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Cryptocurrency pump-and-dump schemes: Everything you should know about these scams

Don’t be the victim of a rug pull.

Cryptocurrency fans view Bitcoin, Ethereum and Dogecoin as the future of money for the globe. The underlying blockchain technology allows crypto to work by creating a digital ledger that records transactions, which would seemingly create a safer form of currency. But where there’s money to be made, scammers aren’t far behind.

Crypto pump-and-dump schemes are designed to take advantage of people while making some big money for scammers. They generally involve influencers who receive financial incentives for telling people to buy a certain digital coin in order to raise its value. Once the value goes up, the scammers and influencers sell their coins and pocket the profits, while everyone else sees their investments lose value.

These schemes mark the latest twist in the ever-changing story of cryptocurrencies, which have created some millionaires while bankrupting others through their persistent volatility. Even Dogecoin, a cryptocurrency created as a joke, garnered mainstream attention thanks to high-profile figures such as Tesla CEO Elon Musk, who said at last week’s B conference that he «pumps, but doesn’t dump.»

He’s not the only one.

Earlier this month, popular esports organization FaZe Clan suspended multiple members who participated in a crypto pump-and-dump disguised as a charity drive while taking home tens of thousands of dollars.

With cryptocurrencies becoming easier to develop, scammers are taking advantage of people who have developed FOMO, or «fear of missing out,» and are looking to jump on new crypto coins in hopes of getting rich.

Here’s what you need to know about crypto pump-and-dumps.

What is a pump-and-dump scam?

A pump and dump is a securities scam usually involving stocks. Scammers create false hype about a stock in order to generate interest. Once investors start buying shares, the price of the stock goes up. When the price reaches a certain point, the scammers behind the fake hype sell all of their shares. This causes the stock price to plummet, which leaves new investors holding the bag.

The movie The Wolf of Wall Street portrayed the infamous pump-and-dump scam conducted by Stratton Oakmont investment firm in the ’90s.

How does this scam work with cryptocurrency?

It doesn’t work much differently than with stocks. A certain crypto asset is pumped up by people in order to make the value increase.

«As the prices rise, the pump creators dump their assets into the FOMO they’ve generated, resulting in a price crash that leaves the new buyers holding a bag of the assets that now have a lower value than they were purchased at, creating significant and often unrecoverable losses,» said Douglas Horn, chief architect of Telos Core Developers.

What’s different is what’s used for the pump-and-dump. Bitcoin, Etherereum and Dogecoin are well-established cryptocurrencies, and it takes someone with the following of Musk to increase or decrease their value. However, since creating a whole blockchain system for a currency takes a lot of time and effort, those knowledgeable about coding can create their own crypto tokens, which are digital assets using an already existing blockchain like Bitcoin or Ethereum.

These tokens, also referred to as coins, can be created easily like Shiba Inu, which the developers have referred to as a «Dogecoin killer» in a tongue-in-cheek manner. Developers can also create billions of these coins, which in turn means they go for fractions of a penny. One Shiba Inu token, for example, costs $0.0000065, so you can buy 100,000 tokens for less than $1.

Since someone can create billions of tokens easily that cost hardly anything, all that’s needed is to convince enough people to buy these super cheap coins. This can be done through Discord channels, forums or social media, or by getting an influencer to promote the coin in exchange for their own trove of coins.

If the scammers have 1 billion tokens worth $0.000001 then that’s only worth $1,000. But if they can increase the value of a token by just one decimal point, their stash of coins is now worth $10,000. If they dump it quickly, that’ll cause its value to crash.

Another small difference with the crypto pump-and-dump is the term. While it’s known as a pump-and-dump, in crypto circles the scam is referred to as a «rug pull,» as in the rug was pulled right out from under the investors. Part of enticing people to buy these super cheap tokens is to say they’re «rug-proof,» which means there are measures in place to prevent people who have a large number of coins from selling them within a certain time period.

What are some examples of cryptocurrency pump-and-dumps?

In July, four members of the FaZe Clan participated in a pump-and-dump for a token called SaveTheChildren. The pro gamers, along with other influencers, pushed the coin to their followers. Once the price increased, they began selling off the tokens they were given to be part of the scam, with some making an estimated $30,000.

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Another coin called SafeTrade was sold as «rug-proof» earlier this year. Once people started buying, the organizers sold their coins and left everyone else in the dust.

A 2020 study from the University of Technology Sydney and the Stockholm School of Economics in Riga found 355 instances of crypto pump-and-dump scams over the course of seven months. The organizers of these scams made millions.

Are pump-and-dump scams illegal?

For stocks, yes. For cryptocurrency, no.

The Securities and Exchange Commission is the government regulatory agency that investigates securities scams such as insider trading and pump and dumps. It doesn’t yet have similar rules for cryptocurrency, and doesn’t plan on implementing crypto regulations, at least for 2021.

How do you avoid crypto pump-and-dumps?

