How to Spot a SCAM?

More and more startups are entering digital currency market aiming to make money on investors and, accordingly, more and more investors also do so, aiming to make money on startups. It is perfect when both manage to cooperate effectively but unfortunately it is not that common thing.

We do face a lot of scam ICO projects. However there are less obvious fraudsters than hidden scam-projects which often look pretty well at first sight. Simple frauds do not care about details that actually show the origin of the projects: last-minute website, no White Paper or an “empty” one, founders swear that you will make a fortune by the end of the week. Sometimes these projects might have been rather successful earlier, but at one point something went wrong. So it is very important to be able to identify scam features and react quickly – stop backing the project or do not even start making investments.

But how to spot a fraud? To detect scam you basically have to think like a scammer. So what will a typical scammer do?

1.Unclear concept of the project

The first thing an investor usually does is reading project description, roadmap, and White Paper. Basically it should be absolutely clear what profit will an investor gain and when will it happen. If there are more questions than answers then you’d better stay away.

2.Last-minute website or a purchased one even without changes in design

You can check a domain name in web-archive or use who.is to find out when the website was registered. It requires some time to develop a particular project however scammers do not take care of that as most of them are ready to say goodbye and disappear as fast as possible.

3.Fictive and incompetent team

Steve Ballmer, former head of Microsoft, once said: “Developers, developers developers”. It is important to understand who stands behind the project and who is in charge of its implementation. Trivial incompetence can ruin even the most groundbreaking idea.

Today you don’t have to work for CIA or FBI to be able to investigate social networks or other internet resources and find out some information about the team of a particular project. It happens that CEO or advisors are not educated and experienced enough, their background is unclear and there is no evidence that they will manage a project properly. Take it seriously and remember that the time you spend on it will cost less than unprofitable investments.

4.No feedback or a vast number of fake comments and profiles

If there are no reviews and comments, that looks suspicious. However, the project may have just started and yet not so many people are aware of it. It’s much worse when forums and social networks are full of fake comments. The same thing is about advertising. When it becomes aggressive and the team is trying to retrieve the situation by media hype it might show that the project is not attractive enough.

5.Bad community and troubles with bonuses

It happens that even the most sustainable company experiences force majeure. Anyway this  information is usually widely discussed by the community and with each investor. There`re many articles posted on company’s blog and other resources. When the project starts “sinking”, the communication with the community is often getting worse – users have to wait for the technical support to reply and it may respond with standard phrases giving no valuable information. Details usually show how a startup presents itself: if it changes the terms of ICO bonus campaign or does not follow its own Roadmap – this is a strong signal that you should not make investments in it.

SCAM-roulette

When talking about scam we should always keep in mind that there are fraud-projects and just unsuccessful startups that did not went well for whatever reason. You never know.

 

CryptoMining.Farm Scam: 30 Victims Lost $1.34 Million

Thirty people have filed complaints to Thailand’s Technology Crime Suppression Division stating that they were victims of crypto mining scam, they allegedly lost 42 million baht ($1.34 million). The police thinks that the amount of victims can be bigger.

According to the victims’ words, the leaders of the scam convinced them to invest money into CryptoMining.Farm, a blockchain-mining website. One anonymous victim said to the Bangkok Post that one of the leaders promised investor an impossibly high return – 70% a year.

The victims signed contracts when they entered the website, the documents said that a customer may withdraw money at any time he/she wanted without any additional condition. However, the situation has changed since August. The victim stated that:

“From August the owner began imposing conditions for withdrawing the money. Then at the start of this month, the site announced it would start paying back investors in 84 installments which would take over seven years to complete. The payments were supposed to be made in foreign currencies [which] is not permitted by Thai laws.”

After a preliminary investigation, the police is sure that not 30, but 140 people became victims of the scam. Moreover, it can be related to a big scandal which happened in August 2018, when a popular Thai actor and his siblings stole about 797 million baht ($25.5 million).

According to the Bangkok Post, the company has two official offices in Bangkok and Chiang Mai, which may make the victims think that the company’s operations are legal.

Thailand treats digital money with caution and tries to regulate it. The Thai Ministry of Finance even issued a document last year where all the country’s cryptocurrency activities were regulated, including the taxation of participants of crypto market.

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Romance Scams: Total Loss Accounts For More Than $143 Million

The Federal Trade Commission (FTC) has recently published a report showing that romance scams are relentlessly gathering momentum. The number of romance scams has increased in 2.5 times, from 8,500 in 2015 to 21,368 last year, overtaking the number of any other type of consumer fraud.

