Charles Hoskinson, CEO of Input Output Global (IOG), warns all Cardano users as scammers step up their efforts in the countdown to Alonzo’s release.
The eagerly anticipated Alonzo phase is nearing its conclusion, with September 12th set for the hard fork event. IOG is currently working on the third party onboarding process to complete the process.
Upon completion, the Cardano chain will have a fully functional smart contract functionality. But more importantly, this milestone will put it on par with Ethereum and Polkadot, to name a few.
As the Alonzo rollout is rapidly approaching, ADA has hit a new all-time high after a new all-time high. In response, scammers flocked to the network in hopes of catching some of the action.
Cardano goes on a tear
The Elon / China FUD peaked when Bitcoin fell to $ 29,000. But now that incident and the larger FUD picture seem like a distant memory.
During that time, Cardano peaked at an ATH of $ 2.50, but then suffered a 60% price drop over three days as the FUD prevailed.
Since then, it has continued to consolidate over a two-month period after setting a support level of around $ 0.99. It wasn’t until mid-July that the bulls took control, made huge profits and pushed Binance Coin from third place on CoinMarketCap.
Late on Monday evening, ADA hit $ 3.00, marking a new all-time high. A wider market dip today, as well as profit-taking, is causing bears to take control, triggering a 6% downside at the time of writing.
Source: ADAUSDT on TradingView.com
Nonetheless, the YTD gains show an above-average performance of + 1,500%.
Hoskinson warns users to be on the alert
With this, Hoskinson felt it was necessary to sound the alarm to scammers who are trying to take advantage of Cardano users and said there was a positive correlation between price increases and fraud activity.
“Every time you see big events, big price spikes, and lots of volatility, you’ll always see a huge surge in scams.”
Last week, Hoskinson posted a video about freebie scams, which has increased in frequency since ADA’s price hike. According to Hoskinson’s assessment, they have increased tenfold in the past few weeks. Unfortunately, since these occur on YouTube, which appears to be unresponsive to close them, little can be done to nip the problem in the bud.
Similarly, when Alonzo was launched, Hoskinson spoke of fake app scams that manipulate users into downloading fake wallets and apps under the premise of upgrading to Alonzo. Funds are usually stolen as soon as users enter their passphrase into the app.
“There will be a lot of scams if people don’t know how upgrades work. So we saw several fake copies of Daedalus and several fake Cardano applications in the Google Playstore … “
As on many occasions, Hoskinson reiterated that IOG, its partner organizations and agents do not ask for passphrases or private keys. They also don’t ask for monitoring software to be installed to help with technical issues.
In order to eliminate fraudsters, crypto users must collectively assume the responsibility of “being their own bank”.