-
Bitcoin $95,023.1429
2.09% - Ethereum
$1,800.3961
1.68% - Tether USDt
$1.0002
-0.02% - XRP
$2.3088
2.89% - BNB
$606.0473
0.76% - Solana
$148.2362
1.40% - USDC
$1.0000
0.01% - Dogecoin
$0.1795
1.97% - Cardano
$0.7069
1.89% - TRON
$0.2493
2.16% - Sui
$3.5454
2.55% - Chainlink
$15.1229
4.91% - Avalanche
$21.9622
2.89% - Stellar
$0.2844
1.10% - UNUS SED LEO
$8.9496
-1.42% - Toncoin
$3.2790
1.17% - Shiba Inu
$0.0...01379
3.47% - Hedera
$0.1904
1.28% - Bitcoin Cash
$369.5002
7.36% - Polkadot
$4.2811
5.71% - Litecoin
$86.8340
2.61% - Hyperliquid
$18.9841
11.47% - Dai
$1.0001
0.01% - Bitget Token
$4.4223
2.75% - Monero
$268.2440
-6.91% - Ethena USDe
$0.9995
0.01% - Pi
$0.6078
-2.78% - Pepe
$0.0...08924
1.80% - Aptos
$5.6470
6.21% - Uniswap
$5.4632
0.56%
What Is a Bear Trap?
Bear traps are fraudulent investment schemes that lure unsuspecting investors with promises of high returns and low risk by creating a hyped narrative, building trust, triggering the trap, and dumping and running with the profits.
Oct 22, 2024 at 02:59 am
What Is a Bear Trap?
Definition:
A bear trap is a fraudulent investment scheme designed to lure unsuspecting investors with promises of high returns and low risk.
How it Works:
- Create a Hyped Narrative: Promoters create a compelling story about a promising investment opportunity, promising exceptional returns with little effort.
- Build Trust and Credibility: Promoters establish a professional-looking website and use marketing materials that appear legitimate. They may also use testimonials from fake investors or impersonate credible sources like financial experts.
- Trigger the Trap: The investment scheme is initially sold at a relatively low price to attract investors. As the number of investors grows, the price is artificially inflated.
- Dump and Run: Once the investment has reached a peak valuation, the promoters dump their holdings, profiting handsomely while leaving investors with worthless assets.
Characteristics of a Bear Trap:
- Promises unrealistic returns
- Lack of transparency and due diligence
- Aggressive marketing tactics
- Use of fake testimonials or impersonations
- Artificial price inflation
- Sudden and unexplained drops in value
Types of Bear Traps:
- Initial Coin Offerings (ICOs)
- Cryptocurrency scams
- Pump-and-dump schemes
- Ponzi schemes
- Forex scams
How to Avoid Being a Victim:
- Conduct thorough research and due diligence.
- Be wary of investments that sound too good to be true.
- Verify the legitimacy of the promoters and their track record.
- Understand the underlying assets and investment risks involved.
- Invest only what you can afford to lose.
- Report any suspicious or fraudulent activity to the appropriate authorities.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
- Remittix (RTX) Could Be This Year's Cardano, Analysts Say
- 2025-04-29 09:40:12
- Remittix (RTX) Could Outpace Dogecoin (DOGE) In The Next Bull Run
- 2025-04-29 09:40:12
- Spot Bitcoin ETF flows indicate that institutional demand is reaching new heights.
- 2025-04-29 09:35:12
- Arizona Moves Closer to Establishing the First Bitcoin Reserve
- 2025-04-29 09:35:12
- Spot US Crypto ETFs Witnessed Net Inflows of $484.1M in the Past Seven Days
- 2025-04-29 09:30:12
- Arizona Takes Historic Step Toward Integrating Cryptocurrency into Public Finances by Passing Bitcoin Reserve Bills
- 2025-04-29 09:30:12
Related knowledge
What is a Merkle tree? What role does it play in blockchain?
Apr 29,2025 at 07:42am
A Merkle tree, also known as a hash tree, is a data structure used to efficiently verify the integrity and consistency of large sets of data. In the context of blockchain, Merkle trees play a crucial role in ensuring the security and efficiency of the network. This article will explore what a Merkle tree is, how it works, and its specific role in blockc...
What are PoW and PoS? How do they affect blockchain performance?
