- Cryptocurrencies are booming, and new people are looking into them.
- Coins like the One coin and FLik have ruined cryptocurrencies rep.
- Checking if a coin has a blockchain could help you avoid scams.
Cryptocoins that give cryptocurrencies a bad name
This season has been a great one for cryptocoins like Bitcoin, XRP, and Ethereum as they have soared to new heights amid Government lockdowns. Lockdowns have forced people to turn their investments online and see what the virtual world has to offer.
While people search the web to understand what the hype about cryptocoins is about, they may stumble upon the BBC’s documentary on the missing crypto queen on a ponzi crypto scheme or uncover the famous scandal rapper TI’s crypto scam. For a newbie stumbling upon scandals that spell out disaster for your investments is not going to encourage you to dive into the unknown.
It is essential to expose and shame the coins out there that have tainted the cryptocurrency industry so that people know what not to invest in. Genuine crypto coins are there to enjoy once you overlook the rubbish that has come and gone.
There are some notable qualities from the fake crypto queen coin called the One coin and TI’s coin, FLik, that can help us identify the genuine coins and the ones which are not.
Rapper T.I. was supposedly sued for promoting a crypto coin FLik as it was fraud. 25 individuals said they had invested over one million dollars in the coin.
The rapper had used social media and celebrity endorsements to promote the coin and mislead people.
The One Coin is receiving a lot of publicity of late due to the BBC’S Missing Crypto Queen podcast. In the Crypto Queen podcast they look for the founder of the One Coin who got thousands to invest in the coin and then ran away with their money.
Ruja Ignatova publicized her coin as a rival to Bitcoin. The BBC discovered that people expended almost $40 million on the One coin by the first half of 2016. Between 2014 and 2017, almost five billion dollars was invested in many countries; China being the main one. The company did not have a blockchain.
How to spot fake cryptocoins
The most obvious thing to do when working out if an investment is worthwhile or not is to look at the news out there about it. If no one is profiting from then, get out, but if the coin is brand new, the best thing to do is look at the company’s reputation.
Wise investors are very responsive to the reputations of companies. Facebook tried to launch the Libra, which Governments do not want to permit into their country, given Facebook’s poor reputation with preserving data. Libra has had to distance itself from Facebook.
As a consumer of crypto, you must be as diligent as Governments are. In the case of a coin like Bitcoin which is doing so well but we do not know who the founder is, there are security and transparency in the process which we can lean on.
Blockchain erupted because of Bitcoin and there is information around how to operate this and it is clear it is an effective system. The last way to check if a coin is genuine is to check how each coin is created.
The best way to make sure a coin is legitimate is to investigate all of the above. There are many great coins for the taking and as news is so frequent, it is possible to find up to date information on whatever coin you choose. Let the coin games begin, choose wisely.