Imposter Bakkt Website Busted Over Scam Cryptocurrency Giveaway

Bakkt has had quite a big week, as its physically delivered Bitcoin futures contracts finally saw the daylight. However, that hasn’t stopped potential thieves from capitalizing on the anticipation to make a quick buck. Earlier this week, finance news platform Finance Magnates published a report revealing the discovery of several impersonator websites which are luring investors to make investments in the Bakkt Bitcoin futures. 

Per the report, one of the websites went live almost at the same time as the real futures contracts, and it is currently asking investors to participate in a cryptocurrency giveaway by sending Bitcoin and Ether. 

Much ado about a scam

Finance Magnates notes that the website cloned the Bakkt Medium page layout, thus making it seem as though its message is actually from the crypto finance and investment firm. With this, it is promoting a “Bakkt – Official ETH and BTC Giveaway.”

On the fake website, it reads, “We wanted to commemorate such an achievement by holding a giveaway of 5000 BTC and 10000 ETH! A special promotion for BTC and ETH users!” 

The website reportedly contains a link for prospective Bitcoin senders, and another one for anyone who wants to send Ether. Holders are encouraged to send between 0.1 to 10 BTC, with the promise that they will get up to 5 times their “investment.” “If you participate for 5 BTC or 100 ETH, you will get an additional 100% bonus,” the fake website reportedly says. 

The hype over Bakkt

The newly launched platform is the first of its kind to get approved by regulators within the United States. By establishing Bakkt, the Intercontinental Exchange, its parent company, is hoping to develop an integrated platform where customers, institutional investors, and merchants can come together to buy, sell, trade, and store digital assets. 

Kelly Loeffler, Bakkt’s chief executive, wrote on Monday that the institution will provide “reliable and regulated infrastructure,” while also ensuring that it catalyses the “adoption of new digital currency-powered technology and financial instruments.”

A lukewarm reception

As for the real futures contracts themselves, it would seem that their actual performance hasn’t quite justified the type of hype that they were getting. Following its launch on September 22, the platform was able to trade up to 71 Bitcoin futures contracts in its first day, with the last recorded price being $9,875 per token. 

The birth of a benchmark!

The Oct ‘19 Bakkt Monthly Bitcoin Future settled at $9875, and the Bakkt Daily Bitcoin Future settled at $9790

— Bakkt (@Bakkt) September 23, 2019

Earlier today Rakesh Upadhyay, an analyst for news medium Cointelegraph, wrote that the stale reception for the launch is most likely due to the range-bound nature of the Bitcoin price. Essentially, while the hype for the futures contracts was obvious from the start, Bitcoin’s price has been on a bit of a roller-coaster, and institutions seem a bit skeptical about rushing on them.

It is hoped that a reversal in the price of the asset will provide enough of an incentive for investors to get themselves excited about the futures contracts once more. 

Another day, another scam

As for the scam, this wouldn’t be the first time this week that such is being propagated. On Monday, several news media reported about the Bitcoin Revolution scam which uses celebrity endorsements to push its agenda. 

Reports revealed that on its website, Bitcoin Revolution uses images and testimonials from public figures such as Elon Musk, Bill Gates, Kate Winslet, and more to woo potential investors. It would seem that there’s no such thing as a day off for petty scammers.

Read more: 

• Bakkt Rolls Out Bitcoin Options and Cash Settled Futures for Institutional Investors