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How to Identify Cryptocurrency Scams And Avoid Falling for Them

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By Jide Williams,

The number of cryptocurrencies on the market is on a steady rise. Every year, dozens of new cryptocurrencies enter the market and these are often followed by a series of Initial Coin Offerings (ICOs) (Source), which are a major source of funding for new cryptocurrency projects.

Unfortunately, there are many potential pitfalls laying ambush for new and even more experienced investors. The rabid rave around cryptocurrencies, especially fueled by the false notion that cryptocurrencies are an avenue to get rich quickly, has made many people susceptible to cryptocurrency scams.

Many people have made a lot of money from cryptocurrencies. But cryptocurrencies are by no means a get-rich-quick scheme. There is a significant amount of profit to be made in cryptocurrency, but losses also exist. Knowing the real deal from the cubic zirconias can be the difference between gaining and losing.

Before investing in cryptocurrencies, it is important to know exactly what to look out for. While some cryptocurrency scams are so well-thought-out that it is hard to spot them, many are sloppy and the telltale signs are always there. This article explores both the glaring and the less obvious signs of a cryptocurrency scam.

Types of Scams

Cryptocurrency scams come in different forms. The most common types of cryptocurrency scams are:

Bogus ICOs

A 2017 study revealed that over 80% of ICOs were fraudulent, Centra being one of the most well-known ones. This project raised about $32 million and was endorsed by DJ Khaled. Centra turned out to be a scam and the founders were arrested. One of the telltale signs of a bogus ICO is that the promised rewards are often too good to be true. In the case of Centra, investors would join the Centra ICO telegram group and get contacted by someone who appears to be the administrator. Investors would then get offered private bonuses for sale, sometimes receiving offers to buy the token at a third of its current value.
Once an investor falls for the trick and sends the money (usually in cryptocurrency) to the “special address” they are given, the scammers vanish.

Cloud Mining Scams

Because mining cryptocurrencies often requires copious amounts of processing power and electricity, which many people do not have access to, the option of cloud mining exists to expand inclusivity in cryptocurrency mining. Scammers recognise that this is a viable market and have infiltrated the cloud mining space as well.
MiningMax was a fraudulent cloud mining service. It offered daily returns on investments of $3,200 to investors, with a $200 referral bonus for investors who bring other investors on board. This company ran for two years, and in that time, duped investors of roughly $250 million.

Clone Websites

Some scammers go to the lengths of creating fake websites that are strikingly similar to the original website they intend to replicate. These replica websites are often so well done that a cursory glance through them will not reveal their dubious nature to the average eye.
These clone sites are often created in an attempt to carry out an act called phishing. Unsuspecting visitors who visit these phishing sites would unwittingly give out sensitive information about themselves like their wallet seed or key phrases, or passcodes to these attackers.
These phishing sites are usually registered under domain names similar to the original site as well. For example, using an “m” in the place of an “n,” a “0” in the place of an “o,” etc. Always double check the URL of websites that you are not entirely familiar or comfortable with before saving any sensitive information on such sites.

Cryptocurrency Ponzis

Before cryptocurrencies even existed, Ponzi schemes had been a common fraudulent tactic. As cryptocurrencies gained mainstream popularity, scammers capitalised on the public interest to set up cryptocurrency Ponzi schemes. These work like regular Ponzi schemes, but with cryptocurrencies as the medium of exchange rather than fiat currency.
Bitconnect is perhaps the most notorious cryptocurrency Ponzi scheme. It lasted for over a year and had a market cap of $2 billion. On the day the scheme fell apart, its unit value dropped from $320 to $6 in less than 24 hours, and its market cap to $40 million (Source).
Three men were arrested last year, in 2019, for defrauding investors of $722 million. They ran a Ponzi scheme named BitClub Network for years.

