Don't be deceived!!

[Rimueng]

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!!

First, I agree with your explanation about new alttcoins coming like pump prices. Developers create coins with huge hype, just to make a quick profit for themselves and the early miners/buyers. But behind it all, there are really developers or owners who want to survive and want the project to be successful. So it is not suitable to say that all "newcomer altcoins" are committing fraud by harming holders. Lastly, regarding KYC, avoid KYC as much as possible, because KYC data can be misused and sold by irresponsible parties.

[1714933080]

1714933080

[KingsDen]

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!!

It seems that you don't know the level of misinformation that is given newbies outside this forum  in this cryptocurrency industry. The level of misinformation is alarming. Most times the misinformers are not well informed and in some rare cases they misinform newbies deliberately in order to feast on their ignorance. Will it interest you that I met bitcoin when the price was at the range of $8k but someone who introduced me to bitcoin told me that bitcoin was already high in price that I should instead buy some random shitcoins that will give me alot of profits. Assuming I was privileged to receive a good advice, I would have accumulated upto .5 BTC which had worth more than $30k at a point and it's worth about $20k currently.

So, if newbies are not well schooled, they won't see it as a big deal to submit their data on random platforms with the promise to receive free coins in the name of airdrop. Information is power and whoever is not informed, would definitely be deformed and whoever that is deformed will of course not perform.

 

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.

Funny enough, the dream of becoming overnight millionaire is becoming stronger than becoming genuinely rich with a well known and thought out process. The in-built insatiable nature of man is leading him to a perpetual doom.