The perfect solution to scam in the crypto space

[okala]

Very correct most especially the ICO regulations part if new ICO go through regulation process the regulatory bodies will easily fine out fake and scam ICO because they will not be able to meet up with regulations requirements, and exchanges should upgrade the security software and carry out regular checks on they smart contract to detect any abnormalities before it result into full blown hack case.

[CryptoBry]

The rate of scam and hacks in the cryptocurrency market keeps growing at an alarming rate. In my opinion there best solution to these crimes in the cryptocurrency market are

1 ICO regulations: if there is ico regulations then investors should only invest in ICOs that are certified and meets the required standards. This will reduce the scam rates as fake ICOs will not be able to raise money for investors anymore

2 Smart contract Auditing: I think in other for coins and exchanges to avoid hacks and attacks they should constantly audit their smart contracts at regular intervals (like every 2 weeks or every month).  Doing this will help them detect the bugs and loop holes in their smart contracts and correct it before it is used by hackers.

I am sure these measures can be helping the cryptocurrency industry deal with the flood of scams which soured many investors' interest tarnishing the image of this fledgling industry. As to ICO I think that we better not use the same platform anymore and proceed to the STO where all projects have to be vetted and people the project has to show that they are real and that they have the qualifications and track record for more transparency and openness. Another requirement is that they should be making a certain amount of deposit before proceeding with the crowdfunding...as to where the amount to be deposited this can be decided by an agency doing the regulation. Right now, we also have the IEO and this can be a better version of the ICO. An STO can also do an IEO as IEO means that the crowdfunding is done in an exchange. The only we can move forward with this industry is if we try to make things better for the protection of the people who are trusting projects with their money and support. Deregulation and decentralization can work if we are not dealing with greedy human nature, otherwise checks and balance must be provided in many ways.

[BlackFor3st]

Your plan and suggestion is a good way to at least lessen the scam projects in crypto space but even if you are going to regulate ICO's.

We cannot assure that it can stop the scam instead the scammer will just upgrade their tactics like meet the required standards for an ICO then they will just exit anytime once they can get a good amount of money already. But still those suggestions are good starting point to at least remove those cheap scammers.

[voltesbit777]

ICO regulations is a good idea to reduce scams and frauds in ICO investments. But, which regulatory body will do the tasks? SEC might be an option but will need to setup properly the rules and regulations. And considering that would only be available in countries which recognize cryptocurrency.

[odukoyaewatomi27]

this can be a solution to all these problems but it will also be very difficult to implement because even though investors know that it is very risky to invest in non-certified ICOs but they cannot ignore the ICO because sometimes what ICO offers is like that very tempting

If after the emergence of ICO regulations an investor still decides to invest in an ico or project that is not verified by the regulatory body just because of the tempting offer or bonuses offered by the project then he is fully liable for his actions and should not blame anybody for his misfortune from the project. Because the ICO regulation was created to protect investors from scam and if one investor then decides that he doesn't need that protection then it's nobody's fault.

[forexandcryptoauditor]

I think your second point also comes under regulation topic. Once the reulations are applied on the projects there will be mny mandatory formalities which projects need to follow.
But still, regulation topic is under discussion and no one knows when it will be implemented. Till the time, from our side we have to be more cautious selecting the projects for investment purpose. For hacking alsos we have to ensure that our investment is diversified. Here i mean to say diversification in terms of exchanges. Using different exchanges, we can lower the risk of our cryptos getting stolen.

[Adriano2010]

Is a solution, but maybe will not happen soon and people should wait and not invest on ICO without regulation, maybe after this will happen we will can invest without any fear about losing money.

[deodivine1]

Regulations as mentioned will help curb scam to an extent, but I think the new IEO and STO concepts are more secure than ICO. Atleast investors will have peace of mind since they are sure the project team members must have passed through screening by the exchange. Talking about hacks, firstly protect yourself by being security conscious, do not click malicious links, if possible install detectors for malicious sites, never back up private key or so online, exchanges should upgrade their security too.

[nekonyun]

in my opinion, currently what can guarantee ICO security is a large exchange. I think the ICO will be replaced with the IEO because the IEO can guarantee the success of the project. And investors are not afraid to invest.

