When you take a critical look into the publicity given to the crypto industry, you would think that sad events are not occurring in the space. Cryptocurrency adoption is taking the upward ride. But despite the financial advantage, the truth remains that there are many gloomy cases in the crypto space. An increase in publicity and adoption causes an increase in the rate of scams happening to the susceptible population.
In 2021, about $8 billion was swindled away from those who fell for scams in the crypto space. As a result, we created this piece to cover the sad crypto news stories of the mainstream discourses this year. This ranges from tokens created for scams to some crypto investments that appear to have no owner.
10 Mischievous Crypto News in 2021
While the world is riding the advantage of financial possibilities via cryptocurrency, below are some unfortunate incidents in the crypto space.
- Losing crypto fortunes to forgotten passwords
- SQUID Token scam
- Tussle between Walmart and Fake News
- The reality of Akon City
- OpenSea and the Scandal of an insider trading
- Crypto Ban in India
- Scams became a new norm
- ConstitutionDAO hit auction failure
- Death of John McAfee at 75
- Bitcoin One-time Spike U-turn
Losing Crypto Fortunes to Forgotten Passwords
Given the profitable spikes of Bitcoin (BTC) in 2021, it is easy to guess that some investors would make a fortune from the tokens they held for a while. But some rumors are going around the crypto space that some early investors may not benefit from this possibility of being a crypto millionaire.
An instance is the case of an early investor who has two more tries for his password. This password will enable him to access about 7,000 BTC on a hard drive. This made him have a different perspective about the decentralization features of cryptocurrency. He opined that we don’t make all things we own. So, it is appropriate if we don’t keep our money by ourselves. Instead, we can allow banks to do the work.
SQUID Token scam
This should be the most unfortunate crypto news of 2021. The creation of the SQUID token was associated with the popular Netflix show Squid Game. Owning to the game’s popularity in the series, the token creator published that they want to give users an exhilarating experience by allowing players to participate in a play-to-earn game similar to the one in the show.
Many individuals bought in because it promised to award players big prizes if they were top winners. As a result of its association with the Netflix show, it got the mainstream’s attention, and leading media outlets glorified the token’s performance. But there were no ties between the token and Netflix. Soon, reality set in.
The project rug pulled, and investors lost their money to the scam because the team enforced an anti-selling system. As such, investors were helpless and could only see how the token moved up the trend at $2,800 and dived to $0.01 in a matter of minutes. Some persons lost everything to this scam.
Tussle Between Walmart and Fake News
Around September, some manipulators exploited the crypto space to make a fortune off Litecoin. They released a press release that announced the acceptance of Litecoin (LTC) as a payment method in Walmart stores. This news broke the internet, and some top ne3s outlets redistributed it. Likewise, Litecoin Foundation retweeted this release. Due to this news, LTC’s price rose sharply.
But Walmart quickly denounced their partnership with Litecoin and established that it wasn’t true. As a result, LTC hit another high price immediately but slumped below the Earth upon debunking the information and crashed again. This exploit made some people lose their money and credibility. Also, it taught journalists how to react when they come across some announcements.
The Reality of Akon City
Everyone is excited about Akon City. Everyone wants to see its establishment and how it will manifest its metropolitan promises of luxury apartments, schools, stadiums, and other benefits. Everyone is pumped about how it will help the economy of the state. Everyone wants to see how Akon will build a city that is crypto-powered.
But the reality remains that not a single thing happened after a year. The land is empty despite laying the first ceremonial stone. The six-billion-dollar project is not materializing. As a result, people are losing hope already. However, there are claims that works are going on behind the scenes, and suppliers are contacted, but the obvious is that nothing is happening.
The money is huge, but no one has a clear detail about the funding party.
OpenSea and the Scandal of an Insider Trading
The world’s largest non-fungible token (NFT) marketplace experienced a scandal recently. Revelation had it that one of its senior executives is manipulating the market to earn more profits. This executive, Nate Chastain, buys NFTs before their launch on the website and sells them for more profits. Some blockchain investigators revealed his identity via Crypto Twitter.
The company imposed strict regulations to avoid employees’ engagement in such controversy to prevent further occurrences.
Crypto Ban in India
As much as China is clamping down on Bitcoin mining, India is also making moves to ban cryptocurrencies within the nation. There is a rumor that you can be jailed and hugely fined if you are caught trading crypto. However, there are suggestions that “private cryptos” will have regulations. This is an attempt to see how best they can help the investors within the country.
There is a lot of uncertainty about the next India moves on crypto come 2022. But there is increased publicity about crypto adoption by its nation’s Bollywood stars as they promote local exchanges.
Scams Became a New Norm
This year, we have read stories of people losing their crypto capital to scams within the space. Often, they receive emails or SMS asking them to log in to their accounts because someone is trying to access their accounts. The redirected page is a phishing page, and unsuspecting users lost their capital and tokens due to phishing. An instance is a couple who lost $700,000 worth of BTC due to the event.
Constitution DAO Hit Auction Failure
Recently, some crypto enthusiasts decided to embark on a daunting task. They wanted to purchase a copy of the U.S. Constitution. As a result of their desire and efforts, they raised over $40 million to participate in Sotheby’s auction. These individuals were confident that the piece might not go beyond $20 million to win the auction.
But the blockchain’s transparency revealed that they could be beaten fairly and be outbid. As a result, they suffered a great setback due to a hedge fund billionaire’s bid. Ken Griffin’s bid of $43.2 million got them to retract and lose the bid. However, the team ensured donors received their capital funds, but high Ethereum gas fees reduced the returns.
Death of John McAfee at 75
The crypto space received the news of McAfee’s death some hours after the court ruled for his extradition to the U.S. based on tax evasion prosecution. However, he had mentioned that he might die behind the bars of American custody. McAfee is a celebrated crypto community member based on his bizarre Bitcoin price prediction.
Bitcoin One-time Spike and Fall U-turn
This year, Bitcoin has proven to the entire world that a digital asset can be at its low and rise back to the top like an eagle soaring above the mountain. Likewise, it can be at its low like a calm sea without waves. This year, we saw Bitcoin moving from a $64,000 high price to a $29,700 low price and another $67,000 and $69,000 high price.
Between all these, long-term Bitcoin investors enjoy the volatility rides and make enough profits around the market. However, some new investors are scared of the sudden drop. As a result, they have doubts about the crypto space.