Phishing scams, attacks disguised as legitimate communication or websites designed to steal funds and sensitive information, cost crypto users over $12 million in August, up 72% from July, Web3 anti-scam service Scam Sniffer reported on Saturday.

Crypto phishing scams impacted 15,230 victims in August, a 67% increase from July, with the single largest loss costing one user over $3 million, according to Scam Sniffer.

The Scam Sniffer team also noted a “sharp escalation” in EIP-7702 signature scams. EIP-7702 is an Ethereum improvement proposal that allows Externally Owned Accounts to act as smart contract wallets that can execute transactions and shift funds.

Scammers and hackers exploiting this functionality drained over $5.6 million in August through three separate attacks, Scam Sniffer said.

Scams and cybersecurity exploits continue to be a problem in crypto, with over $163 million stolen in August through malicious activity. The persistent threat is a reminder for crypto users to remain vigilant and practice good anti-phishing and anti-scam security measures.

Related: Venus Protocol recovers user’s $13.5M stolen in phishing attack

Good practices for staying safe against phishing scams

Losses from crypto hacks and scams crossed $3.1 billion in the first half of 2025 amid increasingly sophisticated attack methods.

Scammers often target users by posing as legitimate and well-known cryptocurrency exchanges, either setting up fake websites with similar URL addresses to legitimate exchanges or sending fake communications to users.

These communications include emails, text messages, and even physical letters sent through the mail, designed to steal sensitive user information, including seed phrases for crypto wallets and passwords to online accounts. 

Typically, the scammers will pretend to be customer service agents from reputable exchanges, claiming that the user’s account is facing some sort of threat or cybersecurity issue and demand personal information from the user, including seed phrases.

Good practices to avoid phishing scams include checking URLs for tiny mistakes and bookmarking pages instead of using search engines or the search bar to access websites every time, verifying website links, and avoiding downloading attachments or clicking links from unknown sources. 

Phishing scams often contain misspelled words or grammatical errors, and any of these mistakes is a red flag; users should read through messages carefully to detect such errors.

Crypto and Web3 users should also use virtual private networks (VPNs) to mask their IP addresses and physical locations, never give out seed phrases or passwords, and enable two-factor authentication for sensitive online accounts.

Magazine: $55M DeFi Saver phish, copy2pwn hijacks your clipboard: Crypto Sec

]]> https://earlybirdsinvest.com/phishing-scams-cost-users-over-12m-in-august-heres-how-to-stay-safe/feed/ 0 57113 https://earlybirdsinvest.com/opensats-grant-fuels-bitcoin-safe-safe-multi-sig-wallet-fire-hardware-focus/ https://earlybirdsinvest.com/opensats-grant-fuels-bitcoin-safe-safe-multi-sig-wallet-fire-hardware-focus/#respond Mon, 01 Sep 2025 22:40:22 +0000 https://earlybirdsinvest.com/opensats-grant-fuels-bitcoin-safe-safe-multi-sig-wallet-fire-hardware-focus/

Bitcoin-Safe, an open source Bitcoin savings wallet, is now available for families, individuals and businesses looking for safe, long-term Bitcoin storage. It focuses on multi-sig security and distinguishes itself from other desktop wallets such as Electrum and Sparrow, as it requires a hardware wallet for mainnet operations. Supported by the one-year OpenSats Grant awarded in March 2025, Bitcoin-Safe is the latest version 1.5.0 released on September 1, 2025, combining robust security with a redesigned user interface.

Development and OpenSat Support

Developed by Andreas Griffin for over two and a half years, Bitcoin-Safe aims to simplify multi-sig setups and reduce reliance on Electrum servers. “I started with this wallet two and a half years ago, and I had two goals to make multisig easier and not have to resort to Electrum servers,” Griffin told Bitcoin Magazine. OpenSats Grant, which will be held from March 2025 to March 2026, supports these efforts. The open source code for wallets built into the Bitcoin Dev Kit (BDK) is auditable on GitHub, and installable clients are available for free at Bitcoin-safe.org/download.

