Scams Explained For New Users

13 days ago
4 Min Read
786 Words

We see scammers on the blockchain all the time and what amazes me, they always succeed in scamming a lot of people. One may think this game will end soon, but as long as there are naive and greedy people, this will never end. Before I start analyzing the latest scam, using LeoFinace's image, let's see how scammers operate.

Their main goal is to obtain your keys and take over your account. Once they got your keys, the first thing they do is take all your liquid funds, start power down and change your keys and possibly the outgoing rout of power down.

The last scam was quite a stupid one and it's sad to see so many people fall for such scam.

The reward distribution was based on reputation! For those of you who are new, reputation is a number that means nothing. I know some users care a lot about their reputation, but since in the old days you could boost your reputation with bidbots, that number can't really be trusted.

Over 70+ Reputation Score = 800 HIVE, this is what the scam message said. Have you ever asked yourself why would anyone give you that much Hive for reputation? How does this help the ecosistem?


Looking at HiveBuzz stats, you can see there are 1576 users with Rep over 70. 1576 x 800 = 3,015,200 HIVE!!!! Simple, elementary school level math, nothing more. And this is just users with rep over 70, let alone the rest. Rep over 60 was promised 500 HIVE, Rep over 50, 300 HIVE and so on. I'm not going to calculate how much it would amount to reward all existing users based on their announcement, but the number of Hive needed could be over 10M or even more.

Have you ever asked yourself who has that kind of funds in their wallet and ready to gift it to users?


These are the biggest wallets on Hive right now with liquid HIVE. Some are exchanges like binance-hot, bittrex and huobi-withdrawal, holding custodial funds, while the rest of the accounts are the for paying proposals and other funding regarding the blockchain.

The scammer used LeoFinance's name and reputation to carry out the plan. As you can see, @leofinance is not among those holding that kind of liquid HIVE that was promised.

Have you ever asked yourself why would LeoFinance pay out HIVE? LeoFinance tribe token is LEO. It's true, the last airdrop was CUB but that was actually because CUB is used on Binance Smart Chain.

Have you contacted LeoFinance before clicking the link, to ask if the airdrop is real? You could have posted the question under one of their post or go to LeoFinance Discord ( and ask anyone available to check if it's true. It would have taken you 2 minutes, maybe less.

Have you checked if there's a post about this reward distribution? Airdrops are announced in advance, way in advance and Khal has the habit of doing announcement to announcement to announcement, till we get dizzy.

There has been another attempt I had no idea about, but it looks like it was successful, unfortunately.

@guiltyparties has published a list of users, who's account is most likely compromised. The list is as long as my arm, unfortunately.

This hacker has a copy of your keys. His usual activities is attaching your account to his botnet. The keys were stolen back at Steem when you entered them in a website that promised curation. Most people only entered the posting key but some have also entered their active key and master password. source

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Things To Consider Before Falling Victim

  • Airdrops, rewards are previously announced in a post or several, never in comments posted to users or by wallet transfer messages
  • Airdrops, rewards are never based on reputation
  • Curation teams will never ask anything from you, let alone to use your keys
  • NEVER, NEVER, NEVER use your keys on platforms you don't know. We have Hivesigner and Keychain, both trusted dapps we use
  • Always check the URL of the website you are taken by the link
  • Ask anyone on the blockchain first
  • Never pay to get an airdrop
  • Free is never free, airdrops are based on stake
  • If it's too good to be true, most likely it's not true
  • Power up what you don't need, or use the Hive Savings option, which has a 3 days withdraw waiting period. The first thing scammers do is take away all your liquid funds, change the keys and start power down
  • Check and update your recovery account, choose someone you trust

Posted Using LeoFinance Beta