Publication: 18% of investigated ICOs are scams - but they attracted $1B anyway
The new review made by the journalists from WSJ tells that out of 1450 analyzed ICOs, 271 of them (or 18.69%) were scams.
“Hundreds of Bitcoin wannabees” show fraud properties, the press outlet tells. Most common features of a fraudulent ICOs the employees of WSJ have encountered were:
- Promises of high returns
- Fake info on celebrity support
- Fake photos of founders
The deep analysis of whitepapers proves extremely useful, as in 111 cases (7.66%) these materials were plagiarized from other sources.
By using the modern means of open-source intelligence (OSINT), reporters found out that the toxic 18% of projects have gathered over $1 billion. This leads to believe that the digital currency community should come up with a good way to prevent this massive scam parade, or else the reputation of the sphere amongst the fiat market participants would not develop at all.
A possible answer is the mechanism invented by Upbit - rewards are given in exchange for new frauds revealed to this crypto brokerage platform. If implemented widely, this may decrease the percent of discovered scams in the future market studies.
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