Multisig, hardware wallet security, coin control

Bitcoin-Safe enforces hardware wallets for the mainnet and prohibits software seeds from mitigating security risks. “There’s no way around hardware wallets to save money,” Griffin said, highlighting compatibility with major hardware devices via QR, USB or SD cards. This allows Bitcoin Safe to allow software seeds, prioritize security for significant savings, and minimize “footguns.” This is a feature that users can easily hurt.

The Wallet Multisig Setup Wizard generates PDFs with wallet descriptors, such as send and receive tests for validation. “After this wizard is finished, you can make sure it’s set up correctly,” Griffin said. This ensures reliable configuration and allows for multisig access without compromising security.

Using the NOSTR protocol, Bitcoin-Safe synchronizes transactions and addresses the entire end-to-end encrypted device label. “We create protocols on top of Nostr to link these computers and synchronize labels seamlessly,” Griffin said. Multisig participants can share partially signed Bitcoin Transactions (PSBTs) with a single click, and the relay stores encrypted messages for asynchronous access.

The Coin category separates funds such as KYC exchange withdrawals and private coins to prevent unintended transaction connections. “You should not link it by mistake as you need to select the source of the fund,” Griffin supported the privacy of users.

User Interface and Experience

Version 1.5.0 introduces a new interface developed with @Design-R. “The designers who participated in the project are really very helpful,” Griffin said. Features include a sidebar for managing multiple wallets, an updated transaction view for sending and signing PSBTs, and a Mempool visualization showing block and fee data.

The wallet will add keyboard shortcuts, tooltips and clear error messages. Bug fixes improve functionality and ensure accessibility for beginners and advanced users.

Bitcoin-Safe supports real-time conversion of 123 Fiat currencies integrated into the interface. It also converts Bitcoin to gold or silver values ​​in ounces and grams. Real-time Mempool alerts notify users of transaction propagation. “This is an opt-in feature for existing users and opt-out of new installations,” Griffin said, noting in a customizable network setting.

Users can unlock multiple wallets with a single encryption password. “If multiple wallets share the same encryption password, users must enter it only once,” explained Griffin. Nostr’s Chat & Sync feature enables remote PSBT adjustments for multi-sig participants.

Community and Accessibility

Bitcoin-Safe supports languages ​​such as English, Chinese, and Spanish, as well as translation via Weblate. Users can test with TBTC, report bugs, or donate via Lightning or Onchain. Engagement is done through chorus.community and x accounts (@bitcoinsafe, @bitcoinsafecn) and documentation is available at bitcoin-safe.org.

Future Development: Compact Block Filter

Bitcoin-Safe plans to replace the Electrum server in 2025 with integrated compact block filters. “My plan is to replace (Electrum Servers) with a compact block filter and retrieve blockchain data directly from the Bitcoin core node,” Griffin said, aiming to enhance privacy and server independence.

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Carbon DeFi on TAC is now available as a Safe App on TAC — with seamless auto-connection and full multisig support.

Safe wallet users on TAC can combine the power of Carbon DeFi’s trading capabilities with the trusted multisig security of Safe — made possible through a successful collaboration with Protofire.

Safe is a leading smart contract wallet platform for secure digital asset management. It offers multisignature execution, customizable permissions, and smooth integration with dapps, making it a trusted choice for teams, DAOs, and individuals. Safe wallet users on TAC can now access Carbon DeFi via safe.tac.build and manage trades without leaving their multisig environment.

Protofire — a blockchain development team known for delivering high-quality DeFi integrations — began by integrating Safe wallet solutions on TAC, with Carbon DeFi being the first to go live. Their work ensures full compatibility between Carbon DeFi and TAC’s Safe deployment, delivering a smooth user experience.

About Carbon DeFi

Carbon DeFi is an advanced onchain trading platform developed by Bancor. It offers everything an AMM does, and more — including novel trading strategies no other DEX in DeFi can natively offer. Features include fully onchain limit and range orders, recurring buy-low/sell-high trading cycles, immunity to MEV sandwich attacks, and the ability to adjust positions onchain without withdrawing funds — all designed for both individual and institutional use.