Fake Cryptocurrencies

Some scammers sell the idea that it is too late to cash in on Bitcoin to investors and try to convince them to invest in a new fast-rising cryptocurrency (a fake one) instead. One notable instance of this happening was with a fake cryptocurrency called My Big Coin. Fraudsters robbed investors of over $6 million via this scheme before they were finally caught and shut down.
Fake cryptocurrency projects would usually set up an ICO and convince investors to buy these tokens at a pre-sale price with promises of exponential rewards upon its launch. Investors put their money into these coins and the team behind the projects vanishes, never to be seen again.

Pump-and-Dumps

If you’re into traditional investing (i.e. investing in the stock market), then you may be familiar with pump-and-dump schemes. In the golden years of the stock market (think Jordan Belfort from the Wolf of Wall Street times), a group of scammers would pool money to buy penny stocks (low-quality stocks), thereby driving the prices of these stocks up. Investors are then encouraged to invest in these seemingly fast-rising stocks with promises of easy big-money returns. These stocks eventually turn out to be worthless and investors lose a lot of money in the process.
Scammers have been clever enough to apply the same principle to cryptocurrency trading. These scams are often hidden behind a facade of legitimacy with fake celebrity endorsements and fake news articles.

How To Avoid Falling For Cryptocurrency Scams

The importance of knowing how to spot and void cryptocurrency scams cannot be overemphasised. Below are some precautions you should take to minimise your chances of getting scammed.

Know the Team

Every industry has its superstars. Hollywood has Angelina Jolie and Denzel Washington, and a song from Beyonce is likely to pique your interest. In the same way, there are known names in the cryptocurrency industry. Before investing in any cryptocurrency, be sure to research the individual team members thoroughly.
One of such figures is Vitalik Buterin, the creator of Ethereum, which is the second most valuable cryptocurrency in the world. He is one of the most well-known figures in the world of cryptocurrency and has been actively involved in the industry for ten years.
Try to find out who the names listed on a cryptocurrency project are, and check the names listed on platforms like LinkedIn and other social media to vet their legitimacy. Check their followers, their posts, and how well they engage and interact with their followers. Many scammers make up fake founders and even create fake social media pages for them. Check when these accounts were created and how active they are.’

Peruse the Whitepaper

A whitepaper is an official document that details the strategies, goals, and timeline for a cryptocurrency project. Whitepapers are supposed to be incredibly detailed and include information like the financial model of the project, the legal concerns, SWOT analysis, and an implementation roadmap (Source).
Read whitepapers thoroughly. The real juice about a cryptocurrency project is in its whitepaper and you would be doing yourself a disservice if you only skim through it.
There have been rare cases where a fraudulent cryptocurrency project presented a whitepaper that was so good, they were able to pull in millions of dollars in investments. This was the case with PlexCoin. The company had raised over $15 million in investments before the scam was unravelled and the United States Securities and Exchange Commission (SEC) had to step in and close it down.

Monitor the Initial Coin Offering

Also known as the token sale, the ICO drives the initial crowdfunding process on a new cryptocurrency project. A legitimate company will make its token sale process transparent, such that investors can monitor its progress (Source).
Any establishment that is being coy about its token sales should not be trusted. Some fraudulent companies hide the progress of their token sale under the pretext of individual funding addresses. Under such circumstances, it becomes impossible for potential investors to track the progress of the token sale. If the amount a cryptocurrency project has raised and how much time is left on the sale isn’t visible to potential investors, that is a red flag, and you should avoid investing in such projects.

Look Before Leaping

The temptation to jump in on cryptocurrency projects with ambitions of getting rich quickly is pretty high. Even after reading through the whitepaper carefully, do not be quick to hop on a cryptocurrency project without doing your due diligence on all fronts.
A good place to start might be cryptocurrency and ICO spaces. These are popular on platforms like Reddit and Quora. Follow credible cryptocurrency accounts on social media and immerse yourself in the world of blockchain projects. And in all you do, ensure that you keep both your eyes peeled, not just for scams, but also for potential pitfalls inherent in projects before investing your money in them.
This brings me to my final point.

