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Despite the optimism of 2021, the crypto industry faced significant challenges and scandals in 2022. From the collapse of Terra and Three Arrows Capital to FTX, prominent incidents have shaken investors’ confidence. According to a new report from Chainalysis, crypto crime reached a record high of $20.6 billion worth of blockchain transactions in 2022. Criminal activity accounted for 0.24% of all blockchain transactions, doubling from the previous year’s 0.12%.
As the crypto industry faces a lack of investor confidence, it needs to rebuild trust, while traditional institutions should embrace digital assets. Nevertheless, to achieve mass adoption, we need an ecosystem that analyses good and scam-free projects, and offers ample learning opportunities for new investors. In this case, Encircled can help! Encircled can help new investors analyse safe projects and avoid scams. In this article, we’ll explore common security risks in the crypto market and how Encircled’s ecosystem mitigates these risks.
Common Security Risks in the Crypto Market
Crypto investment has become a hot topic, with discussions happening everywhere, from local community groups to online forums. The democratisation of finance facilitated by crypto has never been seen before in history, but great risks come with great opportunities. Bad actors are taking advantage of people’s lack of knowledge about crypto, and many are falling victim to investment scams. The following are some of the most common security risks in the crypto space.
Ponzi Schemes
Ponzi schemes have been around for decades, luring investors with the promise of high investment returns. However, these schemes are fraudulent and unsustainable, relying on new investors’ deposits to pay existing investors. When new money flows stop, the scheme collapses, leaving many investors with substantial losses. It is essential to be cautious when investing and thoroughly research any investment opportunity.
Pump and Dump
Pump-and-dump scams are prevalent in the cryptocurrency world. Scammers use misleading or false information on social media and other platforms to attract investors to buy a particular cryptocurrency, increasing its price. Once the value has peaked, the scammers sell off the crypto at a profit, causing the price to plummet. It is crucial to be wary of any investment opportunity that promises quick returns, especially if it is promoted heavily on social media.
Rug Pull
The rug pull scams involve scammers raising seed money for a new cryptocurrency they are developing. Investors are enticed by the promise of high returns and invest in the project, but once the scammers have raised enough money, they disappear with the funds. These scams are difficult to spot, and it is important to do extensive research on any cryptocurrency investment opportunity before investing.
Phishing
Phishing scams are common in the cryptocurrency marketplace, with scammers using emails, fake websites, or social media to trick victims into giving away sensitive information like digital wallet keys. It is essential to be cautious when giving out personal information and double-check the legitimacy of cryptocurrency-related emails or websites.
Investment Scams
Investment scams often promise high returns with no risk and can start on social media, online dating sites, or through unexpected phone calls or emails. Scammers build trust with their victims before convincing them to invest in a fraudulent cryptocurrency project. It is crucial to be wary of any investment opportunity that seems too good to be true and to research the investment thoroughly before investing.
Initial Coin Offering (ICO) Scams
Initial Coin Offerings (ICOs) are a popular way for companies to raise capital by selling new cryptocurrency tokens or coins. However, some ICOs are scams with tokens or coins with no real value or purpose. Investors should be cautious when investing in any new ICO and thoroughly research the project and the team behind it.
Fake Crypto Exchanges
Fake cryptocurrency exchanges and websites are set up to steal money from unsuspecting investors. These scams can be difficult to spot, and investors may not realise they have been duped until too late. It is crucial to stick with well-known exchanges such as Binance, Coinbase, or Kraken, and to be cautious when investing in any new cryptocurrency project.
Investing in cryptocurrency is a potentially lucrative but inherently risky endeavour. While promising projects exist, research and due diligence are essential to avoid scams and losses. If you’re considering investing, you may wonder how to assess whether a project is worth your money. The solution is Encircled, a platform to help you avoid cryptocurrency scams. To learn more about how Encircled can help you mitigate risk and achieve success in cryptocurrency, read on!
How Encircled Helps You Avoid Cryptocurrency Scams
Transparent LaunchPad
Encircled’s transparent LaunchPad helps users avoid cryptocurrency scams by providing complete transparency during the launch of new cryptocurrency projects. It ensures that all information regarding the project, including its team members, whitepapers, and tokenomics, is readily available to users. This allows users to make an informed decision about whether or not they want to invest in the project.
