Over the past few weeks, spamming bots or scammer have intensified their attacks on Tron’s official Twitter handles by tweeting out posts about a “free” TRX/ETH give away for people who donate a particular amount of ETH to a particular address. This attack was noticed at multiple cryptocurrency related influencers’ Twitter handles including Ethereum’s Vitalik Buterin and Binance’s CEO.
Although many people recognized his fake profile and identified it was a scam, many innocent followers fell for the scam. Fake responses confirming the transaction on the same tweet validated the con and it was almost believable.
With US intensifying allegations of a Russian involvement in America’s voting dynamics through social media platforms like Twitter and Facebook, there was an intensive upgrade in the security protocols of Twitter user verification program. Twitter in an official announcement stated that multiple posts with the same tweet would lead to banning of accounts unless it falls under an emergency category like earthquakes, floods, etc.
Malcolm Chang, a security analyst from Hong Kong says,
“The blue tick is an indication of a verified user, people should be careful about what they read and whom to trust, these are difficult FUD times, do your own research and then spend your money. Remember, it’s your money, it won’t come back if you give it away to scamsters”
Robin Madhavan, a blockchain developer from London says,
“People already feel cryptocurrencies as a ‘get rich quick scheme’, these giveaways make it seem more surreal. Who gives away money like that? More importantly, it is high time Twitter comes up with stringent security checks to make sure fake accounts aren’t created in the first place”
Many unassuming followers who didn’t read the whole tweet series transferred the ETH amounts and replied to the tweets with a hopeful expectation of getting 5-10x their returns. With the new Twitter security feature which is expected to roll out in March, fake accounts and spammy posts will be auto-deleted.
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Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market
The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.
At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.
At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.
A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.
At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.
Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.
According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.
A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.
However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.
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