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Limit Orders — Pre-set buys or sells to execute at a specific price with 100% price certainty

Range Orders — Define a price range & automate scaling in/out

Recurring Orders — Linked buy & sell orders create a repeating ‘buy low, sell high’ trading cycle

Full-range liquidity — Trade from zero to infinity

Concentrated liquidity — Auto-compounding with custom fee tiers

Built-in solver system — Bancor’s Arb Fast Lane executes trades against chain-wide liquidity

100% onchain and native to Carbon DeFi — No third-party dependencies or risk

So far this week, we’ve covered the different types of crypto trading and where that trading actually happens.

Cool, cool. But once you get your hands on some crypto… then what?

Today’s edition is here to answer that question by walking you through the different types of crypto wallets – aka where your crypto lives once you buy it.

Yesterday, we introduced the idea of custodial wallets (when someone else, like a crypto exchange, holds your keys) vs non-custodial wallets (when you hold your keys).

But there’s another way to divide crypto wallets: they can be hot and cold.

Ready to dig in? Lessgo

Hot wallets

These are wallets that are connected to the internet in some way. This connection makes them quick, easy, and convenient for regular use.

Some examples of hot wallets include:

1/ Online wallets

For example: MetaMask.

Online wallets are web-based and can be accessed through your browser.

They’re super convenient – no downloads, just a login. This makes them especially beginner-friendly, since setup usually just involves creating a username and password.

Good for people who want quick access to their crypto from anywhere, on any device.

However, because they’re always online, they’re more vulnerable to phishing attacks, browser hijacking, and platform hacks.

2/ Mobile wallets

For example: Zengo.

Mobile wallets are apps installed on your phone, great for fast, on-the-go transactions.

You can use them to scan QR codes, pay in crypto at supported stores, trade tokens, or interact with DeFi – all from your phone.

Many mobile wallets, like Trust Wallet or MetaMask, also support multiple chains and come with user-friendly interfaces.

Great for fast, on-the-go transactions.

But keep in mind: they rely on your phone’s security. If it gets hacked, lost, or stolen, your wallet could be compromised – especially if you haven’t backed up your recovery phrase or set up biometric authentication.

3/ Desktop wallets

For example: Electrum.

These are software programs you download onto your computer.

They give you more advanced tools, like full-node access, detailed settings, or privacy features.

Plus, when installed on a secure computer, they can offer better protection than web or mobile wallets, especially if you keep them offline (which technically turns them into a cold wallet).

So, it’s typically used by people who want more control and features.

Downsides: they’re less portable, and if your PC gets infected with malware or crashes without a backup, you could lose access to your funds.

And now, moving on to…

Cold wallets

These are wallets that live offline.

That’s what makes them ultra-secure – they’re immune to things like online hacks or phishing.

Cold wallets are not ideal for buying coffee, but they’re definitely the go-to choice for anyone planning to hold their crypto long-term.

Some examples of cold wallets include:

1/ Hardware wallets

For example: Ledger Flex.

These are small physical devices that store your private key.

Here’s what using one looks like:

1. You plug the device into your computer or phone;

2. You open a companion app (like Ledger Live) to tell it: “Hey, I want to send some Bitcoin”;

3. The hardware wallet checks the request and asks you to confirm it;

4. Once confirmed, the wallet signs the transaction inside the device – your private key never touches the internet.

So, even if your laptop is full of viruses, hackers can’t steal your crypto, because the private key stays locked inside the hardware wallet.

Great for: storing large amounts of crypto safely, especially long-term.

Downsides: costs money, takes a few minutes to set up.

2/ Paper wallets

For example: uhh… A4 paper?

This is the most low-tech option: you just write your public address and private key on a piece of paper.

… And that’s it.

It costs nothing, and it’s fully offline. But here’s the catch:

To use the crypto on a paper wallet, you have to type your private key into a wallet app or website – and the second you do that, it’s not so safe anymore.

Also: it’s paper. Spill your drink on it, or lose it, and your crypto is gone.

Good for: deep cold storage of small amounts.

Downsides: super easy to lose, damage, or leak by accident.

So, are you hot or cold?

• Hot wallets are great for quick trades, daily use, and small amounts of crypto – but they’re more vulnerable since they’re always online.

• Cold wallets are better for long-term storage and larger amounts. They stay offline, which makes them much safer from hacks – but they’re not very convenient for daily use.

