Your Best Defense Against Crypto Scams 🚨

We’ve all heard that history repeats itself, but there are some lessons we never truly learn. In the next 5 minutes, we’re going talk about the shocking scale of crypto scams and how to protect yourself from scammers on the prowl.

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Today’s Rundown

• What’s Next on the Crypto Carousel? 🎠 (Story)

• Navigating Hot Money, Scams, and Bubbles 🫧 (Insight)

• How Do You Spot a Crypto Scam? 🚩 (Action)

What’s Next on the Crypto Carousel? 🎠

(This section contains a business story that you need to know)

Whenever a new investment opportunity starts generating buzz and attracting hot money, it's like a flashing neon sign for scammers that reads, "Step right up!" The crypto world is no exception.

We've seen it before with the rise and fall of centralized exchanges, and now that their days might be numbered, the scammers are already scouting out the next big thing. Enter the world of fraudulent offerings and token offerings.

These shiny new schemes are like catnip for investors looking to get in on the ground floor of the next big thing. They promise the moon and the stars, but more often than not, they deliver nothing but disappointment and empty wallets.

And this is why we all love to see scammers get what they deserve…

YouTube Star Kitboga scams another piece-of-shit scammer. Here’s how he sets it up: “I’ve been on the phone with a scammer for over 10 hours, and he thinks he’s about to get money, but everything is about to be ruined.”

💩 “Please, please, please, listen to me!” interrupts the scammer…

👵 “On the back of the card,” Kitboga responds, giving off his best impression of an elderly woman about to be duped (think early Adam Sandler prank calls). 

💩 “Ma’am, listen to me, listen to me…” the scammer’s voice continues to rise in frustration. 

👵 “Says you can get money on the Google store… so I went to the Google store.”

Then, as the scammer watches over his virtual shoulder, he sees it happen: “$500 has been added to your balance.”

💩 “No, no, no, no, nooooooo! You don’t have to do that! You don’t have to do that! Why did you redeem it? You did not have to redeem that? You are ending my life…”

👵 “I tried to give you the money. I thought I was giving it to you…”

💩 “I’m crying right now,” whined the human pile of feces over the phone, who just wasted 10 hours of his life in an attempt to steal $500 from an old woman.

Key takeaway: In the end, the crypto world is a lot like a carnival ride. It's exciting, it's unpredictable, and it can be a lot of fun. But it's also risky, and if you're not careful, you can end up getting taken for a ride.

Navigating Hot Money, Scams, and Bubbles 🫧 

(This section teaches business insights to implement into your life)

👉 INSIGHT: “hot money” in the market is like catnip for scammers.

Here’s some of the most epic crypto scams that have made headlines in recent years. These tales of greed, deception, and stupidity will make you laugh, cry, and maybe even question your faith in humanity.

• OneCoin: Led by the now-vanished "CryptoQueen" Ruja Ignatova (more like "CryptoConArtist"), this scam duped investors out of a whopping $4 billion — enough money to buy a small country!

• BitConnect: This lending platform and exchange went tits up in 2018 after being exposed as a Ponzi scheme. Investors lost over $2.4 billion.

• PlusToken: This Chinese Ponzi scheme, masquerading as a wallet and trading platform, swindled over $9 billion from gullible investors.

• Centra Tech: Endorsed by celebs like Floyd "Money" Mayweather and DJ "I'm not a financial advisor" Khaled, this ICO scam raised over $60 million before the SEC shut it down. TKO.

Here’s what we can learn from all of these scams…

Hot money attracts scams: When a market experiences a sudden influx of "hot money" (capital that flows quickly in and out of markets seeking short-term profits), it tends to attract scammers looking to exploit the hype and inexperience of new investors.

Scams evolve with tech and time: As the crypto landscape changes, so do the types of scams. While centralized exchange scams might be less prevalent in the future, new scams like fraudulent token offerings will take their place.

Bubbles are f**king inevitable: Bubbles are a part of human nature and are bound to occur in any market, including crypto. Just as we've seen bubbles in the stock market and real estate market, we should expect to see them in the crypto space as well.

Scams can grow to significant sizes: It's only a matter of time before a fraudulent offering in the crypto space grows to be worth billions of dollars, highlighting the potential scale of these scams and the need for vigilance among investors.

History repeats itself: Looking at past bubbles in the stock market and real estate market, the crypto market is not immune to the same cyclical patterns of hype, speculation, and eventual correction.

Always do your own research, be wary of promises that sound too good to be true, and never invest more than you can afford to lose. Unless, of course, you enjoy living life on the edge and subsisting on instant ramen.

How Do You Spot a Crypto Scam? 🚩

(This section provides actionable tactics you can apply right away)

In the wild west of the crypto world, it pays to be vigilant and educated. Don't get swept up in the hype and FOMO - always do your due diligence before investing your hard-earned cash. So how do you spot a crypto scam?

Here are a few red flags to watch out for (save this list for later!):

• Promises of guaranteed returns or quick riches. If it sounds too good to be true, it probably is. 🚩

• Lack of transparency about the team, technology, or business model. Legitimate projects will be open and clear about who they are and what they're doing. 🚩

• High-pressure sales tactics or FOMO marketing. Scammers love to create a false sense of urgency to get you to act before you think. 🚩

• Anonymous or fake team members. Always research the people behind a project to make sure they're real and credible. 🚩

• Unclear or unrealistic roadmaps and milestones. Scammers often promise the moon without any concrete plans to get there. 🚩

Remember: Even if a project seems legit, it could be a bubble waiting to burst like a zit on prom night. Don't be a dumbass - invest responsibly, diversify your shit, and never risk more than you can afford to lose.

And if it all goes tits up, just remember: YOLO, right? You can always make more money... or learn to love the taste of Costco samples and the comfort of your mom's basement. Choose wisely, my friend.

Wolfy Memes of the Week 🤣 

Bite-Sized-Reads for the Road 📚

[Watch] Everyday, there are scammers taking advantage of people. Kitboga is here to scam the scammers. 

[Watch] What else do you need to know about hot money and scams in the crypto world? Follow Jordan on Instagram for up-to-date takes.

[Read] Learn Jordan’s insider playbook for making a fortune on Wall Street in his new book, The Wolf of Investing.

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Publisher: Jordan Belfort

Editors in Chief: Brock Swinson and Davis Richardson

DISCLAIMER: None of this is financial advice. This newsletter is strictly for educational purposes and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.