Encircled’s LaunchPad also ensures that the project’s code and smart contracts are audited by trusted third-party auditors, making the project less likely to be a scam. The platform also conducts due diligence on the project’s team members to ensure they have a good reputation in the industry. All these measures help users avoid scams and invest in legitimate projects with a high chance of success.
Strict Project Launch Rules
Encircled has strict rules for project launches, which helps users avoid cryptocurrency scams. The platform ensures that all projects adhere to these rules, which include having a minimum number of team members, a working product, and a solid roadmap. Projects that do not meet these requirements cannot launch on the platform.
Additionally, Encircled requires all projects to lock a portion of their tokens for a specified period. This helps prevent pump-and-dump schemes and ensures that project founders have a vested interest in the project’s success.
Trustworthy Community
Encircled has a community of users who are passionate about cryptocurrency. Encircled helps users avoid cryptocurrency scams by fostering a trustworthy community through Encircled Connect, a robust social networking platform. Encircled Connect provides users with various tools for networking, communication, and collaboration, enabling them to connect with other like-minded individuals in the community. With features like instant messaging, chat, and video-voice-screen sharing, users can easily engage with one another, ask questions, and share knowledge.
Educate Investors
Encircled believes that education is key to helping investors avoid cryptocurrency scams. The platform provides videos, courses, and seminars to help grow the community’s knowledge. With Encircled Learn, they will offer learning resources (articles, videos, etc.) based on newly developed materials or information from external sources. The platform will provide users with educational resources to help them learn how cryptocurrency works, how to do due diligence on projects, and how to identify red flags.
Encircled also provides users with information on safely storing their cryptocurrency and avoiding common security pitfalls. Encircled helps prevent cryptocurrency scams and fosters a safer, more trustworthy cryptocurrency ecosystem by providing users with the knowledge they need to make informed decisions.
Why Should Investors Choose the Encircled Ecosystem?
If you are an investor looking for a diverse and comprehensive ecosystem, look no further than Encircled. Encircled offers three main products designed to revolutionise the crypto industry: Encircled Connect, Encircled Learn and Encircled Launch. The Encircled community can also take advantage of other great products and services.
One such service is Encircled Vetting & Consulting, which allows community members to request vetting for outside projects or promote their own. Additionally, Encircled Marketing offers marketing services to guide and nurture projects from the early stages to the top of the crypto rankings. They also reward those who significantly contribute to Encircled Learn through their Encircled Apparel department with high-quality branded apparel.
In addition to the above, Encircled operates an Investment Pool where 15% of profits earned on services and utilities are deposited. The pool invests in various projects vetted by the community or launched on Encircled’s LaunchPad. Finally, Encircled Staking allows users to stake their coins on the platform and receive stake rewards while accessing various platform features. Participants in the staking pool are eligible to participate in every launch from Encircled Launch and receive quarterly profit-sharing from all Encircled revenue. Additionally, staking tokens will grant governance voting rights to users.
Furthermore, Encircled plans to offer an Incubation Program for promising ideas, an opportunity to invest in a non-profit, and a wallet with many rewards for buying, selling, and swapping crypto. As a whole, Encircled offers investors a safe and secure ecosystem with a wide range of offerings and opportunities for profit and community involvement.
Conclusion
With the growing popularity of cryptocurrency, scams and fraudulent activities becoming increasingly prevalent, Encircled recognises this issue and strives to offer a platform that offers vetted projects, audits, and verifications to minimise fraudulent activities. The platform allows investors the opportunity to invest in cryptocurrency in a secure environment where they can be confident about their investments.
The Encircled ecosystem brings developers, project creators, and investors together under one roof to launch new projects and connect with the crypto community. The platform bridges the gap between the crypto community and investors by creating a safe and secure ecosystem. Through its one-stop marketplace, Encircled is contributing greatly toward connecting the crypto community and promoting transparency and trust. So, whether you are a novice or a seasoned investor, investing in crypto is easy with Encircled, and with its other services, you can stay informed about the crypto market. Become a member of Encircled today!
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
Earnings Disclaimer: The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.
