In another episode of crypto scams, about 1500 investors in Turkey have fallen victim to a bogus investment scheme that saw them lose millions of Dogecoin. These investors had been promised outrageous returns on their investments within a timeframe of 40 days. However, as they count their losses in Dogecoin, the organizers of the scheme are nowhere to be found.
While the crypto industry keeps growing in leaps and bounds, even attracting mainstream adoption, experienced investors are normally wary of bad actors whose sole aim is to perpetrate scams like the latest. However, new or budding investors who are looking to take advantage of the widespread adoption often fall into the booby traps of these bad actors due to their lack of experience.
Investment Scheme Called ‘Dogecoin Mining’
Still on the run, the mastermind behind the Turkey scam, Turgut V. collected 1 billion Turkey Lira of Dogecoin (119 million in USD) from the affected investors assuring them of 100% profits in 40 days. The scheme is reported to have been entitled ‘Dogecoin mining.’
According to reports, Turgut organized physical meetings with investors at luxurious venues in a bid to win their trust and establish relationships with them. Turgut would later create a channel on Telegram where he gathered the investors and asked them to transfer their Dogecoin holdings. In the months that followed, investors received their ‘100% returns’ in line with the promise made. This had a multiplier effect on the number of investors as others joined bringing the total to 1500.
The ‘Dogecoin mining’ scheme encountered problems in the fourth month and was eventually shut down just like similar bogus schemes. The amount of Dogecoins lost is estimated to be around 350 million. Turgut and eleven others ran the scheme together, and deactivated all communication channels following the shutdown, making it impossible for investors to reach them.
This joins the myriad of scams successfully pulled since the advent of cryptocurrencies. The events of 2017, considered the year of ICOs, are repeating themselves in a different light. 2017 witnessed the launch of many cryptocurrencies including bogus coins. In July, a Bitcoin investment scheme in South Africa saw the two Indian brothers who established it make away with billions of dollars in the top crypto asset.
Elon Musk Sees Dogecoin to The Top
Meanwhile, Dogecoin is becoming an investment choice for investors despite being a joke token. The meme token witnessed a spike in its price from late February to early May, thanks to the significant influence of Elon Musk. Already going by the name ‘The Dogefather,’ the Tesla billionaire has developed a soft spot for the token, picking it above Bitcoin and other altcoins.
Musk’s continuous promotion of the token has led to the reconstitution of the Dogecoin Foundation, initially dissolved in 2014, a year after the token was launched. Now the team, including creators, Billy Markus and Jackson Palmer, are back together to develop a roadmap for Dogecoin. Ethereum founder, Vitalik Buterin and a representative of Elon Musk were also added to the team to assume advisory roles.