Cyber Forensic Specialist
Cyber-Forensics.net
ICO has yielded massive success as a popular method to raise money to create new digital coins. But the platform is also attracting scammers.
— Timothy Benson
SOFIA, BULGARIA, April 18, 2022 /EINPresswire.com/ — Initial Coin Offerings (ICOs) has opened new avenues for investors in blockchain ventures. As per reports by leading websites, in the third quarter of 2017 alone, ICOs raised more than $1.3 billion for cryptocurrency companies. The figure is five times higher than funds raised through capital ventures.
Cyber-Forensics.net, a cyber forensics service for online scam victims, says, “with exponential growth in ICO by the public, it is no surprise that ICOs have been used to fund scams and trick investors.”
Adding to the statement, crypto theft investigator Timothy Benson explains, “not every project is fake or fraud, but all the hype around ICO is worth investigating the platform for potential disruption. There are several variants of ICO scams prevalent online. Therefore, a comprehensive, detailed study can be instrumental when the goal is consumer protection.”
Types of ICO Scams:
◉ Exit Scam is a fraudulent operation organized by unscrupulous crypto promoters who collect investor funds for an ICO and disappear. 2018 witnessed more than $100 million lost in ICO exit scams.
◉ Bounty Scam: Another common ICO scam, Bounty scam fails to pay out promoters’ promised financial rewards for PR activities.
◉ Exchange Scam: Developers mislead investors to put money in a fake exchange.
◉ White Paper Plagiarism Scam: Scammers copy the white paper of genuine ICO firms and decide to launch similar projects under a different name.
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