Romance scams data

The data provided below shows that in 2015 the number of reports did not exceed 10,000, and the total loss was estimated at about $33 million. The situation has been worsening since 2016, when the reported loss accounted for $75 million, two times bigger than in 2015. However, the year of 2018 broke all the records when the total loss comprised over $143 million.   

Source: www.ftc.gov

How do scammers lure people?

Romance scammers usually create attractive and convincing personas on the dating sites and apps or social media, like Facebook, for example. They frequently use fake photos and names, but there were cases of assuming the identities of real people. The scammers lure people with their sob stories to convince victims to send them large amounts of money.

Once the romance scammers have people by the heartstrings, they say they need money for medical treatment or for any other quite sad reason. The fraudsters usually explain to victims that they are in the military and stationed abroad, thus, they cannot meet. The report says that most affected are people from 40 to 69, the rate of their losing money to romance scams is higher more than twice in compare to the rate of people in their 20s.

Tips how to not get engaged in a romance scam

  1. Do not send money or anything else to the sweetheart you have never met in person before.
  2. Tell your close friends about your sweetheart. People can become blinded when they are in love, thus, pay attention if your friends or family are concerned.
  3. Do not rush, just take it slowly. Try to ask questions, use a reverse-image search of the profile picture. If something does not match, it is a scam.

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How To Read Trading Charts

Cryptocurrency exchanges work on the same principle as traditional exchanges. Potentially, it is possible to earn very good money on these platforms, but for this, it is needed to be able to correctly read the cryptocurrency coin chart. Of course, in order to become a professional trader, it needs to learn and practice a lot, but if your goal is to understand the basics, this article will be an excellent starting point in the exciting world of trading for you.

There are a huge variety of different charts, but the most common is the “Candlestick chart”. The chart is a much more informative tool than digital or text analysis. Using graphics, it is possible to quickly navigate and understand the current mood of the crowd, as well as the balance of power between sellers and buyers of a particular asset. Based on the obtained data, it is possible to calculate the potential profitability or unprofitability of a particular deal.

1. The main types of stock charts

As it was mentioned above, there are a huge number of different types of charts, but the main ones are lines, bars, and candlesticks. All of these tools (with the exception of the line charts) can tell about:

  • price at the beginning of the selected period (1 minute, 5 minutes, 15 minutes, 1 hour, 1 day, 1 week, etc.);
  • price at the end of the selected period;
  • the minimum and maximum rate of the selected period.

By and large, the crypto chart clearly shows the history of the struggle between bulls and bears. In the process of this confrontation, a large number of deals are made. It should be understood that even a slight fluctuation of the price means that some have already earned on it, while others, on the contrary, have suffered losses.

2. “Candlestick chart”

Let’s take a closer look at the most common version of charts, namely “Candlestick chart”. It was invented almost 400 years ago by a rice seller from the country of the Rising Sun. The process of observing a line chart is not entirely convenient; for this reason, the construction of “Candlestick chart” is based on the principle of dividing the total time into specific periods. This principle helps to quickly navigate what is happening on the market and, accordingly, to give the Bitcoin trend prediction or any other financial asset forecast.

3. How to read the chart “Candlestick chart”?

One candle represents the range of prices for an asset for a certain period of time. The boundaries of the candle are the lowest and highest asset price in this period of time. If the candle`s color is green, this means that the asset has increased in value over a given period of time; if it is red, then, on the contrary, it has fallen.

Source: https://www.tradingview.com/

If you look closely at the above chart, you will notice:

  • the candle corresponds to the time interval – 60 minutes;
  • the minimum asset price was $3485,24;
  • the maximum asset price was $3733.58;
  • This hour began with a price of $3506,42 and ended with the price of $3687 (for this reason, the candle is green).

The main parameters that should be paid attention to when reading cryptocurrency charts are:

  • asset price;
  • time;
  • trading volume.

By and large, the entire analysis of charts is an ordinary calculation of the balance between supply and demand. It is possible to estimate the level of the strength of bulls or bears through the asset price (vertical axis) and the volume of transactions (horizontal axis). These skills allow experienced traders to take the right position in advance and earn money on any price movement.

4. Conclusion

In this article, we talked about how to read cryptocurrency charts. As it was mentioned above, there are a huge number of different types of charts, but the most popular and often used is the option “Candlestick chart”. The basic principle of this type of charts is to divide the time into certain periods. It is quite informative and easy to read. If you want to start trading, then you definitely need to get a deeper understanding of this topic.

