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What is a scam in cryptocurrency: popular types of fraud

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Crypto scam refers to any form of deception aimed at stealing digital assets through false promises, fake projects, or technical tricks. Scammers constantly adapt their tactics, aligning with trends, whether it’s hype around a new blockchain, the launch of a promising token, or a high-profile ICO. The high demand for earning in cryptocurrency creates fertile ground for scams – in the absence of regulation and complete transaction anonymity. Victims can lose money in a matter of minutes – with no possibility of recourse or refund. Crypto scams target both individual investors and entire startups, fund pools, and even exchanges.

Why Cryptocurrency Fraud Thrives

Blockchain provides transparency but not protection. Anonymous wallets, lack of mandatory verification, instant transfers, and decentralization create an environment where fraudsters exploit trust as their main resource. Any token launch or new protocol with high demand and low supply creates favorable conditions for cryptocurrency scams.

New projects often do not undergo legal scrutiny. Many investors send money without a real risk analysis – solely based on emotions and promises. There is no customer support, insurance, or government regulation. Crypto scams turn even advanced traders into vulnerable participants – especially when participating in presales, DeFi launches, or NFT initiatives.

Main Types of Cryptocurrency Scams: Detailed Analysis

Crypto scams can take dozens of forms. Below are the main schemes most commonly used by fraudsters.

1. Pseudo-ICO

Creators do not develop a real project but only set up a website, publish a whitepaper, and raise investments for a “future token.” After receiving funds, they disappear with investors’ wallets. A prominent example is Plexcoin: the founders raised $15 million and vanished.

2. Phishing Attacks

Fake wallet websites, exchanges, or NFT platforms mimic the appearance of originals. Users enter private keys or seed phrases, after which scammers instantly withdraw all tokens. Cryptocurrency scams often masquerade as customer support, verification, or airdrops.

3. Pump & Dump

Participants artificially create demand for a token: buy assets, generate fake news, use influencers. Once the price rises, organizers sell coins, crashing the market. Other investors are left with significantly devalued assets.

4. Liquidity Drain Scam Projects

Projects in DeFi launch a token, create a pool on a DEX, promise high returns. After reaching a critical liquidity volume, developers withdraw all funds, leaving investors with worthless tokens. The same scheme is found in play-to-earn games.

5. Financial Pyramids

Pseudo-funds promising up to 30% monthly profits use new inflows to pay previous participants. The model collapses when new inflows decrease. An example is BitConnect: over $2.6 billion was lost.

Who and How Cryptocurrency Scams Threaten: Real Investment Risks

Cryptocurrency scams threaten not only newcomers. Even experienced traders, venture funds, and startups fall victim. Investments in cryptocurrency without legal expertise, technical audits, and team reputation checks are particularly risky. Risks increase during market euphoria – with Bitcoin’s rise or hype around new blockchains.

The biggest losses are recorded among participants who invest in startups without MVP, whitepaper, or legal registration. The average loss per participant in a scam ICO in 2023 was $12,000, according to estimates based on open blockchain data.

How to Avoid Crypto Scams: Protection Methodology

Before investing, a comprehensive project check is necessary. A step-by-step approach that reduces the likelihood of losses:

  1. Check the website: presence of HTTPS, text errors, spoofed domains.

  2. Study the whitepaper: specificity, logic, technical details.

  3. Check the team: LinkedIn, Twitter, GitHub, interviews, history.

  4. Analyze smart contracts: audit from Certik, Hacken, PeckShield.

  5. Check tokenomics: team’s share, issuance, lock-ups.

  6. Study activity: community, Telegram, Discord, news frequency.

  7. Exclude guarantees: 100% profits, fixed incomes – red flags.

  8. Use cold wallets: Ledger, Trezor – for storage.

  9. Participate through reputable platforms: Binance Launchpad, CoinList.

  10. Monitor reactions: discussions on Reddit, BitcoinTalk, Dune.

Why Crypto Scams Persist: Psychological and Market Triggers

Hype, desire to get rich quick, FOMO – key factors that make cryptocurrency fraud widespread. Fraudsters often use success visualization, fake numbers, and counterfeit interviews with “experts.” Crypto scams intensify with growing interest in new formats – ICOs, IEOs, NFTs, DAOs. The launch of any new technology is accompanied by a wave of scams exploiting knowledge gaps. Projects that combine exchange, wallet, and investment platform functions pose a particular danger. These hybrids create the illusion of legitimacy but operate as pyramids or drain programs.

Conclusion

Crypto scams are a systemic issue but not a verdict. Deception thrives where critical thinking is lost, and anonymity replaces accountability. Investments require analysis, attention, and technical preparation. With due caution, information protection, and risk diversification, digital assets can generate income while avoiding scams.

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Ethereum has consistently held the second spot among cryptocurrencies by market capitalisation, reaching $400 billion by early 2025. Since its launch in 2015, its value has grown from $0.30 per token to a peak of $4,800 in November 2021—currently, the average price of the coin hovers around $3,200. Due to the asset’s volatility, the question of whether it is worth buying Ethereum shortly becomes especially relevant.

Outlook: What will happen to Ethereum in the near future?

