Ways to Identify a Phony ICO

Ways to Identify a Phony ICO

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April 23, 2021 by Ranjbar Webmaster
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ICOs have revolutionized the business, although fears of fraud have kept investors away. Using blockchain technology, ICOs have become an alternative tool for raising funds for commercial projects. Unlike IPOs governed by strict legal regulations, ICOs require only a white paper and some exciting features such as no barrier to entry, exponential growth, no geographical barriers, and easy approval. For this reason, there is a good platform for fraudsters to deceive and abuse investors.
Ways to Identify a Phony ICO

Do you want to Identify a Phony ICO ?

Join us in Ways to Identify a Phony ICO to learn how to avoid falling into the trap of fraudsters. Not surprisingly, the ICO market has seen tremendous growth recently. many kinds of research show that from January 2016 to August 2019, ICOs worldwide raised nearly $ 13 billion. This accumulation of money caused Crypto fraudsters to steal hundreds of millions of dollars from users in this way.

In this article, we have made every effort to explain all the scams available in the market to prevent you from being scammed by knowing these points. Keep in mind that each item will have a brief description due to the limited length of this article. So you can read the article related to the desired item on our website for more and more comprehensive information about each item.

Review of ICO held in recent years

Despite the attractive benefits of ICOs, investors interested in these alternative Cryptocurrency investment tools face many risks. In this regard, the Satis Research Group 2018 report examined about 1,500 ICOs. The study found that 78 percent of these projects were scams with a total value of $ 1.3 billion.

Some Finnish researchers have researched to answer this question; “What are the different types of scams in the ICO market, and how much money does such a scam cost?” They used Web Scraping to investigate this issue and created a compressed data file that covered all ICOs held from August 2014 to December 2019.

They examined the capital data collected for the 1014 initial coin offerings. Of these, 576 were scams with a total investor loss of $ 10.12 billion. The most significant loss was through the so-called “Petro-scam” scam, in which investors lost $ 735 million. You do not lose like the losers. We suggest you read the article Ways to Identify a Phony ICO to the end.

Classification of ICO fraud schemes

Dead ICOs, fake or both

The team recovered and analyzed ICOs listed by the DeadCoins and Coinopsy websites to identify 13 different ways fraudsters deceive investors. If a Bitcointalk forum user detects that a team, project, wallet, social media, or ICO transaction is fake, that ICO is classified as “fake.”

What are Exit scams?

If an ICO fails to provide financial rewards (mostly in the form of tokens) to advertisers for their public relations activities such as project advertising on forums, telegram channels, messengers, translation and localization of documents, posting to the network Social media or blogs are classified as “reward scams”. If developers and advertisers who raise funds for an ICO suddenly disappear and investors have no information about them, they will classify these ICOs as “exit scams.”

Compound scams and airdrops

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 The investigative team investigated many ICO fraud allegations in which a group of developers actively scammed other projects. This type of scam is classified as “old scammers”. Next, the researchers defined “airdrop fraud” as an incident in which fraudsters steal users’ private keys.

This type of scam occurs when scammers create a hidden trap and users click on links in the hope of receiving free tokens, as a result of which they give their private information to scammers and eventually lose their currencies. they give. So for Ways to Identify a Phony ICO, we also need to pay attention to security issues for personal accounts.

Fraudulent exchange scam and copying of white paper

Besides, developers who intend to deceive investors prefer to set up their ICO in a fake exchange. This type of fraud is in the category of “exchange fraud”. Unfortunately, there are many examples of these scams. So one of the Ways to Identify a Phony ICO could be in this paragraph. The researchers also found that copying the white paper of a future ICO and launching it under the same or different name was another deceptive method common among ICO fraudsters. This scam falls into the category of “White Paper plagiarism scam.” Fortunately, It found that users are familiar with this type of scam (fraud) and now report it on the Bitcointalk forum.

Go up and sell and Identify a Phony ICO

“Raise and sell” is another method used by fraudsters. But this method is not always recognizable at the beginning of the ICO. In this type of scam or in other words fraud, investors and traders rush to buy Crypto at an early stage when the price is still low, and some of them even buy the tokens for fear of losing the opportunity to make easy profits at high prices. When the scammers finish selling, the price drops dramatically.

As you can see, there are many ways for fraudsters to defraud. So users have to be smart. Antidolos Media tries its best to raise awareness of its users by raising awareness in this field and preventing its users’ losses by introducing Ways to Identify a Phony ICO. Once you are an Antidolos user, you can get precious information by reading articles related to scams on this website, which will surely be helpful for you.

Ponzi plans Cryptocurrency

“Ponzi scams” is another category of scams observed. Scammer websites in this way persuade victims to invest in some ICO-related products or services by promising to make a profit in the following steps.

In previous articles. We mentioned that Ponzi schemes are an essential part of scams in this area. In general, Ponzi schemes in any field have always been doomed to failure, and investors have suffered huge losses. Regarding cryptocurrencies, it should be said that today the highest number of scams is related to these Ponzi schemes. So be careful, and when you smell these designs, do not invest in that design at all.

URL and phishing scams

The researchers also found a new tactic of investor fraud involving launching websites similar in name and design to the original projects. Naive investors who do not know the leading websites may be deceived by these sites and lose their currencies. This method of fraud is in the category of “website fraud”.

 Like the previous one we introduced to you, this scam has not only been welcomed by fraudsters in digital currencies. But you should also be wary of online shopping. Phishing has done a lot of damage to different sections of society for many years.

Market manipulation and fraud with pre-extracted tokens

Another form of fraudulent ICO is called “pre-extracted token fraud”. It refers to unsold tokens in the final stage of sale that are distributed to developers or advertisers instead of burning. Investors are easily deceived by this method because more tokens mean lower prices. In addition, developers can manipulate the token market if they retain a large portion of the pre-extracted tokens.

This type of scam can be a little difficult to detect. Therefore, we recommend that you consult a specialist in this field to diagnose this type of fraud.

You can also learn more about Ways to Identify a Phony ICO by reading articles related to this type of scam. You can find many examples of these articles on the Antidolos website. Since Antidolos’s mission is to combat all forms of fraud, it has produced and published numerous articles on related topics. The articles on this website, or rather this medium, can help you a lot.

What is the most prominent Scam ICO?

Researchers’ screening shows that “phishing and fraud” is the most common type of fraud. In this type of Crypto scam. Users receive spam emails, suspicious links, and questions about personal and financial information. Withdrawal errors, suspended withdrawals, the disappearance of a wallet balance, and other unwanted actions.

In short, due to the lack of serious regulation in the ICO market. Developers and/or advertisers can use more than ten methods to deceive investors. The amount of money entering this new and emerging market is tremendous. For this reason. Governments and regulators must establish specific rules and regulations for the ICO market to protect investors from severe losses.

Antidolos ICO IEO Rating and Review

Antidolos ICO IEO Rating and Review

 As we have seen so far in this article, many scammers are lurking in this space of cryptocurrencies. If you can invest wisely, you can save a lot of money. But if you invest too hastily and thoughtlessly, you will definitely lose. To avoid these losses, you can hire a Cryptocurrency specialist or learn about cryptocurrencies yourself.

Antidolos is one of the media that has long informed its users about defeating fraudsters. The purpose of this medium has been mentioned many times on the website of this medium. This media was established with the aim of operating a cryptocurrency market and fighting fraudsters. We hope we can fulfill our mission well.

1 Comment

  • Rozitta

    You alone are fighting a market that is 80% fraudulent and scammer. Congratulations. Good luck Antidolos

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