Initially, Telegram was used as an alternative to Whatsapp. However, it is quickly becoming a petri dish for cryptocurrencies get rich quick schemes. This is further boosted by the growth of bogus celebrity endorsements which influence the public to jump onto the cryptocurrency train without thinking twice. This may be a problem as it heads towards a possible billion-dollar initial coin offering for a native cryptocurrency that they are creating.
One of the groups encouraging this scheme is called the Crypto Callz. This is a chat group which is based on Telegram and the members of the group rally together to inflate the price of cryptocurrencies artificially. However, one would think that they would be a lot more secretive about their operations. They are not shy at advertising about what their operation is all about. An unnamed narrative claims that they are the leading pump and dump group that will skyrocket the price of coins for six hours at a time.
The chat room is also filled with animations, which offer a simple example of how people can gain their way towards cryptocurrency riches. To join the group, you simply have to create in New Zealand-based cryptocurrency exchange. Then, once you follow their Telegram channel, they will tell you which coin that you need to buy. To make the most out of it, you have to follow the instructions as soon as possible.
Currently, the chat group has about nearly 6000 members. Unfortunately, it is just one out of the many chat groups, which promotes this scheme. As one of the world’s most popular messaging apps, Telegram is quickly gaining the attention of these hackers as it is a quick way to make money.
The goal of this group is simple, which is to create speculative buying frenzies surrounding the digital currencies and quickly cash in on them. These groups are very easy to access. In fact, some of them are even free to join. They go largely unsupervised by Telegram which has been the go-to gathering for most cryptocurrency enthusiast that rallied together to orchestrate cryptocurrency scams.
When asked, the founder of the group believes that what they are doing is legal. In fact, they think of it as getting in early on the inflation of the coin. Furthermore, they are also not concerned about Telegram cracking down on their operations as they believe what they are doing is not breaking any law.
The massive growth of cryptocurrency has also boosted the popularity of telegram. In fact, the messaging app is receiving 50,000 new users daily. These users are mostly from the cryptocurrency community that joins chat groups to stay updated on the latest updates about the space. Telegram is also launching their blockchain in cryptocurrency which is expected to raise $500 million and the sale ICO.
History of Telegram
Telegram was first launched in 2013. It will launched by entrepreneurs who are Pavel Durov and his brother, Nikolai. Initially, they marketed their platform as an alternative to using Whatsapp. Among the features of telegram are personal conversations, chat rooms, and public discussion channels. This platform is so popular that even Bitcoin has an official Telegram channel.
People are also moving to Telegram because they believe that most cryptocurrency community members are already in the app. Hence, it is an easy choice to choose Telegram as a primary method of communication for cryptocurrency traders. Despite this, Telegram also makes it easy for cryptocurrencies scammers to enter into a group and create schemes like the pump and dump scheme.
These groups aim to gain as much profit as they can. Most of them are also not worried about the SEC warning investors about the pump and dump schemes. So far, no actions have been taken against the perpetrators. Therefore, until regulations are defined, this practice will continue to take place. In addition, there is also a practice which creates fake social media accounts and fake cryptocurrency news to create hype around an event. Albeit being borderline unethical, these practices aren’t exactly illegal. Therefore, as the cryptocurrencies market are largely unregulated, it is pretty much the Wild West.
Automated Ponzi scheme
Besides being a place for the pump and dump telegram groups, the platform also hosts some cryptocurrency trading bots. Using these bots, it promises large returns to their investors if users are willing to invest their Bitcoins. Unfortunately, most of these are Ponzi schemes that successfully recruited more members. There are also traditional ways of scamming people by calling an unsuspecting individual and offer them cryptocurrencies.
However, the bots on Telegram seem convincing because they offer something unique. For instance, they claim that they will help users take advantage of arbitrage by buying Bitcoin in a US-based market and sell them back in another country’s exchange. Therefore, users reportedly can make money off this arbitrage. To join this trend, the bot will then instruct you to send them an amount of Bitcoin to a wallet address. They claim they will help you to invest it for a period which can be anywhere between 1 to 3 months. Unfortunately, a lot of people have fallen for this hoax, and the bots tend to stop replying to users at the end of the year because they took all of the money. This is a classic Ponzi scheme.
Just took a chance
If you type in “icenter.co” into your computer’s browser bar, you will see a website that has a headline of “RELAX AND WATCH YOUR BITCOIN GROW.” It promises financial benefits for people that join their scheme. This website has to bots which are based in the Telegram channel. The creators of this website have gone to extensive length to make the service look legitimate.
When it comes to scams in Telegram groups, it is filled with a group of people who will sing praises about the services that the platform provides. You will also most probably be given with a lot of referral code as it helps members to climb up in position. Overall, a lot of things are tricky and shady about these scams Telegram groups. However, you would be surprised at the number of people fall for this scam.
If anything, the number of scams in the cryptocurrency market reflects the condition that the industry is in right now. The unregulated nature of the place makes it a breeding ground for people that want to take advantage of uninformed investors. A lot of novice investors are also looking for investment opportunities that seem cheaper or easier to trade. Too many people have fallen for a Ponzi scheme and Telegram is the main application that people use to do this.