Scams and frauds have been rampant in the crypto community for many years now. The crypto market, being relatively unregulated, has attracted so many scammers and fraudsters. These criminals take advantage of the lack of knowledge among investors to leverage their schemes.
One of the most common scam is the Ponzi Scheme. I'm pretty sure most, if not all of us are very familiar with this scam.
Considering how unregulated cryptocurrency market is, I don't think there was ever a doubt of the market been safe from scam. The industry will always attract scammers since there are lots of vulnerable investors or wanna be investors in the market. We have so many people with lack of experience in investing parading themselves as professionals meanwhile they're losing secretly or been scammed. Ponzi scheme isn't the most common in cryptocurrency market, we hardly hear of a project collapse because they were a ponzi scheme, the last time I heard of such news in the industry was the bitconnect scam and that of Onecoin which wwre a long time ago. What I think is most common is project selling a false reality tintehir investors.
There's so much money been lost to scam projects that rise funds through private funding, ICO and other means of crowdfunding and yet they just exit scam or stop development and nobody says anything. Each time we see a new trend, we begin seeing countless amount of project focusing on that particular trend but immediately the trend dies down then the project stop development and that's the major problem of the market. This is the scam people have to avoid, they have to stop chasing the hype or they'll end up losing all the money they intend investing in the market.