How to run a crypto-coin scam
Make a few million with little to no risk and no coding required.
Start an ICO, ITO, IPO or whatever you want to call it, in fact why not just call it an IFO (Initial Fools Offering). There are no regulations and you don’t even need a working coin at this stage just the promise of further development. In any case its not that hard to start your own coin as there are quite a few coin creation services out there.
Now make a shiny new website with lots of promises of development a nice road map and some new wiz bang feature preferably with a name that nobody will understand what it is. Use lots of buzzwords about innovation, technology and marketing and how you have all the solutions to all the worlds problems. And most importantly don’t forget to create plenty of sockpuppet accounts supporting your scam on all the bitcoin forums.
Now get together as much money as you can, don’t worry there is no risk to your money as I will show you later. You can even get your friends to join you, as there is no risk to them as well. To keep the numbers simple lets just say you and your group have 500k at your disposal to run your scam.
Find an exchange to host your IFO and then launch it. You may have to pay around 2–5k to the exchange for the listing. Use your 500k to buy your own tokens and this will at the same time build hype around the sale by creating the illusion of demand. Once the IFO period is over you will get your 500k back plus at least 50k from the suckers who bought into your fools tokens.
So now you are in a situation where you have your money back safely, you own 90% of the fools tokens and you have 50k profit to play with. So now you can safely pump the market that you control with your free money and its possible to go 10x or more the price of the initial offering. Once you think you have pushed the price as high as you can, then you start to sell off.
Even if you don’t push the price up much above the initial price it doesn’t really matter as the fools tokens didn’t cost you a penny and its all free money. And most importantly nobody has a clue what just happened and if you’re clever there won’t be any evidence. Rinse and repeat.
Attention: Now I don’t want anyone to go out and actually do this. This is for people to consider before investing in any coin/token “Pre-Sale” and be aware that the above scenario is what you are more than likely investing in.
If you want to invest in a crypto-currency (and it can be a lot of fun), then look for the coins that are not “brand new” and coins with real developers and real development and most importantly open source. Its no guarantee that your investment will be a success, but at least you wont get scammed.
https://decentralize.today/how-to-run-a-crypto-coin-scam-7f83f4ec543b#.twwwvz428