When it comes to real estate, it’s a seller’s market right now. Everyone wants homes, and thanks to the demand, prices are higher than the Empire State Building. At least, that’s how it can feel to folks who can’t afford to buy a house.
iBuyers, or automated instant home buyers, exacerbate the situation. They’ll snap up homes that hit the market before a human even finds out the house is available. Tap or click here to find out how iBuyers are taking over home sales.
But there are two sides to every coin, and tech could help homebuyers just as much as it can hinder them. At least, that’s what the team behind a cryptocurrency called Realux said. They claimed they would democratize real estate through the blockchain — and investors fell for it, hook, line and sinker.
It was all a lie
From the start, Realux looked like a legitimate cryptocurrency. It had a snazzy, professional site — which is now deleted. Luckily, you can check it out on the Wayback Machine.
Let that be a lesson for you. Don’t automatically trust websites just because they look well put together.
Also, don’t swallow whatever social media influencers tell you. Do your research because they might not. In this case, Realux paid crypto influencers @AltcoinSara and Jim Crypto to hype up RLX coins.
Many fans fell for the hype and took Realux for face value, missing the red flags of a scam. Remember: Unscrupulous influencers can cost you big time. Always do your research.
If you want to spot warning signs when you buy online, we’ve got you covered. Tap or click here for five ways to spot a scam when shopping or selling on Craigslist. This guide is an oldie, but good advice is timeless.
There’s a lot to learn from this story
Its creator released 70 million RLX tokens at around 9 p.m. on Jan. 31, according to blockchain records. Once Realux released its tokens and investors snapped them up, it vanished. Realux deleted its social media accounts and official website, Vice reports.
In other words, Realux was nothing more than a rug pull. Vice says the scammers made under $24,000.
In the world of cryptocurrency, rug pulls aren’t rare by any means. According to CNBC, crypto scammers stole a record $14 billion last year. Also known as pump and dump schemes, rug pulls will draw you in with lofty promises.
Realux pitched a plan to make low-cost real estate available to everyone. It claimed real estate investments backed its tokens. Somehow, this would remove the wealth gap and create blockchain tokens representing land values.
These complex plans excited investors, who wanted to cash in on what they saw as a future gold rush. The viral tweets and videos from social media influencers fanned the flames.
Investing in scams is like setting your money on fire
Cryptocurrency is risky even when you aren’t dealing with scammers. Hackers can infiltrate your transactions and steal money. The market can go up and down and hurt your bank account as collateral damage.
To invest safely, you need a solid foundation of knowledge. There’s no better starting point than Kim’s eBook, Cryptocurrency 101: The Beginner’s Guide to Buying, Selling and Spending Digital Currency the Safe Way. It’s chock-full of solid advice that will guide you through every step of your crypto investment journey.
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