Crypto Exit Scams — How to Avoid Falling Victim
Shiraz Jagati's original article for cointelegraph.com reduced by 41%
The aforementioned ploys each cost gullible investors in excess of $3 billion - with Bitconnect's native token offering, BCC, even becoming a top-10 crypto in terms of total market capitalization. In regard to how investors can assess when an exit scam is about to go down, Samocha pointed out that it can be extremely useful for all stakeholders to actively pursue information related to the project by following the company's blockchain wallets as well as their media engagement levels. How to best avoid exit scamsIt is quite clear by now that most crypto scams are usually centered around an ICO.
However, it is worth pointing out that there have been more complex cases in the past - e.g., Bitsane, a scammy venture that was able to operate for a few years before finally being forced to shut down. "As with all investments you really need to do your due diligence when investing in a crypto product or company. Do you understand the product? Can you corroborate the numbers showcased by the promoters from independent sources? Is there any evidence of demand for the product? Is the team behind the product 'real'? Most scam companies use fake linkedin accounts to avoid accountability so it is always a good idea to validate their existence." Investors should avoid investing in an idea-only product with a multiyear roadmap.
Potential investors should look up a project's founders on Twitter, LinkedIn to verify whether they have been active in the crypto realm for at least a few years. Making money via crypto trading or investments requires a lot of due diligence by the investor and it thus is always desirable that investors do their homework before going in big on a particular crypto project.
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CN [too long; didn’t read]
Summarised crypto news.