- March 21, 2024
- 7:04 pm
- This Article was Updated on March 23, 2024 at 10:00 Dubai Time
So, is BlockDAG a scam? Let’s Start from their strongest selling point, which is their so-called super miners, let’s take their highest spec miner, the X100.
Immediately, you can tell that this is not an original product, it looks 100% like the Bitmain Antminer E9Pro. Covered with some poor stickers to draw attention to their brand. It is all so fake and even a 5-year-old child can see it. My question is, if you are going to raise millions by scamming people, at least spend some money doing so.
The BlockDAG Miners
From their website:
“The formidable BlockDAG X100 boasts an impressive hash rate of 2 TH/s and consumes a modest 1800W. The X100 is designed for high-performance mining. Daily earnings can reach up to 2,000 BDAG! Using the SHA-256 algorithm the X100 can also mine Bitcoin and Kaspa. The X100 is engineered to adapt seamlessly to diverse settings while effectively managing noise output.”
And for the image they posted for the miner, it clearly indicates ETC, which is Ethereum based coin, they are totally different equipment and Ethereum Classic is using a totally different algorithm. So, the device they posted on their site (Which is only a wrapped Bitmain Antminer E9Pro) will not be able to mine the SHA-256 algorithm mentioned above.
Advertisement
Next, let’s talk about their advertisement, it seems they are spending quite a bit to publish fake blog posts on crypto-related websites. The cost of a single article can go for thousands of dollars, depending on the website. This reminds me of Retik Finance, another crypto scam that raised over 30 million dollars from its victims.
Example of Aggressive Advertisement on one Site
They are posting huge number of fraud posts on different websites. Example form Analytics Inside – Market Trend – Lates News. Posting 6 times in just two days
Also, if you search YouTube for people who have recommended BlockDAG, you will see tens and tens of YouTubers, some with close to 1 million subscribers, all promoting the same thing. What I mean to say is that they were all presented with a ready-made script provided by the scammers to read, stating how wonderful this project is. This is so unfortunate since many of their followers may fall for it and invest their hard-earned money, which they are going to lose.
Most of my comments were deleted
Keywords Scam
Interestingly, the team at the BlockDAG scamming project is targeting keywords that people may search to confirm that BlockDAG is legit or a scan, so the very second search result for “BlockDAG Scam” will take you to a site where they bought ad space to try to prove that it is not a scam!
Previous Experience
The interesting thing here is how these scammers and thieves learn from other experiences, they are smart in avoiding previous mistakes and trying a more convincing approach to lure the greedy public to give them their money. For example. I have exposed Retik Finance by proving that their white paper was just a copy of a previous scam project (RENQ). By showing that the author of both scams was the same. In the case of Blockdag, the scammers removed all meta data from their whitepaper PDF document, so no information can be extracted and thus relate it to other scams! But on the other hand, doing so is obvious and raises more red flags against them.
As Retik Finance learned not to mention their team, so did these guys, there is no mention whatsoever of any of the team members behind BlockDAG.
Cheap Actors
They even hired a cheap actor most probably from Fiverr to record their Keynote event, it is all so obvious, and people should take care when such scammers that promise you of great wealth in crypto investing.
No KYC
They also stated that they will be issuing a Debit Card without doing KYC, well this by it self if a huge RED flag as this is not the way the traditional financial world works
Final Words
Its most probably another African scam, their address points to Lusaka, Zambia. Recently we are seeing and increased number of scammers coming from India, Pakistan, and Africa.
Yes, it is unfortunate to have such acts in the amazing crypto world, a world that promised a better future for us and for our kids.
Additional General Information
here are some general things to watch for when spotting fake crypto pre-sale project listings
Anonymous Team: Legitimate projects usually have transparent, verifiable teams. If the team members are anonymous or there’s little to no information available about them, proceed with caution.
Guaranteed Returns: Any project promising guaranteed returns should be approached with scepticism. In the world of investments, especially crypto, there are no guarantees.
Lack of Whitepaper or a Poorly Written Whitepaper: A comprehensive, detailed whitepaper is a hallmark of a serious project. If the project lacks a whitepaper or it appears hastily put together, it might be a red flag.
Limited or No Code on GitHub: Genuine projects often have active GitHub repositories. A lack of code or very little activity might indicate a lack of development progress.
Unrealistic Goals: Projects promising to solve every problem in the crypto space or making grandiose claims without clear, realistic plans for achievement are suspect.
Rushed Sales and High-Pressure Tactics: Be wary of projects that pressure you to invest quickly, often using tactics like “limited time offers” or claiming that you’ll miss out on extraordinary gains.
Poor Communication and Community Engagement: Legitimate projects usually have active, responsive communication channels. If your questions are ignored or answered vaguely, that’s a concern.
Clone Websites or Whitepapers: Some scam projects simply copy the website or whitepaper of a legitimate project. A quick search can often reveal if the content has been plagiarized.
Vague or Non-existent
Roadmap: A clear, detailed roadmap is a sign of a project’s planning and seriousness. Lack of a roadmap or very vague timelines can be a red flag.
Inconsistent or Misleading Information: Any discrepancies between what’s advertised and what’s stated in official documents (like the whitepaper) should raise concerns.
Social media Red Flags: Sudden spikes in followers or engagement that seem inorganic, or a community that only posts generic or promotional content, can indicate fake support.
Check Smart Contract Audits: Legitimate projects often have their smart contracts audited by reputable firms and publicly share the results. Absence of such audits is a red flag.
Look for Legal Compliance and Regulations: Projects that do not mention any compliance with relevant regulations or seem to skirt legal responsibilities should be approached with caution.
When evaluating a crypto pre-sale, always do your due diligence, and consider seeking advice from financial experts. Remember, if something sounds too good to be true, it probably is.