Cardano’s founder Charles Hoskinson has said that giveaway scams steal millions of dollars in ADA every month.
Speaking on his live stream on Wednesday, Hoskinson reiterated the message that Cardano will never give away any ADA, explaining he receives lots of emails from victims of these scams asking when they will receive their cryptocurrency back.
Hoskinson also called out YouTube for failing to take necessary action against these cryptocurrency giveaway scam videos.
Crypto Giveaway Scams
Hoskinson said: “This preys upon people’s greed, their stupidity, and in many cases, their inability to speak English.”
Given the decentralised nature of blockchain technology, companies behind the cryptocurrencies cannot reimburse or help those affected by scams.
Individuals have lost up to 20,000 in ADA to these scams, Hoskinson stated. At the time of writing, one ADA costs $2.51.
Hoskinson also said he had received death threats and images of his house by those defrauded out of ADA.
“Who is at fault? YouTube. The social media people. They allow and permit this to happen,” Hoskinson said.
“There is nothing that we can do as a company, or as a project,” he said. “We can report these, but they’re created by automation.”
“By the time they’re shut down, 10 more get formed.”
He noted the YouTube algorithm can detect and shut down other forms of content not allowed on the platform, and questioned whether it could do the same for these giveaway videos.
Hoskinson also blamed the cryptocurrency industry for failing to tackle the issue, citing the lack of demand from others to take further action.
Cryptocurrency giveaway scams will often use high-profile individuals from the community to trick victims into sending cryptocurrency to specific addresses with the promise of higher returns.
Using footage of the likes of Vitalik Buterin and Charles Hoskinson, these often live videos will direct viewers towards sites, claiming they can double their cryptocurrency.