Don't be deceived!!

[Mia Chloe]

A lot of altcoiners are always excited about the release of a new crypto currency that they rush into promoting and mining these altcoins which at the end of the day turn out to dip exponentially when they are listed on various exchanges or when they are lunched on their mainnets.
Of course mining these coins isn't a bad thing but unfortunately most of these coins are  scam projects. A lot of these developers create these coins as a profit only scheme for themselves and the earliest adopters. so in order to make profit they carry out the famous pump and dump.
During the pump period of the coin the developers and creators of these coins give the coin a high value which would look very promising and therefore draw more people into the adoption circle. Alot of These people fail to understand that since these coins are on a testnet, they are some what of no value.

Now how do they trick these so called miners?

During this pump period people who troop into mining these coins per say are willing to do anything possible so they could acquire as much  of the coin as possible. Therefore these developers introduce a referral and KYC scheme.
Here is the catch ;
these miners refer as much people as they can so they can increase their mining rate and their coins, which on the other hand brings more profit to the developers. Now the more people troop in to accumulate the coins the more KYC Data the developers can accumulate. These creators can later sell these data for their profit in the future.

And then comes the dump period here the coin is eventually launched and listed on  few exchanges and boom a coin which during mining was said to have a value of over $10- $20  drops to just a couple of cents making the average adopters accumulated coins to be nearly useless.

To further trick people to buying these coins after the launch, the devs and creators make up articles and stock charts insinuating that Bitcoin was just a few cents during its launch but it now has a value of over $43k so people should endeavor to buy much of these coins and hold them for a long while hoping that it would eventually rise like Bitcoin over time which is a lie.

Why waste  your time and risk your KYC data on the shitcoins?  when you can actually easily understand and hodl Bitcoin which is safer and decentralized. Don't be deceived that such coins in the future will turn out to be like Bitcoin.
There are many scam projects out there so make sure to research and most importantly avoid KYC.
Remember don't forget to keep your keys safe!!

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[Knight Hider]

Bitcoin was just a few cents during its lunch

Launch, not lunch.

[pooya87]

During this pump period people who troop into mining these coins per say are willing to do anything possible so they could acquire as much  of the coin as possible. Therefore these developers introduce a referral and KYC scheme.
Here is the catch ;
these miners refer as much people as they can so they can increase their mining rate and their coins, which on the other hand brings more profit to the developers. Now the more people troop in to accumulate the coins the more KYC Data the developers can accumulate. These creators can later sell these data for their profit in the future.

It looks like you are using the wrong terminology here, or are shitcoiners actually calling it "mining" these days? I don't really follow that drama!

Mining is the process of performing real work using your real hardware with your real hashrate which means how much coin the miner mines is fixed and can not go up based on how many additional "victims" they've referred

In any case your other points are valid. These scammers rely on the greed of people to get their shitcoin pumped and dumped so that THEY can make a lot of profit as the rest of the participants are only gambling with their hard earned money.
The KYC scam that became popular during 2017 ICO craze is their way of maximizing their profit by selling "gamblers" personal information on darknet.

[Dunamisx]

Snipped

The truth is that no body can receive you if you didn't choose to get deceived by them with what they offer, people are so tuned to the pattern of going by everything that they see online and by the virtue of the packaging made on them, we tend to believe everything to be true as they have presented it on us without us taking extra steps ensuring that we are going for the right thing and not being tricked, when we are out there in look for possible means to earn money doesn't mean we shouldn't play safe as well and just accept anything that comes out way.

[BitMaxz]

I don't get it how these developers make a profit by referring people to mine their own developed coins?

You may be trying to say that developers mine some coins first before they publish it that's pretty common those coins are mostly churned and burn once the coins gain value on the market developers who mine lots of coins will sell all mined coins and eventually die.

Also, if it asks for KYC that's not a good project better avoid them because most of them are just collecting KYC data from people that can be used later not only for selling the data but also can be used for scamming purposes.

[Hatchy]

It looks like you are using the wrong terminology here, or are shitcoiners actually calling it "mining" these days? I don't really follow that drama!

