ICO Exit scams have stolen more than 100M USD

[labake]

According to this news I read, is this the end of of ICO? Kindly read through and give your opinion
The cryptocurrency industry may be maturing, but that doesn’t mean it’s likely to shed its reputation as a playground for scam artists anytime soon.
That’s according to a report from Diar, which found that ICO exit scams have now cost investors nearly $100 million.
The majority of these stolen funds, an estimated $68 million, has been raked in by exit scams that have occurred during the first two weeks of August. The largest, allegedly pulled by the China-based Shenzhen Puyin Blockchain Group, raised $60 million from three separate ICOs before attracting the attention of the State Market Regulatory Administration (SMRA)
n another particularly morbid exit scam, the organizers of Block Broker, an ICO intended to fund the development of a platform that would “completely eliminate ICO fraud” exit scammed investors to the tune of $3 million.

In its report, Diar’s researchers attribute the proliferation of exit scams to the structure of the token sale fundraising model, arguing that it creates misaligned incentives.
They wrote:
“Unsurprisingly, the blatant exit scams continue to plague the largely unregulated ICO sector where the founders have no contractual obligation to deliver a product. After raising millions of dollars with no string attached, the founders’ incentives to actually build a valuable company are very limited.”
As Diar notes, the amount of funds lost to ICO exit scams is particularly bizarre considering how easy they are to spot when conducting even a moderate amount of due diligence. Many, for instance, use plagiarized whitepapers and fake profile pictures. One project famously used a picture of Ryan Gosling for its fictional graphic designer, while another featured a fake testimonial attributed to an image of Jennifer Aniston.
Nevertheless, fraudulent projects, including those that use other tactics than straight-up exit scams, continue to attract hundreds of millions of dollars from investors, often by using FOMO to trick them into acting against their better judgment.
Even supposedly above-board projects have used the hoopla around exit scamming to accrue media attention. As CCN reported, one startup — Savedroid, which raised $50 million from its ICO and other funding sources — executed a fake exit scam in a controversial publicity stunt apparently designed to drum up interest in an ICO advisory service that the project was launching.

[1714861379]

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[o_e_l_e_o]

That’s according to a report from Diar, which found that ICO exit scams have now cost investors nearly $100 million.

ICO exit scams have now cost investors idiots nearly $100 million. FTFY.

There is no shortage of scam ICOs because there is no shortage of idiots who are willing to send their money to obviously shady trash. People traded Bitconnect for months after it was blatantly obvious to everyone that it was a pyramid scheme. The majority of ICO threads on this forum have people pointing out their obvious flaws, followed by 100+ newbies ignoring these flaws and posting vacuous nonsense like "great project" and "to the moon". The majority of newbies have no idea what they are investing in, and don't bother to find out.

Until this stream of morons dries up, scam ICOs will continue.

[bitcoinhero777]

This is sad to see such news. But here the investors are to be blamed because they are the ones who did not do their research and fell into the trap.

[Snake9999]

No organization can stop these scamers. I think that cryptocurrency legislation is the solution. The market is too chaotic. Everyone wants to swindle money. You can't believe anyone easily.Only by law to sanction them.

[lunaelucemauram]

That’s according to a report from Diar, which found that ICO exit scams have now cost investors nearly $100 million.

ICO exit scams have now cost investors idiots nearly $100 million. FTFY.

There is no shortage of scam ICOs because there is no shortage of idiots who are willing to send their money to obviously shady trash. People traded Bitconnect for months after it was blatantly obvious to everyone that it was a pyramid scheme. The majority of ICO threads on this forum have people pointing out their obvious flaws, followed by 100+ newbies ignoring these flaws and posting vacuous nonsense like "great project" and "to the moon". The majority of newbies have no idea what they are investing in, and don't bother to find out.

Until this stream of morons dries up, scam ICOs will continue.

That is true and it is either they will learn how to invest wisely or they would just put negative words into the market then put money into a scam again. I would highly recommend that they should learn the in and outs of the ICO s before they reinvest but knowing some of them they already put negative words into the market.

[coinpedia240]

The people knew the do's and don'ts of such scams and yet they proceeded with it. These sort of things should act like a warning for the people in the future to not be reckless.

[Everglow]

First we need to know why that "investors" be scammed? Because they didn't have a careful research before invest in that projects, to know clearly information of the team. There is no reason for a project to commit fraud with a well-informed team.

[Champeon]

These sort of news about scams are sad to bear and witness. Even though the people are warned about the red flags, they still fall for it and that is saddening.

[bit..what?]

These are really not good news.
Really a pity that the fraudsters have so much success.
Hopefully the wave of scam icos will eventually stop.
But as long as the fraudsters earn so well, they will probably not disappear.

[cabron]

It will be good to see the link where OP get the information as to where this news are from.


Its true though, we can't just blame the "idiots" who sends money to these projects because even those scam busters were even victimized. Scammers are just becoming very  good at what they are doing that they can persuade people from doing something upon reading their whitepaper..

[cryptogalaxy789]

As long as the investors are behaving like illiterates and being greedy, scam ICOs will never end. Due to the hype created in 2017 many people took the advantage of ICOs to raise money and made their scam exits. Investors didn’t learn much and jumped into crypto for grabbing some quick money and they paid the price for their foolishness.

[bttmember]

So what were the top five exit scam icos, i think this post should also list those icos so the community can become aware of such projects and could be more vigilant in investing.

[Pab]

Only 100 mln .I think ICO what already disappear what about all that worthless ico tokens
I will tell you a story about one indie game company sorry don't remember name
They have collected 500$ from Kickstarter after just one month in game exchange was live and running.In comparison MobileGo collected 46 mln$ they delivered esport exchange after more than one year.In game exchange is still just a project
But MobileGo has 100 devs that indie game company just a few

[dgoswami12]

This is so true and sad. And i think the biggest wrong of crypto is this types of Scams and Frauds , they need to be punished. So always stay safe , invest in ico after deep research , this precautions we can take atmost, no way to find lost asset. And i think the amount is much more than ~$100 Million . Everyday we find some news about exit scam.

[nikola22]

only regulation of ICO market will reduce the number of scams. as you see many investors are afraid of making investments in ICO because of total fraud.

[hmil]

I agree. The market needs to be regulated, monitored because a lot of the scam projects are covered by crypto currency. I chose a very good project for myself.
I also advise you to pay attention to the company's ICO MPCX is a digital block-driven financial services platform. Our long
term aim is to aggregate all the crypto financial services into one place. MPCX
is designed to serve entities' and individual's needs in the areas of digital
wealth management, cryptocurrency exchange and trading, digital banking,
crypto research and ICO promotion, and crypto lending.
A great opportunity for investors to invest in a new project. This project has a very strong team. I am sure that the whole world will soon find out about this!

[beeelzebub]

This is crazy amount of Money.

And i don't think they are counting envion. Which is a shitshow right now and raised 100m $ only by itself.

[jeffthebaker]

How many billions have already been cashed out and put to fun and toys from EOS alone? I imagine that 100 mil metric is quite a conservative estimate...

[czynatagmz]

Pincoin, OneCoin, Bitconnect, Plexcoin, Centratech, Benebit, REcoin, PonziCoin   and many more to add...

it is not idiots always put money in to those scam ICOs, day by day scamers improve their tactics and find the way to trick the investors and collect money and escape,

[AceDeep69]

Many people scam this kind of hope for a lot of time. But I hope all of us who invest in cryptocurrency should analyze about the project and all related issues before any investment.