Cryptocurrency can be confusing. This potentially makes it more appealing, because people like to feel as if they’re in on something “secret.” Black people are among the highest investors of digital currencies!
But before you invest, watch out – it could be a part of a racist scam!
During cryptocurrency’s infancy, some of the early investors were white supremacists. They used their earnings to fund their causes and support their groups, and made huge profits.
But not only is cryptocurrency accessible to anti-Black terrorist groups, it’s also popular with scammers.
Because it's a digital investment, people use apps like CoinBase and social media sites like Instagram to discover new investment opportunities. Many scammers depend on social media to find new victims. Last year, investors collectively reported $80 million lost to cryptocurrency scams!
Some of these scams are especially easy to fall for because they’re being advertised by familiar faces.
Several celebrities, like Floyd Mayweather and Kim Kardashian, are being sued for their involvement in a digital investment scam. According to the lawsuit, celebrities were using their platforms “to hype a new cryptocurrency as part of a larger scheme to defraud investors while profiting for themselves.”
Finding new ways to invest can be exciting, but doing research is essential to protecting our finances. Cryptocurrency might be more risky than it’s worth.