[joshy23]

in my opinion, currently what can guarantee ICO security is a large exchange. I think the ICO will be replaced with the IEO because the IEO can guarantee the success of the project. And investors are not afraid to invest.

Not exactly success but assurance that it will listed inside the exchange, IEO already changed the face of this investment process,more investors thinks that instead of taking the risk around ico's where you ain't sure what will happen to the project, investing with IEO's will give them much higher chances to succeed.

[restuibu]

yes indeed ICO regulations will make crypto better in the future but who will arrange the ICO?

in my opinion, currently what can guarantee ICO security is a large exchange. I think the ICO will be replaced with the IEO because the IEO can guarantee the success of the project. And investors are not afraid to invest.

The IEO is just a trend now and the IEO does not guarantee success whether you don't remember the IEO done by Bitrex failed

[Serve20]

I think your advice is worthy to make use of. If ICO industry will continue to stay relevant, then there must be regulations which will always force project team and developers to be accountable and protect the interest of investors but I don't think the industry is ready for this

[The Seller]

this can be a solution to all these problems but it will also be very difficult to implement because even though investors know that it is very risky to invest in non-certified ICOs but they cannot ignore the ICO because sometimes what ICO offers is like that very tempting

That's the thing that makes more people lose and always get caught up in ICO fraud. Sometimes they offer very large bonuses and always look promising, but actually it's just a charmer. Honestly, it is very difficult to distinguish, apart from what the OP has written is really going to become a reality.

[BitFinnese]

I am very inclined to ICO regulation.  But I believe this will not guarantee a 100% scam free environment.  Just check the financial investment in fiat, Sec has regulated this and yet there are lots of scam company that victimized lots of unsuspecting people.  It will lessen but will not remove the scam activities.

yes indeed ICO regulations will make crypto better in the future but who will arrange the ICO?

The developer of course, they just need to comply with the regulation, so they need to file a license to operate as ICO and submit all the needed documents.

[rijaljun]

There is no perfect solution that will completely stop scammers. I think it purely depends on personal ability to make decision. Scammers will get nothing if we choose the right way. So the best solution is our knowledge, yet it's perfect.

[rachman mahesa]

All regulations must not be there if you want to invest in the ICO. Because if you realize that investment in ICO certainly does not have coercion from the project. All decisions are made in each person, of course there is no responsibility if there is a scam to invest in ICO. Because that is indeed your decision, you who analyze you determine. So all of that is our decision when investing in ICO. why researching is more important, because that's the purpose so you don't invest in a scam ICo.

[kingpin4321]

I  in full support of your first point. The initial coin offering sectors really need a regulations to curtail the activities of scammers. It's so easy to organise an ico with out meeting any formal standard so a regulation would help tackle this situation

[electronicash]

regulating would be a hard task foe SEC to do it. seeing how much ICO is going to be launched in a day, they can't catch up to that if they are going to verify each team whether the images, profiles are real and whether they have a working MVP and are they capable of maintaining all the work and all these stuff.  and so IEO was invented. yet this again will have a bigger risk, grander actually.

[Ben Shedly]

The rate of scam and hacks in the cryptocurrency market keeps growing at an alarming rate. In my opinion there best solution to these crimes in the cryptocurrency market are

1 ICO regulations: if there is ico regulations then investors should only invest in ICOs that are certified and meets the required standards. This will reduce the scam rates as fake ICOs will not be able to raise money for investors anymore

2 Smart contract Auditing: I think in other for coins and exchanges to avoid hacks and attacks they should constantly audit their smart contracts at regular intervals (like every 2 weeks or every month).  Doing this will help them detect the bugs and loop holes in their smart contracts and correct it before it is used by hackers.

I have a third rule - do not invest in new projects that are not yet traded on any of the exchanges. It is this rule that saves me from fraudsters. Now I can not lose all the money invested, I can only get a small loss from the fall in the price of the coins I bought.

[Ailmand]

That's brilliant and wise idea but I don't think it could literally destroy and stop scams and fraud around the crypto community. Scamming varies in many types and scammers could attack exchanges or even users personally. The best thing that we can do is to start the awareness within ourselves.