The Ice Poseidon Cryptocurrency Scam

In mid-2021, popular livestreamer Ice Poseidon launched a new cryptocurrency called CxCoin that promised to allow fans to support their favorite content creators. However, the project soon turned out to be an elaborate pump and dump scam that saw Poseidon steal over half a million dollars from unsuspecting investors.

This post details the events of the CxCoin scam, examines how it was carried out, and provides tips to help consumers avoid similar cryptocurrency schemes in the future.

A Brief History of Ice Poseidon’s Streaming Career

To understand how Poseidon was able to carry out such an audacious scam, it’s important to look at his history in the livestreaming space. He first rose to fame in 2017 for his IRL (in real life) streams featuring daring public stunts and interactions. By 2018, Poseidon had amassed a large following of over 1 million YouTube subscribers.

However, his content soon grew more erratic and problematic. Frequent brand risks and ToS violations led to bans on YouTube and Twitch. Still, Poseidon maintained a dedicated fanbase who continued financially supporting him via donations. This loyal core audience would prove critical in executing his future CxCoin plot.

The Launch and Pump of CxCoin

In July 2021, amid dwindling viewership on alternative platforms, Poseidon announced the launch of CxCoin. He touted it as a way for fans to directly support their favorite creators through a dedicated crypto token. Initial hype and promotion led to a successful pre-sale that raised over $500,000 from fans.

In the following weeks, Poseidon heavily shilled CxCoin across social media channels. He hosted promotional giveaways and boasted of the project’s growth potential. This pumping action saw the coin’s price rapidly increase over 10x from $0.01 to hit an all-time high of $0.14.

The Inevitable Dump

However, behind the scenes Poseidon was carefully strategizing an exit plan. As the price rose, he began silently cashing out, removing liquidity and funds from the project’s backing. This covert-sell off caused the inflated price to suddenly crash within days.

Panicked investors scrambled to recoup losses, but it was too late. The supply vastly exceeded genuine market demand as Poseidon’s followers were left holding worthless tokens. In total, it’s estimated over $500,000 was stolen from CxCoin’s liquidity pool and marketing wallet in the swift pump and dump scheme.

Admitting to the Scam

For months Poseidon denied any wrongdoing, but in January 2022 finally came clean about conducting an exit scam in a candid YouTube video. However, by this point the majority of funds were long gone. He promised to repay $40,000 but provided no clear timeline for returning remaining investor monies.

Poseidon’s blatant CxCoin scam highlighted the risks of unregulated influencer coins while shaking trust in the burgeoning livestreaming industry. It proves even big names must be viewed skeptically and consumers should always research beforebuying into flashy new crypto projects.

Avoiding Similar Cryptocurrency Scams

To conclude, here are some tips all crypto investors should keep in mind:

• Be wary of projects that guarantee instant profits or are heavily promoted by single influencers

• Thoroughly research team experience, code quality and token utility before investing

• Beware “pre-sales” with no working product, especially from new projects

• Only invest disposable funds you can afford to lose entirely in high-risk coins

• Have realistic expectations and avoid getting caught up in pump-and-dump hype

With increased awareness and caution, consumers can help protect themselves and the asset class from dangerous schemes like Ice Poseidon’s CxCoin exit scam that only undermine legitimacy.