Actually, most people end up using both: a hot wallet for daily stuff, and a cold wallet for long-term hodling.

Whichever you choose, we hope today’s guide helped you understand where your crypto actually lives – and how to keep it safe

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Bitcoin’s current bearish movements appear to have intensified as market sentiment wanes, causing the flagship asset to lose the key $104,000 price level. Despite the recent pullback, key metrics such as the BTC Realized Profits are still in a positive range.

Realized Profits On Bitcoin At A Neutral Level

Following Bitcoin’s price decline, on-chain data shows that the Bitcoin market dynamics are seeing a cool-off as BTC Realized profits remain at a key zone. The current levels of realized profit indicate that the market is functioning in a state of sound equilibrium, showing no immediate indications of overheating or undue speculation.

On-chain expert and verified author Darkfost reported the development in a recent post on the X platform. According to the on-chain expert, as Bitcoin stabilizes in the face of economic and geopolitical uncertainties, keeping an eye on on-chain activity becomes essential.

Currently, Darkfost has stated that there are no significant red flags regarding realized profits on Bitcoin within the 7-day timeframe. In the current state of the market, the expert believes that it is crucial to monitor these indicators in order to predict any changes in market structure or attitude.

Even though bearish pressure is building in the sector, this stability suggests that the market may still have the capacity to rise as investors are exercising patience rather than making hasty withdrawals.

After he analyzed the BTC Net Realized Profit/Loss metric, Darkfost revealed that realized profits are still below a $1 billion value. This level is similar to what was captured near the conclusion of the correction in October 2024, as seen on the chart.

Despite a minor increase during the most recent all-time high, realized profits were still far lower than those recorded in January 2025. Such a positioning from the metric implies that investors and traders are not concerned enough or are not seeing enough profit to spark a large-scale sell-off.

A Huge Change In BTC’s Realized Cap

Looking into Bitcoin’s Realized Cap – UTXO Age Bands by percentage, the metric shows a shift in BTC movements. Kyle Doops, a market expert and Crypto Banter Show host, noted that more BTC is currently moving to strong hands or seasoned investors after he examined the key metric.

Data from the key on-chain metric shows that the share of UTXOs held for 6 to 12 months has now doubled. According to the expert, this notable advancement marks a massive shift in market dynamics.

Following the massive shift, Kyle Doops highlighted that conviction is increasing and supply is becoming more scarce. Such a trend was observed in the past, particularly in 2024. Historically, this kind of setup has preceded a rebound in price, which suggests that the ongoing volatility may be the calm before a major run.

Featured image from Pixabay, chart from Tradingview.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Crypto Journalist

Anas Hassan

Crypto Journalist

Anas Hassan

About Author

Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.

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Last updated: 

June 12, 2025

President Donald Trump has escalated his public feud with Federal Reserve Chair Jerome Powell, branding him a “numbskull” while simultaneously pledging not to fire the central bank chief despite mounting frustration over the Fed’s reluctance to slash interest rates.

Speaking at a White House event Thursday, Trump delivered his harshest criticism of Powell’s monetary policy approach, claiming that lowering rates by just one percentage point could save the United States $300 billion annually, while a two-point reduction would generate $600 billion in savings.

Why Trump Wants to ‘Force Something’

Trump’s latest verbal assault marks the third time in two days that his administration has publicly targeted Powell. It follows similar criticisms from Commerce Secretary Howard Lutnick and Vice President JD Vance, who called the Fed’s stance “monetary malpractice.”

The coordinated pressure campaign came from the administration’s growing impatience with the central bank’s independence, particularly as Trump faces re-election pressures and seeks to demonstrate economic leadership.

Despite repeatedly calling Powell “Too Late” and questioning why firing him would be controversial, Trump stopped short of threatening termination, instead ominously suggesting he “may have to force something” if rate cuts don’t materialize soon.

The timing of Trump’s criticism appears strategic, coming as recent economic indicators show inflation cooling and energy prices declining due to increased domestic drilling under his “drill, baby, drill” energy policy.

Powell’s current term as Fed chair expires in May 2026, and Trump has hinted that an announcement regarding his nominee for the next Fed chair could come soon.

