The unfortunate fact, that the ICO the market is dying. According to Satis Group data, over 81% of the market is a dead project. The naivety of the crypto-fraudsters was the cause of the lack of investor confidence.
It is worth talking about the most important scams, Which may have destroyed the ICO in 2018 as a transparent way of investing.
Ifan and PinCoin: $ 660 million
These two encrypted startups took first place, just because they are running money scams from the Vietnam Modern Tech company.
The founders have promised an annual investment of 570%. Which sounded good for investors. Because everyone wants a high income.
It was impossible to resist the offers of Modern Tech, because marketing was brilliant. The project gave a bonus for every committed investor.
Now we can say that initially it was an obvious scam. But no, the encrypted criminals planned everything with a little detail. But in the end, the word always comes out. The mass action in front of the Modern Tech office was triggered by the fact that cryptocurrency media have started to publish information about the dark companies of the company. During the mass action, investors demanded a refund.
In the end, 32 thousand investors were deceived and the founders fled with $ 660 million. Ironically, Ifan and PinCoin were guilty, but they were not punished for the crime.
PlexCoin: $ 15 million
The US Securities and Exchange Commission (SEC) has undertaken the fraud. That's why it deserves attention.
Scam projects on the ICO market are like an "infection" that should be dealt with in the beginning. PlexCoin was treated before it caused significant damage.
The creators of PlexCoin have promised a great profit for investors. This project promised a profit of 1300% per month. "PlexCoin will be the first cryptocurrency by capitalization, which will eliminate Bitcoin", the creators said. This hypothesis was a trigger for the SEC.
Dominic Lacroix, the creator of this scam, has been charged and involved in legal responsibility "Intentional distortion provided to investors" from the French Financial Markets Regulator (AMF). Following the example set by AMF, the SEC filed a complaint and asked to suspend the ICO.
During the project investigation, he was suspended from a lawsuit. Without accepting the restrictions and continuing to sell counterfeit tokens, Lacroix was fined $ 10,000 and deprived of his freedom for two months.
PlexCoin earned about $ 15 million. Ironically, the scammers were fined $ 100 thousand.
BitConnect – presumably, several millions
This is a good example of a fraud camp. For two years, he was pulling out money from credulous investors. BitConnect was launched in 2016 at the peak of the hype.
The point of deception was simple: "Invest more – earn even more". They promised that if they do not withdraw the funds for 120 days, the profit will be 365%.
Due to the fact that in December 2017 the cost of BitConnect token was $ 463, the states of Texas and North Carolina have turned their attention to it. They made the accusation due to the unregistered distribution of securities. This reduced the token price by 90% and became $ 5.92 per currency.
But, after 2 years of existence, in January, the project disappeared from all exchanges, and investors were left with nothing, according to preliminary estimates, they lost several million dollars. And, of course, they presented a collective action amounting to 700 thousand dollars.
Divyesh Darji ran a project from Surat, India and was arrested in the summer of 2018 during the investigation.
Benefit – from around $ 3 to $ 4 million
The criminal schemes of Benebit for the ICO market were simply perfect, unlike the projects presented above. Everything was at a high level, the project held first place in the charts, there was a high activity in social networks, the public relations manager did a titanic job. The asset business has been brilliant.
But they have been revealed by the smallest detail. It was because of the photos they took from the school site, which were noticed by an unknown person. After everything came out, the creators turned off the site, the accounts and hid themselves.
During the investigation, no one would think about verifying the authenticity of the documents. It turned out that the passport data used by job promoters were false. Another outstanding problem is the evaluation: how did you get such high marks and who allowed this to happen?
Conclusion
This is a TOP scam project that should become a lesson for investors. They made a list of "best scam of 2018" of The shark of the coin, only for the uniqueness of fraud methods.
For example, in ICO Ifan, PinCoin and PlexCoin, investors were attracted to high profits. They were so blind that they did not notice the warnings of the experts.
PlexCoin was the first scam, in which the SEC interfered. As for PinCoin and Ifan, they are extraordinary. Since the creators were found, but not punished.
The start of benefits was unique due to the fact that $ 500,000 was invested with professional marketing. On the example of this project, we can see the gaps in the IOO regulation system.
BitConnect surprised us by the fact that its financial pyramid was so obvious that it allowed it to hide in plain sight. This is a good example of aggressive marketing and the greed of investors in obtaining money.
In fact, the imprudence of man is the root of the absence of problems of confidence for ICO and not of such projects. Everyone thinks this will not happen to himself. But it will, if you are not reasonable and you will not check the information on the project in which you intend to invest.
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