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Beware, Telegram Is The Go-To-App Bitcoin Scammers Use

Initially, Telegramwas used as a Whatsapp alternative. However, it is quickly becoming a petri dish for a cryptocurrency get rich quick schemes. Thisis further boosted by the growth of trading boards and bogus celebrity endorsements such as the Rock. This may be a problem as it heads towards a possible billion-dollar initial coin offering for a native cryptocurrency that they are creating.

Crypto Callz is a free to join thechat room on Telegram that artificially inflate the price of cryptocurrencies. 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. In the cryptocurrency, an unnamed narrator explains that it is the leading cryptocurrency pump group where they will skyrocket the value 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 richness. Simply open an account on a New Zealand-based cryptocurrency exchange. Follow their Telegram channel,and they will tell you what coin to buy. Hence, you are expected to follow it as soon as possible and what your coin’s value increases up to 2000%.

Currently, the chat group has about nearly 6000 members. Unfortunately, it is just one out of the many chat groups, which promotes pump and dump. Telegram has been a petri dish for these cryptocurrencies scam groups to be created. 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 can churn speculative buying frenzy 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 traders to exchange news and increasingly to orchestrate cryptocurrency scams.

The founder of the group has mentioned that what they are doing is perfectly legal. In fact, the founder believes that being a part of a well-managed professional crypto pump and dump is simply getting early information on a coin. He is also not worried about Telegram cracking down on their operations as they believe what they are doing is perfectly legal.

There has also been a recent surge in growth for Telegram. It coincided with the recent growth of the digital currency mania. Confidential internal company documents reported that Telegram has been gaining over 50,000 new users daily and is expected to reach 200 million users in the first quarter of 2018. Those users will be used to provide the critical mass to push cryptocurrencies towards widespread adoption. Furthermore, the company is also reportedly planning to raise $1.2 billion to sell a cryptocurrency of its own in an initial coin offering.

History of Telegram

Telegramwas launched in 2013 by entrepreneursPavel Durovand his brother, Nikolai. It was initially marketed as an alternative to what is before it became a popular messaging app in its right. It offered to suppose it and to enter encryption,chatbots, and public discussion channels. 2016, its user base has since doubled.

This platform is especially popular among cryptocurrency enthusiast. In fact, the official Bitcoin website has launched a Telegram channel, which boasts more than 65,000 members. People are also moving to Telegram because they believed that most cryptocurrency community members are already in the app. Hence, it is an easy choice to select Telegram as a primary method of communication. For cryptocurrency traders.

However, Telegram is also an equally easy choice for cryptocurrencies scammers who use it to prey on less sophisticated investors. Thisis usually done through thepump and dump schemes like the earlier group chat. Of course, pump and dumps are affordable in the securities industry. However, the cryptocurrency speech is largely unregulated,and the only regulation which has been released so far are those that are involved with initial coin offerings.

Those groups aim to gain as much profit as they can. Most of them weren’t also particularly worried about getting hurt. SEC has since then is warned investors about pump and dump schemes. Back in August, although it has yet to take on any actions against any of the perpetrators. Until the regulation is in place, the practice will easily continue. In fact, some of the Telegram channels have been using fake social media accounts and fake cryptocurrency news to spark buying hysteria around a coin.

Although the activities border on unethical, they are essentially not illegal and do not violate any terms of services. As of now, the cryptocurrency market will remain as the wild west. Although there are no rules to address this area specifically, there are already people raising concerns about the rampant pump and dump activities done through Telegram.

Automated Ponzi scheme

Besides just being a petri dish for pump and dumps, Telegram also holds some cryptocurrency trading bots. Under these schemes, it promises big returns for investors. If they are willing to invest their Bitcoin. Unfortunately, these bots are often Ponzi schemes, which are run by unknown investors who will eventually take them a pool of money and run away.

As of these Ponzi schemes are successfully recruiting more members, social media platforms such as Telegram, Twitter,and Bitcoin forums are quickly becoming rich recruiting grounds for these proprietors. Previously, we had telephoned these scams. They will call you up and promise you a great investment opportunity.

However, the bots which are offered on Telegram offers a different sort of sophistication. Some of them claim to the average the arbitrage in global cryptocurrency prices where there can be discrepancies in valuation. For example, they can help you to buy Bitcoin on a US-based market and then sell them back on a South Korean exchange where it may have a higher price.

Then, the bot will tell you to send them some amount of the Bitcoin or any other cryptocurrency to a wallet. They will be holding the cryptocurrency for a certain period to invest it for you. The period usually ranges around 1 to 3 months before you can withdraw the money. In the meantime, you can check your growing balance using the Telegram bot.

However, this is all just often a hoax. Many of these bots tend to stop responding to users at the end of the year because they ran away with the money. Of course, this invites a lot of angry consumers that have put down money to words the scam. This is similar to how a classic Ponzi scheme would operate.

Just took a chance

If you type in “center.co” into your computer’s browser bar, you will see our website which will tell you to relax and watch your Bitcoin’s grow. It will then promote you a Bitcoin board, which claims that he has been running for a several hundred days with more than 115 Bitcoin is invested. On the website, you will also promote of free Bitcoin’s link that will summon the YouTube video with footage of exotic sports cars, yachts and models.

iCenter has two investment bots on Telegramchannels. One of them is for Bitcoin. Meanwhile, the other is a Litecoin deposit. The creators have gone a long way to make it seem legitimate. In fact, the new section of the site also features informational articles which copies were to work from cryptocurrency publications. It also reminds readers that the website is not a scam. Among some of their tricks include a picture of the Rock Johnson holding the logo of their website. Many photos are also deceptively edited to make naive visitors believe in the scam.

Some people have checked out the schemes Telegram chat room door in those chat rooms; there are typically people who will sing praises about the services they provide. Many are also quick to give new members referral codes to climb the pyramid. So far, there is no information available on who is running in. Is also promising a 1.2% daily returns with no information on the investment strategies. Everything that the scheme is about screen to not put money into it.

There are many bot developers out there who can help to build about similar to the scams that are already available on Telegram. The script itself would cost $500. Meanwhile, hosting and maintainers will cost an additional $100 a month. Today, iCenter is still operational. Most of its bots are up and running in some of the members of the Telegram channel continue to claim daily payout. Although most of them appear to be the administrators. Despite all the red flags which either fake celebrity advertisement, guarantee returns, bogus address and the occasional bout outages, people still appear to be putting money into it.

This speaks volumes about the cryptocurrency landscape today. While there are all the signs and warning that a website may not be legitimate, but what if it is? A lot of novice investors are gambling on what looks like a good cryptocurrency investment. Many are also simply taking chances with new cryptocurrencies because they don’t know when they have fallen for a Ponzi scheme until it shuts down and disappear with their money.

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