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A Decade of Rumors: Why Is It So Easy to Get Scammed in the Crypto Space?
On August 3, First Squawk once again started spreading rumors that “China has officially banned cryptocurrency trading,” which has already become a recurring joke in the crypto community. I asked Grok a question: How many times has China actually banned cryptocurrency?
To be fair, fake news in the crypto space has evolved from amateur pranks to professional-level manipulation:
2017: Someone on 4chan claimed that Vitalik had died, with no evidence and no details. ETH plunged from $317 to $216 (-32%). Later, Vitalik posted on Twitter with a block number to prove he was alive, but his followers’ money didn’t come back to life.
2018: Business Insider reported that Goldman Sachs had abandoned its crypto trading desk, causing the market to crash instantly. The next day, Goldman Sachs’ CFO came out to clarify, “That was fake news,” but within 24 hours, billions of dollars in positions had already been liquidated.
2021: Someone posted fake news on a news site saying Walmart would use Litecoin, and LTC instantly surged 30%. The manipulators behind the scenes had bought call options in advance and made a killing. It was only discovered afterward that this was a carefully orchestrated scam.
2023: Cointelegraph, trying to chase the hype, published “SEC approves BlackRock Bitcoin spot ETF” without verification. BTC instantly jumped from $27,900 to $30,000. Turns out it was fake news, and over $800,000 in short positions were liquidated.
Now the methods are highly professional: from domain registration, forging press releases, timing the announcements, mobilizing major influencers to repost—every step is precisely calculated, pure organized crime.
The key is: As long as enough people believe fake news will move prices, it really will move prices. That’s why the crypto community is always cycling between being immune to fake news and getting scammed by it.