Currently Binance, the largest crypto exchange in the world, organized a series of promotions and giveaways.
One could assume that the company is offering a great opportunity for new crypto users, to collect some of the free crypto-currencies. In reality, these promotions are, however, a very real threat to the crypto-currency community.
This is because for every legitimate Promotion, thousands of scammers are on the move, posing as a stock market personnel, or crypto-celebrities.
Check the answers to one of the promotional Tweets of Binance and you will see many Twitter users see the similar promotional offer of gifts, with the difference that the user will need to send a small amount of Cryptocurrency to the address of the swindler.
Most experienced crypto can filter out enthusiasts such scams easily, for the newcomers in the industry, however, it may be a little difficult. Some prominent figures, including Ethereums developer Vitalik Buterin, have gone so far as to provide your Online name with a warning.
My presentation yesterday at EC18 in Cornell, covering why blockchains, fault attribution, optimal block size policy, outsourced computation, subjective oracles and more.https://t. co/kO8T2KQcIY
— Vitalik “Not giving away ETH” Buterin (@VitalikButerin) June 20, 2018
The add-on in his Twitter name is a good way for new investors from the unscrupulous fraudsters. Binance, however, complicated the issue as a whole.
By Offering legitimate freebies and promotions signals Binance new investors that this is a normal behavior in crypto. It is an action that should be legitimized more scammers than real developers immediately stopped.
The stock market is trying to combat the proliferation of fraudsters, by warns users with a pinned Tweet:
Scammers are impersonating official Binance accounts and tweeting to ask for deposits to specific addresses in return for gifts.
You will lose your tokens if you do this!
Binance will never ask you to send coins directly to any address for any reason.
— Binance (@binance) February 12, 2018
This is better than no warning, the ongoing promotional gifts in the market however, nevertheless, in the long term, a negative effect.
In order to protect your customers really should stop the advertising promotions on Twitter, and a clear dividing line between the actions of legitimate Online Accounts and impersonators.
Thus, the introduction of crypto currencies to a well-established and feasible financial solution, we must ensure that we protect new investors and security awareness promote.