Come learn and share about bitcoin mining at The Milwaukee Bitcoin Meetup event.
Thursday, January 26, 2023
7 of the Biggest Bitcoin Crashes
Bitcoin (BTC) was launched in 2009, becoming the first cryptocurrency ever. Since the early years, the stories of fortunes made by investing in Bitcoin have been part of the crypto world’s allure. However, reports about fortunes lost overnight because of Bitcoin crashes are seldom told.
After more than a decade of existence, Bitcoin’s price still suffers from a lot of volatility. Although the bear market of 2022 caused a massive depreciation of this digital asset, it is far from the only Bitcoin crash in history. In this article, we recount seven of the worst Bitcoin crashes.
Bitcoin Flash Crash in 2011
2011 looked like a promising year for Bitcoin. This cryptocurrency crossed for the first time the psychological mark of $1 in late April. The first-ever Bitcoin rally took place in the following months, taking this asset’s price to $32 on June 8, 2011. But this joy was not long-lived. On June 19, the now-defunct Mt. Gox, a Japanese exchange trading most of the Bitcoin at the time, admitted that hackers had stolen 850,000 BTC from hundreds of accounts on its platform. This event raised concerns about the security of Bitcoin stored on exchanges. As a result, the BTC price plummeted to $0.01 in a single day. Luckily, it was a flash crash only.
The price loss was -99.9%
Bitcoin Crash in 2013
In 2013, Bitcoin was already a successful cryptocurrency. It was an effective payment method, and many enthusiasts considered it a highly profitable investment opportunity. In April that year, Bitcoin trading was quite intense on Mt. Gox to the point that the exchange’s servers could not handle such a high transaction volume. When the platform crashed, hackers took advantage of the vulnerability and attacked. For the first time, Mt. Gox went into a total shutdown, sending the BTC price from around $260 to $50.
The price loss was -83%
Bitcoin Price Drop in 2015
According to CoinMarketCap, the BTC price exceeded $1,000 in late November 2013. However, after hitting $1,077.6 on December 3, 2013, this cryptocurrency entered a bear market. Bitcoin traded at around $519 on December 18. This price drop resulted from the ban on Bitcoin by the Chinese central bank. Although Bitcoin lost 50% of its value in a few days, the downtrend continued throughout 2014, ending with a low of $170 in mid-January 2015.
The price loss was -84%
Why Bitcoin Crashed in 2017
Bitcoin performed very well in 2017. In December of that year, this cryptocurrency traded at nearly $20,000. But on December 27, the BTC price dropped below $12,000. This downtrend continued into 2018. Bitcoin lost more than 60% of its value in just two months. It ultimately hit $3,200 in December 2018. Why did it happen? Bitcoin was a victim of its own success. As this cryptocurrency hit a new all-time high, investors rushed to harvest their gains from what was clearly a bubble.
The price loss was -83%
Bitcoin Crash in 2020
2020 will go down in history as one of the most chaotic years in modern times. A global lockdown due to the Covid-19 pandemic crashed the international markets in March of that year. The Bitcoin market crashed very hard too. The BTC price went from over $10,000 in February to less than $4,000 in March.
The price loss was -60%
Bitcoin Crash in 2021
Many cryptocurrencies exhibited excellent price performance in 2021. Bitcoin was not the exception. In April of that year, Bitcoin hit an astonishing price of $63,000. This cryptocurrency’s market cap exceeded $1 trillion for the first time. But within the next three months, the BTC price plummeted to slightly over $29,000. This crash resulted from growing concerns about the harmful environmental impact of Bitcoin mining. Elon Musk dropped Bitcoin as payment for Tesla cars in May of that year. To add insult to injury, China announced yet another cryptocurrency crackdown, targeting local mining farms.
The price loss was -53%
Bitcoin Crash in 2022
After the crash of April-July 2021, the BTC price rebounded and set its current all-time high of $68,789.63 on November 10 that year. This digital asset failed to break the $70,000 line and started losing value toward the end of 2021. This price drop was one of the most prominent Bitcoin crashes ever.
By June 2022, Bitcoin traded at less than $20,000, fueling extreme fear in the market. Investors rushed to sell their Bitcoin holdings, making things worse. On November 9, the BTC bottomed at $15,883.16. Then, the price stabilized. As of January 25, 2023, Bitcoin trades at around $22,683.4, showing signs of recovery.
