Exit Scams: Pretending You’re It

With thousands of new projects appearing every day, it’s very difficult to determine by eye whether it’s a crypto diamond or a beautiful fake in the form of an exit scam.

Market volatility plays a decisive role in the fact that the crypto enthusiasts massively give money to fraudsters, because to understand the essence of what is happening — it takes time, and in crypto everything sometimes happens too quickly and the decision must be made here and now.

Investments in crypto are often associated with risk, and you can either make a fortune or run into scammers, these are the conditions of the game. And scammers are happy about it.

What’s an exit scam?

An exit scam is a common type of fraud in the form of attracting investment in a project that has not yet been released. Creators of exit scams create artificial excitement. Everything can go into play: paid advertising in Telegram channels, bloggers, organizing parades around the project with loud slogans about super profits.

Scenarios can be different, but the essence is the same. Project creators collect investments by advertising the project. After they collect the amount they need, what do you think they will do? That’s right, disappear into the mist with the investors’ money, leaving the latter with dashed hopes and rather empty wallets.

The biggest problem is that exit scams are very difficult to identify even for experienced crypto diehards. The creators of fraudulent projects very beautifully and lovingly blow dust in the eyes, and you yourself do not realize how you suddenly found yourself in this scheme, although you know everything about security.

According to analysts’ data for July 2023, hackers robbed the crypto industry for $303 million, including losses from exit scams that amounted to $8.6 million.

The most high-profile scam projects

1. OneCoin

The developers promised the community and investors high profits and lots of opportunities under the guise of selling “training packages” through network marketing. Investigations revealed that it was a pyramid scheme. The founders were arrested, but the investors lost significant sums of money forever. The losses are estimated at several billion dollars.

2. BitPetite

An online service promising users a guaranteed profit through anonymous transfers in the Bitcoin network. After raising a significant amount of money, the developers disappeared under cover of night, leaving investors with nothing.

3. LoopX

The project developers promised a stable income from automated trading software. Investors decided to invest in such a great prospect, but what happened next, you know for yourself. The losses amounted to several million dollars.

How to distinguish between an exit- scam and a real project?

1. Don’t take the developers’ word for it. Check the project data in the blockchain. It is important to familiarize yourself with the source code of the product being developed (self-respecting teams make it freely available), as well as the list of partners and investors.
2. Do not believe the guarantee of high profitability. No self-respecting project can promise you this 100%.
3. Do not get involved with anonymous teams. Honest developers have no reason to hide their names and faces. They value their reputation.
4. Study the team’s previous cases.
5. Make a decision only after your own analysis and do not be guided by the majority opinion. As practice and exit-scam examples show, everyone can make a mistake.

How to understand that a project is real and promising?

Well, now for the good stuff 🙂

Here is a project that can serve as an example of a quality product that is not scary to enter at any stage. This way you can analyze any project you are interested in.

Cosmic FOMO is a new generation P2P game that allows you to learn crypto trading and earn without risking your own assets.

1. The developer is the MarsDAO ecosystem. All information about the ecosystem is available here: https://t.me/MarsDAO_channel
2. You can explore the entire game concept, functionality and features in the Cosmic Paper: https://docs.cosmicfomo.com
3. The in-game COSMIC token can be purchased on PancakeSwap.

You can track the current COSMIC token rate on What2farm, CoinMarketCap and CoinGecko.

📝 COSMIC smart contract address:

0xBabACc135Bbf2ce30f9C0f12665B244D3689A29C

5. Get to know the community members, current events and game reviews here: https://t.me/CosmicFOMO_Channel_en

6. The team actively engages with the community, holds regular AMA sessions to answer user questions and provides daily technical support to players.

Conclusion

The crypto market is developing rapidly, and scammers are developing even faster. Hundreds of projects are created every day, and it is our direct responsibility to take care of our safety.

By using the simple rules for checking projects listed above, you will significantly reduce the percentage of getting into scammer networks and protect your capital.

Safety to all!