What We Can Learn from the Elon Musk SNL Crypto Scam

It sounds like an SNL skit, but it isn’t funny for the would-be investors who were robbed over $2 million. During a much-anticipated SNL appearance byTesla CEO billionaire Elon Musk, cybercriminals pretending to be him offered fake giveaways on social media. All participants had to do was send him some cryptocurrency. The result was a high-profile crypto scam

Unfortunately, many fans of SNL, Elon Musk, and cryptocurrencies took the bait and sent money in the form of cryptocurrency, believing claims they would get up to tenfold returns on the initial amount. The total reported losses were $2 million, but it is estimated that there may have been over $5 million lost. This is not surprising, since many people who are victims of forex trading scams and crypto scams do not report, which is a mistake. 

It is important to report forex trading scams, crypto scams, or any other type of fraud. This is the only way authorities can catch the cybercriminals, prevent them from striking again, and start the fund recovery process.

Cryptocointrace experts can provide you with assistance if you have been affected by a scam. Our team of researchers knows what to look for when investigating frauds. We can provide you with information and guidance through our intelligence reports that will help you get results. Contact our Cryptocointrace professionals today for a consultation. 

What Happened With the SNL Elon Musk Crypto Scam? 

Basically, people thought that Elon Musk, who was appearing on SNL, initiated a promotion for viewers through social media. There were various deals, some promising to return ten times the original amount of cryptocurrency participants would send. 

Even though the mechanism of the deals were not explained, including when the return for the initial funds would arrive and why something that was supposed to be a giveaway was asking for crypto coins in the first place, many people sent money to various addresses online. 

The amount of between $2 million to $5 million in losses may seem modest except when taking into account this occurred during the screening of SNL, a show which is typically just 90 minutes long. Now, many of the victims are asking the FTC to help them with fund recovery. However, it is assumed there are many more victims who will not come forward. 

Why Elon Musk? 

Elon Musk, at least until very recently, has been an outspoken proponent of cryptocurrencies. His $1.5 billion investment in bitcoin in early spring 2021 led to a rally in the value of bitcoin and a scramble among consumers to get in on the next cryptocurrency deals. 

However, as high-profile figures such as Bill Maher criticized cryptocurrencies for using up significant amounts of electricity and not being as green as once supposed, Elon Musk announced that bitcoin would not be used as payment at his company Tesla. As a result, bitcoin fell below its $50,000 support level just 24 hours after the announcement. 

Elon Musk has proven he can single-handedly move the cryptocurrency market. However, it is clear that those who were targets of the SNL social media crypto scam had not gotten the memo on Elon Musk’s change of position on bitcoin or perhaps they believed he was changing his mind again, was now open to accepting cryptocurrency, and they wanted to be the first to get in on another huge Musk-led crypto coin market move. 

How Is the Musk SNL Crypto Scam Like Other Celebrity Social Media Crypto Scams?

Unfortunately, this isn’t the first and won’t be the last celebrity social media crypto scam. Early in 2021, a 17-year-old hacker accessed the actual accounts of Bill Gates and Barack Obama with a promise to match those donations given through cryptocurrency. 

The 17-year-old hacker was caught, but cybercriminals find they can make millions without having to hack into actual accounts. It is relatively easy to create convincing decoy celebrity accounts. The Musk SNL appearance provided a perfect storm for crypto fraudsters capitalizing on the popularity of Musk in general and the buzz over his SNL appearance specifically. 

Also, these social media crypto scams often create a false sense of haste. This is so they can get the money and disappear fast. Designing the scam around the run of the SNL show meant that the scammers could make millions in just over an hour. 

How to Avoid Social Media Crypto Scams

The best way to avoid social media crypto scams is never to trade, invest or participate in any giveaways on social media. Twitter, Facebook, and Instagram are great places to trade recipes and photos of pets. Do not believe in any money-making schemes advertised on social media. If you want to trade, find a regulated broker. 

Another tip is to use cryptocurrency with care. Although digital currency is exciting, it does carry certain danger, since it is not managed through government regulations and transactions are anonymous. Avoid making payments in cryptocurrencies unless you have fully validated the identity of the other party. 

Also, use your logic. The first question anyone should have asked in the SNL Elon Musk scandal is why do people need to give money in the first place? If Elon Musk wants to give people money, he should just do it. Is this a trade? What is being traded? How does it work? Is there a website explaining this? Lack of transparency and an exaggerated sense of haste are hallmarks of forex trading scams and crypto social media scams. 

What to Do If you Have Lost Money in a Social Media Crypto Scam

Do not be shy about reporting any kind of fraud. This goes for a forex scam or a social media crypto scam. Many people are too embarrassed to admit they were cheated or feel that fund recovery is a long shot. However, filing a complaint is the responsible and smart thing to do. 

Have You Been Affected by a Crypto Scam? Talk to Cryptocointrace Professionals! 

If you have lost money of a crypto scam or forex trading scam talk to Cryptocointrace today. Our team has the expertise and knowledge as well as tools to perform in-depth research. We are skilled at investigating all types of financial services and have extensive experience in the financial industry. We will help you get results for your claim and resolve your complaint or dispute. 


