«MANIPULATED» Cryptocurrency Market: How Cryptocurrencies Became Victims of «Beam-Down» Manipulation
The cryptocurrency market has long been known for its volatility and unpredictability, but in recent times it has become increasingly known for the manipulative tactics of scammers and hackers. One of the most damaging and widespread examples is the «crash rugpulling» phenomenon, where a group of investors is wiped out and loses all their holdings in a single transaction.
At the center of this scheme is Beam (BEAM), a cryptocurrency project that promised users a return on investment with minimal risk. However, after an initial public offering (IPO) and subsequent fundraising campaigns, it became clear that something was not right. The platform’s development team disappeared, leaving behind a trail of empty promises and lost funds.
One of the first signs of trouble came when Beam announced its plans to launch its native cryptocurrency, the BEAM token. Investors were said to have gotten in «early on,» with the promise of up to 1000% returns in a short period. However, as soon as the token started trading, investors realized something was amiss. The project’s whitepaper and roadmap revealed a lack of clarity and transparency, while the development team was nowhere to be seen.
As more investors withdrew their money, the BEAM market began to plummet. In an attempt to cover up the losses, Beam’s developers released a new «update» that promised to fix some of the platform’s issues. However, it quickly became clear that this update was nothing more than a smokescreen, designed to distract from the fact that the platform had been completely dismantled.
Meanwhile, on social media and online forums, investors were being criticized by their peers for jumping into Beam before its market value plummeted. Some even claimed to have lost tens of thousands of dollars on the project’s supposedly «revolutionary» technology.
Smart Contract Sabotage
One of the key factors that contributed to Beam’s demise was the lack of a secure smart contract. The platform used a decentralized application (dApp) framework, but lacked meaningful security features or testing protocols. When an investor tried to withdraw their funds, they were met with a cryptic error message that led them on a wild goose chase across the network.
Investors didn’t start to wake up until a team of independent security experts, including blockchain analysis firm Chainalysis, revealed the truth behind Beam’s smart contract vulnerabilities. Experts discovered that Beam had used an insecure implementation of the Solidity programming language, which allowed hackers to exploit and manipulate the platform’s code.
The consequences were severe. In a shocking revelation published online, Chainalysis found that Beam had been using its own security tools against users, exploiting network vulnerabilities to steal funds and extort investors. The company’s management was eventually forced to shut down the platform, leaving thousands of investors with their losses.
The Importance of Due Diligence
In the end, Beam’s success serves as a clear warning to anyone considering investing in any cryptocurrency project. One of the most critical aspects of cryptocurrency investment is due diligence: thoroughly researching and vetting the founders, development team, and technology of the project before investing your money.
«Beam was a classic example of a get-rich-quick scheme,» said one investor who lost his entire investment. «The more I learned about the project, the more I realized that something was not right. It’s a cautionary tale for anyone looking to get into the cryptocurrency market from the start.»
Conclusion
The rise and fall of Beam serves as a reminder that cryptocurrencies are not a reliable or safe place to invest.