Fake ICOs

ICO is an initial coin offering. One of the most popular seed funding methods among cryptocurrency startups. This is similar to IPOs in traditional finance, with the difference that IPOs are usually used by long-established and well-established companies including https://nearpay.co/, while ICOs are usually used by young and risky ones. Some ICOs brought huge profits to investors, but many turned out to be scams.

Varieties of ICO scam:

exit scam. The most rude and clumsy fraudulent operation – the creators raised funds and suddenly disappeared without leaving any information to investors. In 2018, it was reported that almost $100 million contributed to the ICO was stolen through an Exit Scam.
bounty scam. The bounty program should pay rewards to users who help promote and advertise the project in the early stages or look for vulnerabilities in it. In the event of a bounty scam, the promised reward is not paid.
Exchange Scam. Developers launch ICO (IEO) on a fake crypto exchange to mislead investors.
White Paper Plagiarism Scam. Plagiarism of white paper – the main technical document of the project. The text is copied from any other project, then the name is simply replaced everywhere.
URL Scam. Creation of fake websites that imitate a real honest ICO and specifying your own crypto wallets for depositing coins. Due to inattention, many users send money to such wallets.
Ponzi Scheme, that is, a financial pyramid. In a Ponzi scheme, organizers attract investors by promising high returns with little or no risk. To receive income from an investor, it is required to attract new people, that is, to build a structure under oneself. This has nothing to do with legal investment activity.
To avoid participating in such projects, follow a few rules. Always read the white paper (preferably so check it for uniqueness). The document should indicate the goals and ways to achieve them, the financial model, analytics, implementation timelines. Evaluate the promises, how realistic they are.

Check out the team. Developers are the most important factor in the success of any ICO. At a minimum, the team should be real, with Linkedin profiles, not fictitious names and photos from photo stocks.