Miners & Investor fears
How a scam coin operates
How to avoid being called a scammer


Transcript



00:11     Scamming is everywhere. The biggest fear for a miner or masternode investor is being scammed. Scam coins are everywhere. In this tutorial, I am going to show you how a scam coin works. To make sure your coin avoids being called a scam. Over the years, scam coins have put a black cloud over new coin launches. Creating distrust and caution amoungst investors. As you have learned how to make your own coin, you know that is possible to make two or three per month. Now imagine if you had bad intentions.



00:49     How a scam coin operates.

Firstly, a scam coin is a real cryptocurrency. It's not that it's a fake coin or anything. It functions just the same as all others. It's the developer that implements the scam. Likely just one person masterminding the whole operation. I have been witness to many scams over the years, and they all follow the same pattern.

01:16     A flashy announcement post on bitcoin talk. The announcement usually states a use case which is not over the top or unbelievable. Something like, payment solutions for gaming platforms. Then there is a big team. The images are of professional looking people from all over the world. Often with one mature guy running the show. These images are just ripped from the internet. They are fictitious names and locations. But to the average Joe, they seem legit.

01:50     Next is the Discord channel. They offer huge bounties and airdrops to attract many people. They can do this because they don't care about giving away their coins. They will be destroying the chain in a few days or so.  So, with all the people now in their discord channel, they launch their coin. The developer or mastermind, will have multiple discord accounts. They would pretend to be the other team members. Posting lots of hype. Such as saying "Just had a great meeting to discuss the future of this coin". And "I have a big announcement soon!". All this with the intention of creating FOMO. Fear of missing out. Then they will create an auction or masternode pre-sale.

02:39     If they go down the auction route. They will use another account to push up the bidding on a genuine buyer. If they choose to have a pre-sale, they will be active in the channel until all are sold. Or to the point where they can't sell any more.

02:56     Then there is OTC. Over the counter trading. They will open an OTC room in the discord channel. And use fake accounts to sell more of their coin. The sole intention of this scammer is to sell for Bitcoin. Where their identity is unknown and the bitcoin is untraceable.

03:17     Then, once they think they have bled it dry, it's over.  And just like that, they are gone. No more communication with the community. Nothing. Often they will delete the GitHub account with the source code. And delete the Discord channel. Leaving all buyers with a useless coin and a hole in their bitcoin wallet.

03:41     So, how to avoid being called a scammer.

Make sure your true identity is known on your Announcement. Links to your LinkedIn account is good. Proving that you are, who you say you are is the only way. Don't ever inbox people asking them if they want to buy your coin. Always announce that your coin is for sale. Let them come to you. Don't over promise anything. Miners and investors can smell bullshit a mile away. They have a lot of respect for real people who are trying to do real things.

04:17     Whilst making these tutorials. I couldn't help think that I am enabling scammers. By teaching them how to make a blockchain. However, I believe in karma. If you choose to use what I have shown you to make a quick buck off of people dishonestly. The world will dish it back out to you ten fold.  You can make more money in the crypto world the honest way. And be respected in doing so.