The crisis of algorithmic stablecoins caused the most recent Bitcoin crash, most specifically, the deppeging of the TerraUSD Classic (USTC) stablecoin. Although many investors are optimistic, it is unknown whether the BTC price will return to its previous $68,000 level and when it might happen.
The price loss was -78%
Conclusion
The above survey shows that Bitcoin has experienced several disastrous price crashes. Yet, Bitcoin is still considered one of the safest investments in the crypto market. This cryptocurrency has demonstrated its ability to recover from all price crashes, rebound, and reach new highs. That’s why many investors are confident Bitcoin will set a new price high in the coming years or even months despite the recent market crash of 2022.
If you are interested in investing in Bitcoin, you can buy this asset on LetsExchange.io. Our platform supports over 2,000 digital coins and tokens and several fiat currencies.
FAQ
Is Bitcoin likely to crash again?
Like most cryptocurrencies, Bitcoin suffers from high price volatility since various factors influence its market value. Hence, the Bitcoin price could crash again in the future.
Why is Bitcoin crashing?
There have been various reasons for Bitcoin crashes throughout its history. The most recent Bitcoin crash of 2022 is primarily attributed to the crisis of algorithmic stablecoins, particularly the depegging of USTC.
Why did Bitcoin crash suddenly?
The Bitcoin price usually crashes suddenly when investors massively withdraw their BTC holdings in response to an unforeseen event, such as a hacking attack.
How many bitcoin crashes have there been?
We reviewed the seven most notable Bitcoin crashes in history. There have been other price drops that some consider minor Bitcoin crashes.
Disclaimer
Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.
Beginner’s Guide to Cryptocurrency
Beginner’s Guide to Cryptocurrency
I. Introduction
• Definition of cryptocurrency: A digital or virtual currency that uses cryptography for security and is suburbanized, which means it’s not controlled by any central authority like a government or financial organisation.
• The aim and potential edges of victimization cryptocurrency: Cryptocurrency are often used as a medium of exchange, a store important , or a unit of account. It may also provide blessings like inflated security, anonymity, and accessibility compared to ancient monetary systems. as an example, cryptocurrency transactions are often completed quicker and at lower price than ancient monetary transactions, and that they are often conducted while not the requirement for intermediaries like banks.
• The fundamentals of blockchain technology: Cryptocurrency depends on a suburbanized info known as a blockchain, that may be a distributed ledger of transactions that’s maintained by a network of computers. The blockchain is secured through a method known as agreement, that involves multiple parties agreeing on the validity of transactions. This makes the blockchain proof against meddling and fraud, as any plan to alter a dealings would ought to be accepted by the whole network.
II. The History and Evolution of Cryptocurrency
• A quick summary of the history and evolution of cryptocurrency: The thought of cryptocurrency are often copied back to the late Eighties, once researchers 1st projected victimization scientific discipline techniques to form digital money. However, it wasn’t till the launch of Bitcoin in 2009 that the primary well known cryptocurrency came into existence. Since then, the cryptocurrency market has big exponentially, with various coins and blockchain-based platforms rising.
• Major milestones within the development of cryptocurrency: This section may cowl vital events or developments that have formed the cryptocurrency landscape, like the launch of Bitcoin, the emergence of altcoins, the increase of ICOs, or the adoption of cryptocurrency by merchants and businesses.
• This state of the cryptocurrency market: This section may give associate update on the dimensions and scope of the cryptocurrency market, likewise as key trends and challenges. as an example, it may discuss the impact of market volatility, restrictive developments, or technological advancements on the market.
III. Understanding the various kinds of Cryptocurrency
• Major cryptocurrencies, like Bitcoin and Ethereum: This section may give an outline of the key options and use cases of the main cryptocurrencies, likewise as their capitalization and adoption rates. It may additionally discuss the variations between these coins and the way they’re utilized in apply.
Various or “alt” coins: This section may cowl the assorted kinds of altcoins that have emerged, like stablecoins, privacy coins, or utility tokens. It may additionally discuss the variations between these coins and therefore the major cryptocurrencies, likewise as their distinctive options and potential use cases.
• Stablecoins and their role in stabilising worth|the worth} of cryptocurrency: This section may justify however stablecoins square measure designed to take care of a stable value and the way they dissent from different kinds of cryptocurrency. It may additionally discuss the potential edges and downsides of victimization stablecoins, like their potential use in hedging against market volatility or the risks related to their establishment.