Evaluate the Project’s Feasibility

As a cryptocurrency investor, you need to know the markers to look out for when deciding what ICOs to take. This is why studying a project’s whitepaper like a manual is important. You need to understand what a project’s aims are and whether or not they are feasible (Source). Projects with overly-optimistic projections and shady timelines are best avoided. If it looks too good to be true, it probably is.

Final Thoughts

If you are going to invest in cryptocurrencies, it is imperative that you go into it equipped with as much knowledge as you can. There are many avenues to make profits from cryptocurrency trading, but there are also many ways to lose money. The more you know about the market and the latest trends and schemes, the less likely you are to get defrauded of your money. If you are patient, keep a cool head, have realistic expectations, and eschew greed, you significantly improve your chances of getting the most out of the good deals and you avoid falling prey to the bad ones.

 

Jide Williams, a Tech Professional with a Product Development Background


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Nigeria, Others Stuck on WiFi 4 As World Adopts WiFi 6, WiFi 7

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Nigeria among other African countries are falling “dangerously” behind the rest of the world in the adoption of WiFi technologies, with nearly half of the continent’s internet users still relying on the ageing WiFi 4 standard, while developed markets increasingly transition to WiFi 6 and WiFi 7.

This is according to Ookla’s Global State of WiFi 2026 report, which analysed speed test data from Android devices worldwide and found a widening gap between Africa and leading global markets.

The firm used these devices to track the prevalence of different WiFi generations (WiFi 4 through WiFi 7), the spectrum bands being used (2.4GHz, 5GHz and 6GHz), and the installed base of customer premises equipment connected to those devices.

While WiFi 6 has become firmly established across much of the world, Africa remains heavily dependent on legacy wireless technologies that were introduced more than a decade ago, the report finds.

While countries such as South Korea, Japan, Singapore and the US are rapidly migrating toward WiFi 6 and WiFi 7, Africa remains largely anchored on WiFi 4.

South Africa remains one of the continent’s most advanced broadband markets, yet the country is struggling to gain traction with the latest WiFi technologies, states Ookla.

The report notes: “WiFi 4 – a standard finalised back in 2009 – still accounted for 48.8% of Africa’s WiFi samples in the first quarter, with WiFi 5 a fast riser at 34.4%, up from 19.9% four years earlier. WiFi 6 climbed from 1.6% to 16.8% over the same period, while WiFi 7 barely registered at 0.1%.”

Ookla’s findings show a divide between advanced broadband markets and developing regions when it comes to next-generation WiFi adoption.

By comparison, WiFi 6 has already captured 27% of the global market, up from just 6% in 2022.

“WiFi 7 has also begun establishing a foothold globally, accounting for nearly 2% of worldwide connections. Meanwhile, older WiFi 4 and WiFi 5 technologies continue to decline globally, falling to 34% and 39%, respectively,” says Ookla.

The strongest uptake of WiFi 6 and WiFi 7 is concentrated in technologically-mature markets such as the US, Canada, South Korea, Japan, Singapore and several Western European countries, where fibre broadband penetration is high and consumers upgrade smartphones, routers and home networking equipment more frequently, according to the report.

“These markets have also moved more aggressively to open up the 6GHz spectrum needed to support WiFi 6E and WiFi 7 services, helping accelerate adoption of newer wireless technologies.”

WiFi 7, the next evolution of the WiFi network protocol, promises to be a substantial upgrade over its predecessor – surpassing the speeds of Ethernet cables, and significantly improving connection reliability and latency over WiFi 6.

While SA’s market is still in the early stages of migration to next-generation wireless technologies, research firm 6Wresearch forecasts strong growth in SA’s WiFi 6 and WiFi 6E ecosystem over the next few years, driven by increasing demand for high-speed connectivity, fibre expansion and growing use of connected devices.

Legacy spectrum dependency

The report also highlights Africa’s continued dependence on older wireless spectrum bands.

The congested 2.4GHz band remains the dominant carrier of internet traffic across Africa, accounting for 52.4% of all WiFi samples during the first quarter of 2026.

