Crypto influencer FatManTerra claims to have gathered over $100,000 worth of Bitcoin (BTC) from crypto investors in an investment scheme that was later revealed as fake.
The crypto researcher said he created the fake investment scheme as an experiment and to teach people a lesson about blindly following the investment advice of influencers.
The account on Twitter has around 101,100 followers and is mostly known for being a former Terra proponent that now actively speaks out against the project and founder Do Kwon following its $40 billion collapse in May.
In a Sept. 5 tweet, FatManTerra told his followers he had “received access to a high-yield BTC farm” by an unnamed fund, and said that people could message him if they wanted-in on the yield farming opportunity.
“I've maxed out what I could, so there's some leftover allocation and I thought I'd pass it along — priority will be given to UST victims. DM for more details if interested,” he wrote.
While the post received a ton of negative responses from people calling it out as a scam, FatMan said he still managed to raise more than $100,000 worth of BTC from the initial post on Twitter and on Discord within a span of two hours.
In a Sept. 6 tweet, FatManTerra revealed the investment scheme was fake all along, describing it as an “awareness campaign” to show how easy it is to dupe people in crypto by using simple buzzwords and promising big investment returns.
“While I used plenty of buzzwords and put on a very convincing act on all platforms, I made sure to keep the investment details intentionally obscure — I didn't name the fund & I didn't describe the trade — no one knew where the yield was coming from. But people still invested.”
“I want to send a clear, strong message to everyone in the crypto world — anyone offering to hand you free money is lying. It simply doesn't exist. Your favorite influencer selling you quick money trading coaching or offering a golden investment opportunity is scamming you,” he added.
FatManTerra claims to have now refunded all of the money and reiterated that “free lunches don’t exist.”
The notion of influencers allegedly promoting scams has been in the news of late, with YouTuber Ben Armstrong (BitBoy Crypto) taking legal action against content creator Atozy last month for accusing him of promoting dubious tokens to his audiences, although he has since withdrawn the lawsuit.
FatManTerra also stated that his fake fund post was inspired by the Lady of Crypto Twitter account which has been accused of shilling questionable investment schemes to its 257,500 followers.
The Ethereum network’s transition from a proof-of-work (PoW) consensus is likely to flood the crypto industry with out-of-work ETH miners, causing severe disruption to all PoW tokens.
Speaking to Cointelegraph, Andy Long, CEO of Bitcoin miner White Rock believes the upcoming Ethereum Merge will force PoW miners to look for greener pastures, such as other PoW blockchains, and thus "swamp” other coins — increasing mining difficulty and reducing profitability, stating:
"As GPU miners point their hardware at other chains their difficulty will increase causing lower returns and splitting the reward amongst more miners."
Long added that the migration will likely force many crypto miners to give up and abandon their expensive mining rigs.
"Hashrate will flow to alternative GPU PoW coins, and many miners will simply give up and try to sell off their farms of cards," he said.
"Some miners will try to sell their High-Performance Computing (HPC) or GPU cloud services and will likely fail since there's too much capacity chasing a limited amount of demand," he added.
GPU prices and demand have already been declining as a result of falling Bitcoin (BTC) prices, leading to some cards selling for below the list price and sellers struggling to offload their mining rigs and cards for inflated prices.
Regardless of what happens after the Merge, Long says he is "not strongly opposed" and is interested to see "how market forces play out."
“When I was building GPU farms in 2017 the Merge was cited as an imminent threat and would have been much more impactful then."
"There will always be GPUs mining some GPU optimized chains, but I doubt we will return to the levels of revenue seen in ETH proof-of-work at its peak ever again."
Ethereum is expected to transition to a proof-of-stake (PoS) mechanism between September 10-20 and is considered one of the most significant upgrades in the crypto market this year.
However, there are still many cryptocurrencies set to continue along their PoW path, including Bitcoin (BTC), Litecoin (LTC), and Bitcoin Cash (BCH), as well as Ethereum Classic (ETC), Monero (XMR), Zcash (ZEC) and Ravencoin (RVN).
White Rock Management is a Switzerland based digital asset technology company that mines cryptocurrencies through data centres located in Texas and Sweden.
After a race for the leadership of the Conservative Party, Secretary of State for Foreign, Commonwealth and Development affairs Liz Truss defeated former Chancellor of the Exchequer Rishi Sunak and will be the next prime minister of the United Kingdom.
Boris Johnson, who served as the prime minister since 2019, will be on his way out of office, leaving Truss as the party leader. Truss won the election with 57.4% of the vote from members compared to Sunak’s 42.6%. Truss has been the Secretary of State for Foreign, Commonwealth and Development Affairs in the United Kingdom since 2021 and Minister for Women and Equalities since 2019, serving under three prime ministers.
During her time in office, Truss advocated for an anti-regulatory approach to digital assets, saying in 2018 the U.K. “should welcome cryptocurrencies in a way that doesn't constrain their potential.” In her role as Secretary of State for International Trade, she also launched a digital trade network in 2020 that promotes fintech firms, among other measures.
It’s unclear how Truss’ previous policy positions on crypto may influence her views going forward as prime minister, or if Sunak — who has also taken pro-crypto positions — will have a place in her cabinet. She reportedly said on Monday that she had “a bold plan” to cut taxes and grow the U.K.'s economy. The government is currently considering legislative paths to regulate stablecoins and crypto’s role in the country.
Queen Elizabeth II is expected to formally appoint Truss as the next prime minister on Tuesday after accepting Johnson’s resignation.
This Daily Dose was brought to you by Cointelegraph.