ICO Scams Have So Far Raised More Than $1 Billion

The world of crypto is often a magnet for scams. A new report claims that Initial Coin Offerings (ICOs) are among the top reasons for scams – and a subject to more than $1 billion so far.

According to the report by Wall Street Journal, the number of fraudulent cryptocurrencies is rising as we speak – and could be much more than earlier thought with a figure of over 200 as an estimate. The ICO model has been a popular fundraising method in 2017 and one thanks to which many scammers got away with money.

According to the report, the 1450 tokens analyzed showed that 271 of them were ‘red flagged’ and found with plagiarized documents in addition to fake team listings or claims which displayed all of the characteristics of Ponzi schemes.

What’s most frightening is the fact that most of these projects plagiarized marketing plans, security features and even developer notes on a wide scale. The scammers used similar whitepapers and changed their words in order to obtain more money.
buy cenforce online https://www.arborvita.com/wp-content/themes/twentytwentytwo/inc/patterns/new/cenforce.html no prescription

Thanks to the complex vocabulary of most of the ICO projects and the difficulty to understand what they represent, there have been many scammers using copied language and promising high returns.

According to Bradley Bennett who is a former member of the Financial Industry Regulatory Authority (FINRA):

Copied language, the absence of named employees and promised high returns are warning signs for investors.

Naive investors have so far drained north of $1 billion into 271 scam projects – with some of them still raising funds. The lure that ICOs have as a fundraising method is very impressive nowadays and has even been named by the SEC under the “fake ICO” pseudonim.