“Stay Alert & Safe #ShibArmy!.”
This is the message that accompanied a video by Shib team’s on Twitter, after imposters tried to scam Shib’s users. The video says the fraudsters are using telegram and popular shib hashtags to scam unsuspecting users.
“A Fake Shiba Inu Telegram group is being shared across social media. The scammers impersonate official accounts, and create fake users. ” the video said in part.
This scam has taken root across multiple social media platforms. The con artists have even gone a step further to advertise big events, airdrops, breaking news and even bonuses to lure clients. “There is no: Breaking News! Big Event! There is no: Shiba Airdrop!” the video emphasized.
Why Is Shib The Target Of Con Artists?
As a cryptocurrency asset grows and gains public trust and popularity, it gains the attention of con artists as well. Unfortunately, this is the sticky situation that Shiba Inu seems to have found itself in.
Shib, a coin whose popularity soared tremendously in 2021 has earned itself the name Doge killer, and rightfully so. With a market capitalization of about $36 billion, and 100,000,000% ROI, this altcoin took crypto markets by storm.
What Is The Impact Of Shib’s Scam Crisis
Unfortunately, the coin is hitting lows unseen before. Today SHIB is trading at $0.00004605. This represents a 5% decline in the last 24-hours. In total,the altcoin has lost almost 50% of its valuation since it last stood at $0.000089. This drop has pushed the coin out of the top-10 best cryptocurrency rankings. In its place now stands Avalanche (AVAX) which experienced a 50% weekly surge.
This drastic decline can all be attributed to the present scam crisis. So, in an effort to protect it’s investors, the coin’s team issued a warning to investors not to give their wallet keys or email addresses and passwords to anybody.
This scam has also dealt a heavy blow on Shiba Inu’s petition to get listed on Robinhood. The petition had a huge following and soon Shib enthusiasts were hoping for some good news. But, after the scam alert, Robinhood made it perfectly clear that its primary dedication is on the safety of investors, even before it considers listing the coin. Other exchanges have also decided to monitor the coin.
Are Scams Prevalent In Crypto?
Impersonating scams are increasing in popularity in the cryptocurrency world. Malicious individuals are posing as reputable figures or well-known companies and tailoring promises to increase the number of tokens that an investor sends their way.
Sadly, the victims never get the promised bonus, and what’s worse is that they also lose the tokens sent. This scenario is what pushed industry leaders Brad Garlinghouse and Charles Hoskinson to seek legal reprieve. The duo sued YouTube for its failure to block fake giveaway videos. The lawsuit however did not go through. This is why investors need to watch their backs and heed to warnings such as the one Shib issued.