It is safe to live with an awareness that a crypto bull market goes hand in hand with scammers. Oh, wait, no!! These crypto scammers work a 24/7 rotation schedule on bear and bull markets. Today, all eyes are on a fakie Liquidity Provider working from Telegram who goes by the name Flyway Digital (@flywaydigital).
Crypto scammers at their best
Cryptopolitan has received reports, and on good authority, that a crypto scammer is taking advantage of traders posing as an LP provider on Telegram. The con artist in question goes by the name Flyway Digital and has a handle as (@flywaydigital.)
Who is a Liquidity Provider? A liquidity provider (LP) is an individual with trading knowledge to increase market liquidity through sale or purchase orders for any DeFi project. Liquidity Providers can take any shape or form such as market makers, high-end trading firms, investment banks, or financial entities,
In the crypto space, LPs deposit digital assets into a pool which traders use to make swaps on any platform of their choice. LPs are important as they ensure timely execution of trades among the involved parties.
By the DeFi market design, the first and main role of a LP is to maintain a healthy market by being ready to buy or sell digital assets at any given moment. LPs use tokens to execute the needed trade.
LP tokens are crypto assets issued to providers who offer liquidity to decentralized platforms such as Uniswap, curve, and Binance. These tokens maintain the crypto market trades by ensuring minimal or no price fluctuations in an industry that is already volatile.
Flyway Digital scam is one to study – Here’s a rundown
LP provider token scams have not been heavily prevalent in the industry before. As it goes, new all time highs, new ways of scams. According to the information shared with Cryptopolitan, the particular Crypto Venture Capital (VC) firm is defrauding projects by taking their tokens with zero investment plans for them.
How is it a scam? Same old, same old, same old robbery stories. Reports have it that Flyway Digital makes fake promises and later does not live up to the agreed terms and changes the terms and conditions.
As per crypto market operations, before investing, any VC will review several projects to make good their viability, growth potential, and return on investment (ROI). As earlier witnessed in the crypto space, multiple VCs tend to invest in many different DeFi projects to mitigate their risk. That was not any different for Flyway Digital.
Our source states that Flyway Digital has worked well with some projects. However, the VC has ended up scamming multiple projects, and on a large scale. In addition, Flyway Digital submits Hong Kong Identity Cards in the place of Know Your Customer (KYC). Why is this questionable? The Hong Kong IDs are apparently submitted as default samples of fake KYC credentials.
Have you been duped by this particular entity? Reach out to us and share your experience.