Harvard legal experts suggest that while Trump may have constitutional authority to remove Powell, such a move would likely trigger severe market volatility and undermine the Fed’s credibility as an inflation fighter, potentially causing long-term interest rates to spike even if short-term rates were cut.

Presidential Pressure Campaign Intensifies Fed Independence Debate

The escalating confrontation between Trump and Powell is a fundamental clash over Federal Reserve independence with deep constitutional and economic implications.

Trump’s frustration stems from his belief that the current interest rate environment unnecessarily burdens federal borrowing costs, particularly as the government faces mounting short-term debt obligations approved during the Biden administration.

The president argued that Europe has implemented ten rate cuts while the Fed has delivered none, despite similar economic conditions and falling inflation metrics.

Legal scholars say that while the Federal Reserve Act of 1913 allows governors to be removed “for cause,” the Supreme Court’s recent decisions have gradually eroded the traditional “for cause” protections that independent agencies have enjoyed for 85 years.

Harvard Law School’s Daniel Tarullo, a former Fed Board member, suggests that three conservative justices have hinted at potentially treating the Federal Reserve differently from other agencies, possibly creating a carve-out based on the central bank’s historical precedent dating back to the First and Second Banks of the United States.

However, market dynamics may provide Powell with more protection than legal statutes, as any attempt to remove the Fed chair would likely trigger immediate and severe market reactions that would prove counterproductive to Trump’s economic objectives.

The anticipated market volatility is a powerful disincentive, particularly given that Treasury Secretary Scott Bessent has focused on maintaining stable 10-year Treasury rates, which are key for economic investment decisions.

Recent economic indicators have strengthened Trump’s argument for immediate monetary easing. Inflation data show continued price stability and energy costs declining due to expanded domestic oil production.

The favorable Producer Price Index reading in May has calmed fears about tariff-induced inflation spikes, emboldening the administration to intensify pressure on the Fed while markets increasingly price in potential rate cuts later this year.

We are committed to maintaining the highest standards of trust, security and integrity. This is our mission to accelerate the global adoption of crypto while protecting our clients. We take responsibility seriously. That’s why ensuring that bad actors don’t use our platform is an important part of our efforts.

Our Approach: Multi-layered Defense

We take a proactive and rigorous approach to detect and prevent fraud, money laundering and other illegal activities. Our systems are built to identify threats early and respond quickly.

Our risk detection and enforcement tools include:

• Blockchain analysis to track assets flow across the network
  
• Behavioral monitoring to identify abnormal or high-risk account activity
  
• A pattern recognition system for flagging known indicators of fraud or fraud
  
• Compliance control tailored to FATF, FINCEN, FCA and other global regulatory frameworks

There is no location for illegal assets

Kraken does not allow us to use the Platform for activities that include fraud, theft, fraud, or other criminal activity. Our Terms of Use prohibit any deposits or withdrawals of Fiat or Crypto that you suspect arise or endorse from a criminal activity. Misuse of the platform is not tolerated.

What happens when suspicious activity is detected?

Once suspicious activity is identified, Kraken acts immediately. Enforcement actions include:

• Freezing or closing accounts
• Limit access to potentially illegal funds
• Reporting incidents to law enforcement, regulatory authorities and financial information units
• Permanently ban individuals from our platform

They also work closely with global law enforcement and regulatory agencies to destroy illegal financial flows and return stolen assets where possible.

Partnerships for a safer ecosystem

Preventing fraud is a common responsibility. As a result, Kraken maintains close cooperation with regulatory bodies, law enforcement agencies and blockchain intelligence companies. Together, we are working to strengthen industry standards and disrupt illegal activities across the crypto space.

We also believe in empowering our clients to stay safe. Crypto Safety Guide offers tips and resources to help users recognize threats and protect their assets.

I recommend to all clients:

• Be vigilant and report suspicious activity immediately through our support center
• Let us know about best practices for account and asset security through our Crypto Safety Guide
• Do not enable or interact with potentially fraudulent behaviors
• Use Kraken only for legal and legal purposes

By working together, we help protect not only ourselves but the wider community.

