Introduction
Cryptocurrency, a digital or virtual form of currency that uses cryptography for security, has taken the world by storm.
However, with the rise of this new form of currency, scams have also proliferated, particularly in the form of presale scams.
The Lure of Presales
Presales are periods during which organizations offer quantities of new tokens for investors to buy early. These events naturally attract a lot of interest from speculators: if you jump on the right token at a bargain price, its price may skyrocket
However, scammers have been known to exploit ecosystem participants for their fear of missing out (FOMO) on these potentially astronomical financial gains.
How it works in practice?
Scammers set up a front end, usually a dapp to which they want you to connect your wallet. The level of sophistication here can vary:
don’t assume a site is safe to interact with just because it looks professional and legitimate
They publicize the presale, directing you to the site/dapp where the sale is to happen. The site prompts you to buy the token. This will generally be a token approval, enabling the dapp to access and move tokens of a certain type from your wallet, up to a given cap (chosen by you).
How to Avoid Them
1. Do Extensive Research: Being an educated consumer is the absolute most effective way to prevent being a victim of a crypto scam.
2. Check Websites: Double and triple-check website URLs. Scammers attempting a phishing scam will copy the URL of legitimate sites and swap letters and numbers.
3. Be Wary of People: Be cautious of people who contact you directly asking for payments in cryptocurrency or offering you an “investment opportunity”.
And remember, anything that sounds too good to be true, probably is not!