Experts reveal two major protocols as scams, how to protect your crypto

PeckShield, a blockchain security company, released a alert stating that Freedom Protocol and Raccoon Network, two major encryption protocols, are scams. Moreover, they revealed that the crooks had already transferred around $20 million BUSD to another address.

Freedom Protocol claims to provide a financial asset with the highest fixed APY. It can offer an APY of up to 183,395.2%. Raccoon Network is a meta company that monetizes its data. However, PeckShield has now claimed both of these companies are scams.

What the data shows

PeckShield has provided two addresses which it claims belong to Raccoon Network and Liberty Protocol. BscScan, a product that reveals on-chain data on the Binance blockchain also tracks both addresses like Raccoon and Freedom.

PeckShield reveals that the two addresses moved approximately 20 million BUSD to another address. The address where the deposit is made shows more than 20 million BSC-USD. The total value of the account is close to 21 million USD.

Raccoon Network and Freedom Protocol have yet to comment on the allegations.

Protection against crypto scams

In an interview with CNN, Sam Bankman-Fried, the CEO of FTX, revealed that a significant number of crypto products are void and look like a Ponzi scheme. For such products, the value depends solely on the people who put money into them.

He revealed that exchanges like FTX and Binance are responsible for identifying and delisting these products. However, as SBF pointed out, it is not always easy to recognize valuable products against Ponzi schemes.

Experts are also warning investors against pump-and-dump schemes as well as all-in draws, as other common ways for investors to lose millions of dollars in crypto. They also ask investors to check common signs to verify the reputation of crypto projects. One of these signs is to see if the project has been audited by reputable security companies or other experts.

Nidhish is a technology enthusiast, whose goal is to find elegant technical solutions to solve some of society’s biggest problems. He is a firm believer in decentralization and wants to work towards the widespread adoption of Blockchain. He is also passionate about almost every popular sport and likes to converse on a wide variety of topics.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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