In mid-2021, popular livestreamer Ice Poseidon launched a new cryptocurrency called CxCoin, promising fans a unique way to support their favorite content creators. Unfortunately, what seemed like an exciting opportunity turned out to be an elaborate pump-and-dump scheme, resulting in Poseidon making off with over half a million dollars from unsuspecting investors.
Ice poseidon Review – fraud or real?
To understand how Poseidon pulled off this audacious scam, it’s crucial to delve into his livestreaming history. Rising to fame in 2017 for his daring in-real-life (IRL) streams, Poseidon quickly amassed a following of over 1 million YouTube subscribers by 2018. However, his content grew more erratic and problematic, leading to bans on major platforms. Despite this, Poseidon retained a devoted fanbase who continued to financially support him through donations. This loyal core audience played a pivotal role in his CxCoin scheme.
The Launch and Hype of CxCoin
In July 2021, facing dwindling viewership on alternative platforms, Poseidon unveiled CxCoin. He marketed it as a way for fans to directly support creators through a dedicated crypto token. The initial hype resulted in a successful pre-sale, raising over $500,000 from eager fans.
Over the following weeks, Poseidon aggressively promoted CxCoin across various social media channels. He organized giveaways and touted the project’s growth potential. This concerted effort saw the coin’s price surge over 10-fold, from $0.01 to an all-time high of $0.14.
The Inevitable Collapse
Behind the scenes, Poseidon was meticulously planning his exit. As the price skyrocketed, he quietly began cashing out, depleting the project’s liquidity and funds. This covert sell-off triggered a sudden crash in the inflated price within days.
Investors were left scrambling to recover their losses, but it was too late. The supply far exceeded genuine market demand, leaving Poseidon’s followers with worthless tokens. It’s estimated that over $500,000 was siphoned from CxCoin’s liquidity pool and marketing wallet in this swift pump-and-dump scheme.
Admission of Guilt
For months, Poseidon vehemently denied any wrongdoing. However, in January 2022, he finally came clean about conducting an exit scam in a candid YouTube video. By this point, the majority of the funds were long gone. While he pledged to repay $40,000, no clear timeline was provided for returning the remaining investor funds.
Lessons Learned: Protecting Your Crypto Investments
Poseidon’s CxCoin scam serves as a stark reminder of the risks associated with unregulated influencer coins, and it underscores the importance of approaching even prominent names with skepticism. As crypto investors, here are some essential tips to keep in mind:
- Be cautious of projects promising instant profits or heavily endorsed by single influencers.
- Conduct thorough research on team experience, code quality, and token utility before investing.
- Exercise caution with “pre-sales” from new projects, especially those lacking a working product.
- Only invest disposable funds that you can afford to lose entirely in high-risk coins.
- Maintain realistic expectations and resist getting caught up in pump-and-dump hype.
With increased awareness and prudent caution, consumers can safeguard themselves and the asset class from dangerous schemes like the Ice Poseidon CxCoin exit scam. These incidents not only erode trust but also undermine the legitimacy of the crypto industry as a whole. Remember, due diligence is your best defense against falling victim to such scams.