Mining is the process of performing real work using your real hardware with your real hashrate which means how much coin the miner mines is fixed and can not go up based on how many additional "victims" they've referred

They are potential new method where shit coins can be mined using mobile devices. It's more like airdrop not mining. From what I know about this, the developers designs the mining apps to airdrop free tokens every certain period.
 

A lot of altcoiners are always excited about the release of a new crypto currency that they rush into promoting and mining these altcoins which at the end of the day turn out to dip exponentially when they are listed on various exchanges or when they are lunched on their mainnets.

Mining new coins on a testnet, has no negative outcomes, as you potentially have nothing to loose. When the coins are finally launched and listed on an exchange, their values at that point might be extremely high or low depending on it's speculation on the market. And so many early miners would rush to sell off their holdings making profits off them. I see nothing been lost here.


The only thing I guess would put many peoples security at risk is the idea of kyc, which I've seen so many of these new coins airdrop apps  force on users before they are able to sell of the coins. At this point, you are exposing your personal information to risks of unknown consequences. These developers just as op said may sell of your data and make profits of them. Again, you are exposing you information out on the internet for coins that it's value might not even be worth the stress. We should all be cautious in thing like this. No om eis saying that you shouldn't mine free coins but we should avoid anything that would endanger us directly or indirectly.

To further trick people to buying these coins after the launch, the devs and creators make up articles and stock charts insinuating that Bitcoin was just a few cents during its launch but it now has a value of over $43k so people should endeavor to buy much of these coins and hold them for a long while hoping that it would eventually rise like Bitcoin over time which is a lie.

when it comes to the pump and dump schemes, the developers pay of people to help hype or promote this project. This way, they are able to drive in new investors looking for potential new coins that they can make profits from. If you eventually end up investing in such project which later turned out to be a scam, you will be left with a bag of worthless tokens at the end of the day. Before investing in a new coin, we should make sure to do our research properly to avoid such situations that might affect us financially.

[Mia Chloe]

It looks like you are using the wrong terminology here, or are shitcoiners actually calling it "mining" these days? I don't really follow that drama!

Mining is the process of performing real work using your real hardware with your real hashrate which means how much coin the miner mines is fixed and can not go up based on how many additional "victims" they've referred

Yes mining requires some hard ware and electricity to run but unfortunately these scammers use the term mining to refer to their shitcoins. It blinds the eyes of crypto newbies into thinking it's something big like Bitcoin but unfortunately it isn't.

The KYC scam that became popular during 2017 ICO craze is their way of maximizing their profit by selling "gamblers" personal information on darknet.

 Sale of KYC data on the dark net is something that happens on a somewhat regular basis. It is so unfortunate that a lot of persons are so careless with their KYC information that they easily give them out to scam projects.  Just like BitMaxz mentioned some of these KYC information that are not sold are eventually used as details to aid the scamming of these careless users.

[Samlucky O]

And then comes the dump period here the coin is eventually launched and listed on  few exchanges and boom a coin which during mining was said to have a value of over $10- $20  drops to just a couple of cents making the average adopters accumulated coins to be nearly useless.

It is always common, because almost every coin drops when launched. There is a higher probability that people who mined it will sell off in other not for the value to drop while holding. Just like when core dao launched at about $5 but now it is less than a dollar because the mimniers keep selling an selling in bulk untill dey sold all to new investors untill the investors loose the liquidity in that coin. They will be left with no choice to hold a coin without liquidity. But if the coin rises beyond imagination I think those that held it will have a smiling face.

[Gio vanna]

don't get it how these developers make a profit by referring people to mine their own developed coins?

I won't actually say much. I'm still running on that thought, is like the referrals whose also the miners are selling their personal information for profit. 🤷

Why waste  your time and risk your KYC data on the shitcoins?

lol that's easy most people believe that shit coin investment one of the quickest way to make millions of dollars $ like during shiba inu time alot of individual lives changed due to the percentage its use to surge.🚀

[EL MOHA]

 Sale of KYC data on the dark net is something that happens on a somewhat regular basis. It is so unfortunate that a lot of persons are so careless with their KYC information that they easily give them out to scam projects.  Just like BitMaxz mentioned some of these KYC information that are not sold are eventually used as details to aid the scamming of these careless users.

