A place where people can buy and sell cryptocurrency is called an exchange. Exchanges for cryptocurrencies provide places to store cryptocurrencies, services for trading cryptocurrencies, and the ability to find prices based on how much trading is going on.
People have noticed that the trade data for bitcoin from 157 different exchanges does not match what the companies say.
Pax says, “it is quite likely that more than 50% of the reported trade volume is fraudulent or not economic.” On June 14, the sector’s daily volume of Bitcoin transactions was $128 billion. That is 51% less than the $262 billion you would get if you added all the self-reported amounts from different sources.
Mehta says that Bitex and Franc Exchange are fake versions of well-known exchanges like BitMEX and Binance. They were made to trick people by making it look like they offered services for cryptocurrencies.
Experts in the field of cryptocurrencies have also said that a platform that offers very high payouts could be the first red flag. Check out the bitcoin trading platform Crypto Trader if you are a beginner in the world of cryptocurrency trading and investing.
Places to trade cryptocurrency that isn’t real
It was said that more than 900 investors lost a total of Rs. 1,200 crores in March 2022 because of a website that advertised a fake cryptocurrency called Morris Coin.
People say that in March 2022, more than 900 investors sent Rs 1,200 crore to a website that said it sold a fake cryptocurrency called Morris Coin. Some business experts have called this cryptocurrency exchange fraud and named it “Franc crypto exchange.”
2020 will die in 2020. Nishad, who lives in Malapuram, Kerala, was the main person who helped spread the word about the digital currency Morris Coin. He did this by putting out a “initial coin offering” for a new cryptocurrency token called “Morris Coin” (ICO). Nishad is famous for making the Morris Coin.
In the first round of sales, 900 people bought coins, according to the news. After paying Rs 15,000 for 10 Morris Coins, investors had to keep the tokens in cryptocurrency wallets that the promoters gave them for 300 days. People thought at the time that the token would be put on the Franc exchange in Coimbatore, which is a place where cryptocurrencies are traded. People who wanted the tokens to be listed said that their value would go up a lot once they were listed. This, though, turned out to be a big lie.
Nishad was then caught by the Enforcement Directorate and sent to jail for his part in the Morris Coin hoax. He told investors that they shouldn’t pay for links. Instead, they should only pay on the main exchange sites.
Scammers have started making fake websites for cryptocurrency in the past few weeks to steal money from people. This is the latest cryptocurrency-related scam in a year that has already seen a lot of expensive cyberattacks.
Researchers at the security company Netskope Inc. found that the fake websites, which pretend to be pages for well-known services like Coinbase, Gemini, Kraken, and MetaMask, are meant to trick visitors into giving information that hackers can use to break into their cryptocurrency wallets. In particular, the hackers want to know how to log into the victims’ cryptocurrency wallets.
Researchers say that scammers used search engine optimization techniques to get people to visit the sites. These plans used URLs that looked a lot like those of real websites. This helped move the fake pages to the top of Google’s search results.
In a statement, a Kraken representative said that the company is always looking for fake websites and apps and doing its best to shut them down. The website also has a support section to help people who use cryptocurrencies avoid getting ripped off.