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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.

Technologies

Verum Messenger introduces Verum Mail integration in the latest update

Verum Messenger introduces Verum Mail integration in the latest update

The Verum team continues to expand its ecosystem of secure digital solutions. The latest update of Verum Messenger brings full integration with Verum Mail — a tool for instant and fully anonymous email communication.

Now, users can generate temporary email addresses directly within the messenger — no registration, no passwords, no extra steps. The integration enables real-time message delivery, attachments, receiving and composing emails, and automatic deletion of emails after 1 hour.

What’s new:

  • Verum Mail integration in the messenger interface
  • One-tap temporary email creation
  • Real-time email delivery and viewing
  • Reply to emails without leaving the app
  • Full privacy: no account linking or data storage
  • File attachments: Send and receive files

Verum Mail compatible with all major email services — send and receive emails from iCloud, Gmail, Proton Mail, etc.

Verum Messenger + Verum Mail means a new level of privacy, where your messages and emails work together — fast, secure, and truly private.

This update is now available for all Verum Messenger users.

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Technologies

Today’s NYT Connections: Sports Edition Hints and Answers for April 12, #201

Hints and answers for the NYT Connections: Sports Edition puzzle, No. 201, for Saturday, April 12.

Looking for the most recent regular 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 and Strands puzzles.


Connections: Sports Edition is still the toughest NYT puzzle for me every day. Sometimes, the topics feel like a bit of a reach as far as sports go, and today’s yellow group is a good example. The purple group is a good reminder that some athletes have names that are also regular words, so they can trick you. Read on for hints and the answers.

Connections: Sports Edition is out of beta now, making its debut on Super Bowl Sunday, Feb. 9. That’s a sign that the game has earned enough loyal players that The Athletic, the subscription-based sports journalism site owned by the Times, will continue to publish it. It doesn’t show up in the NYT Games app but now appears in The Athletic’s own app. Or you can continue to play it free online.  

Read more: NYT Connections: Sports Edition Puzzle Comes Out of Beta

Hints for today’s Connections: Sports Edition groups

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

Yellow group hint: Think Nike.

Green group hint: En garde!

Blue group hint: Wonderboy in The Natural.

Purple group hint: Hoopster stars.

Answers for today’s Connections: Sports Edition groups

Yellow group: Parts of a sneaker.

Green group: Fencing terms.

Blue group: Baseball bat materials.

Purple group: Last four WNBA finals MVPs.

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

What are today’s Connections: Sports Edition answers?

The yellow words in today’s Connections

The theme is parts of a sneaker. The four answers are eyelet, laces, sole and tongue.

The green words in today’s Connections

The theme is fencing terms. The four answers are epee, foil, piste and sabre.

The blue words in today’s Connections

The theme is baseball bat materials. The four answers are aluminum, ash, birch and maple.

The purple words in today’s Connections

The theme is last four WNBA MVPs. The four answers are Copper, Gray, Jones and Wilson.

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Technologies

Love ‘Black Mirror’? You Can Play the Actual Game From the Episode ‘Plaything’ Now

The throng needs you.

Netflix launched the seventh season of Black Mirror on Thursday, and alongside it the streaming giant released a mobile game called Thronglets, a tie-in game for the episode Plaything. Thronglets is different from other Netflix tie-in games, like Too Hot to Handle. Thronglets is a game within the Black Mirror universe that’s central to the plot of Plaything, not just a game based on Black Mirror.

By letting people play the game that characters in the series play, Netflix has opened up a new avenue for people to interact with and experience the stories the service is telling. After I watched the episode Plaything and played the game, I thought, «Is this a joke? Where are the cameras?» 

The whole experience made me feel uneasy. Surely that’s the point, because I can see myself getting lost in Thronglets. Not to the extent that the main character in Plaything does, but enough to make me heed the push alerts the game sends to my iPhone when the Thronglets ask for help. 

