Warning! JavaScript is turned off or disabled! Some features on this website will not work.
« »
»
Sponsored Links

Beware of Initial Coin Offerings(ICOs) Operated by Scammers

2018-01-27T23:38:15  +
Beware of Initial Coin Offerings(ICOs) Operated by Scammers

Initial Coin Offerings(ICOs) are very high risk and speculative investments, are scams in some cases, and often offer no protection for investors. Even in cases of legitimate ICOs, funded projects are typically in an early and therefore high-risk stage of development. ICOs can be used for a wide range of activities, ranging from corporate finance to charitable fundraising to outright fraud. The US Securities and Exchange Commission (SEC) has warned investors to beware of scammers using ICOs to execute "pump and dump" schemes, in which the scammers talk up the value of an ICO in order to generate interest and drive up the value of the coins, and then quickly "dumps" the coins for a profit. However, the SEC has also acknowledged that ICOs may provide fair and lawful investment opportunities.

Please continue reading below.

Sponsored Links

What is Initial Coin Offerings(ICOs)?

Initial Coin Offerings(ICOs) is an unregulated and controversial means of crowdfunding via the use of cryptocurrency, which can be a source of capital for startup companies. In an ICO a percentage of the newly issued cryptocurrency is sold to investors in exchange for legal tender or other cryptocurrencies such as Bitcoin. The term may be analogous with 'token sale' or crowdsale, which refers to a method of selling participation in an economy, giving investors access to the features of a particular project starting at a later date.

ICOs may sell a right of ownership or royalties to a project. The coin in an ICO is a symbol of ownership interest in an enterprise - a digital stock certificate, if you will. In contrast to initial public offerings (IPOs), where investors gain shares in the ownership of the company, for ICOs the investors buy coins of the company, which can appreciate in value if the business is successful. At least 400 ICOs have been conducted as of August 2017.[6] Ethereum is (as of August 2017) the leading blockchain platform for ICOs with more than 50% market share. The Ethereum network ICOs have resulted in considerable phishing, Ponzi schemes, and other scams, accounting for about 10% of ICOs.

One of the first "mainstream" ICOs was executed by the messaging app developer Kik in September 2017. Kik had previously issued $50 million in tokens called "Kin" to institutional investors and sought to raise an additional $125 million from the public. In connection with this ICO, an unidentified third party executed a phishing scam by circulating a fake URL for the offering on social media.

Please share with us what you know or ask a question about this article by leaving a comment below. Also, check the comment section below for additional information, if there is any.

Remember to forward suspicious, malicious, or phishing email messages to us at the following email address: info@onlinethreatalerts.com

Also, report scams, untrustworthy, or fraudulent websites to us. Tell us why you consider the websites untrustworthy or fraudulent.

If you want to quickly find answers to your questions, use our search engine.

Remember to help us, help you, by donating. 🎁Click here to donate

Please continue reading below.

Sponsored Links
Comments, Questions and Reviews ✍
(Total: 3)

To help protect your privacy, please do not post or remove, your full name, telephone number, email address, username, password, account number, credit card information, home address or other sensitive information in or from your comments, questions, or reviews.

The comments or reviews below do not necessarily reflect the views of Online Threat Alerts.

  • Posted: Oct 19, 2017 8:52 PM by an anonymous user from or near: Los Angeles, California, United States

    Is bitcomo at ico.bitcomo.com a scam?

    delete


    • Posted: Dec 25, 2017 2:05 PM by an anonymous user from or near: Manteca, California, United States

      Wondering the same thing.

      delete


    • Posted: Nov 5, 2017 2:32 PM by info

      Click here to learn more.

      delete


Show More of the 3 Comments

Write Your Comment, Question or Review

Write your comment, question or review in the box below to share what you know or to get answers. Please revisit after an hour or more to view reponses or answers to you questions.

Your comment, question or review will be posted as an anonymous user because you are not signed in. Sign-in.


Sponsored Links