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Fraudsters are targeting ADA users




Charles Hoskinson, CEO of Input Output Global (IOG), has issued a warning to all Cardano users: In the run-up to the release of the “Alonzo” upgrade, there is apparently more and more fraud.

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The eagerly anticipated Alonzo phase is nearing its end, with September 12th as the date for the hard fork. IOG is currently working on engaging third parties to complete the process.

Once the process is complete, the Cardano chain should contain fully functional smart contracts. But more importantly, this milestone should put the Cardano chain on a par with Ethereum and Polkadot.

As the Alonzo launch approaches, ADA has hit new all-time highs after another. In response, more and more scammers have entered the network, probably in the hope of getting a piece of the action.

Cardano explodes

The Elon / China FUD (“Fear, Uncertainty & Doubt”) peaked when Bitcoin fell to $ 29,000. But now that incident and recent worries seem to be a distant memory.

Only recently, Cardano managed to hit an all-time high of $ 2.50 – but then suffered a 60% drop in prices within three days.

Since then, the price has continued to consolidate over a two-month period after hitting a support level of around $ 0.99. The bulls only took control in mid-July, causing enormous price gains and displacing Binance Coin from third place on CoinMarketCap.

Late Monday evening, ADA hit $ 3, another all-time high. A few hours ago, a wider market decline and profit-taking resulted in the bears taking control. At the time of this writing, that has resulted in a price decline of 5.3%.

Cardano daily chart YTD Source: ADAUSDT on TradingView.com

Nonetheless, the YTD gains show an overperformance of + 1,500% gain.




Hoskinson warns users to be on their guard

Cardano founder Charles Hoskinson therefore considered it necessary to warn against fraudsters who want to rip off Cardano users. According to the programmer, there is a positive correlation between price increases and fraud activity.

Hoskinson:

“Every time big events come up, the price goes up on a large scale, and the volatility is high, there will be a huge increase in fraud.”

Last week, Hoskinson posted a video about giveaways that have become more common since ADA’s price rise. According to Hoskinson’s estimate, they have increased tenfold in the past few weeks. Unfortunately, since these scams take place on YouTube, little can be done to nip the problem in the bud. Because: The platform does not seem to do anything to prevent it.

While Alonzo is preparing for the launch, Hoskinson spoke of fake app scams that trick users into downloading fake wallets and apps – under the premise of upgrading to Alonzo. Usually, the money is stolen as soon as users enter their passphrase into the app.

“There will be a lot of scams because people don’t understand how upgrades work. We saw several fake copies of Daedalus and several fake Cardano applications in the Google Playstore … “

As on many other occasions, Hoskinson emphasized: The IOG, its partner organizations and representatives do not ask for passphrases or private keys. They also don’t ask for monitoring software to be installed to help with technical issues.

In order to put a stop to fraudsters, crypto users should therefore jointly take responsibility for “being their own bank”.

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Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.
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