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How to Choose Suitable ICO and Top ICO Trackers in 2019

Recently, the interest of potential investors to new ICOs projects has faded away a little.  It is explained by the fact that the cryptocurrency market has been in the downtrend for more than a year. But despite this, a huge number of new cryptocurrency projects constantly appear on the market. In order to have a convenient opportunity to look at the list of all current ICOs in one place, there have been created special aggregator sites, they are called ICO trackers. In this article, we will talk more about these services, learn about their advantages, disadvantages, and also provide you with a list of the most authoritative sites.

1. What are ICO trackers

So, as it was mentioned above, ICO trackers are specialized services that publish the necessary information about large ICO projects. It is possible to see lists of upcoming, existing or already completed projects on such resources. The main goal is to provide basic information to potential investors. On some of these sites, you can find not only the roadmap of a specific ICO but also its detailed analysis.

The staff of such services is doing a great job, which is aimed at studying the strengths and weaknesses of the blockchain ICO projects. As it is known, a huge number of scammers are concentrated in this area, for this reason, ICO trackers help potential investors navigate this dangerous market.

To understand the principles of such services, let’s take a closer look at the criteria by which projects are evaluated:

  • Risk. In order to compile an estimate for this parameter, the following data is studied: publicity of the development team, White Paper, availability of a test work product, the reputation of consultants and partners, etc.
  • HYPE. This criterion is counted by calculating the number of subscribers on the project pages in social networks, the frequency of its mentioning in the media, search results, etc.
  • Basic report. To evaluate this criterion, the following aspects are closely studied: the innovativeness of used technologies, the presence of its own blockchain, advantages and disadvantages, prospects and possible development options.
  • Investment Rating. According to the analysis, an expert forecast of the future of the project is provided.

All these factors help investors to get comprehensive information about a particular ICO and decide whether to invest their money in it or not.

2. Strengths and weaknesses of ICO trackers

ICO trackers are not perfect and they also have their own advantages and disadvantages.

Advantages

  • Providing basic information about the latest ICO.
  • Compilation and provision of project analysis, which significantly saves time for potential investors.
  • Listing scam projects.

Disadvantages

  • Not all services consist complete information about a specific project.
  • The information provided on the ICO tracker cannot be trusted 100% since such services cooperate with many projects as advertisements. This may mean that published information about a specific ICO may not be objective. For this reason, before starting the ICO funding, it is better to study it yourself.

3. Who needs ICO trackers?

Such services are actively used by investors, people who themselves conduct crowd sales, as well as all other users who are simply interested in this industry. A huge number of fraudsters are concentrated at this market. But despite this, there are really worthwhile projects that can give real profit to their investors, even in such a market. For a non-professional investor, it is quite a difficult task to find such an ICO. Therefore, investors use similar services to obtain key information about recent ICOs.

It should be noted that startups themselves are very willing to use ICO trackers because, such services are an excellent marketing tool for them.

4. List of popular ICO trackers in 2019

Recently, a sufficient number of ICO-trackers have appeared on the market. Each service has its own approach and its own criteria for evaluating new ICO coins. It is possible to find detailed information about ICO projects on larger sites, and some services simply publish WP with a link to the official project resource.

Here is a short list of popular and current ICO trackers in 2019 (according to the rating for 2018).

5. Conclusion

There are many scammers on the ICO market, lists of which can be found on specialized services – ICO trackers. Such sites allow investors to obtain key information about ICO projects.

These are certainly very useful services, but it is important to remember that ICO trackers are not the last resort, so before investing money in a certain project, it is better to search for information about it on the network.

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Soft Fork and Hard Fork in Simple Words

Many people do not want to understand the subject of cryptocurrency, because they think it is very difficult, and to understand how everything works, it is necessary to spend a lot of time. Indeed, for an unprepared person, some terms may seem very complicated: blockchain, hard fork, soft fork, etc. Of course, if you want to learn how to code, create algorithms or new cryptocurrencies, then you need to get a profile education, which will take more than one year. But if your goal is a trivial desire to understand the basics, then you will need to read just a couple dozen guides, which, by the way, you can find on our website.

In this material, we will tell you in simple words how hard fork differs from soft fork, and also recall the main Bitcoin hard forks.

1. What is soft fork?

Soft fork is the process of software updating or changing the code of a particular cryptocurrency. When conducting softfork, there is no need for a total replacement of computer software that ensures the operability of the coin network. All innovations that are made during the soft fork have full compatibility with older versions of the network. This means that if the coin creators want to cancel this update, they can do it without any problems.

