Many believe that cryptocurrency and crypto tech is revolutionary, while others still believe it to be a fad that will ultimately be doomed to be a footnote in the world’s financial history. Digital currency issued through digital coins is not tied to any government, state, or physical commodities. That is the biggest reason why crypto-users love the currency’s global reach and why governments are scrambling to curtail its utility. Keep reading to discover more about the TOP 10 Unusual Facts About Cryptocurrency.
With its advantages of vast global value and relative anonymity, cryptocurrency continues to remain volatile and vastly more prone to exploitation than its fiat counterpart. Let’s check in on 10 of the more unusual facts about the divisive digital phenomenon that is cryptocurrency.
Unusual Facts About Cryptocurrency
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1. Crypto Mining Is Destructive To Smartphones
Russian security researchers have uncovered a new cyberattack form in the crypto realm. This particular attack is especially destructive to smartphones. The Kaspersky Lab staff warned users in 2017 about dangerous malware that takes control of a phone, forcing it to perform malicious actions. Operating through an attack file named Trojan.AndroidOS.Loapi, the malware floods the phone with advertisements, kicks off DDoS attacks, and most damaging of all, mines for cryptocurrency.
Mining is a term that refers to the verification process of cryptocurrency blocks. For completing a mine, miners are rewarded with a crypto payment. Mining is extremely resource-intensive, and a smartphone cannot handle that type of processing power. The intensity of the process was tested by Kaspersky Labs, who found that the battery on a trial device it was unleashed on ran the battery out in just 2 days.
What’s worse, the malware is designed to be intentionally tough to delete from the device. If users attempt to mitigate its ability to access their devices, the bug often terminates the device manager, causing the screen to lock up. This is followed by the unnerving “Phone data will be wiped [sic]. Are you sure?” message. Experts have concluded that the only surefire way to purge the trojan from the device is to perform a full factory reset on it.
2. The Squid Game Crypto Scam
Netflix’s hit series Squid Game has become a global phenomenon, with its meteoric ascension in popularity spawning a number of unofficial spin-offs. One example of this is a brand new cryptocurrency called SQUID coin, which encourages users to play a paid online game based on the hit show. Driven by a rabid fanbase, it was not surprising that the overwhelming response quickly jacked up the price (in a matter of a few days) to a stunning $2,856.
But soon after launching, the SQUID coin crashed, falling from a value in the thousands to being worth less than a cent. Then, its creators pulled the website offline, restricted their Twitter account, and announced that they were scrapping the project entirely. This shady maneuver is something experts refer to as a “rug pull” where the creators traded all of the SQUID coins for another currency, sending its value nosediving into basically nothing. It was estimated by a news source that the scammers got away with $3.38 million.
3. Drug Dealers Got Paid Millions Thanks To A Government Mistake
A significant bureaucratic error by the Swedish government resulted in three incarcerated drug dealers becoming millionaires in August 2021. When prosecutors failed to value the worth of their digital earnings correctly, they ended up giving the trio a whopping $1.5 million. In 2018, Swedish police seized 36 Bitcoins from the dealers who were charged and imprisoned in 2019, and their ill-gotten earnings were deemed qualified for confiscation.
The prosecutor on the case, Tove Jullberg, decided to convert the Bitcoin value into Swedish krona, which was a bad decision seeing as it meant that the state would only get the monetary value of the Bitcoin at the time of 1.3 million (comparable to $140,000 US). After working for the next 2 years to auction off the online earnings, Bitcoin’s value grew by at least ten times over. The three men were returned 33 Bitcoin by the state afterward.
4. Twitter Vigilantes, Rise!
Scams are a common thing in the anonymous world of cryptocurrency, but for all the scam artists out there, an army of online vigilantes rose up to track them down and make them regret their actions. After all, no one else was holding them accountable.
Authorities have access to professional software to help them find crypto criminals and identify them, but the vigilantes take another route, working off of anonymous tips and hunches. Rather than taking the course of the law, which may often fail to produce results, they publish their findings on various Twitter accounts such as Zach, Sisyphus, and Gabagool.
The latter, for instance, recently exposed the exploitation tactics of Divergence Ventures, an investment company that was accused of manipulating the market by using confidential data from the company portfolio. In short, this is equivalent to insider trading. The online furor caused by the revelation forced the company to fork over millions of dollars in Ethereum that were gained through airdrop abuses.
