“Crypto can make you rich, but one mistake can force you to lose everything.”
That’s why, whether you’re already in crypto or just thinking about entering the space — this guide is an absolute must for you.
First, understand this — What exactly is a Crypto Scam?
A crypto scam is a kind of fraud that makes you feel like you’re making money, but in reality, someone else is having fun with your money. These scams are cleverly designed They make you believe it’s a legit project with great returns But the reality? Zero.
Common Crypto Scams – What kind of traps are out there?
- Rug Pulls – The floor suddenly disappears
A scammer launches a new token or project.
People invest out of FOMO (Fear of Missing Out).
And one day — the dev disappears with all the funds.
Example: Squid Game Token – Used the name of the popular Netflix series to attract investors, collected millions, and then suddenly removed all liquidity.
- Ponzi & MLM Schemes – “Bring in more people, and you’ll earn”
New investors’ money is used to pay older ones.
There’s no real product or utility.
Once the flow of new money stops — the whole system collapses.
Example: Bitconnect – A notorious Ponzi scam that lured people with promises of daily profits.
- Phishing Attacks – Silent murder of your wallet
Fake websites, emails, or DMs are sent to you.
The moment you enter your seed phrase or private key — Boom!
Never share your wallet keys with anyone. Ever.
- Fake Airdrops & Giveaways
“Send 1 ETH, get 2 ETH back” — You’ve probably seen this on Twitter.
Scams pretending to be from Elon Musk were especially popular.
Golden Rule: No one’s giving you free ETH — believe it.
- Pump & Dump Schemes
A token is artificially pumped (using influencers or fake news).
Once the price goes up, the whales sell everything — and you’re left holding the bag.
Real Case Study: Ronin Network Hack (March 2022)
In March 2022, the Ronin Network— the blockchain behind the game Axie Infinity— was hacked.
Hackers managed to take control of 5 validator nodes and stole a staggering $625 million (173,600 ETH + 25.5 million USDC).
This became the largest DeFi hack in history.
Lesson:
Even the biggest blockchains can be vulnerable.Taking security lightly can cost you big.
How to Spot a Crypto Scam?
| Signal | Why You Should Be Alert |
|---|---|
| Guaranteed High Return | Nothing is guaranteed in crypto |
| Asking for Your Seed Phrase | 100% Confirmed Scam |
| Sudden Pump in Price | Classic Pump & Dump scheme |
| No Info About Dev Team | Anonymous projects = Risky |
| Shady-looking Website | Could be a fake or phishing site |
How to Protect Yourself from Crypto Scams
- DYOR = Do Your Own Research
- Never share your seed phrase with anyone
- Only interact through official websites and apps
- Avoid falling for unrealistic return promises
- Check the project on Reddit, Twitter, CoinMarketCap, etc.
What if You Get Scammed?
- Stay calm — don’t blame yourself
- Immediately disconnect your wallet
- Report the scam (Twitter, project forums, Discord)
- And most importantly: Learn the lesson and stay cautious moving forward
Bonus Tip from your friend MarketNeon:
“Run fast in the world of crypto if you want,
But keep your eyes open — or you’ll lose your ETH and be left with just regret.”
In the end…
Scams aren’t a part of crypto —
They’re a reality that takes advantage of our carelessness.
But if you keep learning,
no scammer can ever fool you.
And that’s exactly what MarketNeon is here for — to keep you aware and informed.
A Note to You – From Your Friend MarketNeon
“Running in the crypto world isn’t bad —
But running with your eyes closed can be dangerous.”
We want you to be not just an investor, but a smart investor.
So whenever you’re unsure about a project — pause, think, and if needed, ask a friend… just like MarketNeon.
Always here — to help you learn, understand, and stay scam-free.
