We need to do something about all the scams

[KonradKarl]

Unfortunately we don't have any chances to fight with scam. Since there are a lot money here, scammer will be here. And we can't do anything with that.

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[ainunfm]

yeah thats was right if we want to stop the scam we need to vanish it into the root (just not making some one being a scammer is nice too)
introducing people some analystic about scam project and getting them understand, but sometimes is hard because other scams are move very nice and slipery like all of that is real project and convice some people more and more attract
but that was nice move. appreciate

[wuvdoll]

Wow thanks for bringing that up and now that I think about it I went in on a token similar to this one without giving it much thought. They were a well established company in real life but no blockchain experience and that was my mistake getting involved like that. Keep up the awesome work we need more heroes like you!

Usually when a well established company goes in crypto you need to raise your red flags. If a company makes money it does not need to do an ICO, especially when the founder is "billionnaire"

And that is for real, because come to think of it, why will any established company be trying to raise funds in the first place when it is already established and have a lot going for it. Moreover, most of these guys really do not have anything to offer and so called investors end up falling into their crazy pranks.

This is not a regulated environment and anything goes, it is just unfortunate that most investors do not end up doing proper digging before going ahead, and like the OP said, scams attract regulators, unfortunately, and we are close to being regulated already.

[BigDig]

I do not think that the crypto market needs regulation. Of course, there was a lot of scam, especially the last time, but he will drop himself in time.
in every new market there are a lot of scammers, but they all lose over time.

[posi]

Hey there,

I am a blockchain developer and most of my work consists in auditing Blockchain projects, criticising their use-case and proposing solutions and guidances.
What really kills me is the amount of scams and useless projects based on economic scarcity, fomo and proof of stupidity (https://www.youtube.com/watch?v=p1ZYGuJXBQE)

The reasons why we have to fight scams are fairly simple:
- Scams attract regulators
- More scams attract more scammers
- People invest blindly but if given the change to understand a project based on a professional analysis I'm sure many will think twice between sending those guys money.
- You know what is worse than exit scams? Shell projects that never get finished or have no traffic because their use case is pure BS.

I propose listing all the ICO scams here that can't correctly justify their use case, presumably scams:

* EQUI https://bitcointalk.org/index.php?topic=2888110.0
The guys weren't able to justify the use of their token and don't answer to critics and questions. More importantly they provide a passive return on investment which fails the Howey test (http://consumer.findlaw.com/securities-law/what-is-the-howey-test.html). They use their public image in order to attract suckers. Based on their use of proceeds they reserve 30% in order to develop the platform. 30% of 72 million to develop a react website with a postgres database and link it to infura (i assume they didn't even think about that). Laughable at best.

I really agree with all. What you said because crypto currency scam and dark site crypto user are what attract the regulating protpcol implement by the government. Therefore, it wil be good if you could fish all the scam ICO on here and I think news spread fast on here.

[Risktaker31]

Unfortunately we don't have any chances to fight with scam. Since there are a lot money here, scammer will be here. And we can't do anything with that.

I totally agree with you as long as they have a chance to scam they will still do it. Like in this community which can give you a lot of opportunity gain profits thru investing/trading and bounty campaign these people will pop out anywhere in this forum. We can't blame the people who are blinded by greed.

[lifengpu]

I do not think that we will be able to counteract something to them, even if we manage to organize a good security system, then there will be people who will turn their scams or find out how to get around all these old scammers

[kryptqnick]

I propose listing all the ICO scams here that can't correctly justify their use case, presumably scams:

This forum has the scam accusation section for such purposes. There are many threads with ongoing investigations of projects as well as proven scams. I think a thread where people would put all of them is inconvenient, but perhaps is would be good to make a childboard in mate section, devoted specifically to ICO scam.
Unfortunately, scam is always out there when there's a free market where nobody is forbidden to promote one's project.
I suppose a way of dealing with this situation would be to make some additional forum rules on promoting ICOs. For example, for ICO to have an ANN thread, make sig campaigns, bounties and airdrops, it would need to have:
- official website
- a team, whitepaper and a roadmap on the official website
- an escrow for any things related to paying people some money in btc.
But this wouldn't stop the scam projects anyway, it would just prevent forum members from investing in them.

[Sebas.tian]

It is good to see that there's someone taking action in stopping all the scammers. There are also some websites and telegram groups that are trying their best to pinpoint scam ICO. These can serves as reference for users who wants to invest in projects. But for me, nothing can beat self-studying. If you research on your own then you can indicate a scam ico itself. There are some ways to know if an ico is a scam or not:by reading their whitepaper,checking the background of their developers and etc.
Maybe we can't stop all the scammers from doing bad activities,but we can prevent them from taking money from all the investors.

[alphaomega.f]

you're definitely right. ICOs have to be filtered, regulated and thoroughly scan because many people are actually being victimized by it, they expect profits for nothing and the money they worked hard for were just being flushed down the toilet straight to the scammers' pockets. scams are also the reason why other people are scared to buy legit coins. because of other's bad experience on scams, they are now pre-judging that all coins are scam.

[cryptokingdom]

I order to avoid been scam. if someone want to invest in any ICO make sure you carryout proper investigation. The entire cryptocurrency community will really appreciate if a platform that will let us know a scam ICO will come into existence and will be able to function accurately.