Exactly I think you missed out this point from your post, most of these KYC data’s are not sold but used by the scammers that actually create those fake tokens to get back at people that mine those coins or tokens, ever wonder how scammers send you email messages saying something about you upgrading your custodial wallet like Trustwallet, this is exactly where they get the images. They some how ask those miners to submit wallet address and emails and they make trustwallet the preferred option so once everyone submits now they know you have a trustwallet and the corresponding email is for you. Sometimes this scammers take extra step to even allow you to withdraw some part of the funds before they request for some deposit from you.

Another scammer from this new ICO tokens are the ones that request you to connect your wallet to some DApps and they use that to phish your wallet. This scam has been here for long and they still uses it to get naive people.

It is always common, because almost every coin drops when launched. There is a higher probability that people who mined it will sell off in other not for the value to drop while holding. Just like when core dao launched at about $5 but now it is less than a dollar because the mimniers keep selling an selling in bulk untill dey sold all to new investors untill the investors loose the liquidity in that coin. They will be left with no choice to hold a coin without liquidity. But if the coin rises beyond imagination I think those that held it will have a smiling face.

What some of these project developers do to avoid this coin dumping is by introducing the proof of burning to make sure less coins are in circulation or they introduce staking on their project so that you stake some coins and become validators, this way people don’t get to dump the coin because they feel that the stake coins will bring in more money. There are currently many coins using this proof of stake just to create value to their coin

[Samlucky O]

What some of these project developers do to avoid this coin dumping is by introducing the proof of burning to make sure less coins are in circulation or they introduce staking on their project so that you stake some coins and become validators, this way people don’t get to dump the coin because they feel that the stake coins will bring in more money. There are currently many coins using this proof of stake just to create value to their coin

Exactly staking of coin is another way of creating scarcity. If you had your eyes on that project I stated above, you will notice that all participants where told to stake and earn because that was the only way to make it scares for the coin to have value. Because you cant have billions of coin in circulation and expect it to be expensive. If Bitcoin were yo be more in supply like 1 billion it wouldn't have been so expensive. So staking is another way of creating scarcity and using the profits earn from high APY of the staking.

[boyptc]

I am seeing a lot of them but I have never been jealous. If they make money from those, that's nice but if they get scammed, I don't celebrate that but they'll have to learn from that experience.

While the people that are into it, don't see and understand that when it's about the PR. These developers can easily do and pay for it. While them the active airdrop people, they call it "grind" but I can't blame them because some of these airdrops in the past really made them a lot of money and that's why the hope of them is still there.

[kentrolla]

Can we really blame the devs here? there are hundreds of such projects which are advertised and people are aware of the outcomes but it's the utter greed of people which gets them involved in these airdrops and they have changed the meaning of the word mining. We need to understand that nothing comes free of cost and yeah there are some airdrops where users have made good amount of money but there are on in hundred coins and rest end up being an free advertisement tool in the hand of scammers. If something is free then you are the product that's all.

[Nwada001]

These scammers rely on the greed of people to get their shitcoin pumped and dumped so that THEY can make a lot of profit as the rest of the participants are only gambling with their hard earned money.

To some point, I believe these shit coin scammers work with all these coin shillers and pump and dump groups where they gather those who are in search of get-rich quick coins and announce the pump of a particular coin, which will be one of their paraded shit coins, and when the people start pumping in their money to buy from the coin (demand increase), the price of the coin will then have the opportunity to skyrocket, which now gives this scammer a perfect time for them to rugpull all the liquidity provided by the victims, leaving them with nothing, and at the end of the day, the project will be left to suffer the faith of failure.

[Findingnemo]

First things first, I will not be interest to mine a coin that is just launched and yet to hit the big exchanges and most of the crypto users has the same idealogy too that is why shitcoins always prefer the PoS mechanism so they can run the project even without any real work from the community. Asking KYC for the miners seems a new thing and KYC data isn't that expensive so someone can make profits by selling them on darknet, it's just a tip while the actual salary is the profits made from manipulating and dumping the coin by the developers.

[Dzwaafu11]

The truth is that no body can receive you if you didn't choose to get deceived by them with what they offer, people are so tuned to the pattern of going by everything that they see online and by the virtue of the packaging made on them, we tend to believe everything to be true as they have presented it on us without us taking extra steps ensuring that we are going for the right thing and not being tricked, when we are out there in look for possible means to earn money doesn't mean we shouldn't play safe as well and just accept anything that comes out way.