IV. Cryptocurrency Investment ways
• The fundamentals of finance in cryptocurrency: This section may give associate introduction to the assorted ways in which to speculate in cryptocurrency, like shopping for coins directly, commerce on exchanges, or collaborating in ICOs. It may additionally discuss the potential risks and rewards of finance in cryptocurrency, as well as the impact of market volatility, restrictive changes, and technological developments on the worth of coins.
• Selecting the proper investment strategy: This section may cowl concerns for selecting associate investment strategy, like the investor’s goals, risk tolerance, and time horizon. It may additionally give tips for conducting analysis, diversifying a portfolio, and managing risk. as an example, it may discuss the importance of setting clear investment goals, understanding the risks related to cryptocurrency investment, and developing a concept to mitigate those risks.
• Common mistakes to avoid: This section may highlight common mistakes that novice cryptocurrency investors build and supply recommendation on the way to avoid them. as an example, it may discuss the hazards of shopping for into promotional material, failing to conduct due diligence, or not properly diversifying a portfolio.
V. the long run of Cryptocurrency and Blockchain Technology
• The potential impact of cryptocurrency and blockchain on numerous industries: This section may discuss the ways in which within which cryptocurrency and blockchain technology may disrupt and remodel ancient industries, like finance, provide chain management, or option systems. It may additionally explore the potential edges and challenges of those developments.
• Rising trends and technologies: This section may cowl rising trends and technologies within the cryptocurrency and blockchain area, like suburbanized finance (DeFi), non-fungible tokens (NFTs), or sensible contracts. It may additionally discuss the potential impact of those trends and technologies on the market and therefore the wider economy.
• The role of cryptocurrency and blockchain in shaping the long run of cash and society: This section may explore the potential semipermanent implications of cryptocurrency and blockchain for the world national economy and society as a full. It may discuss queries like whether or not cryptocurrency and blockchain may replace ancient kinds of cash or whether or not they may achieve larger monetary inclusion and accessibility.
VI. The Legal and restrictive Landscape of Cryptocurrency
• This state of cryptocurrency regulation: This section may give an outline of the legal and restrictive landscape for cryptocurrency, as well as the ways in which within which completely different countries and regions square measure approaching the regulation of cryptocurrency. It may additionally discuss the challenges and opportunities of regulation cryptocurrency, likewise because the potential impact of restrictive changes on the market.
• Compliance concerns for cryptocurrency investors and businesses: This section may give steerage on the way to befits cryptocurrency laws, as well as problems like tax news, anti-money washing (AML) compliance, and client protection. It may additionally discuss the importance of staying up to this point on restrictive developments and seeking skilled recommendation once necessary.
VII. The Environmental Impact of Cryptocurrency Mining
• The energy consumption of cryptocurrency mining: This section may discuss the energy intensity of the cryptocurrency mining method and therefore the environmental impact of this consumption. It may additionally explore efforts to mitigate the environmental impact of mining, like the employment of renewable energy or a lot of economical mining hardware.
• The potential for cryptocurrency to drive renewable energy adoption: This section may discuss the potential for cryptocurrency and blockchain technology to drive the adoption of renewable energy, like through the employment of proof-of-work (PoW) algorithms that incentivize miners to use clean energy sources. It may additionally explore the challenges and limitations of this potential.
VIII. Cryptocurrency Scams and the way to Avoid Them
Common kinds of cryptocurrency scams: This section may give an outline of common kinds of cryptocurrency scams, like phishing attacks, pyramid schemes, or faux ICOs. It may additionally discuss the techniques that scammers use to lure victims, like giving high returns, victimization celebrity endorsements, or making faux websites.
• Tips for avoiding cryptocurrency scams: This section may give sensible tips for avoiding cryptocurrency scams, like validating the credibleness of internet sites and ICOs, checking the name of exchanges and wallets, and being cautious of uninvited offers or requests. It may additionally discuss the importance of conducting analysis and seeking skilled recommendation before finance in cryptocurrency.
IX. the way to Safely Store and Secure Your Cryptocurrency
• kinds of cryptocurrency wallets: This section may give an outline of the various kinds of cryptocurrency wallets, like hardware wallets, computer code wallets, and paper wallets. It may additionally discuss the options and risks of every variety of case and supply steerage on the way to opt for the proper case for your desires.