Thronglets is a game within Black Mirror that you can actually play

Black Mirror’s episode Plaything is a tragedy that follows the yearslong downward spiral of game journalist Cameron Walker (played by Lewis Gribben and Peter Capaldi). In his younger years, he becomes engrossed with an in-universe, yet-to-be-released game called — you guessed it — Thronglets. We meet Walker years later when he’s recounting to the police how he’s dedicated his life to the game.

The in-episode game was developed by the fictitious game developer Colin Ritman (Will Poulter) and the company Tuckersoft, from the interactive Black Mirror: Bandersnatch movie Netflix released in 2018.

Ritman describes the Thronglets as the first creatures in history whose biology is entirely digital, and these creatures are capable of learning and expanding. This leads to devastating consequences for Walker and those around him.

Netflix’s game mimics that experience, letting you play it and raise a single Thronglet to a vast and expanding society. Thus, you can become engrossed with the digital creatures like Walker does in the show. And the game and episode work together to deliver a deeper storytelling experience. 

Here’s how to get started with Thronglets on Netflix Games, and what you should know about the game.

What are Thronglets?

In the game, they’re yellow creatures with a single antenna and large ears who reproduce by mitosis — they split into two whole and complete Thronglets. However, the very first Thronglet is hatched from an egg, and in the game, you have to tap the egg to get it to hatch.

Can you control the Thronglets?

You can’t. As Ritman says in Plaything, «They’re not some obscene puppets like Sonic the Hedgehog.» The Thronglets wander around and interact with things on their own, but you aren’t just watching them in the game. 

Thronglets are kind of like Tamagotchis in that they require food, amusement and cleanliness. You provide these things to the Thronglets by dropping digital apples and beach balls onto the screen or scrubbing a Thronglet with virtual soap and sponge. 

You can tap on individual Thronglets to see if they need food, amusement or a bath, as represented by three bars labeled Fed, Amused and Clean. If each of these bars is full, the Throng is happy. But if Fed is low, for instance, you can give the Thronglet an apple by dropping one near it, and it’ll eat the apple. Similarly, if Amused is low, drop a beach ball near the Thronglet and watch it kick the ball across the screen for fun.

Sometimes a Thronglet will display a speech bubble with an apple or a beach ball to tell you what it wants. Other times, the Thronglet will appear visibly dirty and in need of a bath. Occasionally, a Thronglet will squat down and seem to cry — which is sad to see, and I just want to give it a hug.

If you don’t meet a Thronglet’s needs, it’ll die, eventually decomposing till there’s nothing left but bones. 

The Thronglets can also talk to you. They’ll ask you questions and suggest how you should proceed, such as using Thronglet bones to construct a bridge to another landmass.

Wait… what?

Yeah, it’s a pretty gruesome suggestion. But this leads into another aspect of the game. You’re not only caring for the Thronglets’ basic needs, you’re also teaching them how to behave toward one another.

The Thronglets will ask you questions like, What is power? and, What is love? and you’ll be presented with two responses to choose from. Later in the game, when the Thronglets are beginning to industrialize, they’ll ask you whether they should sleep in their homes as much, or work more. You can respond however you want, but it’s important to remember the Thronglets see you as an all-powerful entity and will do whatever you say. 

So when I told the Thronglets not to work so hard and to sleep as much as they needed, they took my advice to heart, resulting in slower resource growth. But they appeared happier.

And that seems to be the result involved with many of the choices the Thronglets present you with — whether you accumulate resources more or less quickly. Most of the options I chose were more peaceful, like not using bones to construct a bridge, and thus resulted in slower production. But those choices never stopped or stalled the game. I tried to pick the kinder approach every chance I got — I can’t bring myself to do an evil run of any game.

Your actions also influence how the Thronglets see you. Once, I accidentally killed a Thronglet with a chain saw when I was cutting down some trees. From that action, a box appeared on the screen to let me know this taught the Thronglets that tools can be dangerous. It’s unclear whether these instances have any effect on the game other than some comic relief, but I still tried to minimize future accidental deaths or workplace mishaps. 

