Topic: ICO Exit scams have stolen more than 100M USD - page 2. (Read 366 times)
The popularity of ICO currently looks decreasing because some of fake ICO projects already ruin the reputation of ICO and if we still found scam ICO dominate the market then i'm pretty sure ICO gradually will lack of interest or probably will disappears however regarding the statistics i think possibly the number of amount higher than that
Find out promising ICO project is hard now-a-days because there are many scam ICO projects are appeared and that's felt very bad effects on investors.
Scam ICO is si called problem in ICO projects now-a-days. Many projects are appeared as scam now-a-days.
Virtual development projects are "scamming" real people and real money. Many people who bring real money to join the ICO but then the developer drowned who does not know who to hold, nor can resell the stock "Token to anyone.
That's really a huge money, I believe there will still be more than that because there might be some exit scams which might not be recorded, people only notice the exit scam of a popular ICO not really the non popular ones.
According to this news I read, is this the end of of ICO? Kindly read through and give your opinion
The cryptocurrency industry may be maturing, but that doesn’t mean it’s likely to shed its reputation as a playground for scam artists anytime soon.
That’s according to a report from Diar, which found that ICO exit scams have now cost investors nearly $100 million.
The majority of these stolen funds, an estimated $68 million, has been raked in by exit scams that have occurred during the first two weeks of August. The largest, allegedly pulled by the China-based Shenzhen Puyin Blockchain Group, raised $60 million from three separate ICOs before attracting the attention of the State Market Regulatory Administration (SMRA)
n another particularly morbid exit scam, the organizers of Block Broker, an ICO intended to fund the development of a platform that would “completely eliminate ICO fraud” exit scammed investors to the tune of $3 million.
In its report, Diar’s researchers attribute the proliferation of exit scams to the structure of the token sale fundraising model, arguing that it creates misaligned incentives.
They wrote:
“Unsurprisingly, the blatant exit scams continue to plague the largely unregulated ICO sector where the founders have no contractual obligation to deliver a product. After raising millions of dollars with no string attached, the founders’ incentives to actually build a valuable company are very limited.”
As Diar notes, the amount of funds lost to ICO exit scams is particularly bizarre considering how easy they are to spot when conducting even a moderate amount of due diligence. Many, for instance, use plagiarized whitepapers and fake profile pictures. One project famously used a picture of Ryan Gosling for its fictional graphic designer, while another featured a fake testimonial attributed to an image of Jennifer Aniston.
Nevertheless, fraudulent projects, including those that use other tactics than straight-up exit scams, continue to attract hundreds of millions of dollars from investors, often by using FOMO to trick them into acting against their better judgment.
Even supposedly above-board projects have used the hoopla around exit scamming to accrue media attention. As CCN reported, one startup — Savedroid, which raised $50 million from its ICO and other funding sources — executed a fake exit scam in a controversial publicity stunt apparently designed to drum up interest in an ICO advisory service that the project was launching.
The cryptocurrency industry may be maturing, but that doesn’t mean it’s likely to shed its reputation as a playground for scam artists anytime soon.
That’s according to a report from Diar, which found that ICO exit scams have now cost investors nearly $100 million.
The majority of these stolen funds, an estimated $68 million, has been raked in by exit scams that have occurred during the first two weeks of August. The largest, allegedly pulled by the China-based Shenzhen Puyin Blockchain Group, raised $60 million from three separate ICOs before attracting the attention of the State Market Regulatory Administration (SMRA)
n another particularly morbid exit scam, the organizers of Block Broker, an ICO intended to fund the development of a platform that would “completely eliminate ICO fraud” exit scammed investors to the tune of $3 million.
In its report, Diar’s researchers attribute the proliferation of exit scams to the structure of the token sale fundraising model, arguing that it creates misaligned incentives.
They wrote:
“Unsurprisingly, the blatant exit scams continue to plague the largely unregulated ICO sector where the founders have no contractual obligation to deliver a product. After raising millions of dollars with no string attached, the founders’ incentives to actually build a valuable company are very limited.”
As Diar notes, the amount of funds lost to ICO exit scams is particularly bizarre considering how easy they are to spot when conducting even a moderate amount of due diligence. Many, for instance, use plagiarized whitepapers and fake profile pictures. One project famously used a picture of Ryan Gosling for its fictional graphic designer, while another featured a fake testimonial attributed to an image of Jennifer Aniston.