5. The Strange World Of Altcoin Influencers
Regardless of the public love/hate relationship with Kim Kardashian, there is no denying her social media sway. However, she did leave her followers scratching their heads after her Instagram uploaded an advert for Ethereum Max, an altcoin (or alternative cryptocurrency), which is essentially a less predictable cousin of traditional crypto. Not surprisingly, it is because most of them are scams likened to Ponzi schemes.
Kardashian isn’t alone in promoting these bogus crypto alternatives. Stars, streamers, and influencers all over the internet recommend these very risky and volatile cryptocurrencies to their followers. One notable example was Faze Clan, a group of well-respected professional gamers who found themselves embroiled in an online scandal for promoting BankSocial, another questionable altcoin cryptocurrency in 2021.
BankSocial’s value skyrocketed to an all-time high, only to come plummeting just hours later. As one could imagine, Faze Clan’s fans were livid, accusing the gamers of intentionally taking advantage of their fans by inflating the altcoin’s value for personal gain.
6. The Trading Hamster: Mr. Goxx
While there is certainly a scheme-riddled side to crypto, rife with controversy and fraudulent get-rich-quick schemes, it does have a lighter side. One example of such is the case of Mr. Goxx. Goxx made headlines in September 2021 through impressive insight into the digital currency market, being 20% up from his initial investment in just a few months of trading. That, for the record, exceeds the success rate of most professional investors. Even more impressive is the fact that Mr. Goxx is a small, furry hamster.
Somehow, this little rodent on Twitch turned into an expert on the crypto market, putting many actual investors to shame. He would pick a cryptocurrency with his “intention wheel” and descend into one of a pair of tunnels; one was dubbed “buy” and the other “sell.” Every time he did so, a trade was made following his “investment advice.”
The true minds behind Mr. Goxx were a pair of German men in their 30s who had a significant interest in digital coin investments. They provided their pet hamster with 326 euros (about $400) to play the crypto market with, and in a few months, he increased their worth by 19.41%, thus outperforming the Dow Jones stock markets, and the investments of industry giants like Berkshire Hathaway. He would not live to see his fame blossom for too long, so his near-genius crypto wisdom perished with him.
7. China Cracks Down On Crypto
In May 2021, China opted to severely crack down on the utilization of cryptocurrency. Various banking bodies in the financial industry, including the People’s Bank of China, issued a statement that urged other banks and various online payment mediums to reject crypto payment options. While they did not outlaw cryptocurrency, this move made it a lot harder for Chinese people to procure it.
The statement noted the cryptocurrency price has ascended and plummeted rapidly, and pointed out that the rebound of crypto speculation resulted in less security of people’s property, disrupting both the financial and economical order. They went on to tear into how easy crypto values are to manipulate, accusing cryptocurrency of having no actual worth.
The decision sent waves through the marketplaces, causing the value of Bitcoin to fall under $40,000 for the first time in months, sending other cryptocurrencies like Dogecoin, Ethereum, and Cardano into a downward spiral too.
However, not everyone was quite as dramatically concerned. The Hong Kong Bitcoin Association implied in response that China’s decision was more of a yearly thing where they were bullish on cryptocurrency, saying that the People’s Bank of China bans Bitcoin on a fairly regular basis.
8. The Elaborate Nature Of the CryptoEats Scam
A fake takeaway delivery service called CryptoEats took investors for hundreds of thousands of dollars in 2021. On paper, CryptoEats looked legit, touting itself as an uber-based competitor to Uber Eats and Deliveroo, both large online companies with elaborate social media presence and the support of many online influencers.
CryptoEats claimed that they had established partnerships with hundreds of fast food chains and restaurants, including Nando’s and McDonald’s, and that they employed scores of well-compensated delivery drivers who were offered pensions as part of their jobs. One of their bolder promises was that investors that the service could deliver coffee to those who order within 5 minutes of the order being placed. All of that would be paid for with an EATS crypto coin.
All of this was a complete fabrication, however. After throwing a launch party, the company’s internet presence vanished, along with the half a million dollars already poured into it by investors. The influencers who promoted the service had no choice but to profusely apologize to their followers for such a massive deception.
