The cryptocurrency market is usually seen as a honey pot for scammers by uniting experimental technologies with greed.
In yet another evidence of this, a scammer used Charles Hoskinson, founder and creator of Cardano (ADA), image to trick enthusiasts. Particularly, they used artificial intelligence (AI) voice-over on Hoskinson’s video to announce a fake airdrop leading to a phishing website.
Notably, the fake Cardano airdrop video was then featured as an advertisement in related content on YouTube. It is important to understand that YouTube content creators are not the ones to blame in this case.
Picks for you
This scam highlights the increasing sophistication of fraudulent schemes in the crypto world, underscoring the need for heightened vigilance among users.
The platform’s advertising system was exploited by scammers to disseminate the deceptive ad, raising concerns about ad vetting processes on platforms. However, the Solar Miner In Spain’s X (formerly Twitter) account spotted the scam and notified Digital Asset News, the channel owner.
Cardano (ADA) price analysis
In the meantime, Cardano’s native token — which is not being airdropped — is trading at $0.64 by press time. Despite the scam, ADA has seen a year-to-date increase of 156%, reflecting the ecosystem’s growth and the surge in its DeFi sector.
The Cardano ecosystem has grown during this time, absorbing relevant capital from cryptocurrency investors. Its decentralized finance (DeFi) ecosystem surged in total value locked, featuring among the top DeFi projects in the year.
Moreover, Charles Hoskinson recently revealed plans for more decentralization in Cardano. Meanwhile, the staking of ADA by validators also increased greatly, surpassing the $14 billion staked market cap.
Nevertheless, there is still a run for improvement in everything crypto related. Users, developers, investors, and content creators must remain cautious with scams and risks in the industry.
The same caution applies to crypto trading, which should be done with proper risk management despite positive news. Investors and users should exercise due diligence and skepticism, especially when encountering offers that seem too good to be true. Cryptocurrencies are highly volatile digital assets that are moved by demand and supply dynamics.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Featured image via Messari YouTube
