Waves of ICOs are flooding into global markets at a record pace and it only seems to be accelerating. In a recent review that covered 1,450 digital coins, there were red flags or warning signs such as embellished information and fake executive information in over 250 coins.
The challenge in 2018 and 2019 will be to pick trusted winners in the ICO world.
In addition to false and misleading information, over 100 projects were found to be plagiarized with whitepapers have sentences being exactly the same – word-for-word. Even marketing plans and technical features were copied in some of these presentations.
The Wall Street Journal reported several findings in its analysis that had clear flash warnings. Another analysis indicated that as many as 80 percent of new coins are fake or have some warning signs.
Consumer protection and security.
This leads us back to the amount of work yet to be done by regulators in the US, Japan, South Korean, Singapore and the EU. We at Classiarius have remained focused on the importance of self-regulated efforts in Japan by exchanges, and the work by the Financial Services Agency as they have been a global leader in bringing security, and safety to investors to this new ecosystem. However, recent findings have shown that fake coins are still everywhere in markets and more work must be done.
The Securities and Exchange Commission in the US, the SEC, has actually built a website with a fake ICO as a learning tool to educate the public on how to identify a scam and protect yourself. Freelancers are now writing fake whitepapers for $100 or more, attesting to the demand for these new and false coins.
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Disclaimer: We do not provide investment advice or strategies, this article is not intended as such but only to provide you the reader with information. Please conduct your own research before any investment of any kind.