• Cryptocurrency scams among altcoins are on the rise, with many investors losing money.
• SafeMoon may have bounced back from the scheme, but it surely influenced others.
• Syscoin joins the list of cryptocurrency pump and dump schemes executed perfectly.
• The effects of these schemes are still being felt in the industry today.

Cryptocurrencies are highly susceptible to fraud due to their high volatility and decentralization. As more altcoins (alternatives to Bitcoin) are being developed daily, the rate of fraudulent schemes is on the rise because they are the fastest way to make a profit – imagine making over 15,000% in just one day.

That sounds amazing to hear, but it mostly happens through the traditional pump and dump scheme. Pump and dump first surfaced in stocks where influencers rally around a “shitty stock” and push up the price, then sell to make a quick profit. We’ll compare the similarities between SafeMoon and Syscoin to see the level of fraud and the potential for a subsequent rise.

Syscoin Joins The Long List Of Scams

SafeMoon, a cryptocurrency that came out with high hopes of “riding to the moon,” crashed within a short time after it was linked with being a pyramid scheme. Before then, it was marketed by celebrities such as Lil Yachty.

The link came with the excess penalty for withdrawing funds. While other cryptocurrencies reduced their fees to encourage seamless transactions on and off their platform, SafeMoon increased theirs as high as 10% to discourage people from pulling out their funds.

The explanation for this was that the company wanted to reward long-term holders of the coin, but the move showed the signs of a pyramid scheme. The worst happened when the price of SafeMoon went up and fell more than 60% in just 24 hours, making investors lose money.

Syscoin, a large platform made to offer fast cryptocurrency payments and an NFT marketplace has been the subject of speculation about whether it’s a scam. In 2018, Syscoin traded as high as 96 BTC.

With Bitcoin’s price at $6,500 at that time, 96 BTC amounted to a whopping $624,000. That shocked the entire market on Binance, and Syscoin was officially delisted on the platform pending investigation. Syscoin claimed they were hacked and had since rectified the problem, but users were not buying it.

Further investigations revealed that on that same day, 7,000 BTC was moved from a Binance wallet, fuelling the speculation about Syscoin. Syscoin was also included in John McAfee’s schemes that were labeled as fraudulent by the authorities. McAfee has been charged by the government for involvement in pump and dump schemes.

On the Flipside

• Irrespective of the scams and pump and dump schemes, more people will still invest in these altcoins.
• While these altcoins offer little to no real-world value, people still see them as the fastest means to make money.
• Utrust, SafeMoon, and Syscoin may rise again due to the upgrades promised by their management teams.

Utrust and SafeMoon

Utrust and SafeMoon both promise their users unique and advanced services that will conquer the market. Utrust claims to be a digital solution that helps e-commerce users receive cryptocurrency seamlessly.

That is a good innovation, but it hasn’t yet lived up to the hype, just like SafeMoon. SafeMoon promises an NFT platform, scholarships, and charity for Africa but hasn’t achieved this yet. These promises may just be hype to get the prices of the tokens up before crashing.