• Best practices for firmly storing and managing your cryptocurrency: This section may give tips about the way to firmly store and manage your cryptocurrency, like victimization robust passwords, facultative two-factor authentication (2FA), and keeping your computer code up to this point. It may additionally discuss the importance of creating backups and being cautious of sharing personal data or access to your case with others.
• The risks of storing cryptocurrency on-line: This section may discuss the risks of storing cryptocurrency on online exchanges or wallets, like the potential for hacks or fraud. It may additionally give recommendation on the way to minimize these risks, like by employing a hardware case or keeping alittle quantity of cryptocurrency on-line for everyday use whereas storing the bulk of your coins in an exceedingly secure offline location.
X. The Role of Cryptocurrency in fashionable Finance and social science
• The role of cryptocurrency in ancient monetary systems: This section may explore the ways in which within which cryptocurrency is being integrated into ancient monetary systems, like through the employment of stablecoins or the adoption of blockchain-based payments by banks and monetary establishments. It may additionally discuss the potential edges and challenges of those developments.
• The potential for cryptocurrency to disrupt ancient finance: This section may discuss the ways in which within which cryptocurrency may disrupt ancient finance, like by reducing the requirement for intermediaries or facultative peer-to-peer transactions. It may additionally explore the potential implications of those disruptions for the monetary business and therefore the wider economy.
• The long run of cryptocurrency in finance and social science: This section may give insights on the long run of cryptocurrency in finance and economics, supported current trends and developments. It may additionally speculate on the potential semipermanent role of cryptocurrency within the world national economy and economy.
• The role of cryptocurrency in ancient monetary systems: This section may explore the ways in which within which cryptocurrency is being integrated into ancient monetary systems, like through the employment of stablecoins or the adoption of blockchain-based payments by banks and monetary establishments. It may additionally discuss the potential edges and challenges of those developments.
• The potential for cryptocurrency to disrupt ancient finance: This section may discuss the ways in which within which cryptocurrency may disrupt ancient finance, like by reducing the requirement for intermediaries or facultative peer-to-peer transactions. It may additionally explore the potential implications of those disruptions for the monetary business and therefore the wider economy.
• The long run of cryptocurrency in finance and social science: This section may give insights on the long run of cryptocurrency in finance and economics, supported current trends and developments. It may additionally speculate on the potential semipermanent role of cryptocurrency within the world national economy and economy.
Wednesday, January 25, 2023
Cardano Daily Discussion - January 26, 2023
Hello everyone,
Welcome to the Cardano Daily Discussion!
The standard sub rules apply here (see sidebar), with the exception that price discussion is allowed in this thread, though we encourage you to try not to make this the focus and talk about the project itself. Please ask questions, help others and be civil - be sure to get involved in Project Catalyst too!
If you're new, please make sure you're read through the newbies guide and share it with others (use the ?newbies comment command to reference it).
⚠️ Scam Warning ⚠️
Please read the Cybersecurity guidelines for Cardano Users.
There are ongoing giveaway scams on youtube and many scammers lurking in Cardano's social channels impersonating ambassadors/moderators/official staff contacting users via direct messages.
For example, searching 'cardano' on youtube and sorting by most recent upload date shows several giveaway scams running (all videos in screenshot are scams):
Ongoing 'giveaway' scams on Youtube
The youtube scams are automated; use stolen footage usually of Charles Hoskinson and are restreamed so to appear to be 'live'; appear to have many watchers (which are bots); use bought hacked channels and are edited to appear like official channels.
See this post for more examples of what they look like
Do not be fooled!
To be clear:
- ⚠️ There is no such thing as a Cardano giveaway
- ⚠️ Never share your seed phrase with ANYONE
- ⚠️ Never send ADA to someone promising to send you more ADA back
- ⚠️ You will never be contacted by ambassadors/moderators/staff
Please report scams on the Cardano Fraud Detection Bureau.
⚠️ Scam Warning ⚠️
Midnight Subreddit
In anticipation of Input Output's new data protection blockchain 'Midnight', I've managed to acquire r/Midnight through some negotiation and repurpose it for the Cardano Community (the sub was created for a card game back in 2011 but was mostly unused).
I decided to do this as I thought the project will eventually need a home on reddit and best to setup now before any scammers do. Obviously there's not much to post about on there right now as it's early days as the project is yet to be released, but if you'd like to be kept up to date on the project please feel free to join the new subreddit if the project interests you and I'll be sure to post updates as and when they become available.
