Topic: between whitepapper and reality (Read 1036 times)
agree with you, at the moment I see many ICOs that offer many benefits, but in the end only scams and fakes. The whitepaper that has been made is sometimes not in accordance with reality, at this time I rarely invest in the ICO especially if the project does not have an exchange. I am more interested in investing in a project if the project has been registered in the exchange
Currently, there is no such protection that would allow people to feel comfortable after they invested in one of the new projects. The only thing that can protect you qualitatively is your personal awareness and professionalism.
unfortunately, there are no sanctions for such scams. as soon as the sanctions are imposed, I think there will be much less scams in the field of cryptocurrency
I see a lot of fake ICOs that are on this forum and have taken a lot of casualties.
many investors lose their money.
they offer tempting benefits but in the end they cheat and it's clearly against the law.
how can they get away with this forum and this will make crypto electability destroyed.
sometimes I ask whether there is a legal legal umbrella to protect investors where they complain and whether there are legal sanctions for those fraudsters.
and I want to see your opinions and solutions about this.
You are absolutely right that most projects are just making promises to do this or that according to a rather blurry roadmap. In fact, most of these promises are either being cancelled or postponed (e.g. they promised to list the token in November, but "due to severe market conditions" listing will take place in May next year, so investors are basically loosing their money and time).many investors lose their money.
they offer tempting benefits but in the end they cheat and it's clearly against the law.
how can they get away with this forum and this will make crypto electability destroyed.
sometimes I ask whether there is a legal legal umbrella to protect investors where they complain and whether there are legal sanctions for those fraudsters.
and I want to see your opinions and solutions about this.
The solution of the problem could be the availability of a working test product for any project that wants to start its ICO. Yes, in this case the developers will have to work for no money for some time before the necessary funds are collected, but at least they will present the actual implementation of the idea that lies under the project that can persuade the investors to believe their promises.
Personally I pay attention to the White Paper and try to make the analysis how much the idea in the project is real. Very often some WPs look like the one pager or double the information from the website, so you can not find new details there. Very often you may find the good project with a strong idea and good WP, but according to some circumstances the team does not work and develop their idea and looses its popularity and just disappear from the market. So strong WP is not the first point I pay attention to, but is among all those poins in the list as for me.
I see a lot of fake ICOs that are on this forum and have taken a lot of casualties.
many investors lose their money.
they offer tempting benefits but in the end they cheat and it's clearly against the law.
how can they get away with this forum and this will make crypto electability destroyed.
sometimes I ask whether there is a legal legal umbrella to protect investors where they complain and whether there are legal sanctions for those fraudsters.
and I want to see your opinions and solutions about this.
you know, this question is really painful lately. we can't catch them by the hand doing their tricks but for heaven's sake, we live in a digital world, why can't we just track them down and bann? many investors lose their money.
they offer tempting benefits but in the end they cheat and it's clearly against the law.
how can they get away with this forum and this will make crypto electability destroyed.
sometimes I ask whether there is a legal legal umbrella to protect investors where they complain and whether there are legal sanctions for those fraudsters.
and I want to see your opinions and solutions about this.
I believed whitepaper is one of the most important documents when running the ICO. Even how good and well details the whitepaper if it can't fulfill in the right time then it is useless. Look at most of the ICO now there are full of promises, they have expert team members and they are also verified members but they struggle too much because the content of their whitepaper are really hard to adopt in the real world. in our current situation it is realy hard to determined potential ICO. They can even use ICO as a legal way scam.
I see a lot of fake ICOs that are on this forum and have taken a lot of casualties.
many investors lose their money.
they offer tempting benefits but in the end they cheat and it's clearly against the law.
how can they get away with this forum and this will make crypto electability destroyed.
sometimes I ask whether there is a legal legal umbrella to protect investors where they complain and whether there are legal sanctions for those fraudsters.
and I want to see your opinions and solutions about this.
If all those scam project can't be stopped or at least reduced, there will be possibilities that no people will have their trust on cryptocurrency project anymore. If there is no regulation on everyone who wish to start a new project that opening an ICO, it could be hard to filter the validity on every created project. many investors lose their money.
they offer tempting benefits but in the end they cheat and it's clearly against the law.
how can they get away with this forum and this will make crypto electability destroyed.
sometimes I ask whether there is a legal legal umbrella to protect investors where they complain and whether there are legal sanctions for those fraudsters.
and I want to see your opinions and solutions about this.