Nevertheless, fraudulent projects, including those that use other tactics than straight-up exit scams, continue to attract hundreds of millions of dollars from investors, often by using FOMO to trick them into acting against their better judgment.
Even supposedly above-board projects have used the hoopla around exit scamming to accrue media attention. As CCN reported, one startup — Savedroid, which raised $50 million from its ICO and other funding sources — executed a fake exit scam in a controversial publicity stunt apparently designed to drum up interest in an ICO advisory service that the project was launching.
If this true this is very bad news to the crypto world. That is why always be careful in investing money specially fraud project. Just make sure that Team is not fake and they also attending conferences and summit. Good thing also if they have legal document and real office. I hope people will to their own research before they invest money.
#Support Vanig
i can not really believe that people are stealing so much money, but it seems to be true. somehow icos should be regulated so that something does not happen anymore.
Scams are common in every industry. And in online world it is too much easy to do scams. That's why we are seeing lots of scam ICOs around us. I think we should be really careful about choosing ICO.
All these scams allegations is painting the Cryptos world in a bad light and will reduce the confidence of potential investors, the unavailability of a regulating body to scrutinise all these fraudulent ICOs will have prevented some of these scams, its quite sad to hear that some ICOs ran into thin air after collecting investment funds.
100 million dollars! It's enormous! I haven't idea about this much money. I think strong steps should be taken with this scam projects. Otherwise the amount will be more bigger next time.
According to this news I read, is this the end of of ICO? Kindly read through and give your opinion
The cryptocurrency industry may be maturing, but that doesn’t mean it’s likely to shed its reputation as a playground for scam artists anytime soon.
That’s according to a report from Diar, which found that ICO exit scams have now cost investors nearly $100 million.
The majority of these stolen funds, an estimated $68 million, has been raked in by exit scams that have occurred during the first two weeks of August. The largest, allegedly pulled by the China-based Shenzhen Puyin Blockchain Group, raised $60 million from three separate ICOs before attracting the attention of the State Market Regulatory Administration (SMRA)
n another particularly morbid exit scam, the organizers of Block Broker, an ICO intended to fund the development of a platform that would “completely eliminate ICO fraud” exit scammed investors to the tune of $3 million.
In its report, Diar’s researchers attribute the proliferation of exit scams to the structure of the token sale fundraising model, arguing that it creates misaligned incentives.
They wrote:
“Unsurprisingly, the blatant exit scams continue to plague the largely unregulated ICO sector where the founders have no contractual obligation to deliver a product. After raising millions of dollars with no string attached, the founders’ incentives to actually build a valuable company are very limited.”
As Diar notes, the amount of funds lost to ICO exit scams is particularly bizarre considering how easy they are to spot when conducting even a moderate amount of due diligence. Many, for instance, use plagiarized whitepapers and fake profile pictures. One project famously used a picture of Ryan Gosling for its fictional graphic designer, while another featured a fake testimonial attributed to an image of Jennifer Aniston.
Nevertheless, fraudulent projects, including those that use other tactics than straight-up exit scams, continue to attract hundreds of millions of dollars from investors, often by using FOMO to trick them into acting against their better judgment.
Even supposedly above-board projects have used the hoopla around exit scamming to accrue media attention. As CCN reported, one startup — Savedroid, which raised $50 million from its ICO and other funding sources — executed a fake exit scam in a controversial publicity stunt apparently designed to drum up interest in an ICO advisory service that the project was launching.
The cryptocurrency industry may be maturing, but that doesn’t mean it’s likely to shed its reputation as a playground for scam artists anytime soon.
That’s according to a report from Diar, which found that ICO exit scams have now cost investors nearly $100 million.
The majority of these stolen funds, an estimated $68 million, has been raked in by exit scams that have occurred during the first two weeks of August. The largest, allegedly pulled by the China-based Shenzhen Puyin Blockchain Group, raised $60 million from three separate ICOs before attracting the attention of the State Market Regulatory Administration (SMRA)
n another particularly morbid exit scam, the organizers of Block Broker, an ICO intended to fund the development of a platform that would “completely eliminate ICO fraud” exit scammed investors to the tune of $3 million.
In its report, Diar’s researchers attribute the proliferation of exit scams to the structure of the token sale fundraising model, arguing that it creates misaligned incentives.
