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Crypto Investors Falling Prey to AI Trading Bot Scams

Key Takeaways
  • Intrigued by the glamour of the cryptocurrency market, new investors entering the market are relying on AI trading bots to earn profits.
  • These new investors in the crypto market are trusting artificial intelligence and trading by putting their capital at stake, which is risky.
  • The United States Commodity Futures Trading Commission (CFTC) has warned investors relying on AI trading bots to invest in crypto, saying that AI cannot make future predictions.
30-Jan-2024 By: Gunjan Sahu
Crypto Investors Fal

Investors looking for profit are becoming victims of AI Trading Bot

Cryptocurrency market is one of those markets which has attracted investors from every market. The reason is the profit earned in the crypto market, which is many times more than other markets. But where there is more profit, the possibilities of loss are also greater. This loss increases even more when investors resort to new tools or new technology to earn profits. Crypto investors are currently doing something similar in their quest for profit. In fact, according to a recently released report, investors in the cryptocurrency market are taking the help of artificial intelligence (AI) trading bots to earn profits.

Advertisements are given on social media luring investors in the market with higher profits, which are run by hackers and crypto fraudsters. These advertisements claim to have AI Trading Bots that make crypto predictions. Falling into the trap of these AI Trading Bots, investors invest in the crypto market and then they have to suffer losses. In many cases, scammers create fake websites and make investment offers and claim that their AI Trading Bots can make future predictions. Investors looking for big profits fall prey to these AI trading bots and end up incurring losses.

CFTC has also given warning regarding AI Trading Bots

Recently, the United States Commodity Futures Trading Commission (CFTC) had also issued a warning to investors trading in the cryptocurrency market relying on AI Trading Bots. In this warning, CFTC said that artificial intelligence (AI) can never predict the future. In its press release, the CFTC said that crypto investors seeking good returns should not fall prey to the lucrative offers offered by these #AI trading bots. 

The agency further said that due to the popularity of social media and influencers, the propagation of these bots has become easy. In such a situation, investors need to be cautious of these promotions. Coingabbar also believes that before trusting any trading bot or trade signal provider, investors should thoroughly research the background of the company associated with it. In its press release, the #CFTC cautions crypto investors against firms promising profits primarily by using bots, trade signal algorithms, crypto-asset arbitrage algorithms, and other AI-supported technologies.

Also Read: Polygon Labs Advocates for DeFi as Critical to US Security

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