In the world of cryptocurrencies, not everything that glitters is gold. While major projects like Bitcoin and Ethereum stand out with credibility and global fame, there is a darker, less visible, and more mysterious aspect known as the gray market. This market is filled with suspicious digital currencies that have infiltrated investors' wallets either through the quick temptation of profit or through dubious advertising campaigns, or even indirectly without the wallet owners' knowledge.
What is the gray market in crypto?
The gray market refers to that informal space in the cryptocurrency market where suspicious or unlicensed coins are traded, which do not fall entirely under the category of obvious fraud (such as 'rug pull' projects), but also do not adhere to strict professional or regulatory standards.
It is the area between white and black… between legitimacy and violation.
How do suspicious coins invade digital wallets?
There are several ways these coins penetrate the market and wallets:
1. Unwanted free distribution (Airdrops):
Many users are surprised by the appearance of unknown tokens in their wallets, which may be part of a fraudulent campaign aimed at stealing their data if they attempt to interact with them.
2. Price manipulation through media and 'influencers':
Some influencers are used – sometimes intentionally and sometimes unknowingly – to promote coins without checking their background, prompting their audience to buy before it becomes clear that they are worthless or lack a real purpose.
3. Imitating original projects:
Projects are launched using names similar to popular projects, with very minor changes that deceive the average user.
4. Money laundering activities and storage of suspicious assets:
Some gray coins are used to facilitate illegal transactions or to transfer suspicious funds through networks that are difficult to trace.
Why are these coins spreading?
Absence of central oversight
The ease of creating coins on chains like BSC and Ethereum
Greed and the desire for quick profits
Lack of awareness and verification before investing
Risks of gray coins
Complete loss of investment: many of these coins collapse shortly after their launch.
Privacy and wallet breach: interacting with these coins may lead to wallet breaches or data exposure.
Exposure to legal pursuits: in some countries, dealing with these coins may be considered indirect support for illegal activities.
How do you protect yourself?
1. Do not interact with any unknown coin that appears in your wallet automatically
2. Use wallets that support the feature to hide suspicious tokens
3. Verify the project, its team, and its community before buying any coin
4. Do not trust any recommendation from an influencer without deep personal research
5. Avoid projects that promise you unrealistic profits in a short time
Examples of coins from the gray market
Although many of these coins appear and disappear quickly, some names have sparked widespread controversy in the digital community due to their suspicious nature or the absence of a real project backing them. Here are some examples:
1. SafeMoon
It emerged as a promising coin in 2021, backed by a strong marketing campaign and promises of huge profits. However, accusations soon began to reach the project regarding the lack of actual use, the team's lack of transparency, and their complete control over liquidity, leading some to consider it part of the gray market or even a 'Pump and Dump' project.
2. Bitconnect
Although it is no longer around today, Bitconnect is one of the most famous historical examples of suspicious coins. It promised guaranteed returns through a 'trading robot' before collapsing and causing thousands of investors to lose their money. It was later considered an outright scam but started in the gray market under the guise of legitimacy.
3. FEG (Feed Every Gorilla)
A coin proposed as a charity/social project but suffered from weak actual development, losing most of its value despite media hype, and is now considered one of the projects used to attract new investors without a real project.
4. Shiba Predator (QOM)
A coin that attempted to mimic the popularity of Shiba Inu but offered no distinctive idea, relying entirely on emotional appeal and similarity in name, which made it classified among gray coins with unclear objectives.
5. Coins that are randomly distributed in wallets (Scam Airdrops)
Such as tokens bearing fictitious names or resembling original projects (e.g., a free 'UNI AIRDROP' named 'UNI V2 REWARD' of unknown origin). These coins should never be interacted with as they may be a means to breach the wallet.
Conclusion
The gray market represents another face of the crypto world… a face that must be approached with caution to discover the difference between opportunity and fraud. Cryptocurrencies represent a true technological revolution, but negligence and haste can turn this revolution into a personal disaster for unsuspecting investors.
Stay vigilant, and be aware… intelligence in the currency market does not only mean knowing when to buy, but also knowing what you should never buy.