Grayscale Trust Falls Victim to Phishing Scam, Crypto Investors Beware

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Wed, 06/24/2020 - 10:35
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Vladislav Sopov
Typically, every overhyped blockchain-related product draws the attention of blatant scammers. Investors have unveiled a phishing attempt by Grayscale impersonators
Grayscale Trust Falls Victim to Phishing Scam, Crypto Investors Beware
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Seasoned cryptocurrencies investor Ryan Sean Adams, founder of the Mythos Capital investment fund, announced that he received a very strange letter. It turns, he is not the only one.

Suspicious exception for fat cats

According to a screenshot of a letter shared by Mr. Adams in a tweet, fraudsters are impersonating Michael Sonnenshein, managing director of Grayscale Investments. The fake 'Sonnenshein' is asking for feedback on Grayscale's products and offering two programs.

Ryan Sean Adams reveals scammers' letter
Image via Twitter

This scam can hardly be called well-designed. First of all, the impersonators use a 'Graysceal' domain instead of 'Grayscale', which is a very old strategy. Secondly, the letter is full of grammatical errors and looks like it was written in a rush.

Furthermore, the logic of the letter is broken: the author offers two of the most popular Grayscale products after asking whether they are 'useful'.

Finally, the scammers try to lure in gullible addressees claiming that Grayscale can raise funds even from unqualified investors 'on an exceptional basis', hinting at the large investments required for this shady 'exception'.

The letter contains two backlinks and asks for an answer so it is highly likely that it may steal personal financial information.

Controversial newsmaker

The activity of Grayscale Investments which offers benefits from cryptocurrency market volatility without owning crypto tokens raised many concerns among investor and analytic communities.

Their most popular product, Grayscale Investments Ethereum Trust (ETHE), sells stocks of an Ether-pegged trust with an enormous premium. As highlighted by ex-Messari analyst Qiao Wang, this method has no benefits in terms of liquidity influx or taxation regime.

Also, he unveiled that the Grayscale Bitcoin Trust (GBTC) lacks a redemption function, which is very suspicious. Without a prominent redemption instrument, the investors of GBTC are just sponsors of the Grayscale team, Mr. Wang concluded.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)