- The Crypto Room is turning out to be another crypto scam.
- Mikey follows typical ‘Pump-and-Dump’ scam pattern.
Crypto scams are nothing new. As the crypto industry goes through puberty, the scams are hard to identify and even harder to prosecute. Crypto-related rules and policies are still under construction, making scammers more brazen in their attempts to defraud investors.
From Telegram channels that artificially inflate any crypto’s price to slick scammers masquerading as YouTube crypto experts, the crypto scams are getting elaborate every day. And they are not at all shy about it. So much so that crypto scams peaked in 2021 and involved serious crimes including money laundering.
However, it’s the pesky low-key cryptocurrency scams that often go unnoticed till they balloon into something awful. Here at CP, we believe it’s crucial to identify scams before they snowball into an industry-wide fraud.
Unearthing The Crypto Room
One such crypto fraudster hiding under the garb of the YouTube channel ‘The Crypto Room’ is Mikey. Typical of any other scam, he makes random crypto-related videos discussing superfluous topics featuring crypto jargon. Mikey pretends to be a crypto guru and uses click-bait-laden videos to attract a gullible audience. On the face of it, his channel aims to offer insight into the crypto realm with daily news, industry updates, and investment advice. Mikey wants to teach his viewers everything about crypto.
However, his real aim is to lead the viewers to his fraudulent schemes often involving absurd returns. This seems typical but let’s get into more details and make things interesting.
The Crypto Room has all the characteristics of a scam. First, there’s a self-proclaimed crypto guru who preaches about coins with intricate details. Second, the coins are often relatively unknown or newly launched offerings and he mentions superfluous details that serve merely to excite the viewers without any concrete backing. Third, Mikey involves the audience with absurd investment proposals promising unbelievable returns within a short period in the same fly-by-night crypto coins.
And if that’s not enough, his videos often end with unrealistic investment pitches typical of a pyramid-marketing scam model.
Beware of Crypto Scams
At Cryptopolitan, we believe there’s no smoke without fire. Over the course of many years, we have seen quite a few scams that demand timely warnings to the crypto realm.
A user recently deposited money to ‘The Crypto Room’ and in return, Mikey promised a video review for the client. However, despite repeated attempts, the YouTuber is not honoring promises and has cut off the client. The details of the transaction are as follows:
So, not only is Mikey indulging in unsolicited crypto investing advice but also spreading misleading claims about crypto reviews. His news and crypto updates are already credit-worthy and often hamper investor’s interests. It could be only a matter of time before he gets involved in something big that would eventually lead to his downfall.