-Fried’s FTX, which most of you may be familiar with.
The crypto exchange was launched in 2019 and its operations peaked in 2021 during the COVID-19 lockdowns….
