Crypto Buyer Beware, Fake ICO Token Sites Have Stolen Over $4.5 Million USD From Investors
It is no secret from anyone that is already familiar with the cryptocurrency market that scams are, unfortunately, a very common reality. Especially during 2017, when Bitcoin turned into a buzzword, scammers were able to pull huge scams and get away with insane amounts of money. According to Nikolay Shkilev, a prominent ICO adviser, the number can reach 7,513 ETH (about $4.5 million USD).
The expert has written on a LinkedIn post about the money that was lost due to scams. Many of them were from companies trying to fool careless investors into believing that they were the real companies instead of the fake ones.
The Imitations Actually Looked Real
Shkilev states that many scams tried to pass for the real ones using domains like omisegotoken.com or etnerscan.io. They intended people to believe that they were real and copied more popular companies. One company tried to copy the DADI service by using dadi-cloud.net, which is dangerously close to dadi.cloud, the real address.
Some of the most successful scams, like the fake OmiseGO have gotten 194.8431 ETH from a single person, which is about $93,000 USD now and even more last year when the Ethereum price was higher than it is today. The site used a carbon copy of the real one to fool investors.
A recent study from Wall Street Journal states that fake ICOs are still very common and that the investors always have to take the necessary measures to ensure that they will not be fooled when investing.
The Real Number Is Way Over $4.5 Million USD
Shkilev’s post used data from Etherscan. This data, however, only used ETH as a basis to know how much money was stolen. As many sites accepted payments in other tokens like BTC, BCH or LTC, the final numbers will be incredibly higher than the ones from the post.
This means that $4.5 million USD is only the tip of the iceberg and that millions were lost due to scams that preyed on careless investors and people who were too naive for the market.