What is Ethereum?
“Ethereum is a platform that allows people to build blockchain-based decentralized applications. Applications on Ethereum are referred to as smart contracts, which are deployed on Ethereum’s blockchain. Unlike Bitcoin, Ethereum smart contracts are largely self-executing. They are programmed to run exactly as programmed, even if the underlying blockchain is unavailable. Ethereum smart contracts are particularly useful in the business-to-business realm, where they can eliminate costly transactions, like contracts between companies.”
A website claiming to offer you cryptocurrency with an easy user-friendly interface could be a scammer.
In 2017, researchers found that a huge number of people had been scammed by websites claiming to be the official site of Ethereum. Here’s how the scam worked: A potential victim visited one of the rogue sites, then provided personal details, such as a bank account, to gain access to a scammer’s wallet. Once the person provided funds to the wallet, the fraudster would take control of the person’s digital assets.
The scammers were so prolific that even the Ethereum foundation had to issue a warning to the public about these websites. If you encounter one of these sites, do not give out your personal information, and contact the Ethereum Foundation at [email protected]
It’s also important to note that these sites would have used an alternative URL to Ethereum, such as ethereum.org.
How to avoid scams
While it’s impossible to totally avoid scams entirely, here are a few pointers to help steer clear of fraudsters:
- Research the company you’re contacting
- Ask yourself whether you’d ever send money to the company in question.
- If the answer is no, it may be a scam.
- Be wary of unsolicited emails. Instead, read an original pitch from the company before giving them money.
- Ask for more information. Some startups will ask you to visit their websites or to provide more information over email. If they’re legitimate, you’ll get a reply from the company with more information.
Scan public records
Many websites are scams and require users to input private information to access the site, which is often sold to other companies.
While the public and investors in cryptocurrency stocks, tokens and digital assets alike, should be careful, blockchain technology itself is sound, and the value of the technology could go a long way in reshaping how we interact with money and other kinds of transactions.
The cryptocurrency market is experiencing a volatile wave of speculation at the moment, and bitcoin prices are still volatile. Since the rally of 2014, bitcoin has lost roughly 65 percent of its value. However, that’s largely driven by speculation rather than fundamentals. The longer bitcoin is supported, the more resilient the technology will be.
However, because blockchain technology is still relatively new, a lot of scams are being used to dupe people and take their money.