One scam that has grown in popularity with bad actors is the rug-pull scam. This scam burst onto the scene last year and quickly grew to become one of the most profitable crypto scams, netting bad actors over $2.8 billion. In this scam, cryptocurrency developers send out misleading information to early investors about a new crypto project’s potential. The developers continue to build hype around the new project, artificially inflating the price with the goal of getting it to a specific ceiling. Once that ceiling is achieved, the developers siphon all the money out of the fund and disappear, leaving the investors with a worthless holding.
Cryptocurrency projects are held to the same standards as real estate, stocks, or any other investment, so soliciting funds for an investment project and then abandoning it without refunding investors is illegal. That doesn’t keep scammers from continuing to do it, however.
Many times these scams rely on familiar faces and trusted IP to help lure in victims. More than ever before, brands need to be hyper-aware of how their IP and content is being used online. As new and exciting technologies like NFTs, Web3, cryptocurrency, and blockchain continue to grow in popularity, questions about how to protect intellectual property, brands, and consumers will also grow.
Appdetex can help. We deliver comprehensive solutions to help global brands build, manage, and secure their intellectual property across the modern digital universe. If you want to learn more about how you can help keep your brand resilient online with these emerging technologies, please contact us, and we’ll be glad to help.