It’s important to understand if FOMO is contributing to your decision on whether to invest in a cryptocurrency. It may seem like everyone is getting rich off of Bitcoin or Dogecoin, but that’s not the case.

The next is to do your homework. Crypto coins or tokens can be created fairly easily by people who understand coding. If there’s a new coin that’s supposedly going to make you rich, do some web searches to learn more. The initial coin offering, or ICO, will have a «white paper» that offers details about the coin, who’s behind it, what their objective is and so on.

Then there’s a matter of the buzz that’s being generated. A way scammers get the word out about their coin is going into spaces where people are interested in cryptocurrency, such as Discord channels, social media and forums. If all of a sudden some person starts hyping up a brand new token, there’s a good chance they’re pushing a scam.

Be wary of any influencer who you may follow who hardly mentions cryptocurrency and randomly begins promoting a token. In the case of the FaZe Clan members, they promoted coins with a social media campaign and gave out thousands of free coins to their followers, which in turn entices other followers to buy coins — FOMO strikes again. If you’re going to take financial advice, get it from a professional and not someone whose claim to fame is being good at a video game.

Last, if you’re still interested in investing, then don’t invest more than you’re willing to lose. It’s possible that with the right timing, an investor could make money off a pump-and-dump, but it’s better to assume that the money you’re using to buy tokens will be gone forever.

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My Teen Loves Her Apple AirPods Pro 2 and You Will Too With This $100 Off Deal for Black Friday

Apple’s AirPods Pro 2 have everything you could want from a pair of wireless earbuds, plus a steep discount.

Black Friday deals: The Apple AirPods Pro 2 are some of the best personal audio gear on the market, even if they aren’t the latest model anymore. Sure, Apple’s AirPods Pro 3 are the newest earbuds in the lineup but the AirPods Pro 2 are still an excellent pick for most people.

They’re an even better buy this week during early Black Friday sales when you can get your hands on a pair of Apple AirPods Pro 2 at a discount. Right now, Walmart is shaving a massive $100 off the AirPods Pro 2, dropping the cost to $139. That’s one of the lowest prices we’ve seen — but we doubt this deal will stick around for long.

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My 13-year-old daughter loves her music and her privacy, and for years she has wanted a pair of AirPods. They’re not cheap so I’ve only been getting her more budget options, like the Amazon Echo Buds, as a result. These kept seemingly disappearing, though, so I finally ponied up for the AirPods Pro 2.

I picked them up during last year’s sales, and they were definitely well-received. She’s happy, she uses them every day, and she hasn’t lost them yet. The AirPods Pro 2 are currently on sale at Walmart for $139, a nice price for a high-quality pair like these, and one of the lowest we’ve seen.

What about the AirPods Pro 3?

The AirPods Pro 3 weren’t available at the time I bought the AirPods Pro 2, but they were rumored, and I didn’t wait to see what they offered. As CNET’s resident headphone expert, David Carnoy summarized in his AirPods Pro 3 and Pro 3 comparison, the newer model is «significantly improved in the four most important areas: fit, sound quality, noise cancellation and battery life.» They also have heart-rate monitoring, like the Beats Powerbeats Pro 2.

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While these are undoubtedly all important things, a lot of people aren’t going to notice the differences or make the most of the new features. With the AirPods Pro 3 being newer, they’re on a smaller sale and are currently available at Amazon for $220, which is $30 off the list price.

Why I didn’t get the AirPods 4 instead

Why did I choose AirPods Pro 2 instead of the AirPods 4 with ANC? First, as I mentioned in another article about a different pair of earbuds I bought, I think sealed, in-ear buds are better than open-design models like the AirPods 4. The seal creates another layer of noise isolation and contributes to superior sound quality, and if you want to pay attention to the world you can always engage ambient sound mode, which Apple calls transparency mode. 

Also a factor was that, at the time, Carnoy considered the Pro 2 the best Apple noise-canceling wireless earbuds: «While we’re quite impressed with those new models — and with the AirPods 4 ANC in particular — the AirPods Pro 2 remain arguably the best Apple AirPods you can buy if you don’t mind having silicone ear tips jammed in your ears,» he said.

My daughter uses earplugs all the time to help her sleep, so she definitely qualifies as somebody who’s comfortable stuffing things in her ears. Like her fingers, when I start using words like «sigma,» «skibidi» and «relatable» to try to relate to her.

I asked Carnoy about the Pro 2s potentially not fitting in her kid-size ears and he reassured me that the range of eartips that come with the Pro 2s «now include XS, so they should fit.» 

Do AirPods make a great gift?

It took me years to finally understand, but yes, for someone looking for wireless earbuds, AirPods — especially the Apple AirPods Pro 2 — make the perfect gift, regardless of whether you’re a teenage girl. 

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If You’re Flying for the Holidays, This Bluetooth Dongle Transforms In-Flight Movies, and It’s 35% Off for Black Friday

Watch airplane movies just like you would at home with this game-changing device.