Experts’ forecast for the Ethereum price in 2025 is based not only on historical indicators but also on fundamental demand for the technology. The most important driver of growth has been the development of decentralized finance and NFTs (non-fungible tokens), which operate primarily on the Ethereum blockchain. At the beginning of this year, more than $150 billion was invested in DeFi projects, with the network accounting for approximately 60% of the market. The high market demand for the technology is constantly increasing demand for the currency, making investments profitable and promising.

Ethereum Price: Figures and Expert Predictions Until 2030

Analyzing the statistics, experts highlight a positive long-term trend. At the beginning of 2025, the ETH exchange rate is expected to be around $5,500, which is significantly higher than in 2022 (around $1,800). Given the current dynamics, the asset’s value could reach between $7,500 and $6,000 by the end of December.

Analysts’ long-term forecasts are more optimistic:

  1. The price by 2030 is projected to be between $12,000 and $20,000, based on current adoption rates and demand.
  2. Bloomberg statisticians offer a more conservative view of what will happen to Ethereum in the near future, pointing to a possible range of $8,000 to $12,000 by 2030.

The main growth factor is the stable demand for decentralized financial services, as well as the constant improvement of blockchain technology, including Ethereum 2.0 and the transition to Proof-of-Stake.

How to Choose Ethereum for Investment: Analysis with Examples

Outlook: What will happen to Ethereum in the near future?For those considering investing in ETH, it’s important to understand how to choose a cryptocurrency. There are several key parameters to consider.

Market Stability and Reputation

Since its inception in 2015, Ethereum has consistently ranked among the top three cryptocurrency market leaders. The number of active ETH wallets worldwide has exceeded 230 million, with over 1.2 million transactions made daily, confirming the network’s reliability and trust in the project. These figures demonstrate the long-term demand for the token.

Network Development and Upgrades

Ethereum underwent a major upgrade to version 2.0, which was completed in 2023. The transition reduced network energy consumption by 99.9% and enabled a significant increase in throughput to 100,000 transactions per second. The introduction of proof-of-stake technologies has made the currency more attractive to investors who prefer sustainable and environmentally friendly projects.

How to Choose the Right Time to Invest in Ethereum: Simple Tips for Beginners

When making an investment decision, it’s worth considering the risks of investing in cryptocurrencies and potential market fluctuations. Over the past five years, ETH’s average volatility has reached 10-15% per month, and periods of sharp price fluctuations are observed on average twice a year. Therefore, averaging, where coins are regularly purchased in equal shares, is considered the most reasonable strategy.

Advantages:

  1. Extensive infrastructure and numerous DeFi projects (Uniswap, Compound, MakerDAO).
  2. Stable support from major companies (Visa, JPMorgan, Samsung).
  3. Regular technology updates and improvements (sharding to be introduced in 2024).

Risks of investing in the Ethereum cryptocurrency:

  1. High volatility and possible short-term declines.
  2. Strengthening market regulation in individual countries (US, China, EU).
  3. Growing competition from alternative blockchain projects (Solana, Avalanche, Polkadot).

How much will Ethereum cost in 2025 and 2030? Specific market expectations

To understand what will happen to Ethereum in the near future, it is important to understand what factors determine the price of the second most popular cryptocurrency. Today, analysts and experts make various predictions based on the current market situation, technological developments, and the overall dynamics of the global cryptocurrency market.

Forecast for 2025: Growth Factors

The average analyst forecast shows that the price this year could remain stable in the range of $7,000 to $8,000. These figures seem quite realistic considering the current price of ETH is around $3,200. The main factors behind this growth are Ethereum’s integration with major international payment systems (PayPal, Stripe, Visa), as well as the continued boom in the decentralized finance (DeFi) market.

The Ethereum 2.0 technology upgrade plays an important role. The transition to the Proof-of-Stake system has significantly increased transaction speed (up to 100,000 transactions per second) and reduced commission costs to minimal amounts ($0.5–2 per transaction versus $20–30 previously). This increases demand for the network among corporate clients and private investors.

To illustrate market changes, let’s look at an example: in 2021, after the announcement of Ethereum’s transition to Proof-of-Stake, the price of ETH increased by more than 30% in one month, from $2,800 to $3,600. Such events will contribute to maintaining the positive price dynamics of Ether in the future.

Growth factors:

  1. The continued growth of the NFT space, where Ethereum holds a 75% market share.
  2. The rise of DeFi applications, with a total value of funds expected to reach $250 billion by 2025.
  3. Regular use of blockchain by international companies, including Microsoft, Samsung, and JPMorgan.
  4. The growing interest of institutional investors (investment funds, banks), who invested more than $3.5 billion in Ethereum by 2024.
  5. High liquidity of ETH on exchanges (Binance, Coinbase, Kraken), where daily trading volume exceeds $15 billion.

Forecast for 2030: Long-Term Expectations and Figures

If we analyze what will happen to Ethereum in the near and long-term future, it is clear that it is capable of surpassing the $12,000 mark by 2030. Moreover, several experts, including representatives from the investment bank Goldman Sachs, consider this forecast to be conservative.

