Algorithm of Action for Victims of Scam ICO 1246

scam ico

The market for initial placement of coins is saturated with fraudulent projects, which initially promise to “change the world”, but after receiving funding, they stop being in touch. There are, of course, those which simply are not able to fulfill their obligations, and the product for which the investors’ money was spent is not necessary for anyone. Some particularly brazen scammers removing their site, leave on it not quite censorship messages, as it was with the Lithuanian startup, which wanted to “bring the blockchain” into the vegetable and fruit industry.

In this article, we’ll talk about what you need to do in order to get your money back if you have already invested it in a fraudulent ICO.

Contents:
(please, click the topic to scroll down to it)

  1. Is it real to return your money if you’ve invested in a scam ICO?
  2. What to do in the beginning? Collect evidence
  3. Who to sue?
  4. What do you need to know about the court?
  5. Conclusion

1. Is it real to return your money if you’ve invested in a scam ICO?

As practice shows, surely, there have been similar precedents in history, but to a greater extent they concern only the United States and Canada. For example, in 2017 on the initiative of the SEC, the founders of the scam project Munchen returned 15 million dollars to their depositors. Another example, the organizer of the cryptostart PlexCoin Dominic Lacroix was arrested, sentenced to 8 weeks of imprisonment, and fined personally for 10 thousand, and his company for 100 thousand dollars.

The Securities Commission is actively working in this field, but, unfortunately, outside of North America it is not yet particularly developed. For example, in the CIS countries no ICO scammers have been caught yet. But, despite this, there is still a chance to get your money back. Please read this material to know what to do in such an unpleasant situation.

2. What to do in the beginning? Collect evidence

So, unfortunately, you have already realized that you gave your money to criminals, what should you do? To begin with, you need to collect as much evidence as possible:

  • screenshots of correspondence in Telegram or other messengers;
  • copies of e-mails;
  • white paper and road map of the project.

If you personally talked on the phone with the organizers of the ICO, then you need to contact the provider to give you a printout of your calls. If you have a personal contact in offline, you must specify the place, date and time of the meeting. If this happened in a public place, it is likely that the fraudster’s face has got into the surveillance cameras.

3. Who to sue?

The overwhelming number of ICO projects has a similar structure. Often, in order to start the production and sale of digital tokens, the organizers register a special issuing company. As a rule, they are created in the Seychelles or the Cayman Islands or in Estonia and Singapore. Unfortunately, finding out data about an issuing company is a rather difficult task. The only place where you can find out which legal body is in charge of this project is an agreement to sell tokens or Token Sale Agreement.

But, it is worth noting that a registered issuing company cannot conduct operational activities, and it is even more complicated to find any information about who conducts it than about an issuing company. Of course, you can try to look for tracks through the project team, but if the organizers of the ICO have created a scam from the very beginning, then they hardly indicated their real names there. Most likely, charges will have to be raised against the issuing company.

4. What do you need to know about the court?

The good news for victims of fraudulent ICO is that there are virtually no “loopholes” in the world where financial criminals can remain in the shadows. Banks from different countries of the world cooperate with each other and transmit information about the movement of money; therefore, to hide a large amount of stolen money every year becomes more difficult.

The bad news is that defrauded investors can demand financial compensation only through local courts of the countries in which the issuing company is registered. Litigation is not a cheap pleasure:

  • Estonia – 7-8 thousand euros;
  • The Cayman Islands – 30-50 thousand dollars;
  • Singapore – 80-130 thousand dollars.

These figures do not include government fees and other related costs. In order for “battle to worth the blood,” the amount of lost funds must significantly exceed the costs associated with the court. An alternative way to save money in this matter is to file a collective claim. For this it is necessary to collect in one place a certain number of the same deceived investors and to divide the costs equally.

5. Conclusion

There are a lot of scam projects on the ICO market, so it’s quite difficult for an investor who is starting not to get bogged down by criminals. But even if you have become a victim of swindlers, albeit low, but still there are the chances of getting your investments back. It is necessary to adjust to a lengthy lawsuit, which will also require financial injections from your side.

How to Spot a SCAM?

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The Chinese Crypto Rating Welcomes New Coins While EOS Remains #1 228

chinese crypto rating

Taking into account all the crypto novelties, China Electronic Information Industry Development updated its previous ranking of the best digital coins. Some cryptocurrencies managed to keep their position or even climb up, others lost their ground.

The list of the best 5 coins currently looks in the following way

  1. EOS
  2. Ethereum
  3. Komodo
  4. Nebulas
  5. NEO

Ethereum and EOS are keeping their positions, they once more proved to be best in terms of technology, application and innovativeness. The “lucky” coins of the previous rating Lisk and Stellar have both lost 2 positions, whereas Bitcoin has climbed from the 17th to the 10th place. However, the next rating might change the things drastically.

