Apparent Binance.US Listing Scam Casts Shadow on Terareum (TERA) Crypto

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Editor’s note: This article and its headline were most recently updated on June 3 to include details from the Terareum team. The article and its headline were previously updated on March 23. 

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On March 22, upstart token Terareum (TERA-USD) grabbed investor attention when an apparent scam took its price to new highs — and promptly dragged it right down. 

The Terareum crypto, among other things, is a play on a native centralized exchange. Its TERA crypto launched in February 2022 and quickly gained a following on social media, including through its official Twitter account. 

From its launch through March 22, Terareum listed its token on BitMart and MEXC, and began to tease another exchange listing that investors would “love.” 

On the morning of March 22, Terareum tweeted an email screenshot from what appeared to be the listings account associated with Binance.US. The email said that Binance.US had approved TERA and would be listing the token on its platform. In a second email screenshot, also appearing to come from listings@binance.us, the Terareum team was told a listing would occur on March 25. The second email also referenced a 180,000 Tether (USDT-USD) security deposit that Terareum paid. 

TERA crypto prices promptly jumped to an all-time high as investors celebrated the high-profile nature of the exchange listing. Then, the scam allegations started rolling in. 

In response to Terareum’s Binance.US announcement, the verified Binance.US Customer Support account said the emails included in the screenshots did not in fact come from Binance.US. Binance.US later told InvestorPlace in an email that although listings@binance.us is an official address, no employee sent the emails that Terareum posted. 

TERA Crypto Tanks on Binance.US Scam Allegations

The responses from Binance.US and subsequent confirmation from the Terareum team that a Binance.US listing was not on the way sent the TERA crypto down fast. Various social media users highlighted evidence of selloffs in presale wallets, with some going so far as to accuse the Terareum developers of orchestrating it all. 

So what really happened? 

As the Terareum team shared in various ask-me-anything sessions and in direct conversation with InvestorPlace, individuals identifying as Binance.US executives, including Head of Marketing Leah Li and former Chief of Staff Lindsey Crawford, approached Terareum CEO Milton John and senior advisor Praveen Buddiga on Telegram. Terareum first received messages dated March 16, 2022. In these messages, which InvestorPlace reviewed, the individuals worked to establish a Binance.US listing for Terareum. As part of this, they requested a 180,000 USDT security deposit and sent contracts for Terareum’s leadership to sign. 

The Terareum team says all contracts were signed and that Buddiga made the 180,000 USDT payment to the requested address. As the email screenshots show, Buddiga and John were expecting Binance.US to announce the upcoming TERA listing on March 22. When that announcement didn’t come, the Terareum team moved forward with sharing the screenshots through their Twitter account. 

At this point, it’s unclear who spoke with John and Buddiga via Telegram, and where exactly Buddiga’s payment went. Crawford, Li, and others from Binance.US did not respond to requests for comment from InvestorPlace

What Comes Next?

Terareum’s TERA crypto remains 82% off its March 22 all-time high, and its current daily trading volume is just $200,000. Despite this, the team continues to move forward with their roadmap and other exchange listings. Buddiga says the Terareum team is moving on and hopes to one day achieve a real Binance.US listing. 

The saga highlights the complex — and sometimes illicit — nature of cryptocurrency. The Federal Trade Commission says crypto scams have cost consumers more than $1 billion since 2021. It’s not uncommon for official business to happen on platforms like Telegram or WhatsApp. 

While the Terareum team works to rebuild, investors can stay safe by watching out for common crypto scams and protecting their portfolios accordingly. 

Sarah Smith, the Editor of Today’s Market, contributed reporting to this article. 

On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: How to Avoid Popular Cryptocurrency Scams

On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/03/terareum-tera-crypto-proves-defi-scamming-isnt-dead-with-fake-binance-email/.

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