To make it clear for an ordinary person who does not understand the nuances of the blockchain’s work, let us draw an analogy with the denomination of the ruble of the Russian Federation. In 1998, the Central Bank of the Russian Federation artificially raised the rate of the national currency in 1000 times. But after that, old-style banknotes were still in use for some time. If the Central Bank specialists considered this experiment unsuccessful, they could have easily canceled it and returned the previous exchange rate of the ruble.

Basically, soft fork is conducted because of the need to improve the network, as well as the liquidation of detected errors. During these updates, there is no change in the basic principles of the network.

2. What is hard fork?

Cryptocurrency hard fork is a cardinal change of the blockchain network code, which implies the lack of compatibility with older software. Roughly speaking, in the process of carrying out hard fork, a completely new cryptocurrency is being created, which cannot work with the old version within the same network. After hard fork, an alternative blockchain is created and it works on a completely different principle.

To simplify the process of understanding the above information, let’s also give an analogy from real life. Most people know that the euro currency has now been entered as legal tender in the European Union. Its introduction began in 1999. In the process of development, the euro has stopped to depend on the franc or dychmark and has become an absolutely independent currency.

The main reasons why developers spend cryptocurrency hard fork:

  • implementation of improvements that require major changes;
  • elimination of major bugs;
  • a desire to create a new cryptocurrency based on an already working product.

The main hard fork meaning is to create a separate blockchain, which will have its own miners.

3. The main hard forks of the first cryptocurrency Bitcoin

Hard forks in Bitcoin happen much more often than in any other cryptocurrency. Now let’s talk about the main forks what happened in Bitcoin network lately.

Bitcoin TX. This project is noticeable by only the fact it was the first hard fork in the Bitcoins network. The development team led by Mike Hearn held this hard fork in August 2015. The principal difference between the new project and the original Bitcoin was an increased block size (up to 8Mb). This solution would increase the capacity of the blockchain to 24 transactions per second. For the further development of Bitcoin XT, it had to be supported by ¾ of all the miners of the original Bitcoin network. But in fact, the first hardfork got support of only 12% miners. For this reason, the project was forgotten over time, and its network became incapable.

Bitcoin Classic. The developers of this project took into account the Bitcoin XT errors and decided to smoothly increase the block size: initially increase it to 2 MB, and only after 24 months – double it to 4 MB. It occurred in January 2016. But, unfortunately, this hard fork also failed. The reason was all the same low support from the miners. Officially, the project was closed in November 2017.

Bitcoin Cash. As of today, it is the most successful and popular Bitcoin hard fork. It is the only BTC fork, which not only got, but also stayed for a long time in the list of TOP-10 cryptocurrency projects. It was initiated in August 2017. The main advantages of this project over the original BTC are: increased capacity, low commissions. Subsequently, Bitcoin Cash had its own hard fork (November 15, 2018), which slightly weakened its position, but the project is not forgotten and continues to develop.

4. Conclusion

Briefly and in simple words, hard fork definition is a large-scale update of an existing cryptocurrency, in the process of which a new coin appears. Soft fork can be compared with a planned software update, which does not imply the emergence of a new cryptocurrency.

If to look at the history of Bitcoin hard forks, it appears, that no project has even managed to come close to BTC, so far. At the moment, the only more or less successful project is Bitcoin Cash, but developers need to put much efforts to help their brainchild to compete to its older brother.

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The Monetary Authority of Singapore Warns Public About Scammers Who Are Trying To Sell Non-Existent National Cryptocurrency

While Iran is finding ways to adopt state-backed cryptocurrency, Singapore is fighting with rumours about launching its own cryptocurrency. The Monetary Authority of Singapore (MAS) announced that the state would not release any cryptocurrency.

The regulator posted a statement on the website:

“The MAS warns members of the public not to be misled by fraudulent websites that solicit investments in cryptocurrencies using fabricated information attributed to the Singapore Government.”

According to the MAS, scammers try to sell Singaporean cryptocurrency across the web. They create fake articles and news, mentioning respected news outlets, and spread that Singapore is launching a national cryptocurrency. Moreover, they state that the government chose a specific company to trade that cryptocurrency.

People, who are not engaged in cryptocurrency world, and who are not aware about latest news in it, should be extremely careful, as they often become victims of such crimes.

We remind you:

Scammers Try to Impersonate Major YouTube Influencers

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