What the SafeMoon Controversy Says about Today’s ICOs

Is Safemoon not only safe but a gamechanger in wealth creation? Or is it just pie in the sky or a Ponzi scheme? 

Making decisions about new cryptocurrencies can be agonizing, or just part of the fun and the thrill of high-risk new financial products. Some view ICOs with the same suspicion as forex trading scams. Others see them as not only the future of money but the salvation of those seeking fast, reliable transactions and investments. 

What Is SafeMoon?

SafeMoon is a cryptocurrency that premiered on March 8, 2021, and rose 3,000% in the first 60 days since it hit the market. It promises a huge return for investors and holders of the cryptocurrency through using unconventional methods, such as raising demand by destroying its own currency. 

Significant controversy has erupted over SafeMoon not only on social media platforms such as Twitter, with contentious voices on both sides, but among cryptocurrency experts. Some hail SafeMoon as a game-changing cryptocurrency while others allege it is nothing more than a Ponzi scheme and are distrustful of its strategies and claims. 

SafemMoon is part of the Binance Smart Chain. It was introduced through a fair launch, which means that no investors were allowed to get in on the deal prior to the start date. In a move that raised eyebrows, those behind SafeMoon burned all of the currency held by developers to increase the sense that the SafeMoon is “fair” and to artificially increase demand by destroying supply. 

Another controversial strategy is that it encourages people to keep holding the coin by penalizing those who sell with a hefty 10% fee, according to SafeMoon’s White Paper. Of this 10%, 5% enters a liquidity pool that is kept for emergencies and 5% is distributed among holders as a reward. 

What SafeMoon Fans Say

As with many trends, those who are fans of SafeMoon love it. Some SafeMoon fans on Twitter boast they have their entire retirement savings in SafeMoon currency. Although critics think of SafeMoon’s strategies as aggressive and even manipulative, those who hold this currency believe it is pure brilliance. 

By destroying extra currency, punishing sellers, and rewarding holders, many feel that this crypto coin is bound to be a winner and point to its rapid rise in a short period of time. 

What SafeMoon Critics Say

Some see SafeMoon’s strategies, which seem at first glance like a foolproof way to create value as a one-way ticket to perpetual volatility. While it is true SafeMoon saw a substantial rise, it is worth noting that trading volume is falling, indicating depleting interest in the cryptocurrency.

By burning around 40% of its coins, SafeMoon might have shot itself in the foot, there are few coins left to trade and investors are losing interest. The liquidity pool is meant to curb volatility, and yet it is being diverted to other projects. 

Other critics are off-put by SafeMoon’s aggressive tone on social media, and criticizing anyone who raises questions about their tactics as “haters.” Those who are skeptical of SafeMoon feel it represents the Wild Wild West mentality of cryptocurrency. 

There must be a reason why central banks haven’t torched stacks of their currency to raise the value of their money, and SafeMoon may discover why this is a bad idea. Some predict the floor will fall out from under SafeMoon soon, whereas others believe it will rise to new heights. 

How SafeMoon is Like and Unlike Other ICOs

Even those who criticize SafeMoon must admit that it has been highly successful so far. This puts it in the vast minority of ICOs that actually succeed. Of all the ICOs that come on the market, only single-digit percentages of them succeed and few gain as many followers, holders, and fans as SafeMoon. 

Also, unlike the majority of ICOs, SafeMoon doesn’t appear to be a scam. According to Investopedia, 80% of ICOs are nothing more than crypto scams. Some people may allege that SafeMoon is a Ponzi scheme but at least it had what seems to be a legitimate ICO with real investors. The majority of these deals are enacted purely on social media rather than through a real ICO and those behind the fraud take the money and run. 

However, if SafeMoon does turn out the scam, it would not be the first of its type to begin as a legitimate-seeming ICO. What SafeMoon has in common with other ICOs is that it is hard to tell whether it is for real or fake and even harder to determine if investors will make money or not in the long run. 

Tips for Investing Safely in ICOs

The jury still seems to be out on SafeMoon, with experts on both sides divided regarding its legitimacy and future. The one thing that is for certain is that ICOs certainly involve risk both for the investors and those behind the deal. In addition, it is important to take certain steps to avoid crypto scams. Here are some tips to keep in mind: 

  • Only invest in an ICO through an official ICO platform, never through social media
  • Research the credentials of those behind the deal
  • Invest in ICOs through other payment methods than cryptocurrency
  • Peruse the website and whitepaper (if there is no whitepaper or website stay away)
  • Only invest money you can afford to lose–never college or retirement funds!

ICO scams are catching up with forex trading scams and other types of fraud in the number of complaints. It is important to report crypto scams to authorities and seek guidance for beginning the fund recovery process. 

If You Have Been Affected by a Crypto Scam, Talk to Cryptocointrace Professionals! 

If you have lost money to a crypto scam, talk to Cryptocointrace today. Our team has the expertise and knowledge as well as tools to perform in-depth research. We are skilled at investigating all types of scams and have extensive experience in the financial industry. We will help you get results for your claim and resolve your complaint or dispute.