How does a crypto scam work? Read to everyone.

So, how exactly does a crypto scam work, and why do I call this area of human activity fraud? To make it clear to any reader, let's look at the example of a recently released cryptocurrency called 'Pepe'.

I have nothing to do with this project, nor do I have any negative emotions towards this company. It’s just that this company is one of the latest cryptocurrencies to appear on the market, and watching this booming project, you can easily understand how fraud works.

How does a crypto scam work? Read to everyone.
So, on April 17, 2023, the PEPE memcoin project was released. What is memcoin? The official interpretation of the crypto currency community is a kind of digital asset for laughs. According to the authors of cryptocurrency projects, this is a completely legitimate investment project in which a crypto project collects millions of dollars and is used ... again, according to the cryptocurrency community - for laughs. What do we know about Pepe's project besides the fact that it features a cute frog in a sophisticated French style? We don't know anything. As well as hundreds and thousands of other anonymous crypto projects. We can only make some guesses, for example, watching Elon Musk's trip to France on the same dates. But are these events related? No one knows. And this means that anyone can take advantage of this coincidence. I hope no one has done this, but completely anonymous projects with no indication of the owners and the subject of investment can be anything.

Anticipating the idle speculation of those who want to denigrate the author of these lines, in search of funding for my own project, I turned to crypto, which, as I then thought, was intended to finance startups and facilitate access to the funding market. I made this mistake in December 2022. Since then, all I have received from responses to my appeals to dozens of cryptocurrency exchanges is the blocking of my Twitter account by Binance US and a huge regret for the lost time. But back to the subject of the article.

So, for those who are still sure that teenagers are involved in crypto and these are all jokes for laughs, we return to the Pepe project again. So, the project, released on April 17, 2023, by May 7, 2023, has collected more than half a billion US dollars. Real dollars, and not at all comic. Are you still sure that this is a child's investment? Well then, let's take it further. Some hypothetical crypto lawyer will be able to tell you that this is private money that has been invested by millions of people. I will explain what is the lie here and how any of you can check it, anyone can see it with their own eyes, I can only tell you exactly where to look.

So the first lie. This money has been invested by thousands of private individuals as the project has grown by 2,000 percent since its launch. On the third-party site Etherscan, which records the statistics of the development of all crypto projects, we see that already on May 07, 2023, this project had 108,000 users. However, information about this project and its advertising began on social networks only after May 10 (all screenshots at the end of the article). Where might 108 thousand users from the young Project 07 come from? It's a mystery. Also, from indirect signs that do not prove anything, but help to add up the big picture, you can see that the Twitter account of this young company was registered in April 2023. And in May 2023, he already received half a billion dollars.

Again, I will argue with a virtual crypto lawyer who can say that this classified information was distributed to a limited number of users and therefore 108 thousand users appeared out of nowhere by the start of the project. Let's assume that this is a true statement and everything happened just like that. This means that 108,000 unknown users invested an average of $4600 each and this information was distributed among a closed group of users. I am sure that everyone who reads this article has a social network account or your children have one. Ask them or yourself, if is it possible to collect one hundred and eight thousand users who have invested their money in the project without a wide advertising campaign among tens of millions of users. The unequivocal answer to this question is that it is impossible. And it is also worth noting that the advertisement, which began after May 10, 2023, indicates the profitability of the project at 2000 percent. But if 108 thousand users invested money before the launch of the project, then this is an obvious lie. Well, who in our time can be offended by false advertising, so let's just fix that this is another lie.

And one more indirect, but indicative fact. On the same Etherscan website, we see that in two weeks after the launch, the project gathered 108,000 users out of thin air. And for the same period of two weeks after May 7, 7 thousand new users were added to the project, despite the fact that the project's advertising was launched only after May 10. Without advertising, the project gathered 108,000 paying users, along with advertising for the same period, 8,000. Somewhat strange.

And the second lie. On the official website of this project, it is indicated that this is a memcoin project. On the website of the project, which manages more than half a billion US dollars, there is no information about who owns this project, why it was created, and what activities it is engaged in. Since we have already established that any private crypto user has already been deceived by this project, in which almost all users have appeared out of nowhere, that is, in fact, fraud has already been committed, and all private users who invested in the project later are already misled.

And the second obvious lie is the fact that the money in the project appeared out of thin air, saying that private investors invested money, and then for some reason they grew by 2000 percent. This is also a lie that unscrupulous crypto influencers are spreading. And the memcoin project itself does not say at all why it was created and what kind of activity it conducts.