[VladWulf]

Well in order to determine whether an ICO is a scam we need to have a service of experts that will analyse them and provide justification based on the use case and from business ant technical point of view.
I am surprised that ICOs do not get their project audited.

[VladWulf]

Пoлнocтью тeбя пoддepживaю,этo oчeвиднo.Taк нe тoлькo здecь пpoиcxoдит,в любoй cфepe  ecть тe ,ктo зapaбaтывaeт,a ecть тe,ктo xoчeт ,этo зaбpaть caмым пpocтым cпocoбoм.Taк чтo бyдьтe aккypaтнee,дpyзья мoи)

The problem is that there is no consequence for scammy behaviour.
And regulations are not a solution either, the community needs to be wiser.

[Sir Cross]

Scams have discouraged the use of crypto for others, not only individuals but nations as well. Because there has been a number of people who have fallen victims of scams and this has made them want to regulate or even ban the use of bitcoin or crypto in their country. The problem with scams is that there are still many who fall for this because they lack knowledge of the nature of these scams. People need to learn how to watch out for the red flags so that they themselves will know how to avoid them.

[vicvicto17]

It's a nature of people People get scam, they scam people to grab money and earned. That's why cryptocurrency are decentralize if you could imagine One anonymous coin is worth a thousand bucks and suddenly the owner will run away coz it was declared hacked by the hackers.

[jaysabi]

I agree with OP and am concerned about the "scams attract regulators" part of the OP here, but I've been resigned to the fact that governments are bound to regulate crypto eventually--it doesn't matter so much whether every other transaction is a scam or not.  If bitcoin and other cryptos actually do catch on and attain wide adoption, that in itself is going to get the notice of regulators.  And I suspect that even if crypto doesn't get widely adopted, it's still going to get some laws made and restrictions implemented.  That's just the nature of lawmakers.  Their job is to create laws, so they will.  It sucks and I'm against it, but it's going to happen.

I don't think there's much "we" can do about the scams other than to do our best not to fall victim to them.  Unfortunately, I've seen people's greed straight up run-and-tackle their rationality and skepticism at the 1-yard line, and I expect that'll keep happening as long as crypto exists.

Regulation is a good thing. It will cut down on the scammers and will hold those responsible after the fact if they try anyway  because there will be no anonymity for projects and those who run them. Scams are possible when there is no accountability, regulation creates accountability and raises trust in the system all around.

[VladWulf]

Well I doubt the regulators will be able to approach the problem correctly.
I guess that the best solution would be to have a centralised service all the ICOs need to go through.
A sort of compliance, but the incentive should come from the community (aka i don't invest because you're a scam unless you go through this service) rather than from State lobbying the regulators in order to make their buck.

We already see how nationals act in France, up to 60% of tax on your Bitcoin earnings.

[entrepmind23]

Well I doubt the regulators will be able to approach the problem correctly.
I guess that the best solution would be to have a centralised service all the ICOs need to go through.
A sort of compliance, but the incentive should come from the community (aka i don't invest because you're a scam unless you go through this service) rather than from State lobbying the regulators in order to make their buck.

We already see how nationals act in France, up to 60% of tax on your Bitcoin earnings.

I agree with the centralized service for ICOs just for determining if the ICOs would be able to pass the test and it would be base then on the judgment of the community and not just on a single government agency because there is a tendency that they would pay the one reviewing their ICO so it wouldn't make much difference of preventing those scams.

Unfortunately, there would always be people who would invest in ICOs even if there are so many red flags already because of the possibility of earning 10x or 100x. Greed would always be there because it is just the nature of human. What we can do now is just to be vigilant always and warn people when we know something about a project that may be a red flag like what OP is doing.

[VladWulf]

I agree as well.
Well I guess that the best we can do is to talk about.
If I see any scammy ICO there I will post them.

If you guys see a shady one post it here as well so I'll check it.

[Coinsher]

Hey there,

I am a blockchain developer and most of my work consists in auditing Blockchain projects, criticising their use-case and proposing solutions and guidances.
What really kills me is the amount of scams and useless projects based on economic scarcity, fomo and proof of stupidity (https://www.youtube.com/watch?v=p1ZYGuJXBQE)

The reasons why we have to fight scams are fairly simple:
- Scams attract regulators
- More scams attract more scammers
- People invest blindly but if given the change to understand a project based on a professional analysis I'm sure many will think twice between sending those guys money.
- You know what is worse than exit scams? Shell projects that never get finished or have no traffic because their use case is pure BS.

I propose listing all the ICO scams here that can't correctly justify their use case, presumably scams:

* EQUI https://bitcointalk.org/index.php?topic=2888110.0
The guys weren't able to justify the use of their token and don't answer to critics and questions. More importantly they provide a passive return on investment which fails the Howey test (http://consumer.findlaw.com/securities-law/what-is-the-howey-test.html). They use their public image in order to attract suckers. Based on their use of proceeds they reserve 30% in order to develop the platform. 30% of 72 million to develop a react website with a postgres database and link it to infura (i assume they didn't even think about that). Laughable at best.

You're absolutely right sir.The fact that bitcoin's popularity is still increasing,we need to fight this lawless elements because it can damaged the reputation of the cryptocurrencies.And we know that there are more interested investors or customers plans to invest in ICO but they are afraid to be scammed.I hope there would be a big planned here to create a security system that can detect ICO's scam so that no customers will be interested on it and nobody will be victim from it.