There have been no official laws about it and of course, this becomes a risk for many investors. even knowing this scam only when it is entered in the forums and because of thanks to the analysis. When the secure escrow should probably find info on ICO who at least could be trusted on a situation that is indeed full of scam is this time.
Its shame how commonplace this has become, most of the Whitepaper we see around are only cosmetic makeup good enough to be washed out at the end of the day. Many projects set unrealistic target in their Whitepaper, their intention is only to raise money and nothing more. At the end the Whitepaper becomes useless, it's very bad I must say.
Yeah I must agree that nowadays people only treat new ICO as the commodity to make money, most of the coin developers didn't care about the crypto anymore, they make the whitepaper seems like so promising and set unrealistic value, and when the fund is enough they will run away, but since this is decentralised world so nothing could be done, we only could rely on ourselves to make a good decision when we want to invest in ICO
As I know, now there are many new projects to protect the investments of investors in new ICO projects, so you can use their services so as not to fall for the scammers.
As the cryptocurrency by nothing and nobody is regulated, and fraud prospers here. I wouldn't know who have agreed to moderate projects. And in general as they can be selected initially not perhaps with an accuracy to tell the project good or the swindler.
Its shame how commonplace this has become, most of the Whitepaper we see around are only cosmetic makeup good enough to be washed out at the end of the day. Many projects set unrealistic target in their Whitepaper, their intention is only to raise money and nothing more. At the end the Whitepaper becomes useless, it's very bad I must say.
This is a big problem for us actually. There are several types of scams. Some can be exposed immediately, they usually have gross violations that can be detected. Some are prepared more carefully, even after the ICO ends can continue the imaginary activity, so as not to cause suspicion. But also do not forget about the projects, which all went well, but for some reason the team was unable to achieve its goals and therefore the project was dying. Unfortunately there are no sanctions against them and we will not be able to complain. We just have to be careful.
When we talk about regulation of cryptocurrencies, most of the people don't like it as they know it against the main purpose of cryptocurrencies. But according to the high number of scam ICOs, they must be regulated. A group of people who want to hold an ICO, must be qualified for that. Why should it be that easy to hold an ICO and scam people?
If that happens, people will only invest in ICOs that have been verified. Otherwise, its their own fault.
If that happens, people will only invest in ICOs that have been verified. Otherwise, its their own fault.
this is one of the issues that we have as an industry where people will outline nice plans to entice investors and get their money and after raising the funds through the Ico project, more than half of these project cannot even accomplish even half of what they have in the whitepaper. Sometimes I really wonder why that is happening.I ask myself where the money they raised went to. This industry needs so many structures to be put in place if we are going to move forward and achieve more as we all look for mainstream adoption of the blockchain.
As of now there is no clear regulation regarding ICO but every nation or government have their own laws regard fraudulent activities. It would be hard for the law enforcers to prosecute them because ICO is not yet covered in their regulation.
That's a good question.
I have already tried to analyze the work of ICO and proposed to carry out the procedure of KYC for the founders of projects and ICO, it would significantly reduce the number of fake ICO and protect the interests of investors. But opinions are divided because of the issue of anonymity in cryptocurrencies.
Unfortunately, white paper with a good technical analysis can not guarantee the performance of the project obligations to investors and the return of funds in case of failure of ICO.
In many cases, permission from regulatory authorities is a high degree of support for projects, approval by the state or other government agencies is credible to investors, but such projects are units.
Now many crypto investors are puzzled by the search for good projects, with a guarantee of profit or return of their funds, so the reduction of fake projects is our big task.
I have already tried to analyze the work of ICO and proposed to carry out the procedure of KYC for the founders of projects and ICO, it would significantly reduce the number of fake ICO and protect the interests of investors. But opinions are divided because of the issue of anonymity in cryptocurrencies.
Unfortunately, white paper with a good technical analysis can not guarantee the performance of the project obligations to investors and the return of funds in case of failure of ICO.
In many cases, permission from regulatory authorities is a high degree of support for projects, approval by the state or other government agencies is credible to investors, but such projects are units.
Now many crypto investors are puzzled by the search for good projects, with a guarantee of profit or return of their funds, so the reduction of fake projects is our big task.
The Whitepaper can often end up being a best case scenario for the project rather than a cast iron certainty. It is obviously the best place to start when you are researching a project but it needs to be combined with a fully capable and experienced team with a sound business track record.
If the developers of project are known (which I doubt) then I think they might be charged with fraud. If not then there is no legal possibility to punish them I think. Whom you gonna punish if you don't know who is behind this project? I think we just should be more careful.
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