Together, we will build a better world of cryptography

We firmly believe that trust is essential for the cryptography to flourish. Creating a secure and reliable digital asset ecosystem is only possible through collective responsibility. Our compliance and security team works round the clock to protect the platform and its users, but we all need them to create a secure environment.

Key takeaways

• In 2024 and 2025, fake airdrop scams targeting Hamster Kombat, Wall Street Pepe and others led to millions in user losses, contributing to over $9.9 billion in global crypto scam damages.

• Fake airdrops impersonate legitimate projects, tricking users into revealing private keys, signing malicious contracts or paying upfront fees that lead to irreversible crypto theft.

• Warning signs include no official announcement, suspicious URLs, requests for private keys, grammar errors and unrealistic reward promises.

• Future airdrops are shifting toward activity-based, retroactive and AI-monitored models that reward genuine user engagement while reducing exploitation.

While cryptocurrency airdrops are a legitimate way for projects to gain publicity and users, scammers exploit this hype, draining wallets through fake campaigns. In 2024 and 2025, fake airdrop scams around projects like Hamster Kombat and Wall Street Peepe cost victims millions. According to Chainalysis, the global estimated losses in 2024 from cryptocurrency scams and fraud, which included fake airdrops, amounted to at least $9.9 billion. 

Spotting red flags is crucial to staying safe from fake airdrops. This article explores key warning signs and practical tips to protect your funds. 

What are fake airdrops?

Airdrops are a common practice of distributing free tokens in the crypto world as part of marketing campaigns, user acquisition efforts, or community-building exercises. Legitimate airdrops reward early takers, increase token visibility, or promote network activity. Getting airdrops requires minimal effort, like signing up, joining a community or holding a specific token.

However, the popularity of airdrops has also drawn scammers. They exploit user greed and curiosity by promising free tokens (fake airdrops) in exchange for sensitive actions such as sharing private keys, signing malicious contracts or paying gas fees. Fraudsters may impersonate real projects using spoofed domains or fake social media accounts.

These scams often look convincing, and even experienced users can fall victim. This is the reason consistent vigilance is required when you are getting airdrops. 

Did you know? In 2023, Inferno Drainer helped scammers steal over $80 million through airdrop phishing campaigns. Operating as a “drainer-as-a-service,” it lets affiliates use prebuilt kits to run scam airdrop sites, targeting wallets across several blockchains.

Key red flags that expose “fake airdrops”

Before you connect for an airdrop, learn to spot the warning signs. These red flags are your first line of defense against losing your crypto or sensitive information to scammers:

1. No official announcement from verified channels

• What to watch for: A major warning sign of a fake airdrop is the lack of any announcement on the project’s official communication channels. Scammers often use unsolicited direct messages, unofficial Telegram groups or poorly crafted websites mimicking legitimate ones to promote fake airdrops.

• How to avoid: Always verify the legitimacy of an airdrop by checking the project’s official website, verified X account or official Discord/Telegram channels before clicking any links. If the airdrop isn’t mentioned there, keep away from it.

2. Request for private key or seed phrase

• What to watch for: A critical red flag of a fake airdrop is a request to “verify” your wallet by providing your private key or seed phrase. These scams deceive users into surrendering complete control of their crypto wallets by posing as eligibility checks. Once shared, scammers can immediately steal all assets.

• How to avoid: Genuine airdrops never ask for your private key or recovery phrase, which should always remain confidential. If anyone or any website requests these, it is a clear scam. Exit the page immediately.

3. Upfront gas fees or crypto payments

• What to watch for: A significant warning sign of a fake airdrop is that it requires upfront gas fees or cryptocurrency payments to “unlock” tokens. Scammers often insist you send Ether (ETH) or other coins to claim rewards, but after the payment, the promised tokens never materialize, and your funds are lost.

• How to avoid: Legitimate airdrops are free, typically involving only simple tasks like connecting a wallet or completing minor actions. If an airdrop demands any payment, it is likely to be a scam. Never send funds to unfamiliar addresses.

4. Suspicious URLs or clone sites

• What to watch for: Fake airdrops frequently employ phishing websites resembling legitimate crypto platforms. These sites aim to deceive users into connecting wallets and signing fraudulent transactions.

