ParallelChain, the Scalable blockchain platform, has issued a warning to its users, regarding a scam involving its $XPLL token. A tweet from the firm says that the scammers are behind a website advertising a “private sale” of $XPLL that is actually a fake. In addition, ParallelChain says that the con artists behind the scheme have uploaded a how-to video to YouTube. Fraudsters are increasingly going after cryptocurrency companies, and ParallelChain is just the latest to get hit.
ParallelChain Isn’t the only targeted site
With its Mainnet and Private networks, ParallelChain provides a scalable blockchain ecosystem with two layer-1 platforms. It allows apps to function across public and private layers. Therefore, it is able to serve as a bridge between the metaverse and the physical world. Additionally, it enables private layer networks to leverage the Mainnet’s consensus for enhanced security without sacrificing their independence.
The extended market decline, sometimes known as “Crypto Winter,” and crypto scams were two of the biggest problems for the worldwide cryptocurrency market in 2022. The former occurs naturally and depends on market forces. However, the latter is orchestrated and driven by criminal organizations. The number of cryptocurrency frauds has increased dramatically this year, resulting in billions of dollars in losses.
Scammers have also been airdropping fake tokens to owners of digital wallets. They do this to steal the victims’ credentials and assets. Users of various social media platforms have shared accounts of their own experiences as victims of recent airdrop token scams. Cryptocurrency scams can result in significant financial losses, but the widespread fear and distrust they sow can have lasting effects.
As the crypto market continues to expand, we are likely to continue seeing more cases of crypto scams. Therefore, investors need to be on the lookout for suspicious links and promotional messages/adverts on sites that do not belong to a verified crypto company. As a bare minimum, investors should always countercheck any such claims against official communication from verified social media handles of crypto companies or their official websites.