Right now the sub is mostly a carbon copy of r/cardano, I've copied most of the automod and rules over, so certain aspects may seem a little incongruent atm, but I'll tailor and tweak the sub as we go. Feel free to send me or post any input if you want stuff to change.
Cheers all
How to Minimize Losses and Maximize gains in Crypto
Are you looking for a way to make some redundant plutocrat? Have you ever considered investing in vaticination requests? If not, now is the time to start! vaticination requests are an instigative and potentially economic investment occasion that can help you diversify your portfolio.
vaticination requests allow investors to go on the outgrowth of unborn events. By prognosticating rightly, investors can earn gains from their investments. still, it’s important to understand how these requests work before diving in headfirst.
Earning From BNB Prediction Gaming platforms How to Minimize Losses and Maximize gains
BNB vaticination gaming platforms are getting decreasingly popular as they offer druggies the chance to earn real plutocrat by prognosticating the outgrowth of colorful events. These platforms allow druggies to go on sports, politics, and other requests with cryptocurrency similar as Bitcoin or Ethereum. The implicit prices can be relatively economic if your prognostications are correct.
Still, like any form of gambling there's always an element of threat involved when laying on these types of games. It’s important that you understand how these games work before investing any plutocrat in them so that you can minimize losses and maximize gains. Then are some tips for doing just that.
1) Exploration Your request: Before placing any bets it’s important that you do your exploration into the request and familiarize yourself with all the different factors at play. This includes probing brigades players politicians involved in each event, understanding current trends in the request, and keeping over- to- date with news related to each event. Doing this will help give you an edge over other players who may not have done their schoolwork duly.
2) Set Limits: One crucial factor when playing BNB prediction gaming is setting limits on how important plutocrat you want to invest per game or per day/ week/ month etc. Setting limits helps insure that indeed if effects do not go your way one day, your losses will not helical out of control due to inordinate laying quantities.
3) Don’t Chase Losses: Another common mistake made by new players is chasing losses after a bad band has passed- i.e., adding their stakes in order to try recouping lost finances snappily rather than staying until luck turns around again naturally( which it inescapably does). Chasing losses frequently leads people down a dangerous path where they end up losing further than they originally intended to- commodity which should be avoided at all costs!
4) Take Breaks & Reassess: Strategies Eventually, taking regular breaks from playing BNB vaticination games can also help reduce pitfalls associated with gambling dependence while allowing players time down from defenses so they can reassess their strategies without being told by feelings or fatigue caused by long hours spent online trying win back misplaced finances etc. Taking breaks also gives players time down from defenses which allows them to concentrate on other aspects of life similar as family & musketeersetc.
Following these simple way will help insure that anyone interested in earning real plutocrat through BNB vaticination gaming platforms minimizes their chances of suffering large fiscal losses while maximizing implicit gains earned through successful prognostications made during gameplay sessions! Good luck!
Is playing BNB Prediction games and earning-good, on a long scale?
It may sound like an odd conception, but it can be relatively economic if done correctly. The idea behind this type of game is simple by prognosticating which asset will go up in value over time, players can earn gains without having to put too important trouble into researching or assaying requests.
This makes it seductive to those who do not have a lot of experience with investing or trading but still want to make some plutocrat on the side.
Is playing BNB Prediction games good for a public frugality?
We know, you would ’ve no way anticipated a title like this but what if it made some real sense?- If you ask us, we ’ll say, YEAH! It makes sense! Let’s explain how!
- The answer depends on how you look at it. On one hand, these games can be seen as an investment occasion that could potentially bring in further plutocrat into the country’s frugality.
- Players who make correct prognostications can earn gains from their investments, which would also be tested by the government and used to fund public services or structure systems. This could help stimulate profitable growth in certain areas and produce jobs for people living there.
-
Overall, while playing BNB vaticination games may offer implicit benefits to a public frugality through increased duty earnings and job creation openings, it's important to consider the stylish option considering all the possibilities for our profitable status.
Should you start Investing in BNB Prediction Games with INR 1000?
Still, also you know that Binance Coin( BNB) is one of the hottest coins out there, If you ’ve been following the cryptocurrency request. But what if you have a minimum of INR 1000 and want to get involved in prognosticating its price movements? Is it possible to make plutocrat from this type of investment?
-
The answer is yes! There are several vaticination games available on the internet where players can go on whether or not they suppose BNB will go over or down over a certain period of time. These games generally involve making prognostications about how much the coin will move within a given timeframe, similar as 24 hours or 7 days. Players can win prizes grounded on their delicacy and indeed earn real plutocrat if they guess rightly.
