Cryptocurrency thefts, scams, and pump and dump schemes have seen a major increase in 2021 as well as cryptocurrency adoption. Recently, a project that promised “democratic” and projected itself to make real estate available to all drew thousands of dollars in a matter of hours.
Realx Estate’s whitepaper claims to “solve the wealth gap, once and for all, by removing all barriers, costs, middlemen, social background and other limitations” and “make real estate much less cost-effective for all”. But, at a very low cost, open the “easy way.”
How did it all start?
According to Vice, it all started with tweets, posts and videos from social media influencers who were paid to promote Realx (RLX) tokens. The price started at $0.0011 and quickly rose to $0.0026 on January 26 at 18:30 and just two hours later, the price of the token was pulled to $0.000329.
Blockchain records on Etherscan show that the token creator sold 70.32 million RLX tokens for approximately $24,000. One of the first to notice the scam was a Twitter user named @zachxbt who had 133.4k followers, who shared some screenshots of the project and famous“You’ll be a millionaire.”
Another Twitter influencer with nearly 60,000 followers, @AltcoinSara, was paid $350 to promote Realx and told Vice that he was sorry to promote an unknown project that turned out to be just a scam.
@AltcoinSara said, “I feel so ashamed of this whole thing.” “I’d love to help get to the bottom because this rug has not only hurt investors but also makes me look like I’m being rude – and I’ve never done that.”
Furthermore, social media accounts and the official website of Realx Token have since been pulled down the rug.
Ponzi scheme!
Pump and dump schemes also known as rag bridges have caused a lot of damage to the ecosystem. The $YEAR token scam was reported to reward users based on their transactions in 2021 by connecting to their MetaMask wallet.
Another non-fungible token (NFT) scam called “Evolved Apps NFT” saw the theft of $2.7 million in October last year. Furthermore, AnubisDAO was one of the biggest rogues that stole around $60 million while people thought they had found the next Dogecoin.
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