So far, the cryptocurrency revolution stands at a combined market capitalization of over $370 billion, usurping that of America’s largest bank. This, of course, says a lot about why everyone and their dog (presumably) invest in bitcoin and why they’re referred to as the future of currencies. Cryptocurrencies have had their value rise terrifically; maybe nobody predicted this, or the plummet will be thunderous!
Limited Attention Offered To Fake Crypto Projects!
But what the industry seemingly doesn’t focus on highlighting is how susceptible it is to hacks, Ponzi schemes, and confidence tricks. According to at the University of New Mexico’s Marie Vasek and Tyler Moore of the University of Tulsa, Oklahoma, many bitcoin schemes and ICOs are just a cover-up of the scam havens. Sadly, that’s the case with these anonymous, decentralized coins that have no regulators.
Between June 2011 and November 2016, there was at least one new reported scam a day. The two researchers even compiled over 1780 new scams just by reviewing reports and complaints from the hugely popular crypto message board bitcointalk.org. And the latest high-profile case on failed cryptocurrency project is Bitconnect.
Fail Coins Recent ICO Scam Project Compilation Updates
Naturally, we’re all obsessed with success, and that’s why potentially record-breaking ICOs and those that registered immense success will linger in our minds long after their completion. But how often do you recall the style or how a Ponzi scheme or high-profile thievery took place?
Take for example the case of Coinfido, a potential startup with an idea worth dying for. During its ICO, the startup amassed a massive $375,000+ or so, it is alleged, before it exited the industry altogether.
The project had packaged itself, smartly and comprehensively, to offer “safe P2P transactions using “smart” contracts as well as tracking delivery.” It even had a sharp looking CEO called Joost van Doorn. All that, however, remained a mirage when on Sunday 19th November 2017, its investors discovered the project site was no more. As you might have guessed, the ICO’s Twitter, Facebook, Medium and Reddit accounts were pulled down as well.
“Confido situation, due to problems with the law,” was a funny message that welcomed its legion of investors on their Medium blog. Even more ridiculous was what the company’s representative left on their Reddit, saying they could not expound on what happened to their startup!
It seems Joost van Doorn, the alleged CEO of Confido was just a mythical figure with a remote profile in LinkedIn. In fact, further research on it showed that every one of its team was a fake and their startup was a well-crafted lie meant at milking the unsuspecting of their money.
A day after the discovery that the project had disappeared, it’s reported that the cost of each token fell by 95% and stood at just $0.03 a token. On the same November 20th, it’s said Confido tried to reconcile with investors, even uploading a letter to reassure them that the fall was inconsequential. If you visit the site http://confido.io/ today, you will be greeted by the same. Just to wrap this up, everything regarding what happened remains a Pandora box that will take a while before it’s solved!