-
still, before jumping into these types of investments, it’s important to understand some crucial points first. First out, investing in any kind of vaticination game carries threat – so be sure to do your exploration and only invest what you can go to lose. also, since these games are limited by any government body, there's no guarantee that your finances will be safe should commodity go wrong with the platform hosting them.
-
That being said, if done responsibly and precisely covered for implicit pitfalls associated with investing in cryptocurrencies like BNB – playing vaticination games could potentially yield great returns for those willing to take advised pitfalls when laying on its unborn price movements. So if you have at least INR 1000 lying around and want an instigative way to invest it – why not give BNB vaticination games a pass? Who knows- perhaps you will end up winning big!
SO TO CONCLUDE
Investing in vaticination requests can be both satisfying and parlous at times but following these tips should help insure success over time! With proper exploration and calculated pitfalls taken along the way, earning from vaticination requests isn't just possible it's probable! Good luck!
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Fake domains and email addresses of major crypto projects and Double Your Cryptocurrency Fraud 2023.
Online scams that try to separate the unwary from their cryptocurrency are a dime a dozen, but a great many seemingly disparate crypto scam websites tend to rely on the same dodgy infrastructure providers to remain online in the face of massive fraud and abuse complaints from their erstwhile customers. Here’s a closer look at hundreds of phony crypto investment schemes that are all connected through a hosting provider which caters to people running crypto scams.
A security researcher recently shared with KrebsOnSecurity an email he received from someone who said they foolishly invested an entire bitcoin (currently worth ~USD $43,000) at a website called ark-x2[.]org, which promised to double any cryptocurrency investment made with the site.
The ark-x2[.]org site pretended to be a crypto giveaway website run by Cathie Wood, the founder and CEO of ARKinvest, an established Florida company that manages several exchange-traded investment funds. This is hardly the first time scammers have impersonated Wood or ARKinvest; a tweet from Wood in 2020 warned that the company would never use YouTube, Twitter, Instagram or any social media to solicit money.
At the crux of these scams are well-orchestrated video productions published on YouTube and Facebook that claim to be a “live event” featuring famous billionaires. In reality, these videos just rehash older footage while peppering viewers with prompts to sign up at a scam investment site — one they claim has been endorsed by the celebrities.
“I was watching a live video at YouTube where Elon Musk, Cathy Wood, and Jack Dorsey were talking about Crypto,” the victim told my security researcher friend. “An overlay on the video pointed to subscribing to the event at their website. I’ve been following Cathy Wood in her analysis on financial markets, so I was in a comfortable and trusted environment. The three of them are bitcoin maximalists in a sense, so it made perfect sense they were organizing a giveaway.”
“Without any doubt (other than whether the transfer would go through), I sent them 1 BTC (~$42,800), and they were supposed to return 2 BTC back,” the victim continued. “In hindsight, this was an obvious scam. But the live video and the ARK Invest website is what produced the trusted environment to me. I realized a few minutes later, when the live video looped. It wasn’t actually live, but a replay of a video from 6 months ago.”
Ark-x2[.]org is no longer online. But a look at the Internet address historically tied to this domain (186.2.171.79) shows the same address is used to host or park hundreds of other newly-minted crypto scam domains, including coinbase-x2[.]net (pictured below).
The crypto scam site coinbase-x2[.]net, which snares unwary investors with promises of free money.
![The crypto scam site coinbase-x2[.]net, which snares unwary investors with promises of free money.](https://preview.redd.it/kiu8h9u1d9ea1.png?width=768&format=png&auto=webp&v=enabled&s=ebdf52022bb3db91bedfb25c95ae0cdbe4fd620c){kind=link}
Typical of crypto scam sites, Coinbase-x2 promises a chance to win 50,000 ETH (Ethereum virtual currency), plus a “welcome bonus” wherein they promise to double any crypto investment made with the platform. But everyone who falls for this greed trap soon discovers they won’t be getting anything in return, and that their “investment” is gone forever.
There isn’t a lot of information about who bought these crypto scam domains, as most of them were registered in the past month at registrars that automatically redact the site’s WHOIS ownership records.
However, several dozen of the domains are in the .us domain space, which is technically supposed to be reserved for entities physically based in the United States. Those Dot-us domains all contain the registrant name Sergei Orlovets from Moscow, the email address ulaninkirill52@gmail.com, and the phone number +7.9914500893. Unfortunately, each of these clues lead to a dead end, meaning they were likely picked and used solely for these scam sites.
