A Cardano advocate warns ADA investors about rising scams targeting the community as the public approaches the upcoming Chang hard fork.
Cardano Ambassador Increases Awareness of Scams
Pete, a Cardano community member and ambassador, informed investors about a scam involving phony ADA gifts in a recent X (previously Twitter) post on July 13. Pete claims that con artists are focusing on the upcoming Chang update to fool and take advantage of investors due to the excitement surrounding the hard fork.
Scammers pose as Cardano founder Charles Hoskinson in a misleading YouTube video as part of this criminal plan. Realistic live stream recordings are used in this fake film, which purportedly shows Hoskinson announcing an ADA token giveaway and offering to double the tokens of interested investors.
Pete posted a screenshot of the con artists, who were seen advertising and organizing a fake 100,000,000 ADA event. They asked investors to deposit 2,500 and 500,000 ADA to a specific location. They falsely claimed to give participants twice as many ADA tokens as they sent.
Sadly, one of the investors fell for the con and told Pete about it. The investor transferred 5,000 ADA tokens to the scam address, thinking it was a legitimate event approved by the Cardano Foundation, but they never got the promised giveaway.
The ambassador has strongly advised investors to avoid falling for these fraudulent schemes because of the possible harm these frauds could cause to other community members. He clarified that the Cardano team had distributed no ADA giveaways, and any video purporting to have done so is a hoax.
Many members of the Cardano community have expressed the belief that YouTube, a well-known website for sharing videos online, ought to be held responsible for the frauds placed there. In a different tweet, Pete also disclosed that the YouTube scam was officially taken down.
In addition, he emphasized the community’s responsibility to protect new Cardano users and investors by actively reporting these scam attempts. Pete has also cautioned investors against these fraudulent operations to prevent possible financial loss.
ADA’s Countermeasures for Fraud
Pete disclosed in a different X post that the forthcoming Chang hard fork and the optimistic outlook on the market had led to a rise in frauds aimed at the cryptocurrency community. The ambassador revealed that Dano had implemented a few safety measures in the neighborhood to protect investors from con artists.
He brought up the Cardano Shield, which was incorporated into the Begin and the Gero wallets. The shield is a cutting-edge security solution that offers investors the best defense against phishing attempts, fraud, and dangers related to Cardano-based transactions.
Pete also mentioned that SlowingPains, a blockchain-based Web3 insurance ecosystem, is developing a cybersecurity insurance product to lessen the financial burden of frauds and cryptocurrency rug pulls. Pete pointed out that the most robust line of defense for Cardano investors against fraud was knowledge and awareness, even as he highlighted all these cutting-edge security systems and tactics.