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Ripple Wonders Why The SEC Has Not Come Up with Cryptocurrency Status Yet 332

crypto status

We all remember the loud statement of the Securities and Exchange Commission which clearly said that the world’s two most popular digital coins (Bitcoin and Ethereum) do not comply with the definition of a security. What about other altcoins?

The representative of Ripple contacted the SEC not so long ago, asking why they have not yet determined the official status of cryptocurrencies. In response, the Commission’s spokesperson stated:

The SEC has not made a determination as to whether any specific cryptocurrency may be deemed a ‘security’ under the federal securities laws.

This answer is not quite informative, thus, we only have to wait upon the decision of the SEC.

We remind you that the SEC will take the decision concerning Bitcoin ETF in September of this year.

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A Crypto Movie with Kurt Russell Will Soon Come Out 488

crypto movie

As we reported earlier, Hollywood started working on a film directly involving the topic of cryptocurrency. The producers have recently disclosed a couple of interesting details about this movie, besides its star-studded cast.

The plot of this thriller will wheel around the complicated world of money laundering, fraudulence and scams involving digital currencies. The main character, played by Beau Knapp, is going to unravel the dark secrets of this world.

The producers admit that they don’t have enough knowledge about crypto and trust specialists to handle the technical part, however, they have overall positive comments about it:

We hope it lasts for a long time…That’s one of the reasons why we wanted to do the film. We’re not into fads. We hope it stays around for a long time.

The official release of the movie is scheduled for 2019.

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Blockchain Transactions: How Do They Work and How to Track Them? 833

blockchain transactions

Satoshi Nakamoto, the creator of Bitcoin, published an article “Bitcoin: A Peer-to-Peer Electronic Cash System” in 2008 and introduced a fundamentally new way of exchanging money. From that moment on, the need for a third party, like a bank or other financial institution, simply disappeared. In fact, this has become a new financial revolution.

Today we will talk how blockchain transactions are conducted from a technical point of view, how reliable they are, what features they have and how they can be tracked.

Contents:
(please, click the topic to scroll down to it)

  1. How does blockchain work in general?
  2. How are transactions organized?
  3. What features do blockchain transactions have?
  4. How to test a blockchain transaction?
  5. The reasons why transactions can freeze
  6. Conclusion

1. How does blockchain work in general?

We should start with the fact that Bitcoin is the first ever completely digital currency. Unlike electronic money, it does not exist even as a digital file. It is a huge stream of data about all the transactions that have ever been conducted. Blockchain is presented in the form of a giant accounting book, which is available to all network participants.

Each transaction is not stored separately, the information is placed in the blocks. Different networks have different block sizes, for example, until recently one block in the network of Bitcoin “weighed” 1 MB. But the BitMEX report says that after the introduction of the new SegWit protocol, the average size of one block has increased to 1.06 MB, and some have reached 2 MB.

In order to obtain a new block, there are different mechanisms for consensus. The most widespread ones are:

  • PoW (proof of work). Here, the miners need to solve a complex cryptographic equation. After that, a new block is added, for which the system rewards the finder with a certain number of coins.
  • PoS (proof of stake). This mechanism involves adding a new block to a user who has a certain number of coins. The more coins a user has, the more likely he/she will generate a new block.

Each subsequent block stores information about the previous one. Another important feature of blockchain is its decentralization, since information is simultaneously stored by all participants of the system (miners, master nodes). Thus, after the block is added to blockchain, it can not be changed or deleted.

2. How are blockchain transactions organized?

As it was mentioned above, transactions that are carried out in the network of blockchain do not require the participation of a third party. Let’s see how this happens in practice.

Let’s say you want to transfer 0.5 BTC to another person. Before the system recalculates the wallets’ balances (not transfer, namely, the recalculation), this transaction will fall into the so-called Memory Pool – the operational memory of all the miners connected to the network. After this, the blockchain transaction must be confirmed by at least 6 different miners. They (miners) should check the correctness of the transaction:

  • the amount of commission for each byte of information;
  • the physical possibility of adding a transaction to an existing block (if there is too little space left in the block, the transaction is transferred to the next one that still needs to be found).

After these actions, the data on the operation are permanently entered in the blockchain, and the coins are credited to the wallet of the recipient.