A dig into the Domain Name Server (DNS) records for Coinbase-x2[.]net shows it is hosted at a service called Cryptohost[.]to. Cryptohost also controls several other address ranges, including 194.31.98.X, which is currently home to even more crypto scam websites, many targeting lesser-known cryptocurrencies like Polkadot.
An ad posted to the Russian-language hacking forum BHF last month touted Cryptohost as a “bulletproof hosting provider for all your projects,” i.e., it can be relied upon to ignore abuse complaints about its customers.
“Why choose us? We don’t keep your logs!,” someone claiming to represent Cryptohost wrote to denizens of BHF.
Cryptohost says its service is backstopped by DDoS-Guard, a Russian company that has featured here recently for providing services to the sanctioned terrorist group Hamas and to the conspiracy theory groups QAnon/8chan.
A scam site at Cryptohost targeting Polkadot cryptocurrency holders.
Cryptohost did not respond to requests for comment.
Signing up as a customer at Cryptohost presents a control panel that includes the IP address 188.127.235.21, which belongs to a hosting provider in Moscow called SmartApe. SmartApe says its main advantage is unlimited disk space, “which allows you to host an unlimited number of sites for little money.”
According to FinTelegram, a blog that bills itself as a crowdsourced financial intelligence service that covers investment scams, SmartApe is a “Russian-Israeli hosting company for cybercriminals.”
SmartApe CEO Mark Tepterev declined to comment on the allegations from FinTelegram, but said the company has thousands of clients, some of whom have their own clients.
Cryptohost’s customer panel, which points to an IP address at Russian hosting provider SmartApe.
“Also we host other hostings that have their own thousands of customers,” Tepterev said. “Of course, there are clients who use our services in their dubious interests. We immediately block such clients upon receipt of justified complaints.”
Much of the text used in these scam sites has been invoked verbatim in similar schemes dating back at least two years, and it’s likely that scam website templates are re-used so long as they continue to reel in new investors. Searching online for the phrase “During this unique event we will give you a chance to win” reveals many current and former sites tied to this scam.
While it may seem incredible that people will fall for stuff like this, such scams reliably generate decent profits. When Twitter got hacked in July 2020 and some of the most-followed celebrity accounts on Twitter started tweeting double-your-crypto offers, 383 people sent more than $100,000 in a few hours.
In Sept. 2021, the Bitcoin Foundation (bitcoin.org) was hacked, with the intruders placing a pop-up message on the site asking visitors to send money. The message said any sent funds would be doubled and returned, claiming that the Bitcoin Foundation had set up the program as a way of “giving back to the community.” The brief scam netted more than $17,000.
According to the U.S. Federal Trade Commission, nearly 7,000 people lost more than $80 million in crypto scams from October 2020 through March 2021 based on consumer fraud reports. That’s a significant jump from the year prior, when the FTC tracked just 570 cryptocurrency investment scam complaints totaling $7.5 million.
A recent report from blockchain analysis firm Chainalysis found that scammers stole approximately $14 billion worth of cryptocurrency in 2021 — nearly twice the $7.8 billion stolen by scammers in 2020, the report found.
In March, Australia’s competition watchdog filed a lawsuit against Facebook owner Meta Platforms, alleging the social media giant failed to prevent scammers using its platform to promote fake ads featuring well-known people. The complaint alleges the advertisements, which endorsed investment in cryptocurrency or money-making schemes, could have misled Facebook users into believing they were promoted by famous Australians.
In many ways, the crypto giveaway scam is a natural extension of perhaps the oldest cyber fraud in the book: Advanced-fee fraud. Most commonly associated with Nigerian Letter or “419” fraud and lottery/sweepstakes schemes, advanced fee scams promise a financial windfall if only the intended recipient will step up and claim what is rightfully theirs — and oh by the way just pay this small administrative fee and we’ll send the money.
What makes these double-your-crypto sites successful is not just ignorance and avarice, but the idea held by many novice investors that cryptocurrencies are somehow magical money-minting machines, or perhaps virtual slot machines that will eventually pay off if one simply deposits enough coinage.
#crypto_fraudsters2023 #fake_domains_crypto_exchange2023 #cryptocurrency_2023 #cryptocurrency_scam_2023 #cryptocurrency_fraudsters_2023
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