Stellar Guard decided to start a series of publications analyzing and exposing fraudulent schemes. The first such material is dedicated to the Stellar Activity hard fork, which was scheduled for December 9, but never took place.
A noisy, unprecedented in generosity airdrop Stellar not only set a record in the history of cryptocurrency distributions worth $125 million in Stellar tokens, but also activated scammers who wanted to profit from the growing popularity of the asset.
According to the official version of StellarGuard, the proposed hard fork of the Stellar network called Stellar Activity (XLA) is nothing more than a large and blatant scam. This fork promises to improve upon the original Stellar by introducing the Lightning Network and many other minor improvements.
The project began life in a fairly standard way for a typical cryptographic project: it published on the bitcointalk.org forums, announced the expected big hype for a specific date, and then began implementing a marketing strategy on social networks.
However, upon closer examination, three main signs of a scam can be identified: schemes:
1. The bounty program promises users rewards for reporting Stellar Activity on all social media platforms, including Twitter, Facebook and Instagram.
2. Special conditions for token exchange. Conditions are 1:2, two brand new XLA tokens are offered for XLM at the time of the hard fork. If someone wants to get a new asset right now, they can transfer their XLM to a published fake address and then get as many as 30 new XLA.
3. And the last, but most alarming condition is the “official Stellar Activity wallet” created by scammers, to which you need to dump all your coins before the fork. In this case, potential recipients of the new fake coin are asked to enter their secret key in order to receive their XLA. As any experienced crypto user knows, a private key gives direct access to your wallet and funds and should not be shared under any circumstances.
This is all very reminiscent of previous XLM scams called StellarShade and Stellar Dolphin, and suggests the same organizers.
You May Also Like
NEO 3.0 will provide faster speed and stability
In an exclusive interview with AMBCrypto, NEO Marketing Head Caterina Zhang spoke about NEO's latest developments, NEO blockchain scalability plans, and their goals to achieve more transactions per second.
Omicron token surges 945% after WHO names COVID-19 strain
The under-the-radar Omicron (OMIC) token has hit an all-time high thanks to its name matching a new fast-spreading strain of COVID-19.