Although this represents a significant improvement from the 76.4% share recorded in 2022, the continent still lags behind regions where users have largely migrated to higher-capacity spectrum, the report states.

The 5GHz band has expanded rapidly across Africa, growing from 23.6% of samples in 2022 to 47.6% in 2026. However, the newer 6GHz spectrum, which is critical to unlocking the full capabilities of WiFi 6E and WiFi 7, remains virtually non-existent across the continent.

“The congested 2.4GHz band remained the continent’s majority carrier at 52.4%, down from 76.4% in 2022, with the 5GHz band the chief beneficiary, rising from 23.6% to 47.6%.”

One of the starkest findings in the report is Africa’s complete absence from the global shift towards 6GHz WiFi.

Across the continent as a whole, the 6GHz band accounted for a flat 0.0% share of WiFi samples during the first quarter of 2026. South Africa was the only market to record any meaningful activity on the band, but even then usage reached just 0.2%.

The report states: “Just 0.2% of WiFi connections in South Africa ran over the 6GHz band in the first quarter of 2026. In a market where households keep routers and handsets for years, and where service providers have been slow to bundle 6GHz-capable customer premises equipment, an allocation on paper turns into real-world use only gradually.”

According to forecasts from Grand View Research, SA’s demand for WiFi 6 and WiFi 6E technologies is expected to accelerate sharply over the remainder of the decade, driven by enterprise digital transformation, smart-home deployments and increasing bandwidth requirements.

Device readiness

The Ookla report suggests that consumer devices are no longer the primary barrier to WiFi upgrades globally and in SA.

According to Ookla, 61.4% of Android devices sampled worldwide already support WiFi 6 or newer technologies. This indicates that many markets now possess the device ecosystem needed to support more advanced wireless networks.

“However, Africa faces a different reality. The continent’s slower replacement cycle for smartphones and routers, combined with high equipment costs, and slower deployment of advanced customer premises equipment, continues to delay migration to newer standards,” notes the report.

Other obstacles include regulatory and spectrum availability constraints, as a result of the full 6GHz spectrum still being debated by the Independent Communications Authority of South Africa and local telecoms operators.

Widening connectivity gap

The Ookla findings suggest Africa risks falling further behind as the rest of the world accelerates toward WiFi 6, WiFi 6E and WiFi 7.

While the continent has made notable progress by shifting traffic from the overcrowded 2.4GHz spectrum to the more capable 5GHz band, the overwhelming dominance of WiFi 4 and the near absence of 6GHz adoption highlight the scale of the challenge ahead.

While SA can function without widespread WiFi 6 and WiFi 7 adoption, there are significant economic, technological and competitiveness consequences if the country falls too far behind.

“These include reduced return on fibre investments, challenges supporting artificial intelligence and data-intensive applications, lower business competitiveness, persistent network congestion, slower smart city and internet of things development.”


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Yuno Partners with Onafriq to Unlock Pan-African Payments for Global Merchants

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Yuno, the global financial infrastructure platform, today announced a strategic partnership with Onafriq, the leading Pan-African payments network, to bring Africa’s most expansive payments infrastructure to merchants worldwide. Through this integration, Yuno’s clients gain instant access to Onafriq’s network spanning 43 African markets, nearly 1 billion mobile wallets, 500 million bank accounts, and 2,000 cross-border payment corridors, all through Yuno’s single, developer-friendly API.

Yuno Partners with Onafriq to Unlock Pan-African Payments for Global Merchants

As businesses increasingly look to Africa as a high-growth frontier, the partnership addresses one of the most persistent friction points in cross-border commerce: the complexity of connecting to fragmented, local payment rails across dozens of markets. By combining Yuno’s payment infrastructure capabilities with Onafriq’s deep-rooted African network, the two companies aim to dramatically reduce the time and technical overhead required for merchants to go live and scale across the continent.