By 2030, the overall cryptocurrency market capitalization is expected to reach $10 trillion, of which Ethereum will account for at least 30%. A major driver of this growth will be the active spread of decentralized financial solutions and the partial replacement of traditional banking services with applications built on the Ethereum blockchain.

Is it worth buying Ethereum in 2025?

How to Choose the Right Time to Invest in Ethereum: Simple Tips for BeginnersDespite the risks and volatility, Ethereum’s outlook remains extremely favorable due to the project’s stability, the high demand for DeFi and NFT technologies, and the confidence of institutional investors. In the long term, what will happen to Ethereum in the near future? Investments in ETH can provide stable capital growth and reliable protection against inflation.

Ethereum is one of the most talked-about crypto-currencies of recent years. Since its launch, it has continued to prove its worth on the market. Today, the question of whether or not to buy Ethereum is particularly acute due to a number of factors, including technical improvements, network stability and new usage prospects. Unlike bitcoin, Ethereum offers more opportunities for developers and investors thanks to its ecosystem of smart contracts and DeFi.

Why you should consider buying Etherium today

Etherium is now a platform in its own right for decentralised applications. Technological changes – the move to Ethereum 2.0 – increase scalability and security, attracting new investors. The reduction in issuance following the move to proof-of-stake makes assets rarer, which can increase their value. News of Efirium’s integration into various financial systems is also important, making it a relevant investment.

Efirium price forecasts

The value of Efirium is subject to significant fluctuations, which is typical of crypto-currencies. However, experts believe that the long-term trend for Ethereum is positive due to the growing popularity of smart contracts and the development of decentralised finance (DeFi). Analysts’ forecasts for Ethereum are as follows: by the end of the year, the price could rise significantly, particularly after the full implementation of Ethereum 2.0. It’s important to bear in mind that there are always risks, so invest with full knowledge of the facts.

Ethereum or Bitcoin: which to invest in today?

One of the most popular questions among novice investors. Bitcoin remains today’s leading crypto-currency, often referred to as ‘digital gold’, while Efirium is a platform for creating decentralised applications. Investing in crypto-currencies depends on the investor’s objectives. Ethereum offers flexibility thanks to smart contracts and a large number of DeFi projects, making it an attractive long-term investment. Bitcoin is more stable, but Ethereum offers greater growth potential.

Where can I buy Ethereum today and how can I store it?

Why you should consider buying Etherium todayThere are several platforms available in Russia, including the leading exchanges Binance and Coinbase. When buying crypto-currencies, it is important to choose a proven platform that offers low commissions and a high level of security. Once purchased, it needs to be stored securely.

A wallet for Efirium can be custodial (such as online wallets managed by an exchange) or non-custodial (physical wallets such as Ledger or Trezor). Physical wallets are recommended for long-term storage as they offer maximum security.

The transition to Ethereum 2.0: what it means for investors

A major upgrade to improve network scalability and security. The move from Proof-of-Work to Proof-of-Stake significantly reduces energy consumption, making Ethereum more environmentally friendly. For investors, this means fewer emissions and a potential increase in value. Ongoing changes aim to improve the user experience and increase the number of transactions per second, making Ethereum more attractive to use and invest in today.

Ethereum tax in Russia: what you need to know

Profits from trading crypto-currencies in Russia are subject to tax. For individuals, this means that they must declare their income and pay a 13% tax. Failure to comply with tax obligations can result in penalties, so it’s important to be aware of this when investing in Ethereum. Tax is an important part of financial planning when it comes to crypto-currencies, and consulting a financial professional can help you avoid problems.

Investing in crypto-currencies today: pros and cons of Ethereum

Investing in crypto-currencies, particularly Ethereum, has its advantages and disadvantages.

Advantages:

  1. High liquidity.
  2. Opportunity to participate in DeFi.
  3. Potential for value growth thanks to the development of the ecosystem.
  4. Use of smart contracts to automate and improve processes.
  5. Active development and support of the project by developers and the community.

Disadvantages:

  1. Volatility.
  2. Regulatory risks.
  3. High costs in the event of network congestion.
  4. Competition from other blockchains offering lower costs and higher transaction speeds.

Statistics show that Ethereum is capable of significant growth, but the decline can also be sudden and significant. Ethereum remains an attractive asset today, but to mitigate risk it’s important to spread investments and keep a close eye on market news.

So, should you buy Ethereum now?

The transition to Ethereum 2.0: what it means for investorsPurchasing can be a good investment because of the development and introduction of new technologies. Efirium currently offers opportunities to earn money, whether through long-term investments or participation in DeFi projects. However, investments always involve risk, so it is important to assess how far you are prepared to take any losses. For those who believe in the future of blockchain technology, buying Ethereum is a step towards innovation and possible future profits.

Ethereum is one of the most important assets in the crypto-currency market, constantly evolving and offering users new opportunities. Today, when the world of decentralised finance is just beginning to take off, investing in Ethereum looks particularly promising. Given the growing number of applications based on this currency and the move to Ethereum 2.0, interest in this currency is only growing. A key advantage is the ability to use smart contracts for various transactions, which creates enormous potential for growth and expansion of the ecosystem.