They wrote:
“Unsurprisingly, the blatant exit scams continue to plague the largely unregulated ICO sector where the founders have no contractual obligation to deliver a product. After raising millions of dollars with no string attached, the founders’ incentives to actually build a valuable company are very limited.”
As Diar notes, the amount of funds lost to ICO exit scams is particularly bizarre considering how easy they are to spot when conducting even a moderate amount of due diligence. Many, for instance, use plagiarized whitepapers and fake profile pictures. One project famously used a picture of Ryan Gosling for its fictional graphic designer, while another featured a fake testimonial attributed to an image of Jennifer Aniston.
Nevertheless, fraudulent projects, including those that use other tactics than straight-up exit scams, continue to attract hundreds of millions of dollars from investors, often by using FOMO to trick them into acting against their better judgment.
Even supposedly above-board projects have used the hoopla around exit scamming to accrue media attention. As CCN reported, one startup — Savedroid, which raised $50 million from its ICO and other funding sources — executed a fake exit scam in a controversial publicity stunt apparently designed to drum up interest in an ICO advisory service that the project was launching.
this is not a surprise anymore because almost 70℅ of ico today were scam, investors should really have a hard time in researching and investigating the ico before participating in it, dont be rush. always stay alert in every ico that you want to join.
I think the main problem is the people who invest in project without knowing accurate information about it. Many people think only investing will make them rich. But actually is far more than investment.
Many people scam this kind of hope for a lot of time. But I hope all of us who invest in cryptocurrency should analyze about the project and all related issues before any investment.
Pincoin, OneCoin, Bitconnect, Plexcoin, Centratech, Benebit, REcoin, PonziCoin and many more to add...
it is not idiots always put money in to those scam ICOs, day by day scamers improve their tactics and find the way to trick the investors and collect money and escape,
it is not idiots always put money in to those scam ICOs, day by day scamers improve their tactics and find the way to trick the investors and collect money and escape,
How many billions have already been cashed out and put to fun and toys from EOS alone? I imagine that 100 mil metric is quite a conservative estimate...
This is crazy amount of Money.
And i don't think they are counting envion. Which is a shitshow right now and raised 100m $ only by itself.
And i don't think they are counting envion. Which is a shitshow right now and raised 100m $ only by itself.
I agree. The market needs to be regulated, monitored because a lot of the scam projects are covered by crypto currency. I chose a very good project for myself.
I also advise you to pay attention to the company's ICO MPCX is a digital block-driven financial services platform. Our long
term aim is to aggregate all the crypto financial services into one place. MPCX
is designed to serve entities' and individual's needs in the areas of digital
wealth management, cryptocurrency exchange and trading, digital banking,
crypto research and ICO promotion, and crypto lending.
A great opportunity for investors to invest in a new project. This project has a very strong team. I am sure that the whole world will soon find out about this!
I also advise you to pay attention to the company's ICO MPCX is a digital block-driven financial services platform. Our long
term aim is to aggregate all the crypto financial services into one place. MPCX
is designed to serve entities' and individual's needs in the areas of digital
wealth management, cryptocurrency exchange and trading, digital banking,
crypto research and ICO promotion, and crypto lending.
A great opportunity for investors to invest in a new project. This project has a very strong team. I am sure that the whole world will soon find out about this!
only regulation of ICO market will reduce the number of scams. as you see many investors are afraid of making investments in ICO because of total fraud.
This is so true and sad. And i think the biggest wrong of crypto is this types of Scams and Frauds , they need to be punished. So always stay safe , invest in ico after deep research , this precautions we can take atmost, no way to find lost asset. And i think the amount is much more than ~$100 Million . Everyday we find some news about exit scam.
Only 100 mln .I think ICO what already disappear what about all that worthless ico tokens
I will tell you a story about one indie game company sorry don't remember name
They have collected 500$ from Kickstarter after just one month in game exchange was live and running.In comparison MobileGo collected 46 mln$ they delivered esport exchange after more than one year.In game exchange is still just a project
But MobileGo has 100 devs that indie game company just a few
I will tell you a story about one indie game company sorry don't remember name
They have collected 500$ from Kickstarter after just one month in game exchange was live and running.In comparison MobileGo collected 46 mln$ they delivered esport exchange after more than one year.In game exchange is still just a project
But MobileGo has 100 devs that indie game company just a few
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