- After six years of delays, Ethereum’s ‘The Merge’ has finally been completed.
- New trends and system upgrades typically open up new opportunities for scammers, and The Merge is no exception.
- As fraudsters adapt to the new environment, so must crypto investors.
Ethereum’s move to Proof-of-Stake protocols in ‘The Merge’ system upgrade could represent a chance for the coin to become the world’s preeminent coin. Its functionality, energy use, and processing times are set to become more user-friendly and will put the coin in the best position to bring crypto into the mainstream.
The good news for crypto investors is that The Merge could be the tipping point that enables the sector to reach its full potential. The bad news is that the crypto sector, which has always been rife with fraud, now has to close off new security threats associated with the tech upgrade.
‘The Merge’ Risk 1 – Fake ETH2 Tokens
The massive scale of the restructuring of the Ethereum blockchain explains the years of delays which blighted the project. The analogy often used was to compare it to replacing the foundations of a skyscraper whilst it was still standing.
One option open to the managers of the blockchain, and one used by other coins in the past, would have been to develop a new coin, ETH2. That would have enabled the re-org far more freedom.
From day one of the process, the Ethereum foundation made clear that an ETH2 token was not a possibility. However, scammers have already exploited the opportunity to misinform holders of ether and convince them to exchange their existing ETH coins for the new ETH2, which of course, don’t exist. There are no swaps, no upgrades, and no need for holders of ether to take any action regardless of how many times fraudsters suggest they need to.
‘The Merge’ Risk 2 – Airdrop Scams
The move to Proof-of-Stake protocols allows crypto holders to earn a return on their position by ‘staking’ their crypto. This is a new development for ether investors, and there are already reports of scammers taking advantage of coin holders taking time to adapt to the change in approach.
Fake airdrops of new coins could sound plausible enough; after all, The Merge has revolutionised how things are done. Unfortunately, the promise of something for nothing can instead lead to crypto criminals gaining access to investors’ keys and, subsequently, the assets in their accounts.
Airdrop scams have the feel of a ‘phishing’ scam. Investors are warned to avoid clicking on links in unsolicited emails and giving any kind of personal information.
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