• How to avoid: You need to carefully check a project’s URL before executing any transaction on it. There will likely be subtle differences, such as misspellings, extra characters or alternate domain extensions.

Did you know? Some airdrops use retroactive criteria, rewarding users based on past activity. This encourages organic participation before the airdrop announcement, so simply using DApps naturally could make you eligible for future free tokens.

5. Poor grammar and urgent language

• What to watch for: Many fake airdrops feature poor grammar, spelling errors or aggressive phrases like “Claim Now Or Lose Out!” or “Final Chance For Free Tokens!” These tactics aim to create panic, rushing users into clicking malicious links without careful thought. Sloppy writing and intense urgency are clear signs of a scam.

• How to avoid: Legitimate crypto projects communicate professionally and clearly. If an airdrop announcement contains errors or uses high-pressure, time-sensitive language, steer clear. 

6. Fake social proof or bot comments

• What to watch for: Scammers frequently use fake airdrop posts filled with fabricated social proof, such as comments like “I just got 500 $XYZ!” or “Totally legit!” These are often posted by bots or fake accounts to create a false sense of trust and encourage participation. They might also use fake or hacked celebrity accounts to disseminate false information regarding airdrops.

• How to avoid: Avoid trusting social media comments alone to determine an airdrop’s legitimacy. Research the token thoroughly, confirm its presence on reputable platforms, and seek authentic user feedback on forums like Reddit or trusted crypto Discord groups. Genuine projects maintain transparent communities, not just artificial hype.

7. Unknown or nonexistent token projects

• What to watch for: Certain fake airdrops promote tokens tied to obscure or nonexistent projects, which might lack a white paper, roadmap, official website or verifiable team. Scammers use these fabricated tokens to trick users into connecting wallets or approving transactions that result in stolen funds.

• How to avoid: Always research a token extensively before participating in an airdrop. Check for a white paper, official website, team credentials and active community presence. If the project lacks basic details or appears suspiciously new with no credible background, it is likely fraudulent.

8. Token approval traps

• What to watch for: Certain fake airdrops entice users to connect their wallets and grant token spending permissions. These seemingly harmless “approval” requests can allow scammers to freely transfer or drain your tokens without further interaction, exploiting the granted permissions.

• How to avoid: Exercise caution when approving token transactions, particularly from unfamiliar sources. Avoid authorizing smart contract interactions on untrusted websites. Regularly use tools like revoke cash to check and cancel unnecessary token approvals.

9. Redirects to malicious wallet drainers

• What to watch for: Some fake airdrop links redirect users to malicious DApps known as wallet drainers. These sites are designed to resemble legitimate claim pages but execute malicious smart contracts once a wallet is connected. By clicking “claim airdrop,” users unknowingly sign transactions that give scammers full access to their funds.

• How to avoid: Always review transaction pop-ups carefully before signing. Use browser wallets like MetaMask with built-in phishing protection and stay updated on known scam domains. If a site looks unfamiliar or triggers unexpected approvals, disconnect immediately. 

10. Unrealistic reward promises

• What to watch for: Fake airdrops often attract users with unrealistic promises, such as “Instantly claim $2,000 in free tokens!” with no effort required. These offers exploit greed and curiosity, luring users into connecting wallets or signing transactions without proper scrutiny.

• How to avoid: Be suspicious of extravagant claims. Genuine airdrops usually provide modest rewards and have certain eligibility criteria. If an offer appears too good to be true, it is likely to be fraudulent.

Did you know? In 2021, the Ethereum Name Service (ENS) gave governance tokens via an airdrop to anyone who had registered a .eth name. Many ENS holders received thousands of dollars just for owning a crypto domain name.

Examples of fake airdrops

Here are some examples of well-known fake airdrops to help you understand how these fraudulent actions scam unsuspecting victims:

Hamster Kombat

Hamster Kombat is a Telegram-based tap-to-earn game where players manage a virtual crypto exchange as a hamster CEO. By tapping, completing daily tasks and upgrading, players earn HMSTR coins, which are convertible to tradable tokens. Launched in March 2024, it attracted over 250 million users, but scams targeting players have raised concerns.

