Beware ICO Scams

wealthymattersToday the vast majority of people would find it hard to explain what block-chain, cryptocurrency, initial coin offers (icos) etc. really are. But all of them probably have read at least one media story of instant fortunes having something to do with such buzz words and quite a few people are eager to try their luck at making their own fortune.

Ignorance and greed is a deadly combination and a whole world of scamsters have jumped in to rip0ff people. Not only is the internet full of ads for initial coin offers but scam artists have bought their way into the pages of mainstream financial papers in India to talk about the success of their icos in other countries, including places like Panama.

Of all the ICOs world-wide last year, its believed that over 60% of the businesses have simply disappeared by early this year.

Its truly easy to run an ICO scam. All scamsters have to do is :

1.Come up with a catchy name for their tokens

2.Come up with a logo to go with this name

3.Fake names,photos and resumes of developers and the team behind the venture and publish them on social media

4.Buy member accounts on cryptocurrency forums and create a seeming buzz round their venture

5.Prepare a jargon ridden pitch that most wouldn’t dare admit they don’t get

6.Last but not least buy a domain name, publish a few pages including the fake profiles of the team, the pitch and most importantly a link to collect payments for the tokens. A graphic to show funds raised and the percentage of the fundraising goal reached is a common trick. This counter is periodically bumped up to create an impression of investor interest and an urgency to part with money before an “opportunity” is missed.

So beware of smooth talkers online and in the main-stream media swindling you of your money. Keep off ICOs.

About Keerthika Singaravel

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