3. What features do blockchain transactions have?

Based on the abovementioned information, it is worth highlighting a number of features that are typical for blockchain transactions:

  • Irreversibility. Since the blockchain system is a decentralized system, it is not possible to affect the data that has already been entered in the register. Therefore, it is impossible to mark the already completed operation.
  • Lack of regulation. Due to the absence of the center from which the system is managed, it is impossible to completely prohibit and shut down cryptocurrencies. To do this, you must destroy all the computers of miners.
  • Anonymity. Each blockchain has its own level of anonymity, but in any case, even in pseudonymous anonymous networks, such as Bitcoin, for example, the names and surnames of users are never used for transactions.
  • Reliability. The network algorithm fixes the balance of all the wallets at the same time, but only a user who has a private key can make a transaction from a particular wallet. Subject to observance of elementary security rules, it is not possible to crack the wallet. You can lose your coins only because of your own fault. For example, if you send them to the wrong wallet, infect your computer or smartphone with a virus or somehow let scammers get private keys.

4. How to test a blockchain transaction?

Transactions in the Bitcoin network can be tracked on the site www.blockchain.info. In order to see information about a particular transaction, you need to go to this site and enter a unique transaction hash in the search bar. Then the system displays the actual information.

In this service you can also see information about a particular wallet:

  • transactions in the history (by dates);
  • the total number of coins that passed through the wallet;
  • the list of all addresses which there have ever been interactions with (incoming or outgoing operations);
  • current balance.

5. The reasons why transactions can freeze

The main problem of Bitcoin and many other coins is the speed of blockchain transactions. As for  BTC, this indicator reaches a mark of 7 operations per second. Previously, when the total number of users was small, this was enough. But now, with the growing popularity of the industry, the “line” for the transaction can turn into tens and even hundreds of thousands of unconfirmed operations. You can view the current list, which is updated in real time, on this service.

Some transactions may even freeze in the Memory Pool for a long period of time (up to 72 hours). What factors affect the speed of transaction confirmation?

  • Total pool load.
  • A very small commission. Miners confirm transactions with a larger commission in the first place.
  • The transaction weight is too big, and it simply does not fit into the almost completely filled block. In this case, it will be automatically transferred to the next one.

6. Conclusion

Cryptocurrencies have made a real revolution in the financial sector, on a scale that we still can not comprehend. The number of blockchain transactions is growing every year. In order for everyone to be able to use Bitcoin at the same time (like Visa, for example), it is necessary to solve the problem with bandwidth.

Blockchain transactions have both their advantages: the absence of intermediaries, small commissions, anonymity, security, and their shortcomings: irreversibility, low throughput.

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The Viewers of Adult Videos on Pornhub Will Receive Cryptocurrency Rewards 2652

Pornhub

The company Tube8, owned by the popular adult entertainment site Pornhub, is planning to move onto blockchain and tokenize the platform completely. To do so, it will be cooperating with Vice Industry Token.

The visitors of the Tube8 will soon get a chance to receive tokens for performing certain activities on the platform.

The purpose of this upgrade is mainly keeping the viewers. The representatives of Tube8 believe that a regular viewer just watches a couple of videos and leaves, whereas if he/she can potentially be rewarded for doing this, it will be encourage the person to register an account or at least return to the site afterwards.

We would like to remind you that Pornhub has recently started accepting crypto as a payment option for its premium account.

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Buterin, Winklevoss and Others: The Future of the Digital Currency World According to Major Crypto Personalities 1472

experts opinions on crypto

The crypto world has entered the new stage of its development, it has always been volatile, but these couple of weeks have been absolutely crazy: coins are jumping up and down, Bitcoin ETF is on its way, blockchain is taking over the world.

No doubt, crypto specialists and financial experts have a lot to say. Today we came up with a compilation of sayings from the stars of the cryptocurrency universe that we found particularly interesting and important.

The CEO of the crypto exchange Gemini, Tyler Winklevoss believes that the acceptance of cryptocurrency in the world as a means of payment equal to fiat will not happen in the next couple of years:

The vast majority of Wall Street firms are still not participating in the cryptocurrency market, which remains primarily a retail-driven market. This will change over time, but it will take time.

Pantera Capital’s CEO is way more optimistic on this issue. He sees great potential in the blockchain technology, and digital coins, according to him, are “superior form of currency.

Ethereum’s founder Vitalik Buterin wants cryptocurrencies to become more user-friendly and common in the everyday life. He also thinks it may become possible only in case the proper regulatory framework for crypto is developed by the state governments.

I want to be able to walk into a convenience store, get a card and pay a small fee to start using Bitcoin Cash,” he said.

The last, but certainly not least, is the CEO of BitMEX, Arthur Hayes, who has some serious doubts concerning Ethereum. According to his calculations, the price of the world’s #2 coin will drop lower than $100.

It is this moment,” he added, “that Ether goes from a 3-digit to a 2-digit shitcoin.

Although we are sure that experts know what they are talking about, the crypto world is way too unpredictable. We can only wait and see whether the abovementioned predictions turn out to be true or not.

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