Rug pulls, pump and dumps, and good old-fashioned fake coins. This is your guide to the wonderful world of digital currency scams. A strange press release went out on September 13. Retail giant Walmart, it seemed, would soon be accepting cryptocurrency.
“The eCommerce giant intends to give its millions of shoppers across the world an opportunity to seamlessly make payments with cryptocurrencies,” the press release said. The press release was bullshit. The world of crypto market is rife with scams. pump and dumps , fake coins , massive hacks.
Members of a professional eSports influencer house have been accused of running a crypto-based charity scam, a hacker recently made off with $600 million in Bitcoin, the SEC is investigating a crypto backed fraud case that’s alleged to have screwed investors out of billions.
The list goes on and on. What is it about these digital currencies that makes them so vulnerable to getting ripped off, and how do you keep yourself safe? Here to help us navigate the murky waters of crypto market and its many scams is Motherboard Senior Editor Jordan Pearson. Subscribe and never miss an episode of Cyber.
It’s available on iTunes , Google Podcasts , Stitcher , or anywhere else you get your podcasts. What follows is a transcript of the episode. Matthew Jordan, thank you so much for coming onto the show Jordan Of course thanks for having me. Matthew All right. So can we start with this Walmart thing?
I know that it kind of broke this morning and it’s an ongoing story, but can you tell us what we know? Jordan Yeah, I mean, well, we don’t know much as is the first thing I’ll say other than the facts of what happened which is, you know, this morning, a press release appeared on one of those business newswires that says
Walmart is accepting Litecoin in particular which, in the crypto world, was kind of immediately like, like the bullshit detectors are going off because Litecoin is like a Bitcoin clone that started in 2011 and aside from people holding on in the hopes of like making money somehow one day, it’s essentially a dead project.
Like the guy who created it, sold all his coins like a few years ago. So immediately this is very strange, but Reuters picked it up. I think CNBC picked it up. And eventually, you know, it turned out, it was confirmed by Walmart that it was fake, confirming the suspicions of what most people in crypto sort of intuited, just because of how bizarre it was.
So, Walmart put out a press release, said “this was fake,” global Newswire, which was the PR wire, put out something that said, “journalists, please disregard this.” And that’s really it, you know, the, the price of Litecoin shot up by, you know, about a hundred bucks or something, for about half an hour and maybe someone managed to make some money in that time, but then just went right back […]