Mangocoin is a new cryptocurrency concept that has recently found itself in a spot of bother after leading cryptocurrency mining manufacturer Bitmain accused Mangocoin of making false claims about Bitmain’s association with the cryptocurrency. According to Cointelegraph:
“Cryptocurrency mining hardware manufacturer Bitmain has accused a cryptocurrency project of falsely using its name in the promotion of a product dubbed Mangocoin (MNG). In an Aug. 9 blog post, Bitmain states that it came across a fraudulent use of its brand in the sale of a product dubbed Bitmain Cloud Miner and in the promotion of Mangocoin.”
“The fraudsters allegedly masqueraded as Bitmain and promoted the products on their website, application and software. Bitmain thus warned the public that Mangocoin and its social media accounts, website, application and dedicated groups in messenger apps are not the company’s business channels or platforms, noting that Bitmain does not stand behind MNG as its developer.”
Bitmain believe that the use of the Bitmain brand was to give Mangocoin some legitimacy so it could act as a real cryptocurrency, when in reality, it turns out that it could simply be a scam coin designed to trick users into investing. Bitmain have reinforced these claims by issuing the following statement:
“We would like to remind our existing and potential customers to correctly identify the service provider when purchasing products, to sign up for or purchase anything online only after careful deliberation and stay alert to misleading promotions, illegal fund-raising, fraud and other malicious activities on the internet.”
As investors, we should all hear this warning. Cryptocurrency investment is very risky and therefore if you choose to invest in a new project, no matter who seems to be endorsing it, you should always do your own further research in order to ensure your investments are going to legitimate causes. Sadly, it’s pretty easy for scammers to create fake tokens in order to drain money from investors who think they are buying into something special.
The best way to stay safe is to only purchase cryptocurrencies through legitimate means that you have used before, such as via licensed cryptocurrency exchanges. Only invest money that you can afford to lose, if you keep your wits about you, you can stay safe - that’s the most important thing.