DEFI

Terareum (TERA) Crypto Proves DeFi Scamming Isn’t Dead With Fake Binance Email

One of the most notable and head-scratching crypto scams of the month has occurred today. Jumpstart token Terareum (TERA-USD) has been making a name for itself among altcoin enthusiasts and speculative investors. Yet, as it seems today, the project isn’t all it’s cracked up to be. The news goes to show just how rampant and vicious crypto scams still are today.

Source: Stanslavs/Shutterstock.com

Terareum is a crypto exchange play that cropped up in recent weeks and garnered lots of attention from investors. The token — whose price is only a fraction of a cent — became a haven for gains as it quickly climbed the ladder in terms of market capitalization size.

Much of this success comes from an increasing presence on Twitter; TERA holders have been using Twitter (NYSE:TWTR) to keep up with news regarding the exchange. Additionally, these users take opportunities to pump the token on the platform by promoting it. There has been plenty of news for holders to gush over as well. In just a few weeks’ time, Terareum developers have found TERA listings across a slew of different platforms.

Unfortunately, though, things seem to be coming to an immediate halt as evidence that TERA holders got scammed begins to pile up.

TERA Crypto Tanks in Value as Project Accused of Being a Scam

Trading volume of the TERA crypto is sky high today for all the wrong reasons. Indeed, the 600% uptick in volume isn’t a rush of investors flooding into the space but rather a rush to get out of it. That’s because token prices are tanking and investors think the developers are jumping ship.

Earlier today, Terareum developers shared a screenshot of an email exchange with what looks to be the Binance (BNB-USD) U.S. team. The email shows the Binance team approving of a token listing on its highly reputable platform. This brought an immediate 37% gain for the token. Things became far more concerning when masses of tokens were immediately sold following the pump.

One user, shortly after the ongoing price plummet, brought the screenshot to the attention of several official Binance accounts. The user asked these accounts to verify the legitimacy of the email address in the screenshot. Unfortunately for investors, one account confirmed that the email is not authentic.

This news has led to speculation that developers and insiders are behind the fake exchange, coordinating a pump-and-dump scam. One user brings forth evidence of large selloffs by presale wallets as evidence of this. Moreover, the project’s tweet in the wake of the allegations is highly unsatisfactory to investors; while developers advise holders to “hold the line,” investors are furious that it is not addressing whether or not the email is indeed fake.

Consequently, the TERA crypto is currently losing over 13% amid the apparent pump-and-dump scheme.

On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: How to Avoid Popular Cryptocurrency Scams

On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.



Traciwininger
Author: Traciwininger

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