As of the end of June 2018, there are more than thousands of cryptocurrency projects that have virtually ceased to exist. These data lead analytical resources Coinopsy and DeadCoins, writes Bloomberg.
Among such projects we can find such in whose protocols not even a hint of any development or future activity, as well as Frank have benches, including BRIG, fraudulent project brothers Jack and Jay Brigham, Titanium, investigation of which the Commission on securities and exchange Commission (SEC), CryptoMeth, Droplex, OreoCoin and Roulettecoin
It is noteworthy that in aggregate all these dead projects have attracted several billion dollars of investment.
As the newspaper notes, despite the fact that financial regulators of different countries constantly check issuers of the tokens on the legitimacy of the investor-fans often neglect the basic rule that requires you to spend at least an initial analysis of the project, and invest millions of dollars in highly dubious coins.
In addition to the common “disappearances” of sponsors and “hacker attacks”, there are also very exotic legends the closure of sites, for example, sudden “death” of developers.
The results of the study the Group showed that in 2017 fraudulent ICO has raised more than $1 billion Of these 271 the project was accused of plagiarism in the preparation of the white paper, had employees posing as other people, or led other questionable activities.
Additional research showed that only 8% of tokens after the ICO was able to get to a reputable exchange.
“It is clear that the ICO market is crowded with hype and scams. In my experience, 80% of the projects was a fraud, and 10% lacked substance, which they “died” immediately after receiving funding. It is likely that most of the remaining 10% of projects will fail”, – says financial analyst Bloomberg Aaron brown.
Earlier this month, the head of SEC J. Clayton said that the struggle of his Department with fraudulent ICO is just beginning. The companies that raise funds through the sale of digital tokens, should not have any illusions and think that the government will treat them differently than the firms participating in the market of traditional securities.