Air travel for the holidays can be stressful, especially when winter weather or flight delays force a change of plans, but one perk of flying still remains — watching new-release movies. However, in-flight entertainment on most airlines usually requires a wired set of earbuds. (And the ones the airline hands out are so bad they may as well not even be connected.) 

I’d far prefer to use my wireless, noise-canceling AirPods Pro, but they connect only via Bluetooth. There’s a simple tech solution that makes viewing movies on the plane feel more like watching them on your couch.

The AirFly is a simple Bluetooth dongle that allows me to connect my wireless earbuds directly to the airplane’s entertainment system, eliminating the need for adapters or wired workarounds. 

It’s become a must-pack item in my travel bag. Since I started using it, I’ve stopped dreading in-flight audio and finally get to enjoy movies on the plane. If you fly often, this little gadget could completely change how you travel. And the base level AirFly SE is 35% off for Black Friday at Amazon.

The AirFly Pro lets me enjoy in-flight entertainment

The AirFly Pro from Twelve South is a minimally designed dongle that allows me to connect to the 3.5mm headphone jack in my airplane seat, enabling me to listen to in-flight entertainment on my noise-canceling earbuds.

All I have to do is pair the AirFly with the Bluetooth headphones I’m using, such as my AirPods Pro, plug the AirFly into the display in front of me, and I’m all set. I don’t even need to use my phone to connect the two devices.

There are several versions of the AirFly: the AirFly SE, which is currently on sale for $26 on Amazon and connects to just one set of headphones, the AirFly Pro at $55, the Pro V2 at $60 and the Pro 2 Deluxe at $70, which comes with an international headphone adapter and a suede travel case.

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I use the AirFly Pro, which has been a game-changer for me on flights. I’ve never had to worry about battery life since the AirFly Pro lasts for over 25 hours and can be fully charged in just three hours. I can also pair two separate pairs of headphones to a single AirFly Pro, in case I’m with someone else on a flight and want to watch the same movie or show. 

And if that’s not enough, the AirFly Pro also doubles as an audio transmitter, allowing me to turn any speaker with a headphone jack, such as my old car stereo, into a Bluetooth speaker.

The AirFly Pro makes a great gift for any traveler

The AirFly Pro is the perfect present to give to someone who’s planning to travel this year. Besides my Anker MagSafe battery pack, the AirFly Pro has become my most treasured travel accessory when I fly, which is why I consider it one of those can’t-go-wrong gifts. 

For more travel gear, here are our favorite tech essentials to travel with and our favorite travel pillows.

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Today’s NYT Connections Hints, Answers and Help for Nov. 24, #897

Today’s Connections puzzle is kind of tough. Here are hints, answers and help for Nov. 24, #897.

Looking for the most recent Connections answers? Click here for today’s Connections hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle, Connections: Sports Edition and Strands puzzles.

Today’s NYT Connections puzzle is kind of tough. The purple category once again wants you to find hidden words inside other words. If you need help sorting the words into groups, you’re in the right place. Read on for clues and today’s Connections answers.

The Times now has a Connections Bot, like the one for Wordle. Go there after you play to receive a numeric score and to have the program analyze your answers. Players who are registered with the Times Games section can now nerd out by following their progress, including the number of puzzles completed, win rate, number of times they nabbed a perfect score and their win streak.

Read more: Hints, Tips and Strategies to Help You Win at NYT Connections Every Time

Hints for today’s Connections groups

Here are four hints for the groupings in today’s Connections puzzle, ranked from the easiest yellow group to the tough (and sometimes bizarre) purple group.

Yellow group hint: Like an air fryer.

Green group hint: In your vehicle.

Blue group hint: Take out your laptops, dump out your water.

Purple group hint: Like a rainbow.

Answers for today’s Connections groups

Yellow group: Small kitchen appliances.

Green group: Features of a car’s center console.

Blue group: Seen while going through airport security.

Purple group: Ending in colors.

Read more: Wordle Cheat Sheet: Here Are the Most Popular Letters Used in English Words

What are today’s Connections answers?

The yellow words in today’s Connections

The theme is small kitchen appliances. The four answers are blender, microwave, rice cooker and toaster.

The green words in today’s Connections

The theme is features of a car’s center console. The four answers are air conditioner, cup holder, radio and shifter.

The blue words in today’s Connections

The theme is seen while going through airport security. The four answers are bin, carry-on, metal detector and X-ray.

The purple words in today’s Connections

The theme is ending in colors. The four answers are infrared, marigold, stingray and ultraviolet.

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Toughest Connections puzzles

We’ve made a note of some of the toughest Connections puzzles so far. Maybe they’ll help you see patterns in future puzzles.

#5: Included «things you can set,» such as mood, record, table and volleyball.

#4: Included «one in a dozen,» such as egg, juror, month and rose.

#3: Included «streets on screen,» such as Elm, Fear, Jump and Sesame.

#2: Included «power ___» such as nap, plant, Ranger and trip.

#1: Included «things that can run,» such as candidate, faucet, mascara and nose.

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