 
You are right. Sometimes people get convinced by what they see online just because they see someone who has made it online too. They don’t think and observe what other people did before getting what they got. However, some scammers are very smart to the extent that you won’t think they will scam you. So most of the people that are getting scammed online are due to ignorance, which is a lack of knowledge. They don’t research what they want to do before putting their money into it. Although some of them cannot be blamed sometimes because they aren’t convinced to do it by others they trust,

To further trick people to buying these coins after the launch, the devs and creators make up articles and stock charts insinuating that Bitcoin was just a few cents during its launch but it now has a value of over $43k so people should endeavor to buy much of these coins and hold them for a long while hoping that it would eventually rise like Bitcoin over time which is a lie.

This is the only sentence he uses to convince people to invest in it, but what those people who invested in this coin need to understand is how bitcoin works, and they should observe how many millions of people invested in bitcoin today to get the value of it now. And bitcoin has solved many financial problems worldwide, which this coin cannot do 1% of. When bitcoin was created, many people embraced it and started using it without wasting much time, unlike this coin that I haven’t seen listed in the crypto market.

So people should understand that we need to be very smart with these scammers developing coins around the world and comparing them with bitcoin. You need to know that even the coins that have been existing for a long period of time now cannot be compared with bitcoin, so I wonder why someone will come from nowhere and pretend to say something like this to people, and they will believe them, and then the next thing is to start investing their money there.

[nakamura12]

It's up to them if they let those developers deceive them. They can create new crypto where they make people fall for it with their promises of earning money when you are investing in their project early on and also explaining that the price will go up since bitcoin's price is also going up but it's not going up when BTC price goes up. I would say that they are only doing it to get money from their investors and there's nothing they can do about it since they did it on their own will and not being forced by the developers of the shitcoins.

[Dr.Bitcoin_Strange]

If not for the fact that I am no longer investing in altcoin for now, the best way I feel safe dealing with altcoin is to just buy after it has gotten listed on an exchange. Then I will just buy, hold for a little time, and when the price shuts up a bit, I will sell and go off the market with my little profit. I have trained myself not to be too moved by altcoins or any form of FOMO around new altcoins. In 2022, many Defi projects scammed investors with the promise of rebait or auto-compounding profit, which, at the end of the day, was not really beneficial to investors. I fell victim to a few Defi projects, and I learned my lesson too.

[serjent05]

I don't get it how these developers make a profit by referring people to mine their own developed coins?

They use these tactics to cater traffic or attention for their scheme.  The bigger the number of people who are into mining/staking their coins to earn more coins, the higher their chance to attract whales into their schemes which means the bigger the money they can get if they do their scamming stunt.

You may be trying to say that developers mine some coins first before they publish it that's pretty common those coins are mostly churned and burn once the coins gain value on the market developers who mine lots of coins will sell all mined coins and eventually die.

Also, if it asks for KYC that's not a good project better avoid them because most of them are just collecting KYC data from people that can be used later not only for selling the data but also can be used for scamming purposes.

Most new cryptocurrency projects undergo crowdfunding by selling the pre-mined coins done by the developer.  The developer sets and initial value for their pre-mined coins and sells them to the public.  Since some countries do not approve of this kind of process, the scam developers make this a reason to ask for KYC for participants.  To further collect personal data from people, they then offer an airdrop with KYC requirements.  The reason for KYC on airdrop is to prevent the exploits of multiple claims.

Many people fall for this trick and undergo the KYC process for worthless free coins.

[Richbased]

Snip~~

Most of the reasons why investors fall victim to these shitcoins is as a result of hypes maybe on social media platforms or YouTube channels so when they notice these hypes, they're always inquisitive to be the first to mine such shitcoins without having the knowledge that they're just mare pump and dump as the developers of this shitcoins are only interested in the profit they're gonna make from investors who are also desperate when a pump begins rather than monitor the activities of such coin whether it can be sustainable at the long run or not.
The reason why some investors are not interested in Bitcoin is because they feel that it's price has gotten to a point where they can't afford it hence their interest in investing on shitcoins with the hopes that they are gonna make some quick profit but in the end they mostly incur losses.