This one sucks to have to write, but given a situation that just occurred on here:
An influencer with a substantial following showcases significant profits or frequent trading activity, such as claims of daily investments into cryptocurrencies like Ethereum. However, these assertions are difficult for followers to verify independently. A core principle in the cryptocurrency space is “not your keys, not your crypto.” This emphasizes that if your digital assets are held on an exchange or a platform controlled by others, you don’t have direct custody and true ownership of them. When trades are supposedly made by an individual within a centralized exchange (like HTX, which is a CEX), these transactions occur on the platform’s internal, private ledgers. They are not typically broadcast individually on the public blockchain for everyone to scrutinize.
This lack of direct on-chain transparency for an individual’s trades within an exchange means the public cannot easily confirm if the specific trades shown by the influencer are genuine, made with real funds, or executed as claimed. The trading interface screenshots or videos displayed might not reflect actual, settled on-chain transactions, potentially creating an opaque situation for followers. Such displays could originate from demonstration or paper trading accounts, or they might be part of promotional efforts to attract new users to a platform, often for referral bonuses. Influencers may be paid to promote crypto projects or exchanges, and sometimes these promotions lack full disclosure of their financial stake. Without transparent, on-chain evidence viewable on a blockchain explorer, such as fund movements from a personal wallet to an exchange and subsequent independently verifiable trading confirmations, it is challenging to validate the authenticity of these trading claims. Caution is advised, particularly when financial advice or impressive claims are disseminated through platforms like Telegram, which, due to its features like anonymity, has been noted as a space where scams and less transparent activities can occur.
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