The question of whether Ethereum is a scam or not has gotten quite a bit of attention in recent months, especially after a YouTube video showed a company offering free membership in an Ethereum mining pool. The user was subsequently asked to pay a small fee to join the pool. Since then, other users have come forward and reported similar cases. So, is Ethereum a scam? It depends on how you define scam.
Cryptocurrency is still a relatively new technology, so it’s important to educate yourself on its workings before making an investment. One common scam involves impersonating customer support personnel, sending emails claiming to be from the company’s support staff or promising a large sum of money. In other cases, the scammer will send private messages pretending to be a support representative and trying to win over your trust.
Another way to tell if a cryptocurrency investment is a scam is to follow the money. When Ethereum became popular in the crypto market during the first half of 2018, its value dropped sharply. The fraudulent ICOs posed as legitimate organizations and encouraged investors to invest in their new currency. However, once the fraud was exposed, the scams were gone. Many people also fell victim to phishing attacks, which tricked them into divulging their Ether wallets and private keys. The price of Ether is a prime example of a cryptocurrency fad.