Cryptocurrency 41 minutes ago (Jul 24, 2022 04:30AM ET)
© Reuters. MDT Receives $100M in Funding With a Market Cap of $30M
- Crypto scams are starting to pick up as VC interest dies down.
- The two most notable running scams are 5ire and GEM Digital.
- MDT is signaling red flags and may be the next pump and dump.
During a period wherein the crypto market is weak and trading volumes are relatively flat, Venture Capitalists (VC) are easing on their investment rates. The decreased VC interest in the crypto market has not halted scammers as scam projects and firms continue to enter the crypto market.
The most notable scams making the rounds in the crypto community at the moment are GEM Digital and 5ire. These projects trick the community into thinking that there is big VC backing for the projects that they are involved in. As the community invests funds into the projects, these firms take profit and crash the crypto stocks, resulting in a pump and dump.
GEM Digital – a fund related to GEM Global Yield – has invested in at least 16 projects in the last 6 months, including Venice Swap, Nation, Kaj Labs, Unizen, and H2O Securities, with the cumulative committed investment amount exceeding $1.6 billion.
However, team members of these projects have stated that GEM Digital’s investment agreement is more like a cooperation and sharing agreement where both parties sign a so-called large investment agreement, create good news in the market, and then collaborate to make profits and share them.
5ire has claimed that it has received $100 million in Series A funding. The news has been published on their website and their blog. However, the funding came from GEM Digital, which is questionable because it is not an investment commitment but rather the cooperation and sharing agreement.
Now, it seems that Measurable Data Token (MDT) is the latest project that investors need to watch out for as its price has risen 52.43% over the past 24 hours according to CoinMarketCap. Something interesting to note is that MDT’s market value is 30 million, but it has received an investment boost of $100 million. This is a major red flag that investors need to pay attention to.