Nigerians have been getting more and more involved in the Web3 space with crypto trading groups becoming very much rampant. Most of these groups lure people by claiming to give investors massive returns on their investment.
People who have joined these groups and experts in the web3 space have cautioned people from getting involved and falling victims to scams.
James Aniogba, an experienced Crypto and Forex trader, shared his experiences stating how these players use Nigerians’ desire to get rich to exploit them. He said some of the coins being promoted are scam coins and promoters of the coins don’t even invest in them and are often the brains behind the coins.
“We have some people who don’t even invest in the coin they bring out, their aim is just to lure them and go away with their money
“Because people love seeing the flashy lives some make money outside crypto and parade themselves as crypto influencer. So they begin to promote different coins that they don’t even know anything about, they create groups, and at the end of the day the coin dumps so the crypto influencer have nothing to lose” James said
James added that many unsuspecting Nigerians have lost thousands of dollars to such schemes and often get blocked after the scam.
Web 3 experts have a say
Crypto and Web 3 policy experts join their voices to the conversation. According to them, these groups promise members returns on investment by telling them to follow their trading signals and implementing their trading strategies after paying a membership fee. Membership fees range as high as N100,000 to N150,000.
Rume Ophi a leading Web 3 market analyst in Africa weighed in on the topic from his personal experience with such crypto trading groups.
“Crypto signal group is not for beginners because as a beginner if you join a signal group there is no way you will not fail.”
“You need to know a lot of things and then compare knowledge with the signals you are receiving, to sum up your trading strategy” Rume said
Olayimika Oyebanji a Web 3 policy analyst and award-winning crypto journalist had a rather negative view of these crypto trading groups. He said ““They are well-disguised scams thriving on the age-long myth which says that trading is an easy path to wealth. It’s all smokescreen.“