After each stage, you’ll see a screen with different stats, like how many Thronglets died. You’ll also see observations the Thronglets made about you during the stage. Once, the Thronglets noted that I taught them Shakespeare — which made my English-major heart very proud.

What’s the goal of Thronglets?

That’s a great question. For me, my goal was to help the Thronglets in whatever way I could. Sometimes that meant building them a theater for entertainment or cleaning up toxic waste and pollution to keep them healthy. Other times, it meant shooting them into the abyss of space or nuking their land so they could progress — I swear, they insisted these were the right things to do. 

But since it’s unclear how my choices affected the game and the upbringing of the Thronglets, it’s possible the goal is to get the Thronglets to progress as fast as possible. That would potentially mean making far more Thronglet sacrifices for the greater good.

But like Ritman asks in Plaything, «Why do you need a goal?»

Anything else interesting about the game?

The most interesting thing about Thronglets doesn’t have anything to do with the game itself, but with how Netflix is using different forms of media to tell intertwining stories. 

When Netflix released Black Mirror: Bandersnatch in 2018, that was the service’s first step into interactive films — which some people consider video games. The streaming service then pushed into gaming in 2021, and since then it’s turned some of its most popular series, like Squid Game, into mobile games. 

But Thronglets isn’t just a game based on a series. Characters in Black Mirror interact with this game, and then we can put ourselves in the characters’ shoes by playing the same game in the real world. The game represents another step in Netflix’s creation of more immersive storytelling through games and other media, not just films and TV series.

When I started playing Thronglets after watching the Black Mirror episode Plaything, I felt weirded out. Interacting with this piece of media that has dire consequences in the show tricked me into thinking I was playing with fire. I know the game is just a game, but it felt like playing was in some way dangerous. I know how irrational that sounds. 

I also couldn’t help but feel that while I was playing this game, I was isolating myself from others, like Walker does in the show. Walker begins to neglect the world around him to care for the Thronglets, and I’d spend time playing the game and ignoring the world around me, too. Granted, I didn’t get arrested for the little yellow guys — but I also didn’t take drugs to communicate with them.

The game didn’t make me more sympathetic toward Walker. He was scared of the world and said early in the episode that games are a kind of escapism. Maybe the game and episode are working in tandem to refute that. Maybe they’re trying to say that even if we find solace in games like Thronglets because the outside world is scary, we still might encounter something just as grisly in games, like a bridge made of bones.

I can see Netflix making more game tie-ins like this in the future to deepen the level of storytelling the service offers. And I’m looking forward to whatever the next tie-in is — maybe one of the arcade games from Stranger Things?

Here’s how to access this game, and more

Accessing Netflix Games on iOS and Android devices is a little different. But you have to subscribe to Netflix ($8 a month) for each.

Here’s how to access games on iOS if you’re a subscriber.

1. Download the Netflix app onto your iPhone or iPad.
2. Open the Netflix app.
3. Tap your profile and sign in to your account.
4. Tap Home at the bottom of your screen.
5. Scroll down your homepage until you see the Mobile Games carousel.
6. Tap into a game to learn more about it.
7. Tap Get Game to download a game you’re interested in. 

Here’s how to access Netflix Games on Android if you’re a subscriber.

1. Download the Netflix app onto your Android device.
2. Open the Netflix app.
3. Tap your profile and sign in to your account.
4. Tap Games at the bottom of your screen.
5. Tap into a game to learn more about it.
6. Tap Get Game to download a game you’re interested in. 

You can also search for games in the Netflix app by tapping the magnifying glass in the top right corner of the app and entering the game’s name.

After you tap Get Game, a pop-up from either Apple’s App Store or the Google Play Store will open, asking if you want to download the game. After you confirm that action, the game will download on your device, like other apps. 

For more on Netflix Games, here’s what to know about the first MMO coming to the service, and what to know about playing Hades and the Grand Theft Auto series on Netflix.

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