The Private Pre-Crowdsale/Pre-Sale/Early-Sale/Pre-ICO/Seed Investor Scam
a.k.a. The Bubble Scam
1COP2COS
This scam is becoming more common and it's creating a bubble! It's a simple scam but requires influence to accomplish successfully.
- Make deals with developers.
- Get in early.
- Use early funds for marketing.
- Use your influence to over sell a public crowdsale.
- Use influence to further drive up price when it hits market.
- Cash out and keep some.
- Public investors are bag holding.
- Scammer is on to promote the next big thing.
Some people might not think this is a scam but it most definitely is. Some people will say it's like paying a % of total coins for "marketing" so it's not a scam.
This is a scam because the promoters are getting in earlier than the public. The private nature of these pre-crowdsales is where the scam lies.
If the public could participate in raising funds for "marketing" then this would be transparent and not a scam.This strategy is leading to a bubble. The Public are paying ridiculous prices for "ideas" because the people behind NEWS and etc. are telling them to buy at that price. The early investors can make large profits...
This strategy removes the ability of outside public investors to make much profits.
As an outside investor you have to pay for an overvalued product in hopes that the bubbles gets even bigger! This is dangerous.Let the public in on the "pre-sale"!