Malicious actors targeted Hamster Kombat to profit from the tap-to-earn game’s viral popularity. Kaspersky warned users about fake Hamster Kombat airdrops, meant to steal victims’ crypto wallet credentials.

Wall Street Pepe

Wall Street Pepe (WEPE) is an Ethereum-based memecoin that combines meme culture with practical trading utilities. Inspired by the Pepe meme and Wall Street trading, $WEPE provides small traders with unique market insights, strategic analysis and a supportive community.

The WEPE airdrop scam mimicked the legitimate token’s website. It lured users with promises of an airdrop and prompted them to connect their digital wallets, inadvertently signing malicious contracts that drained their assets.

HEX

HEX is a token built on Ethereum to help users capitalize on cryptocurrency market growth through a system that supports coin locking and staking for fixed durations. 

The fraudulent webpage replicated the official HEX site. The airdrop on this counterfeit site was fake and unrelated to the genuine HEX project or other initiatives. When a crypto wallet was linked to the deceptive site, it activated a malicious contract that enabled the cryptocurrency drainer to steal funds.

Sui

Sui (SUI) is a layer-1 blockchain and smart-contract platform engineered for speed, privacy and accessibility, featuring a distinctive object-centric data model.

When users checked airdrop eligibility on the fraudulent webpage posted by the scammers, they were prompted to link their digital wallets. This action unwittingly signed a malicious contract, enabling the cryptocurrency drainer. Consequently, their funds were automatically transferred to wallets controlled by scammers through seamless, unauthorized transactions.

LayerZero

The LayerZero airdrop implemented a novel “proof-of-donation” claiming system. Instead of distributing ZRO tokens for free, as typical airdrops do, LayerZero required users to donate $0.10 per token to the Protocol Guild, which supports Ethereum’s core developers.

In July 2023, security firm CertiK cautioned users to be careful about fake airdrops being promoted on X by accounts impersonating Layer Zero. When users clicked on the links, they were sent to a website that resembled the official LayerZero website.

How crypto airdrops are evolving from freebies to secure community rewards

Crypto airdrops are advancing beyond basic token giveaways, adopting more advanced and secure approaches to engage users. Projects increasingly implement activity-based airdrops, rewarding users for contributions like staking, testing apps or engaging in governance. This shift seeks to promote authentic community involvement and prevent exploitative tactics. 

Novel distribution models such as snapshot-based allocations and retroactive rewards are gaining traction. These approaches enhance transparency and ensure tokens reach active community contributors. Integrating artificial intelligence and machine learning improves fraud detection and strengthens airdrop security by helping detect bots, fake wallets and fraudulent behavior, making airdrops more secure and resistant to exploitation.

This transformation reflects the evolution of responsible, effective token distribution practices that align with decentralization and community empowerment goals.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Billionaire Warren Buffett has funneled $305.5 billion into a safe-haven asset class, while slashing stakes in banking giants Citigroup, Bank of America, and Capital One.

New U.S. Securities and Exchange Commission (SEC) filings show Berkshire Hathaway’s  holdings in short-dated Treasuries increased from $286.472 billion in Q4 2024 to $305.501 billion in Q1 of 2025 – a 6.64% increase in three months.

According to the filing, Buffett has allocated most of the firm’s cash reserves to US Treasuries as of Q1 2025, followed by investments in equity securities at $263.735 billion. Berkshire also has a $36.892 billion cash position as of last quarter, which ended in March.

Data from the Treasury Department shows Berkshire’s trove of US debt is large enough to surpass Taiwan’s holdings at $297.8 billion. If Warren Buffett’s investment firm were a nation, it would be the 11th-largest foreign holder of Treasury Securities, just behind France’s $363.1 billion, Ireland’s $329.3 billion and Switzerland’s $311.6 billion holdings.

Berkshire’s push for yield on its cash comes after the firm offloaded $3.23 billion worth of shares in three US banking giants last quarter.

Filings show that the investment firm fully exited Citigroup after dumping its remaining shares worth $1 billion.

The firm also sold 48.7 million Bank of America shares worth about $2.19 billion, and cashed out 300,000 shares in Capital One, which were worth roughly $46.489 million.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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