Cryptocurrency industry leader and Ethereum founder Vitalik Buterin has issued a warning to the crypto community about the prevalence of scams. Buterin emphasized the importance of understanding the nuances of language in the industry and how certain terms can have different meanings in the crypto world compared to other fields.
In a recent post, Buterin used an example to illustrate his point. He explained that in most European languages, the word “actual” means “current,” while “concurrency” means “competition.” However, in the crypto space, terms like “DAO” can often refer to a project, and the term “official” sometimes implies a scam. This linguistic nuance demonstrates the different meanings words can have depending on the context and cultural background within the crypto industry.
Buterin’s warning comes after a series of scams involving the official accounts of celebrities. Scammers targeted popular crypto influencers’ accounts to promote memecoins, resulting in temporary price surges. Rapper Rich the Kid and media personality Caitlyn Jenner were among those whose accounts were compromised, raising concerns about security.
In Rich the Kid’s case, scammers created a token called $RICH on the Solana memecoin launchpad pump.fun and promoted it on his account. Within minutes of the launch, $RICH generated a $90K market cap before dropping off. Similarly, Caitlyn Jenner’s account was used to promote a meme coin called $JENNER, which saw its market capitalization rise to $22 million.
These launches quickly turned controversial as the teams behind them were accused of scamming and exploiting their subscribers for liquidity, leading to allegations of inappropriate behavior.
Buterin’s insights align with a cautionary notice issued by the US Securities and Exchange Commission (SEC) on May 29. The SEC warned investors about the dangers of making investment decisions based solely on information obtained from online sources and social media platforms. The notice urged investors to conduct thorough research before making any investment decisions in the cryptocurrency space.
The SEC is not the only regulatory body advising against fraudulent crypto investments. Canada also issued a warning about rising pig butchering and crypto investment scams targeting its citizens.
It is crucial for the crypto community to remain vigilant and informed to protect themselves from scams and fraudulent activities.
