How to be safe with crypto...from Springbok, YOUR Online Casino South Africa

Here’s a fact.  In 2021, the global gambling market, of which our online casino South Africa is a key participant, generated $61.5 billion.  In the same period, crypto scammers netted $14 billion.  That is theft on a grand scale – and you could be the next victim.

As we are a totally secure casino for all your banking needs - including deposits AND withdrawals using Bitcoin - we have checked out the crypto scams out there to better prepare you, our valued player, to avoid these scams.

Crypto vs the Online Casino South Africa: Facts & Figures

Think about it…  In just 12 months, scammers filched the equivalent of 22% of the annual revenue of the remote betting sector.  In Rand terms, that is approximately R242 billion – more than three times the 2022 budget for the entire Western Cape!

These virtual swindlers piggyback on two key elements:

• the extreme volatility of the cryptocurrency market and
• the blind, often stupid faith ‘investors’ have in the growth potential of virtual tokens

The crypto craze has driven the belief that anyone can become a multi-millionaire overnight.  In truth, the only people who have made a killing are the developers, owners of trading platforms and the few lucky investors who purchased Bitcoin (BTC) when it was priced at just $10!

Then of course there are the villains in the script.  These people vary from social media influencers to the creators of coins that have no discernible purpose at all.  Add a good few hackers and scam artists into the mix and you have a toxic environment where anything goes.

The rise of so-called ‘shitcoins’ – coins that copy the likes of Bitcoin and Ether but have no practical use – is behind the increase in scams.  These virtual counterfeits are often used to rip off people, like you.  Consider this…

In 2009 the world welcomed BTC, albeit reluctantly.  As of 2022, there are 20,268 different cryptocurrencies in the world.  Of that, around 11,000 are active.

When you compare that with the emergence of online casinos, the statistics are quite revealing.  Since 1995 when the first remote gaming platform went live, only 2,000 new casinos have popped up on the net.  That includes Springbok Casino, our top ranked online casino South Africa which launched in 2012!

What that fundamentally means is the crypto market is oversaturated with the product.  Everybody wants to jump onto the bandwagon… and their intentions are not always honourable.

Let us take a quick look at a few of the more common cryptocurrency scams.  Once you know how they operate and recognise the red flags, you will hopefully be able to avoid getting swindled of your hard-earned cash.

Pump and Dump Cryptocurrency Scams

This is a classic scam that often has a veneer of respectability around it.  The modus operandi is to create a community of a few hundred people.  This is usually done anonymously via Instagram or other social media platforms.

Participants are effectively invited to take part in what organisers term a guaranteed return on investment.    The aim is to coordinate a collective buying spree.  By all buying the same coin at the same time, the price typically skyrockets.

At that point, the buying frenzy attracts the attention of ordinary traders, like you and I.  When that happens, an order to sell – or dump – is communicated across the group.  The upshot?  Mugs, like us, are left paying top dollar for what is essentially a worthless coin.

That puts a whole new spin on the meaning of FOMO!

How do you avoid getting pumped and dumped?  A tell-tale sign is a massive increase in the price of a token over a very short period of time.  When that happens, you can bet the proverbial farm the value is being manipulated.

Ponzi Scheme Crypto Scams

Ever since US financier, Bernie Madoff tried to pull off the biggest financial fraud in history, Ponzi schemes have flourished.  In the crypto world, these scams have retained their pyramid structure.  The idea is to reward people for introducing fresh investors to the scheme… but there is a catch.

Rather than investing their money in cryptocurrencies, as the organisers claim to be doing, it is used to pay the people higher up on the pyramid. The problem is the moment new backers dry up, the scheme collapses.  The biggest losers are the folks at the bottom of the pyramid – the poor souls scammed into joining the scheme last.

These schemes typically offer ridiculously high returns.  One such example is the EminiFX scam that promised investors an ROI of between 5% and 9.9%... per week!  On paper – or should we say in the virtual realm – these types of returns were indeed paid in to all client accounts.

When investors tried to withdraw the funds, most of the money didn’t exist.  Of the $512 million that was meant to be in the investors’ trading wallets, only a third was traceable.  The rest had simply disappeared.

EminiFX was not only a gigantic Ponzi Scheme.  It was a fraud of epic proportions.  The warning signs were there for all to see.  When you are offered an unbelievable ROI, you can bet your bottom dollar it’s a scam.

In reality, you would be a whole lot better off chasing a progressive jackpot at our online casino South Africa.  Published prize pots are always paid out and you don’t have to risk a large amount of money to be in with a chance!

Crypto Coin Rug Pull Scams

These types of cryptocurrency scams are difficult to spot.  They often involve input from social media influencers, promoters and celebrities – either wittingly or unwittingly.  This is how they work…

Someone comes up with a new coin or token.  It can be backed by a clever meme, like the recently launched Big Eyes Coin.  Or it can be a spinoff of a popular movie or TV show.  High profile people are then incentivised to get behind the new currency.

Owing to all the hype created by the influencers and celebs, a buying frenzy is triggered.  The developers actively encourage the hysteria and rake in the dollars.  Once they have accumulated their target, they simply disappear, taking their ill-gotten gains along with them.

When it comes to this sort of scam, the trick is not to get caught up in the hype.  Do your homework and check out what the reputable crypto trading platforms have to say about the new coin or token.  Let’s face it, you wouldn’t invest in a company or buy a new car without doing due diligence.

It is hard to believe so many people slip up when investing in cryptocurrencies.  Checking the legitimacy of a new coin, and the people behind it, is a no-brainer.  It is the smart thing to do – like registering an account at the number one online casino South Africa!

Why Choose Springbok Casino as Your Online Casino South Africa?

• Established in 2012
• Powered by Real Time Gaming (RTG) software
• Download, instant play and mobile gaming platform
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• Secure deposits AND withdrawals with Bitcoin
• Independently rated the best online casino South Africa

Sign up at Springbok Casino, claim our free cash no deposit bonus and play online slots, video poker game and table games for free.  What you won’t find are any crypto scams or Ponzi schemes.  What you will find is that we really are the best online casino South Africa… by far!