The cryptocurrency market is inherently a land full of opportunities but also contains countless traps. Recently, the $35 million collapse of Coin Trump has shocked the crypto community in Vietnam and worldwide, leaving many valuable lessons for investors.

What is Coin Trump?

Coin Trump is a heavily promoted cryptocurrency project promising huge profits. The project is named after former US President Donald Trump – a globally attention-grabbing figure. However, this project has no official connection to Trump and merely exploits his name to attract attention.

Scam tactics

1. Promoting a grand image:

The project was marketed by the team as an "opportunity not to be missed," with promises like "profits increasing tenfold in a few days."

2. Create a sense of scarcity:

Coin Trump was introduced through a limited ICO (Initial Coin Offering), with a call to action "buy now before it's too late." This creates a FOMO (fear of missing out) mentality for investors.

3. Multi-level tricks:

Investors are encouraged to invite others to join to receive commissions, turning the project into a disguised Ponzi scheme.

4. Dumping (Rug Pull):

After attracting $35 million from thousands of investors, the development team dumped all the coins and disappeared, causing the value of Coin Trump to plummet to nearly 0 within hours.

Consequences

• Investors lose everything: Those who placed their trust in the project lost all their money, many borrowed or mortgaged assets to invest.

• The reputation of the crypto market is affected: Incidents like this erode trust in cryptocurrency, making the community more cautious with new projects.

Lessons learned

1. Be cautious with projects using the images of celebrities:

Big names like Trump and Elon Musk are often exploited to attract investors, but rarely have any official connection.

2. Don't invest just because of FOMO:

Don't let the feeling of missing an opportunity dictate your investment decisions. Research thoroughly before pouring in money.

3. Check project information:

• Does the project have a clear whitepaper?

• Does the development team have transparent identities?

• Does the project have a real product or just promises?

4. Only invest money you are willing to lose:

Don't bet all your assets on a risky project.

Conclusion

The collapse of Coin Trump is a wake-up call for investors about the dangers of "get rich quick" projects. In a market rife with scams, knowledge and vigilance are the most important weapons to protect your wallet.