FortuneCoin ICO

It’s no secret that many of the initial coin offerings on the market today are doomed to failure. In 2017, more than 60% of all ICOs failed to reach their funding goals for a variety of reasons- some failed to communicate their fundamental concept adequately, some were poorly marketed, and some were just plain bad ideas.

Recently, the ICO market has been flooded with a wave of extremely low quality ICOs that don’t contribute anything to blockchain technology or development whatsoever. In the earliest stages of the tokenization craze, most ICOs at least provided investors with an interesting concept that justified the use of tokens to generate startup capital.

This latest wave of ICOs, however, is made up of a disproportionate amount of speculative investment platforms, automated trading programs, and other extremely suspicious offerings. The common theme amongst these ICOs is the concept of “lending” or “staking”, which can be confusing to newer investors.

Lending ICOs, or ICOs that claim to offer investors a return on investment for staking their coins, are essentially “high yield investment programs” that take investor capital and use it to fund trading bots or aggressive investment strategies.

High yield investment programs, or HYIPs, have existed in traditional markets for a long time, and are known for being extremely risky. Many HYIPs are nothing more than Ponzi schemes that use new investor capital to pay out older investors. While there are some reputable HYIPs, most are fraudulent in nature and inevitably collapse, taking investor capital with them.

The rate at which “lending” ICOs are launching is alarming, as they use complex terminology borrowed from other blockchain platforms to confuse newer investors. Ultimately, investing in a lending ICO is far more risky than investing in a live cryptocurrency HYIP, as there’s not even a guarantee that the platform will launch at all.

In this article, we’ll take a look at a new lending ICO called Fortunecoin that serves as a prime example of the new wave of HYIP ICOs that are hitting the market. We’ll examine the Fortunecoin ICO and highlight the most obvious red flags to help you protect yourself in future.

What Is Fortunecoin?

Fortunecoin is a fairly standard example of a lending ICO that is extremely likely to disappear with investor capital. The Fortunecoin website describes Fortunecoin as a new cryptocurrency, and provides potential investors with an extremely generic set of features that are provided by virtually any cryptocurrency on the market today.

Fortunecoin operates with the goal of convincing potential investors that it offers a disruptive, innovative, and unique new cryptocurrency token. If you’re looking for a dynamic crypto, look away- Bitcoin and Ethereum already perform all of the functions that Fortunecoin promises.

Fortunecoin claims that users will be able to “stake” tokens, or “lend” them on their platform, which is the primary goal of the ICO. In reality, Fortunecoin has nothing to do with lending- you can’t use Fortunecoin to lend capital to your peers. Rather, Fortunecoin wants you to lend capital to the platform itself, which is then used to fund aggressive investment ventures.

Fortunecoin, unlike most HYIPs or lending ICOs, doesn’t even provide an explanation of how profits are generated by lending capital to the platform. Essentially, Fortunecoin users will provide their capital to the platform for it to invest without oversight or regulation, or any guarantee of whether the platform will be able to deliver on the promises it makes.

Similarly, Fortunecoin has nothing to do with staking. In Proof of Stake consensus blockchains, consensus is reached though the “staking” of tokens in order to agree on the state of the distributed ledger. This is not the case with Fortunecoin- staking on Fortunecoin works the same way as lending to the platform.

Another red flag presented by the Fortunecoin platform is the extremely low effort exerted in the construction of the ICO website itself. Users are invited to sign up for a “News Later(sic)”. The Fortunecoin logo looks like the site creators paid somebody on Fiverr to create it. There is no information available on the creators of the site, and the domain itself is whois protected.

How Fortunecoin Really Works

Fortunecoin ultimately wants investors to purchase tokens in a crowdsale, thereby generating them a significant amount of more-or-less untraceable currency. In most HYIPs, there’s at least a chance that the platform will at least generate profit, even if it may be difficult to withdraw funds if users wait too long.

In the case of Fortunecoin, however, it’s fairly clear that the platform simply wants to separate crypto holders from their currency.

FortuneCoin ICO Verdict

Fortunecoin is a clear-cut case of an extremely bad investment opportunity. When assessing ICOs, it’s essential to understand how they work, who created them, and what innovative concept they’re bringing to the table. Fortunecoin delivers none of this, and doesn’t even explain how profits are generated. Our opinion? Avoid Fortunecoin.

 

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