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How Do You Get Crypto Airdrops? Scam Airdrops: How to Spot Them Scammers are stepping up their efforts on the BSC, delivering millions of phony tokens to users for false promises of large payouts.
What’s more concerning is that the bogus tokens would appear in one’s wallet with a value ranging from hundreds to millions of dollars, making the hefty charge seem justified.
What Is an Airdrop of Cryptocurrency? An airdrop is a marketing scheme used in the cryptocurrency market to raise awareness of a new virtual currency by distributing coins or tokens to wallet addresses.
An increasing number of people are being conned. According to Chainalysis, a New York-based blockchain researcher, over $2.6 billion has been taken so far this year, “said Misyrlena Egkolfopoulou and Charlie Wells in a recent Bloomberg report published on July 7th, 2021.
Two massive airdrop frauds, including the phishing token MNEB and false replica VELO tokens, were issued to millions of user wallet addresses in the previous two weeks.
The phony MNEB and VELO coins have been transferred to at least 5 million wallet addresses. Millions, if not billions, of dollars, might be taken as a consequence of the devious airdrop scamming scheme.
How Do These Swindlers Get Your Money?
It is not possible to trade or swap the false airdropped tokens in one’s wallet. Instead, viewers are sent to a phony version of the genuine project’s website. Users are then urged to pay the protocol somewhere between 0.3 and 0.9 BNB to “unlock” the tokens. This might also allow you to spend money from your wallet.
Those that unlock the tokens, however, will never be compensated for the bogus airdropped tokens. What’s more worrying is that there have been reports of consumers connecting to these bogus sites just to have their whole cryptocurrency holdings stolen.
How to Spot Scam Binance: Airdrops on the Smart Chain
Fortunately, there are several efficient methods for consumers to discover and identify crypto AirDrop frauds, as well as scams. Trying to trade out of the airdropped token is the first and maybe the best approach to recognizing an airdrop scam. If this proves to be difficult or ineffective, you may be the target of an AirDrop hoax.
Do not deal with any untrusted contracts while trying to swap tokens. Stick to reputable exchanges like PancakeSwap, ApeSwap, and others.
Checking the market valuation and liquidity of the suspected project in question is the second approach to recognizing an airdrop fraud. Users should visit PooCoin or another token monitoring website to do so. We’ll look into MNEB on PooCoin as an example.
Cryptocurrency: How to Spot Scam Airdrops on the BSC PooCoin Chart
If a user receives 150,000 MNEB via an airdrop, the user believes they have $15,000 worth of MNEB tokens based on MNE’s current price of $0.10 on CoinMarketCap. A claim cost of $3 BNB for $15,000 seems fantastic. The only problem is that the user will never get the $15,000 prize.
MNEB’s market capitalization on PooCoin is a little over $24 billion (found in green on the left). A market valuation of $24 billion is a huge red signal since it shows that this project is among the top 10 in the Decentralized Finance space (Defi).
However, a closer look at the MNEB/BNB LP holdings (indicated in green below) reveals liquidity of a little over $12,000. This implies that exchanging $15,000 worth of airdropped MNEB tokens is legitimately impossible.
Websites that contain fake Airdrops
The phony VELO and the actual VELO websites are both presented below. The bogus VELO website is now unavailable. Due investigation into projects’ media channels is critical to prevent connecting with bogus websites.
When looking for your project’s media outlets, be sure to go through all of the results. Don’t simply click on the Twitter link on the page and believe it’s a genuine article. Double-check on Twitter to be sure it isn’t a bigger media outlet masquerading as the real thing.
Users may also use CoinMarketCap and CoinGecko to get official social media connections. Following prominent influencers may also aid in the discovery of genuine social channels. If no one from a major organization is monitoring the project, it is significantly more likely to be false or have an evil purpose.
Have you ever been given special offers or discount coupons just for being a registered customer of a company? The concept of crypto airdropping is similar. In an effort to establish itself as Iceland’s official currency, Auroracoin, the first cryptocurrency airdrop, sent 31.8 AUR (about $385)—the token’s original value—to every citizen of the island nation in 2014. That was equal to half of the total currency supply. To acquire the tokens, residents just needed to register with the Auroracoin initiative.
The cryptocurrency industry is getting more and more saturated as every business tries to participate. After all, a cryptocurrency needs to be utilized extensively in order to prosper. Offering airdrops is one approach to increase adoption and differentiate your business from the competition.
Airdrops in Cryptocurrency: How to Spot Scam Airdrops on BSC
The bogus VELO website (on the left) and the actual VELO website (on the right)
How To Spot Scam Airdrops-General Safety
As attempts to design the next world-changing protocol go up, fraudsters attempting to take advantage of ignorant cryptocurrency investors ramp up as well. The most essential thing is to understand how to prevent these types of fraud. Scammers are unlikely to disappear on their own.
The only way to stay ahead of them is to understand and study their methods and strategies. Share this information with your friends and family so they may avoid becoming scam victims as well.