Apr 28,2025 at 09:21am
Introduction to PoW and PoSIn the world of cryptocurrencies, the terms Proof of Work (PoW) and Proof of Stake (PoS) are frequently mentioned due to their critical roles in securing and maintaining blockchain networks. Both mechanisms are used to validate transactions and add them to the blockchain, but they operate on different principles and have disti...
What is the Lightning Network? How does it solve Bitcoin's scalability problem?
Apr 27,2025 at 03:00pm
The Lightning Network is a second-layer solution built on top of the Bitcoin blockchain to enhance its scalability and transaction speed. It operates as an off-chain network of payment channels that allow users to conduct multiple transactions without the need to commit each transaction to the Bitcoin blockchain. This significantly reduces the load on t...
What is zero-knowledge proof? How is it used in blockchain?
Apr 27,2025 at 01:14pm
Zero-knowledge proof (ZKP) is a cryptographic method that allows one party to prove to another that a given statement is true, without conveying any additional information apart from the fact that the statement is indeed true. This concept, which emerged from the field of theoretical computer science in the 1980s, has found significant applications in t...
What are tokens? What is the difference between tokens and cryptocurrencies?
Apr 29,2025 at 07:49am
Tokens and cryptocurrencies are both integral parts of the blockchain ecosystem, yet they serve different purposes and have distinct characteristics. In this article, we will explore the concept of tokens, delve into the differences between tokens and cryptocurrencies, and provide a comprehensive understanding of their roles within the crypto space. Wha...
Which of the top ten virtual currency trading platforms is the latest ranking of cryptocurrency trading platforms apps
Apr 26,2025 at 11:57pm
Which of the top ten virtual currency trading platforms is the latest ranking of cryptocurrency trading platforms apps When choosing a digital currency trading platform, it is crucial to consider factors such as user experience, security, transaction volume and currency support. The following is the ranking of the top ten digital currency trading platfo...
What is a Merkle tree? What role does it play in blockchain?
Apr 29,2025 at 07:42am
A Merkle tree, also known as a hash tree, is a data structure used to efficiently verify the integrity and consistency of large sets of data. In the context of blockchain, Merkle trees play a crucial role in ensuring the security and efficiency of the network. This article will explore what a Merkle tree is, how it works, and its specific role in blockc...
What are PoW and PoS? How do they affect blockchain performance?
Apr 28,2025 at 09:21am
Introduction to PoW and PoSIn the world of cryptocurrencies, the terms Proof of Work (PoW) and Proof of Stake (PoS) are frequently mentioned due to their critical roles in securing and maintaining blockchain networks. Both mechanisms are used to validate transactions and add them to the blockchain, but they operate on different principles and have disti...
What is the Lightning Network? How does it solve Bitcoin's scalability problem?
Apr 27,2025 at 03:00pm
The Lightning Network is a second-layer solution built on top of the Bitcoin blockchain to enhance its scalability and transaction speed. It operates as an off-chain network of payment channels that allow users to conduct multiple transactions without the need to commit each transaction to the Bitcoin blockchain. This significantly reduces the load on t...
What is zero-knowledge proof? How is it used in blockchain?
Apr 27,2025 at 01:14pm
Zero-knowledge proof (ZKP) is a cryptographic method that allows one party to prove to another that a given statement is true, without conveying any additional information apart from the fact that the statement is indeed true. This concept, which emerged from the field of theoretical computer science in the 1980s, has found significant applications in t...
What are tokens? What is the difference between tokens and cryptocurrencies?
Apr 29,2025 at 07:49am
Tokens and cryptocurrencies are both integral parts of the blockchain ecosystem, yet they serve different purposes and have distinct characteristics. In this article, we will explore the concept of tokens, delve into the differences between tokens and cryptocurrencies, and provide a comprehensive understanding of their roles within the crypto space. Wha...
Which of the top ten virtual currency trading platforms is the latest ranking of cryptocurrency trading platforms apps
Apr 26,2025 at 11:57pm
Which of the top ten virtual currency trading platforms is the latest ranking of cryptocurrency trading platforms apps When choosing a digital currency trading platform, it is crucial to consider factors such as user experience, security, transaction volume and currency support. The following is the ranking of the top ten digital currency trading platfo...
See all articles
