While cryptocurrencies promise transparency and decentralization, the industry has also faced significant scams that influenced the development of Web3 security.
Notorious Crypto Scams
Over the years, the crypto industry has encountered several large-scale scams, including: 1. OneCoin – Touted as the Bitcoin killer, it was a global Ponzi scheme without an actual blockchain system. Its founder Ruja Ignatova vanished, leaving three million defrauded participants. 2. BitConnect – Promised daily returns from a mysterious trading bot, leading to the loss of over $1 billion. 3. Mt. Gox – The exchange lost 850,000 BTC in a 2014 hack, raising questions on storage security. 4. FTX – Collapsed in 2022 after revelations of misuse of client funds, resulting in the disappearance of over $8 billion. 5. Terra (LUNA/UST) – An algorithmic collapse in 2022 destroyed over $60 billion in market value. 6. Squid Game Token (SQUID) – A pop-culture scam where creators vanished with $3.4 million, manipulating smart contracts.
Impact on the Industry
These scams not only robbed investors but also pushed the industry to implement stricter security standards, audits, transparency standards, and the development of protocols to protect users.
Lessons Learned
The affected projects offered valuable lessons: - If it sounds too good to be true, it probably is. - Always verify projects, their founders, and tokenomics. - Use non-custodial wallets when possible and beware of unknown platforms. - Stay informed through verified sources rather than social media.
These scams forced the crypto industry to mature, prompting improvements in security, transparency, and community accountability.
