Michael Saylor Warns Against Growing Bitcoin Scams

Chairman of MicroStrategy Incorporated, Michael Saylor has sent out a crucial warning to the Bitcoin community, cautioning against the growing number of scams in the sector.

Saylor brought the attention of the Bitcoin community to the fact that scammers have been using MicroStrategy’s reputations for fraudulent purposes in an X post revelation.

Michael Saylor and the Cautionary Note to Combat Scams

According to Saylor, his team removes approximately 80 fake YouTube videos a day that use the MicroStrategy brand to advertise different types of fraud.

Due to MicroStrategy’s meteoric rise which has made it a household name in the industry, one common fraud involves scammers pretending that anyone who scans a barcode will receive free Bitcoin from MicroStrategy.

Saylor emphasized to the audience that MicroStrategy does not participate in freebies of this nature and cautioned them from doing so.

The Escalating Trend of Scams Based on False Promises

This warning from Michael Saylor is due to an increasing trend of fraud where scammers ask users through persuasive adverts to do specific tasks in order to show their engagement or loyalty in exchange for crypto handouts.

Typical strategies include promising to double customers’ money in a short amount of time if they transfer money to a certain wallet. Saylor refuted such speculative statements by emphasizing that there is no risk-free way to double one’s Bitcoin.

MicroStrategy as a Prime Target on Scam Vulnerability

With its prominent position in the Bitcoin community and its status as the top non-crypto-focused corporation in terms of Bitcoin holdings, MicroStrategy has grown to be a key target of fraudsters.

The company has accumulated 189,150 BTC over the years and recently added 14,620 BTC to its holdings in late December 2023. With the recent debut of Spot Bitcoin Exchange Traded Funds (ETFs) in the market, Saylor’s warning gains significance.

He had stated that approval of a spot Bitcoin ETF might be the largest change to occur on Wall Street in the last thirty years.

The end of a more than 10-year stalemate by the United States Securities and Exchange Commission (SEC) to approve spot Bitcoin ETFs opens the door to potential scams.

The hype surrounding these ETFs and the interest from non-crypto native investors may be exploited by scammers. Saylor’s warning echoes concerns about the increasing number of scams in the crypto space and the need for vigilance among investors.