We do not require disclosure of their trade secrets and details of how they do business (although, for example, any bank discloses what activities it does and how it makes a profit), but this project posted false information about the origin of money and the method of making a profit. They do not trade Memcoin, which can be understood from the previous description. They received funding from unidentified sources for an unspecified purpose and continue to mislead private investors, many of whom are children, who may not even know how many laws this project violated.

If we dismiss the obviously fantastic options that this project, like almost all projects placed on crypto exchanges recently, is engaged in drug trafficking or other illegal goods, then the truth becomes clear to everyone and is eternal like our world, this company simply avoids paying taxes taking advantage of the absence unified legal interpretation of cryptocurrencies. However, the difference between this company and real-life crypto projects (if there are any left, given the practical impossibility of gaining access to the funding market with cryptocurrencies) is that they have attracted third-party funds from a clearly long-standing business for the sole purpose of tax evasion. That is why their owners remain anonymous, that is why they hid the source of funds, and that is why they and others like them do not respond to any of my messages for six months.

And in the conclusion of this article, I want to say a few emotional words. Elderly, emotionally, and mentally unstable people and children are not recommended to read further (!!!).

In order to avoid any comparisons between the projects I posted and the attempt to get crypto funding, it is worth saying that my attempt to turn to crypto was a mistake, but it will just show any thinking person that I did not know what kind of opposition and what unimaginable lawlessness I would face. And any characteristics of my personality and my projects in no way cancel what is described above. They do not cancel the lies and deceit that last for years. And for the most doubtful of my motivation, I described exactly how I came to crypto and why. You can also see that I have been single-handedly trying to figure out this scam for six months now. My doubts and attempts to get information are displayed in the articles on the site.

You can also make sure that it was exactly like the fraud that I described in existing crypto projects before. As well as to make sure that I have repeatedly called scammers. I have repeatedly tried to contact programmers who are engaged in the development of crypto but faced dumbfounded silence. I tried to explain to them that tax avoidance was not the business for which they trained in this profession. I have also repeatedly pointed out to them that when this fraud is inevitably exposed, people will tend to generalize and attribute this violation to all programmers. To the millions of law-abiding programmers who work hard at companies like Apple or Google, Oracle, or Tesla.

And do not consider all software developers to be deliberately scammers, they are not. And it is precisely the task of society to distinguish one from the other. I am sure that crypto developers, or rather those who call themselves that, have reasons for silence, and many of the existing problems are directly and indirectly related to the lack of clear legislation and a thousand other reasons. But as I noted in the article Crypto. The present. Past. Future., the one who purposefully supports lies and deceit for years, cannot appeal to ignorance or other factors.

As I noted earlier, such people will repeat these actions, since they do not see anything shameful in their actions. And in order to fully understand their psychology and their motives, it is enough to imagine what exactly these people will spend the funds received on, what else they are ready to earn, and how. Is the contemptuous attitude towards people who were not able to understand the whole complex scheme of deception a one-time accident or their approach to life. One can give an example of how in some countries the seemingly good initiative of online prescriptions for medicines has been implemented.

o, for example, in Lithuania, where the office of one of the “largest world exchanges”, which is physically absent, should be located, Clotrimazole cream, which is intended for the treatment of fungus, is included in the list of prescription drugs. A trifle? Hundreds of thousands of people employed in the construction industry, whose work involves heavy physical labor, are forced to purchase this cream with a prescription. At the same time, in a neighboring country, this product is over-the-counter. But any person conscientiously doing his job could check this information, but not a programmer.

Who are these people doing their job so casually? Perhaps these are just children who believe in the future of cryptocurrencies and their wonderful purpose. Or are they completely adult people who have become impudent from impunity and have access to unlimited money, who simply imagine themselves to be the rulers of this world, deciding who will live and who will die? To answer this question, you need to think, where else can you look to understand what is going on in the soul of a young slacker with an unlimited budget?

Fortunately, there is Twitter, which recently reminded me of what a wonderful city with beautiful canals the youth of the whole world aspire to. Therefore, looking at Lithuanian sites (hello to the non-existent office of Binance, acting on behalf of an unregistered person) offering sexual services, I was surprised to find many profiles of girls offering only one service: anal fisting (the link is not provided for ethical reasons). I think no one else has any doubts about the moral qualities of these people.

May 22 / 2023

Text author: Ihar Kul

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