Tag Archive | scams cults schemes & frauds

Insert your own “SELLcius” joke here

Welp, we’re having another banner week in the crypto world, huh?

These are links I’ve been picking up over the past month or two. They go up to the Luna “we have a token that will always be worth US$1 because of Algorithms(TM), what could go wrong?” crash, but nothing yet from the Celsius “we are not a bank, because banks are Bad and we are Good, so we don’t need all those silly regulations that banks have to follow, and oops now we’re freezing everyone’s ability to withdraw your tokens” crash.

The first Patreon Creator Census has a lot of broad strokes you probably could’ve guessed, but it’s nice to see the specifics broken down. Especially when they break stuff out by “what field is the creator in?”

Creators overwhelmingly hate crypto, btw. Patreon tries to downplay it by breaking out the fields that hate it least…but that also reveals that visual artists hate it the most. You know, the field where crypto has made the biggest and hardest pitch for how useful it is? Second-most hate comes from the writers (the fields where the journalists are), and third-most comes from the game developers (the field where crypto has made the second-biggest push).

“As talk of “the metaverse” grows, and people float [NFT] theories about owning items and cosmetic skins and being able to take between games, interest in what that means practically for gamers has lead to a wild array of theories, but they’re largely pushed by people who know nothing about game development. So, as a developer, it falls to people like me who live and work in these spaces to share our knowledge.” (Link is just one article, but the whole blog is worth a read.)

[US] Political donations from the sector surged to more than $26 million during 2021 and the first three months of this year. That influx of cash is outpacing spending by internet giants, drug makers and the defense industry — providing a fresh pool of financing for candidates heading into November’s congressional elections.”

Ms. Blackburn consolidated many Bitcoin addresses, which might have seemed to represent many miners, into few. She pieced together a catalog of agents and concluded that, in those first two years, 64 key players — some of whom were the community’s “founders,” as the researchers called them — mined most of the Bitcoin that existed at the time.”

“All [interviewees] had similar testimonials about putting their faith in an asset they thought was stable and losing everything. Muhammad, a 30-year-old from Egypt, said that he learned about Luna from YouTubers who said that it would reach $1,000. He bought 1,000 tokens at $88. One token is now currently worth less than $0.0002.

“[The article] uncritically repeated many questionable or entirely fallacious arguments from cryptocurrency advocates, and it appears that no experts on the topic were consulted, or even anyone with a less-than-rosy view on crypto. This is grossly irresponsible. Here, a group of around fifteen cryptocurrency researchers and critics have done what the New York Times apparently won’t.”

Dispatches from Balloonville

Title inspired by my new favorite player in the NFT Space:

Screw it, I like the Balloonville people. So few in the Crypto Space will openly embrace the true meaning and spirit of “unregulated trustless marketplace that anyone can participate in.” Looking forward to their next project, “Bored Rug Club”, followed by the pixelated “CryptoScammers.”

Screenshot of balloon picrew characters
Who could have expected that this would pop??

More NFT rubbernecking:

“On February 9, 2021, an unidentified scammer used a phishing attack to steal dozens of NFTs from individual wallets. [..] In total, the scammer netted over 1100 Eth (~$3 million) from the attack. The phishing attack used a legitimate Opensea buy order.” So why call it “stealing” or “scamming”? It’s a valid blockchain transaction! Everything is fine.

[NFT sales data] do not show the democratization of wealth thanks to a technological revolution. They show an acutely minuscule number of artists making a vast amount of wealth off a small number of sales while the majority of artists are being sold a dream of immense profit that is horrifically exaggerated. Hiding this information is manipulative, predatory, and harmful, and these NFT sites have a responsibility to surface all this information transparently. Not a single one has.”

“If you have access to a free trial of some chart-making software, you can even begin to make a corkboard map of this emerging web of ownership, business relationships, and incredibly bad art.

Other blockchain-based definitely-legitimate-and-not-a-scam rubbernecking:

Often used as a way to distribute free NFTs for giveaways and other promotional campaigns, there is nothing stopping someone from airdropping NFTs with abusive content—doxing, revenge porn, child sexual abuse imagery, threats, etc.—into someone’s wallet. […] And even if someone hides or burns an NFT of this sort, the transaction and its contents remain immutably on the blockchain for anyone to see.” A quick overview of blockchain-based abuses we should be worried about.

The Football Supporters’ Association (FSA) has called for regulations of cryptocurrency-related platforms after one of sport’s biggest cryptocurrency-brands has gone into liquidation. The Times has reported that fan engagement platform, IQONIQ, has collapsed in Monaco, which has potentially left thousands of supporters in possession of Fan Tokens ‘worth almost nothing’.” Ah, the wonderful applications of crypto in sports.

Two lists: falsehoods [about crypto and blockchain] that nobody who is interested in the world as it really is should ever repeat, at least not without heavy qualification; the second a list of truths and rules of thumb about cryptocurrency and blockchain that have been demonstrated repeatedly (often for many years) but escape notice far too often.”

Evangelists reinventing stuff that already exists:

Why not compare Bitcoin to other networks? “Bitcoin is the Apple eWorld of money!” The original electronic walled garden, that turned out to be too expensive and not very interesting. Or compare it to other technologies — “Bitcoin is the Ford Pinto gas tank of money!” Which it frequently demonstrates.”

I have been exploring Active Worlds for several days. It is a sort of internet archaeologist heaven, where player-created structures stretch out for what can seem like hundreds of virtual miles. There are many worlds to explore — all of which are anything but active — but this main one, AW, has been running since the mid 90s.” So we’ve had what they’re calling “the ~metaverse~” for almost 30 years now.

Git was released in 2005 and was based on work going back to the late 1990s; Merkle trees were invented in 1979. The good bits of blockchain are not original, and the original bits of blockchain turn out not to be much good.”