Web3 Scams Total Over $9 Billion

Web3 Scams Total Over $9 Billion

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Web3 is the Internet’s latest step forward. Starting from the static sites of Web 1.0, through to the interactive platforms of number 2, and coming into Web3’s decentralized future: where all exchanges of currency and contract are mediated by blockchain technologies, that will eventually deliver us into a utopia of cypher-cyber freedom. Or at least that’s how many have described it – most of whom are, coincidentally, trying to sell crypto currency.

$9.6 billion has been lost to scams and hacks across the vast array of blockchain technologies that make up the Web3 market, including cryptocurrencies, non fungible tokens, and decentralised finance protocols (DeFi). This number comes from Molly White, creator of the site web3isgoinggreat.com, where she documents all of the notable nefarious Web3 activity.

The most common scams are “rug pulls”, where the developers of a project market it to create hype, get people to invest, and then run away with the money, pulling the rug out from underneath everyone involved. People who lose money in a rug pull have little to no legal recourse for getting it back, because of the inherently unregulated nature of Web3 products.

Crypto Companies, like anyone, can be hacked. Last month the popular “play-to-earn” blockchain game Axie Infinity lost $625m in possibly the largest DeFi exploit of all time.

To many people the appeal of Web3 is finance without the control of centralised bureaucracies and the stifling regulations that they impose. However, the victims of crypto scams are learning why many of those regulations exist.

Web3 Scams Total Over $9 Billion Document reload Web3 is the Internet’s latest step forward. Starting from the static sites of Web 1.0, through to the interactive platforms of number 2, and coming into Web3’s decentralized future: where all exchanges of currency and contract are mediated by blockchain technologies, that will eventually deliver us into…

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