If you think that in the world of cryptocurrencies there is no people that will try to screw you for your money, you are wrong. There are people called Scam coin creators that are making money by adding value to their coin, wait for the increase of demand and then they can do whatever they want.
Scam coin creators can cheat you in two ways:
- They can established fork to an pre-existing cryptocurrency or can create their own blockchain.
- They can established the notion of the cryptocurrency that have been released
In the first scenario there is pretty long time cap before users realized that there is something wrong. Scam creators release tokens initially. They literally obtain token for free, then they are adding some value to these tokens and wait for the demand to increase. When the demand increase, price go up too, and the scam coin creator, make money by the price increasing.
The second scenario has a little shorter time cap before people realised that this is not genuine blockchain. Experienced blockchainers will realize at the start that this blockchain is a scam, but inexperienced users will probably try out different cryptocurrencies with the wish to get rich really quick.
People can trade with any currency that are existing through the scam coin creators own exchange. They can project anything they want through the website. A scam creator from the second scenario will not only modify the notion of your coin, but he will modify everything from an exchange to the notion of a whole economic scenario.
In the both scenarios scam coin creators are making money by adding value to some coin and then waiting for demand and price goes up. So be careful, unless there is genuine value and trading using this currency it is probably scam coin.