Trading in cryptocurrencies is highly risky and they’re extremely volatile. Since there are no regulatory backups in cryptos, chances are they are also highly vulnerable to frauds and scams. A new debate has sparked after DOGE co-founder Billy Markus claimed that 95% of the cryptocurrency projects are scams. This even grabbed the attention of the world’s richest man, Elon Musk who likes Dogecoin and has been vocal about it. There are some popular frauds that have been used as a medium to rob crypto investors.
Through his Twitter account, Billy Markus, co-founder of Dogecoin (DOGE) said, “the reason why people think crypto is 95% scams and garbage and most crypto people are assholes is because crypto is 95% scams and garbage and most crypto people are assholes.”
He added, “let’s change that. it starts with you – what you support, and how you behave.”
To which, Musk replied with a laughing emoji. Tesla and SpaceX CEO Elon Musk has shown his likeness for Dogecoin since early 2021. Musk has been occasionally replying to Markus tweets.
Earlier on May 13, Markus tweeted saying, “the reason i like dogecoin is because it knows it is stupid.” To which Musk had replied saying, “It has potential as a currency.”
Created by Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia, Dogecoin (DOGE) is based on a popular internet meme ‘doge’, and also features a Shiba Inu on its logo. It is an open-source digital currency. Since it has a dog meme, Dogecoin’s founders believe the coin is a fun, light-hearted cryptocurrency and has the potential to attract beyond the core Bitcoin audience.
Unlike Bitcoin, Dogecoin has a block time of 1 minute and its total supply is uncapped. That means, there are no limitations in the number of mining of Doge. An investor can even mine Doge either individually or by joining a mining pool. Bitcoin has a mining limit of 21 million.
As per Coinbase’s real-time performance data, currently, Doge is trading at $0.0874 rising by more than 1.33%. Its trading volume has risen by more than 12% to $394.6 million in the last 24 hours. As of now, it has a market cap of $11.6 billion.
However, following the crypto crash since the start of this month, Doge too has faced the heat. In a month, Doge has dropped by over 35%. However, in a year, the downside is nearly 72%.
In its second version of the semi-annual transparency report for 2021-2022, WazirX revealed that 95% of the scams in cryptocurrencies originate from outside the on-chain crypto ecosystem.
In its report, WazirX highlighted four types of popular frauds in cryptocurrencies.
1. Impersonation Scams: With the rise in social media, imposters are successfully leveraging their reach to connect with VDA users. This is done by assuming the identity of a famous and credible individual from the VDA industry. As a result, the victim is lured to transfer the demanded amount to the imposter’s account.
2. Social Engineering Scams: There has been quite a growth in LEA requests pertaining to social engineering scams. Social engineering attacks are usually conducted through emails, phone calls and even text messages. Under various pretexts ranging from credit card expiry to bank account validation, the scammer tends to flag off a sense of urgency and fear with the aim to push victims to take action without careful assessment.
3. Identity Theft: With the changing nature and technological advancements in business and trade, users’ personal identification becomes extremely crucial in delivering services. In the case of ID theft a scammer wrongfully obtains and uses another person’s personal data with the intention of fraud or deception, typically for economic gains.