AI is becoming increasingly more common and is beginning to form part of almost every aspect of our lives. With AI combining human intelligence and technology, it’s not surprising that it has found its way into the cryptocurrency landscape. Velod.ai is just one of the many crypto scams our clients come to us about, in the hope of recovering their lost funds and we’re seeing an increase in concerns and cases of fraud and scam activity on the platform.
Velod.ai presented itself as being a revolutionary and leading crypto investment platform, using a mixture of artificial intelligence and human processing to offer investors the promise of high returns. But, when investors began requesting to withdraw their funds, like many crypto scams, they found that they were unable to. They were instead faced with demands to pay a “deposit fee”, which we know is a telltale sign of an investment scam, and those who paid never actually received their funds, meaning they ended up losing more than just their initial investments.
Here, we take a closer look at the Velod.ai platform and the scam that is causing investors to lose their funds.
What Is Velod.ai?
Velod.ai is deemed to be the first trading platform which is developed using AI technology. Considering itself to be a “global trading platform”, Velod.ai claimed to use leading technologies which allowed its AI processing to learn and interpret more using the data from investors on the platform through deep learning, NLP (natural language processing) and data analysis.
Velod.ai promised investors a new and innovative platform for trading, building on the AI hype to maximise their crypto profits. But, as with many crypto scams, investors soon found that everything was not as it first seemed, with aggressive and pushy demands for deposit fees if they wanted to withdraw their funds. As is typical, even when investors paid this fee, they weren’t able to withdraw their funds and found that their initial investments and promised high returns were unable to be withdrawn.
How Is AI Being Used In Crypto?
Almost weekly, we’re seeing that cryptocurrencies such as Bitcoin are increasing in value. Just this week, Bitcoin reported a new value of $72,000. But, whilst tried and trusted cryptocurrencies are increasing, so too are new technologies, including AI cryptos. They are similar to other currencies within the crypto landscape, but they allow investors to invest in projects and coins which are linked to or involve the use of AI.
AI is a huge topic around the world, felt in almost every industry. It’s proving to be revolutionary, but in some cases, as with Velod.ai, this isn’t always for the best. There are currently around 88 different cryptocurrencies in circulation within the AI space, with more using AI functions and processes within their operations, and many more predicted to enter in the coming months.
AI gives investors and crypto traders access to highly sophisticated trading plans which use machine learning models to gauge value and price. It’s much easier for AI to learn about historical crypto price data and past trading volumes than a human analyst, whilst also being able to predict future price movements and trends.
How The Velod.ai Scam Impacted Victims
Not only has the Velod.ai scam resulted in huge financial losses for victims, but it has also hugely damaged any trust that was built in the evolving connection between crypto investing and AI. As with any new technology or trend, it requires good reviews and reports from users, but in the case of the Velod.ai scam, it has likely only put investors off making any investment decisions where AI comes into the plan or strategy, or at least until more positive stories are shared.
How To Protect Yourself From Scams Like Velod.ai
Unfortunately, the tactics seen in the Velod.ai scam are common with investment and cryptocurrency scams. It’s important that, if you are making investments on cryptocurrency platforms, you do some research before parting with any of your finances, particularly on platforms which have not been extensively vetted, or which are not authorised by the FCA.
With the expansion of AI adoption, it’s important more so now than ever to remain vigilant and try to spot initial scams of trading and investment scams, such as requests for deposit withdrawal fees, so that you can avoid losing your funds and finances.
Contact WRS If You Are A Victim Of The Velod.ai Scam
The steps taken by Velod.ai to scam its victims out of their investments, plus any further “deposit fees” they paid, are typical of those seen with many cryptocurrency scams. We’re hearing from more and more clients who have fallen victim to the Velod.aid scam, all over the world, and our experience in dealing with similar cases and scams means that we are best positioned to help recover lost funds.
If you have found that you have fallen victim to the Velod.ai scam, or any other cryptocurrency or investment scam, then please contact our award-winning team of solicitors for further support and advice in getting your money back, or to arrange a free consultation.