Blockchain world scams are increasing day by day. If you remember the dot-com bubble, the dot-com bubble, also known as the Internet bubble, was a stock market bubble caused by excessive speculation of Internet-related companies in the late 1990s, a period of massive growth in the use and adoption of the Internet.
We are in a similar situation for Blockchain aka Web3.
Here is a tweet from Elon Musk.
When I first saw this tweet I was confused about why Elon Musk is against Blockchain. But after reading most of his tweets related to web3, I realized that he is not against web3 but against the hype of web3.
So here are some scams that you need to be aware of in the Blockchain World.
- Job Scams – In this type of scam, you will be approached by a company. They will say that they are making some million dollar tokens/coins and they want you to be a part of their company. And guess what ? 90% of these companies will be fake. They will ask you to give some them job entry fee so that they can train you in the web3 technology and once you give them the money, they are gone. So be aware before joining any web3 company.
- Course Scams – As the demand for Blockchain Developers is increasing, so the number of courses that can make you a blockchain developer in a short time. I have seen people selling Blockchain Courses for thousands of dollars. And guess what ? The value provided in those courses is not worth thousands of dollars. But people are still buying it thinking they will become a Blockchain Developer by spending thousands of dollars. But that’s not the reality. See, I am not against selling courses, I also also create courses on Blockchain. And I believe the person who is doing the hard work of creating the courses and putting his experience into the courses should be paid. But I also believe that the value provided by the courses should also be greater than equal to the prices of courses. And many of the people out there who are selling courses are not providing value for the price they are offering. They are able to sell those courses of thousands of dollars because of the hype of Blockchain Technology. So be aware before taking any course, check whether value of a course >=price of that course or not.
- Investing Scams –Many times you might have seen youtubers and celebrities persuading you to buy a cryptocurrency. They portray themselves as your angel and want you to become rich. But what they are actually using a pump and dump scheme. In a pump and dump operation, the perpetrator makes a profit by pumping an asset into the market. Pumping here means increasing the demand for something by marketing it, in turn also increasing its value — like sending out a bunch of tweets promoting a particular altcoin. So you may or may not become rich, but the youtubers and celebrities using this pump and dump technique are going to be rich for sure. Before investing in any cryptocurrency, make sure to do due diligence about it. Read its white paper.
So if you know any other type of scam that is happening in the Blockchain World, let me and others know in the comment section.