Artificial promotion in the cryptocurrency industry has reached epidemic proportions. Every day, new 'revolutionary' projects appear, promising easy money and financial freedom. Behind beautiful promises often lie scammers ready to clean out your pockets.
What is artificial promotion and why is it needed
Artificial promotion (shilling) is the inflation of a cryptocurrency's or token's popularity through exaggerated claims. The goal is simple: to inflate hype, get others to buy, and then dump their assets, leaving latecomers with losses.
Promoters can be anyone: influencers, anonymous accounts, or even high-ranking politicians with financial influence. What unites them is manipulation. It is not about education or creating real value, only about pumping hype for personal gain.
The line between enthusiasm and outright deception can be so thin that many fall victim without realizing it.
Five red flags of aggressive promotion
1. Exaggerated promises
You have probably seen posts screaming: "Potential growth of 100 times!", "Guaranteed profit!", "This is your ticket to financial freedom!"
These are classic promoter tactics. Real, trustworthy projects do not promise life-changing profits. Why? Because in cryptocurrencies, as in any investment, there are no guarantees.
When a project leads with grand financial claims rather than the actual value of the product or utility, it is likely an attempt to lure unsuspecting investors.
2. Anonymous or suspicious teams
In the crypto sphere, anonymity is not always bad, but when you trust people with your money, transparency matters. It is a serious red flag when a project has no identifiable team members, uses fake names or pseudonyms, has stock photos on its website, and lacks LinkedIn or professional history.
Simple rule: "No face — no money." Scammers often hide behind anonymity because they know they will eventually disappear, and there will be no one to hold accountable.
3. Influencer spam and paid promotion
Yesterday, no one was talking about a specific coin — today your feed is flooded with influencers hyping it. Sounds familiar?
This sudden spike in attention is often coordinated with a paid promotion campaign disguised as 'sincere enthusiasm.' Many influencers do not disclose sponsorship, even though it is required by law in many countries.
Examples of penalties:
Kim Kardashian received a fine of $1.26 million in 2022 for promoting EthereumMax without proper disclosure.
Floyd Mayweather Jr. was sued for supporting the same project at a paid event.
BitBoy (Ben Armstrong) faced lawsuits in several court cases for promoting scam tokens to his audience.
4. Lack of a real product or roadmap
The project’s website looks sleek, perhaps even impressive. But where is the product? Where is the code?
Promoted tokens often rely on flashy marketing but lack a working application, GitHub code, and real use cases. Everything is either "coming soon" or hidden behind vague promises.
Ask yourself: can I use the platform or application today? Is there a white paper that makes sense? Do they have public repositories or open development?
5. Pressure tactics and FOMO
Time pressure is a psychological weapon, and unscrupulous promoters know how to use it. Beware of phrases like: "Presale ends in 2 hours!", "Only 1,000 spots left!", "If you don't buy now, you'll miss out forever!"
These tactics play on your fear of missing out and push you towards impulsive decisions without research. But cryptocurrencies are not a sprint; they are a long-term game.
Aggressive promotion and the law
Artificially inflating popularity is not just unethical in many cases — it is also illegal. Undisclosed promotions pose a serious legal risk. If someone is paid to promote a token or project but does not disclose this financial relationship, they may face fines, lawsuits, or even criminal charges.
Regulators such as the Securities and Exchange Commission (#SEC ), the Federal Trade Commission (FTC), and the Commodity Futures Trading Commission (CFTC) have ramped up the fight against such behavior.
Francier Obando Pinillo, a pastor from Miami, was charged with 26 counts of fraud for running a crypto scam through "Solano Fi," defrauding investors of millions from 2021 to 2023. He used his church, social media, and false promises of 34.9% monthly profits to attract victims.
How to protect yourself from aggressive promotion
Do your own research: always investigate the project, the team, and the data supporting claims.
Check the team: a legitimate crypto project should have a transparent and trustworthy team.
Look for real utility: does this project solve a real problem?
Ignore the hype: if a token suddenly becomes trendy on social media, do not let FOMO influence your judgment.
Be skeptical of influencers: before following their advice, ask yourself — what is their motivation?
Beware of pump and dump schemes: do not fall for offers to profit from orchestrated price increases — this is a form of shearing sheep.
Artificial promotion has turned into a multi-billion dollar deception industry, where new ways to swindle money from unsuspecting investors emerge every day. The only protection is your vigilance and common sense. Remember: if something seems too good to be true, it probably is.
