Security

Lincolnshire Resident Lost Around $4,200 On His Credit Card Investing In Cryptocurrency, Safemoon

  • An NHS worker in his 20s invested and lost £3,000 (almost $4,200) on his credit card in the cryptocurrency, Safemoon.
  • The social media craze about virtual currency and its powerful grasp on the stock market inspired the Lincolnshire resident to step into the crypto space.
  • He doesn’t want anyone else to end up like him and advises people to do their research and mustn’t wager what they can’t afford to lose.

“Once bitten twice shy,” and here’s a living example. An NHS worker residing in Lincolnshire, who invested and lost £3,000 (almost $4,200) on his credit card in cryptocurrency, has warned people to be cautious and do the market research before making any crypto investment. 

Social Media: The Ultimate Crypto Promoter 

Published Friday, the Lincolnite, a local daily reported, the social media frenzy about virtual currency and its powerful grasp on the stock market was what first introduced Craig E to the crypto-verse. Craig, in his 20s, was captivated by all-things-crypto, thanks to the social media platform Reddit and its users promoting and pushing cryptocurrency, like Dogecoin, to unthinkable heights. He said he “wouldn’t have gotten into crypto,” if not “for the virility of them.”

While Craig agrees that cryptocurrencies, like Dogecoin (DOGE), have “drawn lots of attention,” and indeed many people “made a lot of money,” there also exist those, including himself, “who have lost money, and never really had the chance to make it.”

All That Shines Isn’t Bitcoin.

Naturally, his first choice was Bitcoin (BTC), but its extensive value (over £41,000 per token)had him look for a cheaper alternative in Safemoon. Starting with small investments, Craig saw over four-fold increase within days. Satisfied with the instant positive results and assured by many that the price will only be going up, Craig used his credit card to buy Safemoon (SAFEMOON) tokens worth £4,000, assuming he would be getting a double “the very next day.”

But Alas! In a game of cards, just because you’ve been winning for the past nine rounds doesn’t necessarily mean you’ll win the 10th too. 

That “very next day,” his investment was rendered worthless. Maybe people sold tokens quickly to drop the price, or maybe declining liquidity was the cause, rug pulling. Regardless of the reason, Craig barely managed to salvage just £1,500, and the rest of his initial investment just disappeared. 

Crypto Community Executes A Ponzi Scheme

Craig admitted, maybe he wasn’t as prepared as he should’ve been. He also identified the crypto community as a Ponzi scheme. He reasoned, first Telegram groups “encourage people to invest and drive the price up”. Then the previous investors “sell to recoup losses or make profits,” just “like a Ponzi scheme.”

Craig blames himself, for he should have known better than to risk money he didn’t have. And although the social media “lulled” him “into a sense of security,” he deeply regrets not being “more cautious” and doing better research with his “potential investments.” He doesn’t want people to end up like him. 

Craig said he wouldn’t suggest people against investment in stocks or cryptocurrency, just that they ought to “fully evaluate the potential investment.” He said, “research” and make sure you invest in “something you believe in,” and as for casual investors, invest in what could offer “long-term growth.”

He also advised to stick to “centralized exchanges, like Binance,” for crypto investments, but refrain from putting “serious money” into “cryptocurrencies that are a joke.” And most important of all, one he learned the hard way, “never invest money you couldn’t afford to lose.”

“I lost £3k on my credit card investing in cryptocurrency” – A bitcoin cautionary tale

   

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