Cryptocurrency investors are experiencing devastating losses in these last few weeks, and it only continues to grow worse. This is after reports came in that Elon Musk impersonators have gotten away with over $2 million in cryptocurrency scamming in the last six months alone.
There has been a lot of activity with the cryptocurrency market in recent times--particularly with Tesla canceling their Bitcoin transactions, the Dogecoin quest for $1 value, and the Ethereum prediction for a huge boost. Notably, two of these three news centers on the business magnate.
Musk is a long-time supporter of the cryptocurrency industry. He has tweeted on multiple occasions about the topic and even invested in both Bitcoin and Dogecoin through his Tesla and SpaceX, respectively. However, it is also because of these events and Musk's sudden pullback that both cryptocurrencies experienced a sharp price drop. As a result, millions of investors found themselves at a loss and disappointment at these recent events.
Investors are working hard to make up for their losses. Some take risks in new investment opportunities to double their money. Unfortunately, most of these appear to be bogus scammers.
Fake Elon Musk $2 Million Cryptocurrency Scam
Cnbc reported that bogus opportunities and scammers are using every trick to pry money from people. Most recently was the news on impersonators of Elon Musk. These scammers have a strategy using a "Giveaway to multiply" cryptocurrency that investors give them.
With Bitcoin's erratic rise and fall, and especially for beginner investors who are unaware of cryptocurrency's nature, the prospect of earning profit by leaving their money to the hands of the professional seemed like a good choice. Unfortunately, these scammers quickly pocketed the money and went away with it.
Federal Trade Commission and Tips to Stop Swindlers
The Federal Trade Commission (FTC) is warning investors about these scamming strategies. They reported that approximately 7,000 people has lost more than $80 million on these scams. While cryptocurrency is an investment that generally involves taking risks and preparing yourself to take losses, scamming should not be condoned in the industry.
Unfortunately, as of time of writing, these scammers have not been caught. They continue to blend well with the cryptocurrency territory because it remains an unstable and dynamic environment. The cryptocurrency money and its scammers are hard to track.
Therefore, FTC issued a few tips and guidelines to avoid being scammed. Primarily to be weary on online people who appear to be friendly with exciting new "tips." This could mark the start of their ruse to get your money. To play it safe in the cryptocurrency market, keep these tips in mind:
- Promises for huge gains and returns where your cryptocurrency would be multiplied twofold or more is always a scam.
- Cryptocurrency is an investment. An investor works to earn these coins and sell them at a higher price. Do not trust people who say they know a better way.
- Consult with professionals who have years of experience in trading instead of a random caller, love interest, or organization who say they know better about the cryptocurrency.
