It always seemed like a suspicious crypto exchange, but finally Coinsoda has been rumbled as a scam. This weekend, Coinsoda finally took itself off the map in an elaborate exit con. All of its social media channels have vanished, along with its website. Hundreds of traders are thought to have lost money that was situated on the crypto exchange, and countless people who were hodling the Coinsoda token have been left out of pocket.
Crypto scams of this nature are all too common these days and unfortunately there appears to be no sign of them being squashed any time soon. Only a handful of crypto exchanges have vanished overnight, leaving investors to believe that they are relatively safe. However, Coinsoda proves that theory wrong, as it was a semi-major name that we now know was operating fraudulently.
Scam Rocks the Maltese Islands
Elsewhere in the crypto world, Malta has seen its first cryptocurrency scam. The so-called blockchain island touts itself as the first country in the world to regulate cryptos – however Gibraltar actually holds that title – and it recently suffered from its first crypto scam.
Maltese Scudo is the scam coin, with it having virtually no information available online, while its website is one of the worst in the crypto industry. This has left many baffled as to how it achieved such a high price and levels of trade volume. The Maltese Authorities have also been rather slow moving when it comes to investigating the coin. Given the fact it wants to become a shining beacon for the crypto industry, you would think it would want to tackle this issue as soon as possible.
ICO Scams Galore
ICOs are notoriously risky, with many over the years being dubbed as scams. Several ICOs have taken millions from investors and simply gone up in smoke overnight, with no trace of the missing funds to be found. These cons have left countless investors out of pocket and feeling ripped off – and rightly so. This recent Coinsoda incident can be labeled as something similar, with it sure to contribute to the further slowing of the ICO market. There have been some huge ICO scams over the years, some of which have shaken the crypto world – Coinsoda could soon join this list.
MetaMask Flags 333ETH as Scam
MetaMask – one of the most popular dApp browser extensions – has decided to flag 333ETH as a scam. The move comes after 333ETH revealed its operation procedures, with it giving off the appearance of a Ponzi scheme. MetaMask is now in a tricky situation, as if it acts and bans the dApp from being used in the extension, it will appear centralized and will put users off. On the other hand, if it doesn’t do enough to protect its users, it will lose its reputation for being safe – talk about a lose-lose situation.
The crypto world is packed full of scams and is often described as the wild west. In order to attract seasoned investors that have vast sums of money, the crypto world needs to weed out scam operations. The current financial industry isn’t short of scams, but its regulations help weed out the majority of them. It can be argued that with cons like Coinsoda still occuring the crypto sector is struggling to do the same and shake off its wild west tag.