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The Evolution of Crypto Scams

August 17, 2018

 

Today, a new kind of Crypto scam came to light which may have been around since as early as some of the first Ethereum based projects.

 

Based on research done by Coin Desk, since this July, Ethereum Dapps which look like simple games and are run like Ponzi schemes, have been rising to the top in terms of being the most popular Crypto scams.

 

One example of such a game is called PoWH3D, and can easily be found with a quick internet search.

 

Essentially, these games may be called schemes just as much as casino games may be called schemes. With PoWH3D, their main draw is promising users that they will earn Ether, simply by holding their Ether on the network.  In short, all of these games try to get you to play to win money and in all cases, there is a very small chance that this will happen.

 

Now, we have an even newer form of these schemes, which manifests itself as one of these games, when it is really just an even worse scheme. To be clear, judging by the testaments of the developers behind one of the true versions of these Dapps, what this means is that Dapps have surfaced which are copies of these games, with the design of taking as much Ether from users as possible.

 

How they do this involves simulating game activity with bots or, basically quick, efficient, computer generated transactions which mirror the same activity that would happen in such a game if a lot of users were present.

 

While the original games are not much better and seem to make their money based on users attracting other users, these copies are even worse, because based on this information, they usually have no real users.

 

With this in mind, it is logical to say that anyone who joins runs the risk of losing whatever funds that he or she spends on the game, forever.

 

With all of this in mind, gambling is enough of a risk, without adding schemes masquerading as gambling to the already confusing mix.

 

Why not stay away from supporting any of this, altogether?

 

 

By: BGN Editorial Staff

 

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