The CEO of IOHK, Charles Hoskinson, who is also the creator of Cardano (ADA), has recently sent a note of warning to community members in order not to fall for the tricks of scammers.
According to Hoskinson in a new tweet on 7th February 2021, a number of emails were sent to him by supposed Cardano users or ADA holders, who are the victims of the giveaway scams. This resulted in a stern warning to the members of the community and the members of the crypto ecosystem at large.
Hoskinson warned that he will never give away free ADA and whoever sends his/her hard-earned ADA to him will lose it forever. He added that he has been warning people for quite a long time, but they failed to listen due to greed.
Charles Hoskinson tweeted, “I continue getting emails about giveaway scams- usually from the victims. Again I WILL NEVER GIVE AWAY FREE ADA. IF YOU SEND ADA, THEN YOU WILL LOSE IT!!! I keep saying it and people’s commonsense, greed and nativity set it. You don’t get something for nothing. Stop doing it.”
I continue getting emails about giveaway scams- usually from the victims. Again I WILL NEVER GIVE AWAY FREE ADA. IF YOU SEND ADA, THEN YOU WILL LOSE IT!!! I keep saying it and people's commonsense, greed and nativity set it. You don't get something for nothing. Stop doing it
— Charles Hoskinson (@IOHK_Charles) February 7, 2021
What Are Crypto or Giveaway Scams?
According to the Gemini exchange, there has been an increase in crypto scams as cryptocurrency gained popularity over the last year. Such is also expected to continue in 2021 due to the vast surge in crypto exposure across the world since the start of the year.
These scams take place when hackers compromise a social media account and post deceptive content in order to solicit cryptocurrency from the account’s followers or impersonate a popular celebrity using a fake account.
The deceptive content posted by these hackers usually references prominent crypto exchanges, celebrities, or business leaders in order to exploit the victim’s trust.
Some of these scammers usually promise their victims or potential victims double of the amount sent to a designated crypto wallet. So, due to greed, many have lost their assets with no hope of retrieval.