Onafriq’s infrastructure supports the full payment lifecycle, from real-time disbursements and omnichannel collections to card issuance, treasury management, and stablecoin settlement, all underpinned by local regulatory licences and ISO 27001 and CMML3-certified security. For Yuno’s merchant base, this means the ability to pay out to mobile wallets, bank accounts, or cash pickup points, and accept payments across channels, without managing multiple integrations or compliance frameworks independently.

“Africa represents one of the most exciting growth opportunities in global commerce, and yet too many merchants are still locked out by payment infrastructure that wasn’t built for scale. Our partnership with Onafriq changes that,” said Juan Pablo Ortega, Co-Founder and CEO, Yuno. “By bringing their unmatched African network into our infrastructure layer, we’re giving our clients a single path to a continent-wide ecosystem with the reliability, compliance, and local depth they need to grow with confidence.”

The partnership is part of Yuno’s broader strategy to build a truly global platform that connects merchants to every meaningful payment method and network, regardless of geography. Following successful expansion in the Middle East, Europe, and Asia, Africa is a key pillar of Yuno’s next phase of growth.

For Onafriq, the integration with Yuno extends its reach to an entirely new segment of global merchants who now benefit from a streamlined entry point into African markets. The partnership reinforces Onafriq’s mission of making borders matter less, bringing together mobile money operators, banks, fintechs, and enterprises into one connected payment ecosystem.

“Africa’s payment landscape has never lacked ambition or momentum, what it needed is the right infrastructure that matches its pace. Our partnership with Yuno changes the equation for global merchants who want to be part of this growth story” said Dare Okoudjou, CEO, Onafriq. “Through a single connection, global merchants can reach consumers and businesses across Africa more seamlessly than ever before, while more people across the continent gain access to the digital economy on their own terms. For us, this is what making borders matter less looks like in practice.”

The integration is now live and available across Egypt, Ghana, Kenya, Nigeria, Cameroon, Cote D’Ivoire, and Uganda. Yuno’s clients can access Onafriq’s capabilities, including mobile money disbursements and collections, card issuance, and FX treasury services, directly from the Yuno dashboard with no additional contract or integration required.


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Coloplus Makes Major Leadership Move, Appoints Global Telecom Veteran as Deputy CEO

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Coloplus Worldwide Service Limited, a subsidiary of Fusewall Holdings, is pleased to announce the appointment of Mr. John Dodge as its Deputy Chief Executive Officer and Executive Director.

Coloplus Makes Major Leadership Move, Appoints Global Telecom Veteran as Deputy CEO

Mr. Dodge brings to the organization an exceptional wealth of international experience spanning more than 35 years in the telecommunications industry, covering both passive and active infrastructure deployments and operations.

Having worked across six continents and in numerous countries, he possesses extensive cultural and professional expertise in leading diverse teams and managing complex projects in challenging environments.

His proven ability to motivate multidisciplinary teams and maintain a strong focus on client requirements has earned him a distinguished reputation within the global telecommunications sector.

A highly accomplished team player, Mr. Dodge is recognized for his focused, flexible, dedicated, and proactive approach to problem-solving and operational excellence.

He remains calm under pressure and has consistently demonstrated the ability to navigate and resolve challenging situations while driving teams toward common objectives.

Throughout his career, Mr. Dodge has built a reputation for meticulous attention to detail, strong leadership, and an unwavering commitment to quality and best-practice standards.

His disciplined work ethic, collaborative management style, and commitment to health and safety compliance have enabled him to deliver outstanding results across a wide range of telecommunications projects worldwide.

In his new role, Mr. Dodge will work closely with the leadership of Coloplus Worldwide Service Limited to strengthen the company’s strategic direction, accelerate operational excellence, expand market opportunities, and reinforce its position as a leading provider of telecommunications infrastructure and digital solutions.

The Board and Management of Coloplus Worldwide Service Limited warmly welcome Mr. John Dodge and look forward to the immense value his global expertise, leadership, and industry knowledge will bring to the organization and its stakeholders.


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