Crypto Ponzi schemes. How to avoid the trap of bitcoin scams
The most trending in the cryptocurrency market now are fraud projects. We are talking about ICO that after completion turns to be insidious fraud schemes. People of Russia are more prone to be deceived and the number of fraud cases is approaching two dozen in the country, the total damage is estimated at $ 1.5 billion.
The victims of fraud are mostly high-income people. Gullible buyers are attracted via the Internet in criptoportico by fast income promises. To be more convincing, schemes refer to well-known persons who allegedly already make a profit from investments. The goal of such is solely the profit. Finding supporting documentation or clear project tasks will be difficult. Usually no one is looking for them, inexperienced buyers in the cryptocurrency market rarely ask questions. They want to join the fashionable community quickly, or looking for the wealth growth, but they rarely have enough time and knowledge to get deeply into the topic.
There is no precise data on deceived investors neither in Russia nor worldwide yet. But the popularity of such schemes is rather local, in Europe, for example, scammers often practice currency theft from wallets, but not creating fake ICO projects.
If you still d like to participate in any ICO, firstly you have to pay attention to the setting of goals and objectives and accompanying documents of the project. It will be safer to invest in an existing and already live project, which repeating ICO to increase the number of investors and attract additional funds. Try to contact the team and ask peculiar questions about the project. Look at the communities over the net and ask professionals there on their opinion. But final responsibility for investing stays entirely on the buyer, because most of the countries still does not have the legal basis for cryptocurrencies.