In cryptocurrency, there are so many cryptocurrencies or altcoins and even some new coins arrive and vanish. Such coins some are legit but some are fraud and they are known as ICO’s fraud. The main threat to cryptocurrency market is ICO’s it will affect the investors very badly. Based on activities of this ICO’s fraud complete description was given in this article about the techniques they follow to trap the people.
Here given the trapping techniques of ICO fraud to attract investors to invest in their coins.
Impersonation of accounts
Mainly ICO’s target investors by the technique of impersonation to attract the investors towards them. They use social media as a medium platform to fool the people. It is so easy to create an account on social media and they use big brand names as their accounts and misguide the investors.
We have to check before investing in a currency that given social media account is legit or not and use different scam checkers not to trap in scams.
A number of different coins will emerge in few seconds we have to check whether they are legit or fraud. ICO allow to invest in their company for the exchange of tokens and this pay is to know your attention towards ICO. If any ICO asks you the first question how much your investment is it looks fraud. Then we have to check them in a query about the details of ICO.
To trace the spammers we have to check the quality of the coin, Blockchain etc. The coin with cheap price, cheap or worthless content are the symbol of fraud ICO’s. So we have to be aware of fake ICO’s and not to invest in them. This also one technique to grab the investors. By surfing net we can know the fake ICO’s which was never appeared in cryptocurrency market.
Wallets are also acted as a medium for cryptocurrency frauds. To know whether the wallet is perfect or unethical just see the wallet is asking for verification or not. If a wallet is not taking up the verification it will be scam wallet. Because a legit wallet takes a clarity verification of signup process.
Always do not try to register in wallets. To check the status of wallets there will be many spam checker tools to know the details of wallet. After checking and feeling it is legit and then only register for a wallet. To ensure the protection of coins you have to check the Github repositories if it is not applied to it there will be a threat to coins in that wallet. So it is required to select the wallet carefully to store the altcoins.
Email or Telegram:
ICO’s mainly trap the investors through emails or telegram because they are the best medium platforms to them to distribute their tokens and to chat with the investors to make them invest in their company. They use this technique mostly and they send emails with their wallets to invest money to get tokens there.
For example, they offer you to invest in their official wallets in order to get the bonus and they will ask email for the further frauds or fake offers. Always it is the best to not to react to the new emails based on this type of similarities. It is best to use the official wallet of the company to pay or draw and there will be no wallets that give a bonus. Sometimes entire group or channels of Telegram are fake.
Social media is a place for so many new opportunities and start-ups. Google, Facebook etc. will available to place adds on their platforms. Some are real ICO’s but some may not be. However, the ads with links ending with (.in, .PW, .id etc.) will take to fake websites. If you invest anything in this type of websites results in loss of money and if you log in with your password may lead to misuse of your real ICO website.
Not to trap in fake websites just check the website linked with .com ending and https// support because these websites provide a secure connection.
Important points to trace ICO fraud:
There were constant steps to trace a coin is legit or not and they are.
Check the white paper of that project. Because a white paper of a project consists of all details about that company or project. By the details amended in the white paper, we can ensure it is legit or not.
A team of the project also one of the important and remember-able point to know the service of the company.
In order to invest in ICO with the large amount, it is almost sure to get an audit from special companies and we have to check is it worth or not. If an ICO without any real audit it must be not more than an ordinary lottery.
Roadmap of the company is also important to know the future activities of the developers. It is better to search for developers’ info to get the complete details.
It is better to choose is any big personality invested money in ICO and they work as the best reviewer.
These are the techniques they use to trap the investors and we have to be aware and we need to secure our money without loss.