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Scammers earned more than a billion dollars on the ICO

Experts of the Wall Street Journal found out what percentage of start-ups are fraud.

18.May.18 9:54 AM
By Shawn Highstraw


Scammers earned more than a billion dollars on the ICO
Interest in the initial placement of coins in the spring of 2018 markedly decreased: experts attribute this trend to the growing distrust of investors to start-ups that raise funds in this way. At the same time, companies, launching new projects, have high hopes for the Initial coin offering, counting on the maximum possible inflow of investments. To do this, experts of the market believe, beginners will be more and more difficult, since trust to start-ups falls due to the fact that many of them are fraudulent.

Analysts of the Wall Street Journal decided to study this problem in detail and find out whether it is worth believing in the ICO. The results of the study were quite impressive: more than 18.5% of the initial proposals of the moment are a potential bench. At the same time, they have already allowed their creators to earn in aggregate more than one billion dollars. By the way, as part of the monitoring, the employees of the publication studied the data for 1450 ICO.

Thus, 271 projects studied by experts contained signs of misleading investors or even characterized by fraudulent tactics. First of all, the fraud in the collection of funds consisted in concealing important information or, on the contrary, providing people with deliberately false information. In particular, scammers guaranteed investors an extremely high profitability from participating in the project or referred to the recommendations of celebrities.

By the way, a similar fact was established by the Texas regulator. The authorities found a crypto-investment company, which reported that it is supported by well-known personalities.

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