USDT and ETH Liquidity Mining Scam

A USDT and ETH Liquidity Mining Scam is a common occurrence that targets both coins. The scam involves mining pools that ask for a small amount of ETH, typically $10 to $50, for their services. In return, these mining pools provide unlimited access to the USDT and ETH in their wallets. Upon granting this access, the scammers send them an email requesting that the victim note the seed phrase, and then send them a link to their mining pool.

Uniswap

If you’re interested in decentralized finance, Uniswap is an excellent place to start. Although the opportunity for substantial upside is great, it’s crucial to conduct thorough research before you invest your funds. The SEC is investigating the decentralized crypto exchange Uniswap. Crypto veterans can develop a sixth sense to spot scam projects. Here are three warning signs:

Uniswap has a history of sending out counterfeit coins. One scam that has caused millions of dollars in crypto to victims is a scam that targets users of its V3 liquidity providers. The scammers sent out fake coins, which contained smart contracts that would drain the crypto wallets of seventy-five thousand users. One victim handed over 2.5 million USDT and 834 ETH, while the other handed over 39 BTC.

Uniswap’s fee structure has several problems. It requires clients to enter their personal information to access the exchange. Gas fees can be $30 to $50 depending on congestion, or up to 3% of the total value of the crypto. Moreover, this fee is not worth it if the trade is only worth a few hundred dollars. The good news is that Ethereum is moving from a point system to a proof-of-stake system, which will result in lower fees and higher efficiency for transactions.

Scammers can also list similar pools and tokens. Due to less regulation, these tokens may be similar to legitimate projects. Scammers may target famous DeFi projects and official tokens. By using the same names as legitimate tokens, the scammers can confuse buyers. However, Uniswap is safe as long as users exercise caution. But scammers are clever enough to hide behind similar listings.

Uniswap uses Ethereum’s blockchain to run liquidity pools. The Ethereum blockchain is used to create many new cryptocurrency tokens, and many of these are compatible with the Ethereum protocol. By using Uniswap, investors can trade these cryptocurrencies on DEXes and earn interest from their crypto investments. The downside is that liquidity pools carry the risk of impermanent loss. Because these cryptos are volatile, the risk of losing money is higher.

Coinbase-udt[.]cc

On the morning of September 9th, Sean came across a Twitter account with a young woman inviting him to join a study on liquidity mining. She asked him to continue the conversation on Telegram and WhatsApp, and she was trying to guide him to his Coinbase wallet and deposit Tether (a popular altcoin pegged to the USD). The young woman appears to be Russian, and she persuaded Sean to click on a link, “canary”, which showed her IP address to be in Hong Kong.

Scammers use fake cryptocurrencies and falsify records to make them appear to be gaining value. They target new investors and ask them to sign a smart contract, connect their digital wallet, and contribute to a fake liquidity pool that does not exist. Scammers also recruit victims using a catfishing angle. A beautiful woman sends an unsolicited direct message containing a link to a moneymaking opportunity. Scammers then launder their money through other cryptowallets and disappear into cyberspace. The liquidity mining scam is elusive and can be hard to identify.

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