Experts Reveal Two Major Protocols As Scams, How To Protect Your Crypto

PeckShield, a blockchain security company, released an alert stating that Freedom Protocol and Raccoon Network, two major crypto protocols, are scams. Moreover, they revealed that the scammers have already transferred about 20 million $BUSD to another address. 

Freedom Protocol claims to provide a financial asset with the highest fixed APY. It can offer an APY of as much as 183,395.2%. Raccoon Network is a meta verse company that monetizes its data. However, PeckShield has now claimed that both these companies are scams.

What The Data Shows

PeckShield provided two addresses that it claims are of Raccoon Network and Freedom Protocol. BscScan, a product that reveals on-chain data on the Binance blockchain also tracks both addresses as Raccoon and Freedom. 

PeckShield reveals that both the addresses have moved about 20 million BUSD to another address. The address the deposit is made to shows over 20 million BSC-USD. The total worth of the account is close to 21 million USD. 

Both Raccoon Network and Freedom Protocol have yet to comment on the allegations.

Protection Against Crypto Scams

In an interview with CNN, Sam Bankman-Fried, the CEO of FTX, revealed that a substantial number of crypto products are empty and resemble a Ponzi scheme. For such products, the value depends only on people putting money into them. 

He revealed that exchanges like FTX and Binance are responsible for identifying and delisting such products. However, as SBF pointed out, it is not always easy to recognize valuable products against Ponzi schemes. 

Experts also warn investors against pump and dump schemes as well as against rug pulls as other common ways investors lose millions of dollars in crypto. They also ask investors to check for common signs to check the reputability of crypto projects. One such sign is to see if the project has been audited by reputable security companies or other experts.