3 Ways Scammers Will Try To Cheat You About Ethereum Merger

Besides fake ETH 2.0 tokens and malicious token airdrops, crypto users should also be on the lookout for staking pools offering attractive staking yields.

Scammers are likely to use the excitement around the Ethereum merger to launch new scams aimed at newbie crypto users, PolySwam CEO and co-founder Steve Bassi has warned.

The Ethereum merger is expected to take place within the next 24 hours.

Speaking to Cointelegraph, Bassi said these scams could take the form of fake ETH 2.0 tokens, fraudulent mining pools, and fake airdrops.

PolySwam is a decentralized cybersecurity marketplace that connects cybersecurity experts to projects and businesses through the use of bounties.

The Ethereum upgrade marks the transition from the current Proof of Work (PoW) consensus mechanism to Proof of Stake (PoS).

Bassi said that for many Ether (ETH) holders, joining a staking pool will be their only way to reap the yield of staking rewards if they don't have the required 32 ETH to become a validator independent.

“Staking is a fairly new concept for most of the crypto community and unless you have 32 ETH lying around, you will need to join one of the staking pools to earn a return from your ETH.”

Bassi, however, warned that pooling providers “carry their own risk” as they often force users to deposit and relinquish control of their ETH.

Bassi said that new staking providers, who "can offer very attractive terms", could make "sudden moves" that would affect those who participate in the pool:

“This risk exists today with DeFi platforms/pools and tokens, but the merger will give scammers a new universe of personas to work with.”

One of the most imminent threats involves scammers trying to trick users into signing fraudulent transactions or parting with their private keys under the guise of migrating to the new Ethereum chain.

Bassi...