Bull Run Scams: The Frauds That Explode When Prices Rise

Bull run scams are frauds that multiply when crypto prices rise, because rallies bring a flood of new buyers, intense fear of missing out and constant stories of easy profits. The most common include fake giveaways, fake trading platforms and bots, phishing sites and wallet drainers, copycat tokens, and pump-and-dump schemes. The defense is simple but demands discipline: slow down, verify everything independently and never send crypto to anyone promising returns.

Every past boom — the 2017 ICO wave and the 2021 bull run — produced a matching wave of fraud. If prices rise strongly at any point in 2026 or 2027, there's every reason to expect the same. This guide explains why scams spike, the specific schemes to recognize and a checklist you can use before every transaction.

Why Scams Explode When Prices Rise

Three things happen in every bull market that scammers exploit:

1. 1New, inexperienced users arrive. Many have never used a wallet, don't know how transactions work and can't tell a real platform from a copy.
2. 2Extraordinary gains look normal. When real coins double in weeks, a promise of 5% a day sounds less absurd than it should.
3. 3Urgency is everywhere. Everyone seems to be getting rich, and waiting feels like losing. Our article on FOMO in a bull market covers the psychology.

Scammers also gain cover from noise. When thousands of new tokens, apps and influencers appear, one more fake blends in easily.

The Bull Run Scams to Know

Fake giveaways and impersonation

Giveaway scams use hacked or look-alike accounts and deepfake videos of well-known figures. They promise to send back twice what you send. No legitimate person or company does this. Our guide to deepfake crypto giveaways shows examples of how they're staged.

Fake platforms and profit screenshots

These sites look professional and show real-time charts. Your deposit appears to grow quickly, which encourages larger deposits. When you try to withdraw, you're told to pay a fee, tax or "unlock" deposit first. The money is already gone. See fake crypto exchanges for how to spot them. Related reading: Copy Trading Scams.

Wallet drainers and malicious approvals

In bull markets, people rush to mint NFTs, claim airdrops and try new DeFi apps. A malicious site can ask you to sign an approval that lets it move your tokens. Read about wallet drainers and how to revoke approvals.

Copycat tokens and fake presales

When a project trends, copycats appear within minutes with the same name and logo. Fake presales collect funds for tokens that never launch. Only the contract address identifies a real token — use our guide on how to check a token's contract address.

Pump-and-dump schemes

Small, illiquid tokens are easy to push up with coordinated hype. Organizers buy early, promote heavily and sell to latecomers. Our explainer on pump-and-dump schemes explains the pattern. We cover this in more detail in Ponzi and Pyramid Schemes Disguised as Crypto Investments.

A Pre-Transaction Checklist

Before you send crypto, connect a wallet or sign anything, run through these steps:

1. 1Did I start this contact? Unsolicited messages offering opportunities are the top red flag.
2. 2Is the return guaranteed or fixed? Real investments carry risk and never guarantee profits.
3. 3Did I reach the site on my own? Type the address or use a saved bookmark; don't click links in messages or ads.
4. 4Is the contract address verified from the official site and an independent source?
5. 5What exactly am I signing? Read wallet prompts. If you don't understand the approval, don't sign it.
6. 6Can I test withdrawals first? Legitimate platforms let you withdraw without extra payments.
7. 7Would I be fine waiting 24 hours? If the offer disappears with time, it's pressure, not opportunity.

Protecting Your Portfolio During a Bull Market

Scam defense is part of broader risk management:

• Separate wallets. Keep long-term holdings in a hardware or cold wallet, and use a separate "hot" wallet with small amounts for trying new apps. Our guide on burner wallets explains how.
• Size positions sensibly. Never put money you can't afford to lose into any crypto, let alone unknown tokens. See position sizing and risk management basics.
• Avoid leverage. Leverage platforms advertised in groups and DMs are frequently fake.
• Enable strong account security with app-based two-factor authentication on every exchange account.
• Plan profits in advance, so FOMO doesn't push you into rushed decisions.

If You've Been Scammed

• Stop sending money immediately, including any "fees" to unlock funds.
• Revoke token approvals and move remaining funds to a new wallet if you signed anything suspicious.
• Record transaction hashes, addresses, screenshots and messages.
• Report to the platform involved, your local authorities and through our scam reporting form.
• Ignore anyone offering to recover your funds for a fee — recovery scams specifically target victims.

Bottom line

Bull run scams succeed because rising prices make people hurry, and hurry defeats caution. If a rally arrives in 2026 or 2027, expect fake giveaways, fake platforms, drainers and copycat tokens to multiply. Slow down, verify every address and link independently, never send crypto for promised returns and keep your long-term holdings away from experimental apps.