Real estate crypto coin Realux stole almost $24,000 from hopeful investors
When it comes to real estate, it’s currently a seller’s market. Everyone wants a home, and thanks to demand, the prices are higher than the Empire State Building. At least that’s how it can feel for people who can’t afford to buy a house.
iBuyers, or automated home buyers, are exacerbating the situation. They snag houses that come on the market before a human even finds out the house is available. Tap or click here to find out how iBuyers handles home sales.
But there are two sides to every coin, and technology could help homebuyers as much as it can hinder them. At least that’s what the team behind a cryptocurrency called Realux says. They claimed they were democratizing real estate through blockchain — and investors fell for it, hook, line, and plumb line.
It was all a lie
From the start, Realux looked like a legit cryptocurrency. It had a slick, professional side – which is now being deleted. Luckily, you can check it out on the Wayback Machine.
Let this be a lesson for you. Don’t automatically trust websites just because they look well put together.
Also, don’t swallow what social media influencers tell you. Do your research because they might not. In this case, Realux paid crypto influencers @AltcoinSara and Jim Crypto to hype RLX coins.
Many fans fell for the hype and took Realux at face value, ignoring the red flags of a scam. Remember: unscrupulous influencers can cost you a lot of time. Always research.
If you’re looking to spot warning signs when shopping online, you’ve come to the right place. Tap or click here for five ways to spot a scam when shopping or selling on Craigslist. This guide is oldie, but good advice is timeless.
Much can be learned from this story
According to blockchain records, around 9 p.m. on Jan. 31, its creator released 70 million RLX tokens. When Realux released its tokens and investors snapped them up, it disappeared. Realux has deleted its social media accounts and official website, Vice reports.
In other words, Realux was nothing more than a rug pull. According to Vice, the scammers made less than $24,000.
In the cryptocurrency world, rug pulls are by no means rare. According to CNBC, crypto scammers stole a record $14 billion last year. Also known as pump-and-dump schemes, carpet trains will lure you in with lofty promises.
Realux has developed a plan to make affordable real estate available to everyone. It claimed that real estate investments supported its tokens. Somehow this would eliminate the wealth gap and create blockchain tokens representing land values.
These complex schemes excited investors eager to capitalize on what they saw as a future gold rush. The viral tweets and videos from social media influencers fueled the flames.
Investing in scams is like setting your money on fire
Cryptocurrency is risky even if you are not dealing with scammers. Hackers can infiltrate your transactions and steal funds. The market can rise and fall, damaging your bank account as collateral damage.
In order to be able to invest safely, you need a solid foundation of knowledge. There’s no better place to start than Kim’s eBook Cryptocurrency 101: The Beginner’s Guide to Buying, Selling and Spending Digital Currency the Safe Way. It’s chock-full of solid advice that will guide you through every step of your crypto investing journey.
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