The cryptocurrency market is absolutely brimming
with fraudulent projects, which will never actually see the light of day.
In the crypto community, this is usually done to
plug fraudulent projects, or just straight up ask strangers to send them money.
«A Significant Impact» The cryptocurrency market is absolutely brimming
with fraudulent projects, which will never actually see the light of day.
In the crypto community, this is usually done to
plug fraudulent projects, or just straight up ask strangers to send them money.
He added that due to the number
of fraudulent projects in the sector it's «perfectly reasonable» for a pause to occur, and that it was important for projects to do «their legal homework and issue tokens properly.»
One of the reasons why investors are scrutinizing ICOs so closely is the growing prevalence
of fraudulent projects.
Due to Bitcoin's anonymous nature, it can sometimes be very difficult to track down those involved
with fraudulent projects and bring them to justice.
Ironically, the first to flourish in the ICO market were
fraudulent projects that had never been implemented, and scammers who were looking for easy money.
Despite the possibility that potentially -
fraudulent projects are leveraging Bitcoin's status to promote themselves, the idea of a Bitcoin «brand» could be seen as adversarial to the digital currency movement.
First, the emergence of
these fraudulent projects drove platforms like Google, Facebook, and Twitter to ban digital currency advertisements on their ads platforms.
Performing due diligence is vital for the health of the cryptocurrency community — we need to stand together to prevent dubious and
fraudulent projects from taking investor funds.
Daniel Schwartzkopff, CEO of Invictus Capital, says: Performing due diligence is vital for the health of the cryptocurrency community — we need to stand together to prevent dubious and
fraudulent projects from taking investor funds.