One; ICO is also known as token sales. Token production and crowdfunding are innovative ways for start-ups to raise funds, and support their development by issuing new digital tokens to early supporters. Because ICO can raise a lot of money, and there is no perfect legal provision in the field of ICO, ICO has become an attractive market for cyber criminals.
The fraudster will create a seemingly reasonable product to attract investors who believe in the future development of the company. After raising enough funds, the founding team of this ICO will disappear without a trace with digital assets. Confido is a typical ICO fraud case according to Bian Xiao's experience in operating CoinBAB platform and several other famous platforms. They claimed that they were developing an ICO platform based on smart contracts. After raising about $375,000, the platform disappeared immediately.
In order to avoid becoming a victim of ICO fraud, please do an in-depth study of ICO before investing. Familiar with products/services, verify the legitimacy of the company behind ICO, and study the background of the project founder. Meanwhile, you can find legal projects in Reddit and BitcoinTalk forums, because other community members may have done some research, which is usually enjoyed on these platforms.
The second scam: advertising fraud
Beware of digital currency platform advertisements that lead you to phishing websites. Recently, there are many cases of cloning exchange website advertisements on Google, and there are cases of Trezor hardware wallet advertisements on Reddit. Be sure to mark the correct links and don't browse other links that look similar. Extended applications of Chrome, such as Mwtamask, also help to avoid phishing websites. If you want to make money, you have to take risks, but you must learn more and watch more before taking risks.
The third scam: false gifts.
At present, some illegal digital currency trading platforms are giving away hundreds, thousands or even more XX digital currency for free. People in the industry know that these are not reliable at first glance, and the purpose is to cheat you to register. When you really register successfully, they will find all kinds of reasons to avoid it. Encrypting digital currency is also an asset. No one wants to give his assets to anyone unconditionally for no reason. Unless it is a legal, professional and formal trading platform, CoinBAB and other platforms have done a good job in this regard. When you settle in, you will be given a dozen or dozens of new currencies to try. Bian Xiao thinks it's more humane.
The fourth scam: fake exchanges and wallet websites
In order to ensure that more potential users can see it, criminals usually buy Google ads. In this way, when people search wallets or exchanges, fake websites will appear in the eyes of users as the first result. To avoid this, please carefully check the URL of your web page and make sure it is correct. You can also find the providers of these services on Twitter or other social media channels to update the latest information in real time.
Everyone should pay more attention to domestic websites, such as phishing websites, websites that have not been filed, or websites that are unclear. These are illegal websites that are not recognized by the state and industry. Attention!
Although there are many phishing websites recorded, it is difficult for a novice to see them. If it is an illegal website, they can't use their own information to record it, but they will use the virtual data of a third party to record it, so it is generally difficult for novice Xiaobai to see it.
The fifth scam: pulling people's heads
In order to attract more members to join, some platforms often adopt pyramid schemes for crazy promotion. Euphemistically called "dynamic award", the essence is "pulling people's heads".
Let's take the "Wanfu Coin Fraud Case" as an example. Each level corresponds to a different bonus return. If the development goes offline, you can get a commission, and you can get a commission at different levels. The minimum one-star member can get a commission of 10% of the funds paid by offline members. If a certain number of members are developed, they can be promoted to a higher level and get more commissions. 5. The percentage of commission paid by diamond members to offline members is as high as 80%.
In Bian Xiao's view, some formal and legal trading platforms don't have invitation links, because they don't lack users, at least when Bian Xiao used to do CoinBAB. As long as the platform has a good reputation and many active users, it will be very popular wherever it is. Therefore, Bian Xiao has always believed that illegal platforms will not last long. Although some people make money, they will spit it out sooner or later.