9. The Odd Tale Of the Poly Network Heist
One of the key attributes of a heist is that it moves quickly. The process is typically the same: get in, take money, and make a break for it before anyone realizes what is happening. But that was not the case in the Poly Network heist, which played out as a full saga, specifically due to the curious moral compass of the perpetrator of it.
First, a mysterious hacker known only as Mr. White Hat, stole $610 million in cryptocurrency from the Poly Network platform, exploiting system flaws to carry out the largest crypto heist ever. Not long after the attack, the Poly Network tweeted out a message asking the hacker to get in touch with them to “work out a solution.” Within hours, in an unanticipated move, Mr. White Hat started returning the stolen millions to the network, returning over half of the stolen crypto back to the Poly Network in just a matter of days.
So why did he steal it in the first place? Mr. White Hat, it turns out, claimed he did not perform the heist for financial gain, but only to shine a spotlight on the glaring security flaws. He believed that the Poly Network could not be trusted with that much money, so he wanted to show how simple it would be to steal it.
In fact, he even went as far as publishing a three-page interview in which he explained the problems and holes in the Poly Network system. Most criminals and thieves would have chosen to leave the country with the money instead.
Then, the lengthy heist took another twist. Mr. White Hat decided to set up a separate account, locking $200 million in it. He claimed that the only way to open the account was with a password from the Poly Network and himself. The company was in desperation mode, trying to recoup the stolen funds, so they actually paid the notorious hacker a commission for finding their system flaws.
Just two weeks after that, the entire originally stolen sum of $610 million was returned to the company. It was reported after the ordeal had ended, that Poly Network actually offered Mr. White Hat a role as their Chief Security Advisor. Whether he accepted…no one knows.
10. The Mystery Behind The Death Of The QuadrigaCX’s CEO
Gerald Cotten was QuadrigaCX’s CEO. As the head of one of the largest cryptocurrency exchange sites in Canada, Cotten felt that security was paramount so he tasked himself personally with securing 115,000 accounts worth a total of roughly $137 million in cryptocurrency. He assured the trust in the security by locking them down with a passphrase known solely to him.
Unfortunately, Cotten suffered from Crohn’s disease, and in December 2018, he died of complications related to it, or as it was reported, a heart attack. That left his 115,000 customers frozen out of access to their crypto funds.
With Cotten’s sudden passing, lots of speculation arose, specifically implying that he faked his death. These beliefs seemed to be backed up by the oddly coincidental fact that large Bitcoin amounts held in his name were unaccounted for and several unexplainable accounts were found on his laptop. But QuadrigaCX had no record of his assets.
Many people have tried to solve the mystery of his death, taking it on like amateur sleuths. Reddit questioned the funeral home, Fortis Escorts, where Cotten was reportedly serviced after his death. Journalists dug into his past as well, and their discoveries kept coming up with findings that made the entire story significantly more odd. The Unraveling Crypto’s Biggest Mystery podcast was even started, dedicated to uncovering the truth behind his death.
To this day, no one really knows the facts behind Cotten’s supposed death. The 115,000 whose crypto is still locked in his accounts also don’t know if they will ever see the savings funds that they entrusted QuadrigaCX with ever again.
Facts About Cryptocurrency, Conclusion:
In conclusion, the world of cryptocurrency is full of surprises and unexpected facts. From its decentralized nature to the high energy consumption of mining, the way cryptocurrencies operate and impact the world is unique and intriguing. It is evident that this industry is still in its early stages and holds immense potential for growth and innovation. If you found these facts fascinating, I invite you to continue exploring the cryptocurrency world by reading our next article “TOP 10 Shocking Facts About Ripple Coin“.
Frequently asked questions:
How much did tom brady lose in cryptocurrency?
The exact amount that Tom Brady lost in cryptocurrency is unknown. However, it was reported in 2021 that he invested in a crypto trading platform called Coinbase and saw a significant loss when the cryptocurrency market experienced a downturn. Nevertheless, it’s worth noting that investing in cryptocurrencies is highly speculative and comes with a significant amount of risk.
Do you have to be 18 to buy cryptocurrency?
The minimum age requirement for purchasing cryptocurrency varies by country and platform. In the United States, many cryptocurrency exchanges require users to be at least 18 years old, while in some countries, the minimum age is higher.
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