It’s not a secret that there are plenty of Initial Coin Offerings (ICOs) in the cryptocurrency market and that some of them are scams. However, most scams are easily recognizable. They use fake pictures from Stock Photos and sites alike, do not have much information and their White Papers do not have more than 5 or 10 pages. The real surprise happens when something like Starflow is a scam.
When a company actually creates a great scam and it fools a lot of people, things can get ugly. Many popular ICOs fail, that is also true, but mostly due to mismanagement and lack of experience. Starflow, on the other hand, tricks you into falling into a very circular argument: that your tokens will be valuable because people will use them and they will use them because they are valuable.
What Is Starflow?
Starflow presents itself as a Sweden company which “brings the smart property to the influencer economy”. The main idea which drives the platform is that users can create an environment in which they can monetize their content using StarCoins, the cryptocurrency of this company.
They create content on the platform and will be paid with the company’s tokens. These tokens, the company states, will start to be valuable because the will work as loyalty tokens and the users will, in fact, use them.
Why Is Starflow A Fake Influencer Crypto Coin?
While Starflow is not really taking your money and vanishing, the platform is rather pointless. While the White Paper is actually very big, the whole idea of this cryptocurrency is that StarCoins will work as a loyalty token and this will strengthen the relationships of the user, which will strengthen the coin. This is a very circular argument. A happens because B which happens because of A.
The owner of the platform, Johan von Holstein, is also a huge red flag. While he is a true person, he was notorious for the creation of the Icon Medialab during the dot com boom, a company whose shares plunged 98% in a single year. Would you trust this creator?
How Can I Protect Myself From Scams Like Startflow?
Unfortunately, the only way to protect yourself is by understanding this market well and being suspicious of everything. Check the history of the owners of the company. See if their plan actually makes sense. Doubt the truth that is presented to you. If something is too easy or too good to be true, it’s probably not.
Another action that you can take is to use our blog to be always better informed about the news and trends of the cryptocurrency market.