Crypto Projects in 2023: Good Investments?

The crypto community is susceptible to scams because of the trust members have in the blockchain. There is a persistent lack of regulatory monitoring in the business, which allows for opportunists to exploit investors in various ways. More bitcoin frauds have been reported recently than in prior years, reflecting the industry’s rapid expansion.

Cryptocurrency-related scam enterprises are unfortunately widespread, but they are also preventable. Before putting money into a venture, it’s vital to learn as much as possible about it.

Financial loss may be avoided, especially by amateurs, if they know what to look for and where to seek for it.

In this article, we will be talking about crypto projects that turned out to be scams, ways to spot scams, and how you can save yourself from losing money from these crypto bandits.

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Why should you be wary of crypto scams?

Crypto Projects in 2023 - Crypto scams

There has been a rise in the number of crypto-related scams and frauds that promise substantial returns on investment. You should use healthy skepticism and DYOR (do your own investigation) before committing any funds to a project or website.

Because those blockchain transactions are untraceable and permanent, victims of fraud may be out of luck when it comes to getting their money back.

What are some red flags to watch out for?

The following are some guidelines for recognizing potential crypto-related scams:

  • It’s more probable that a project is a fraud if it promises rewards and returns that are out of this world.
  • A huge number of people contributing to a project is not always indicative of its legitimacy. Remember that it is possible to use of sham profiles to artificially inflate statistics.
  • No one should invest in a project only because their buddies think it’s a good idea.
  • Such projects may present themselves as in collaboration with large corporations. For confirmation, always check the affiliated websites.

Crypto Scam Projects

Well then, let me give you some notable examples of crypto scam projects.

Bitconnect

BitConnect, created by Satish Kumbhan, was a cryptocurrency-based loan and trading platform. There was a lot of buzz about it and it promised substantial gains.

The investor Carlos Matos made what can only be characterized as an extremely exuberant performance, shouting about BitConnect, during BitConnect’s annual ceremony in 2018, turning the event into a meme.

Unfortunately, BitConnect quickly gained a reputation as a possible Ponzi scam. Authorities accused BitConnect’s creator of running a $2.4 billion worldwide Ponzi scam in February 2022.

SQUID Token

The SQUID token, inspired by the hit Netflix comedy Squid Game, was marketed as a currency for entry into a virtual gambling platform. The token’s sham link to Squid Game gave it an air of legitimacy, even though it bore no official stamp of approval from the show itself. Investors hurried to get in on the action after seeing the event for the first time.

Investors were seeing returns of 100% and more as the token’s value skyrocketed. They were disappointed to learn that they couldn’t liquidate their SQUID tokens.

Investors in the SQUID token lost a total of $3.36 million when the token abruptly vanished. Within a few of minutes, the token had become completely worthless.

Orfano Tokens

Orfano coin, whose proceeds were supposed to help orphans in developing nations, was the first cryptocurrency with a social mission. They put their money into it because they believed in its good intentions.

However, it turned out to be a scam, and the whole thing was scrapped.

A short time later, Orfano’s creator, Hanad Hassan, unveiled a second token called OrfanoX.

So, you guessed correctly; it was just another con.

The craziest part is that Hassan was successful in getting BBC to promote it with an article and a documentary. We Are England: Birmingham’s Self-Made Crypto-Millionaire was due to run, but thankfully, the documentary was yanked hours before airtime.

Day of Defeat

Those who have Day of Defeat tokens will benefit from a “10,000,000X price rise,” as was originally advertised. That’s too good to be true, right? Indeed.

The final cost of this project was above budget by almost $1.3 million. Nobody trusted the project team when they said they’d been hacked.

The terrible part is that all the signs on the Day of Defeat website pointed to it being a fraud, but many still fell for it because of the high profits it promised. This project’s team, for instance, lied in the frequently asked questions area by saying they wouldn’t dare touch the pool fund, but they ultimately did.

Evolved Apes

The Evolved Apes NFT collection was a preview of a future play-to-earn game in which players would utilize these NFT characters in battle for the chance to earn rewards.

Because of how eager buyers were, the initial supply of Evolved Ape NFTs ran out in just ten minutes.

A week after the original drop, with the game’s promise still unfulfilled, the creator withdrew 798 ETH and vanished, erasing all traces of his online presence. This was a classic example of a fast NFT scam that caught everyone off guard.

Baller Apes

Le Anh Tuan released the Baller Apes NFT line, which quickly became popular among consumers and retailers alike. Tuan, however, fled with the funds and the project website was taken down shortly after the collecting drive went live.

In June 2022, he was accused of defrauding investors of over $100 million using cryptocurrency schemes.

Notable Crypto Scams

Crypto Projects in 2023 - Crypto scams 2

For this section, we will be looking at some cases that happened recently where bandits ran away with people’s money.

Axie Infinity hacked

Ronin is the Ethereum-based sidechain on which Axie Infinity operates, and it was found in March that there was a vulnerability in the system.

The vulnerability was made possible by a modification in December that Sky Mavis had intended to be temporary and which loosened security measures. After months of waiting, the hackers finally took advantage of the situation because nothing had been rolled back.

How did Sky Mavis figure out hundreds of millions of dollars were missing? A customer sought to make a withdrawal, but the funds were no longer available.

Players of Axie Infinity, a play-to-earn crypto game, must first invest in the game by purchasing highly valuable NFTs. Players that invest in the game with these NFTs stand to win actual crypto currency as a result of their in-game actions.

Users who can’t afford the NFTs sometimes become entangled in predatory “scholarships” that oblige them to divide the earnings with other users who lend out these expensive NFTs that are required to play.

Yet, play-to-earn games like Axie Infinity have gained popularity in places like the Philippines because players may earn the local wage equivalent while playing. Regrettably for those users, the breach rendered their money unavailable.

Since then, Axie Infinity has collected US$125 million to repay its customers for their stolen monies. Yet that’s a nothing compared to the $625 million they lost. And they’re probably never going to see a dime of that cash again.

The United States government has determined that hackers operating out of North Korea are responsible for the breach.

Logan Paul’s CryptoZoo fiasco

Fans of Logan Paul may participate in CryptoZoo by purchasing an NFT of an egg, which would hatch into an animal with one of five rarity levels.

Hybrids can be produced from these species, and the resulting eggs will hatch into new hybrid creatures. Tokens called $ZOO are produced when animals are hatched, with a positive correlation between rarity and token production.

According to CryptoZoo’s product plan, Paul assured supporters that their pets will be able to “join the metaverse” and participate in video games. The majority of the product roadmap’s objectives, however, have not been completed.

To explain what went wrong with CryptoZoo, independent journalist Coffeezilla launched a three-part video series at the end of December. Paul, it turned out, had hired a team of scam artists to help in the endeavor.

This isn’t the first time that Logan Paul was involved in a scam, though.

In July 2021, Paul was accused of pushing the “shitcoin” dubbed Dink Doink, which quickly lost all of its value.

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Final Verdict – Crypto Projects in 2023

Investing in crypto projects in 2023 is very risky. It has been proven time and time again that scammers have infiltrated the space. In fact, I see more scam projects than legit ones. Or rather, I haven’t really found a crypto project that I actually have confidence in.

Because of a lot of failures and flops I have mentioned in this article, a lot of people finally realized that this space can easily be infiltrated by scammers looking to make a quick buck. And since everything is unregulated and encrypted, it is quite hard to hold these people accountable.

Instead of investing in these risky, more than often scam projects, I suggest you get into my recommended opportunity instead. It is definitely not a scam, you can start it anytime, and it is guaranteed to work as it already did for thousands of people already.

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