NovaChain Exit Scam Affects Crypto Investors as T-rex Arbitrage Trading Bot Disappears
- NovaChain escapes with users’ funds without leaving any trace
- Crypto scams have been increasing during the last weeks
A new exit scam is affecting the whole cryptocurrency market. This time, the crypto project that decided to leave the space without giving explanations is NovaChain. This project presented itself as a high-frequency trading bot that would allow investors to generate passive income. However, things ended up being much more difficult for those that place their funds on this platform.
NovaChain Affects The Crypto Community
The NovaChain project has been promoted by crypto influencers that use social networks in order to attract individuals and investors to these new Initial Coin Offerings (ICOs) and promotions.
Many scams do not provide any services and promise users that they will be working in order to execute their ideas and proposals. However, NovaChain was different. Indeed, it was possible for the team behind this project to create a trading bot that allowed users to perform arbitrage trades at a high frequency. Nevertheless, it is clear that the profits generated by this project were not clear enough.
There have been many users suggesting that NovaChain had many similarities to BitConnect, one of the most popular scams in the crypto market that affected many users back at the beginning of 2018 when it closed its operations.
NovaChain suers realized that the social media accounts and platform were deleted in just a day. Although the project operated for over a year, the team disappeared in just a day. At the moment, there is no official explanation about it or why they took this decision.
In 2017, the ICO boom, many projects were just created to steal users’ funds. Many social media influencers promoted these scams and dragged many individuals into investments that ended up being just losses. This is why it is always advised to conduct a deep investigation about the projects in which users invest in and who is the people responsible for them.
According to TheCoinsPost, the crypto YouTuber Hack Crypto promoted the Novachain crypto high-frequency trading bot. Nonetheless, it seems that the video has been deleted. The only video related to Novachain seems to be one about Tron (TRX) and Ethereum (ETH) in which he does not mention the scam but the search engine of YouTube seems to be pointing at.
There are many other individuals and influencers that have been promoting this scam. Many Twitter accounts with several followers were those that the company was paying in order to promote the trading bot.
During the last weeks, the number of crypto scams has been increasing due to a larger interest for Bitcoin (BTC) in the market. The most popular digital asset surpassed $10,000 a few weeks ago and enthusiasts in the space are very excited about the future of the cryptocurrency.