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.

 

Depository Network: The Common Thread Between Traditional Lending And Blockchain

Are you ready for another revolutionary project that solves a bunch of issues for crypto users? If so, then, make yourself comfortable and enjoy the world’s first decentralized multi-platform for collateral assets. Let’s discuss Depository Network and see who were the people that helped to create this blockchain “masterpiece”.

Depository Network: what is it all about?

Depository Network is a first depository for collateral assets worldwide. It is safe, decentralized, and blockchain-based. It provides a pledge system where you can create your own collateral platforms, tens and hundreds of them. If you are a holder of the token or coin backed by Depositary Network, you can guarantee your assets as a deposit and get a loan. And vise versa, any lender can make up his\her own depositary, where he/she will be able to accept digital coins as a monetary deposit. Everyone gets benefits, this make the platform more attractive to crypto-related people.

There are two types of collateral contracts, namely DEPO Smart Contract  and DEPO Escrow Contract. They are designed for the following networks: Ethereum, EOS, Cardano, Qtum, Lisk, etc. There is no mediator and the contract requires at least three signatures. If you more information about the process, then immerse into details here.

Team and Advisors

Now,  let’s move to the “juiciest” part – people who created Depository Network and who supervise the whole process. First, we want to introduce some members of the Team.

Svetoslav Dimitrov (CEO & Co-Founder) is top legal professional, who worked at best Bulgarian law firms. His experience exceeds 15 years, his new vision on implementing traditional legal institutions into digital space helped him to create Depository Network.

Dimitar Kostov (Technology Board Member and Investor) is a genius of management with more than 20 years of experience. He also leads VMware (NYSE:VMW).

Martin Kuvandjiev (Technology Board Member) is one of the creators of Bitcoin Gold, winner as leader of project “Valkirye” at NASA Space Apps Challenge Competitions 2015.

The Team consists of 10 people who are, as you can see,  well-skilled and good at their job. They are literally a “dream team” for creating such an innovative platform. They know what they are doing, and this confidence makes the project superb.

Advisors of Depository Network also include 10 people who have experience of more than 25 years, They work as advisors in many firm and companies worldwide, their knowledge and perfectness lead the project to the best one on the whole planet.

Ivo Gueorguiev is an entrepreneur worked in the top companies worldwide, he had 25 years of experience in fintech under his belt. Now he is a member of the boardship of Banca Transilvania.

Jos Uitdehaag is a senior expert of law projects in European Commission, 15 years of working with international platforms. He is an advisor of International Monetary Fund, key expert in World Bank Group.

ICO details

The project will conduct an ICO in November-December of this year. The total token supply is 3 billion DEPO, the price of token is $0.02. The soft cap is $2.6 million, whilst the hard cap is $15 million. 70% of tokens will be distributed at the token sale, 15% will be retained by DEPO Reserve, another 12% will go to further team development, and the other 3% will go to bounty program and ICO marketing.

If you are interested in this project, please visit their official site and get more information there.

The Coin Shark does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any actions. The Coin Shark is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the article.

The SEC Creates a Special Department to Keep an Eye Open for ICOs

The US Securities and Exchange Commission came out with a press release announcing the opening of the FinHub, a brand-new subdivision of the agency.

The main tasks of the Hub will be:

  • giving a chance to the general public to communicate with the SEC regarding fintech questions;
  • spreading information related to fintech;
  • announcing all the major events in the sphere of fintech
  • publishing all new fintech regulations and decisions of the SEC
  • serving as a linking point of various internal and external financial regulators;
  • etc

As said by the head of the newly emerged department:

By launching FinHub, we hope to provide a clear path for entrepreneurs, developers, and their advisers to engage with SEC staff, seek input, and test ideas.”

Since ICO is a major fintech activity, it will also be under the strict control of FinHub.

We remind you:

SEC’s ETF Decisions Will Come Out In October

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A New York Resident Carried Out a $2.5 Million Bitcoin Scam

A man named Nicholas Gelfman was accused of violation of multiple financial regulations. Now the man has to pay a fine in the amount of 2.5 million dollars in order to cover up all the losses caused by him.

Gelfman was running a company Gelfman Blueprint, Inc. (GBI) which offered its investors quick, safe and profitable crypto trading services.

Obviously, the whole thing turned out to be a huge scam. The victims ended up paying big amount of money in commission fees and getting no profit from trading whatsoever.

The case is currently under the US Commodity Futures Trading Commission’s investigation.

We remind you:

The Loudest and Boldest Crypto Crimes of All Times

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New Video Player Technology That Rewards Users for Their Attention

Genesis player

Genesis player promotes the latest blockchain projects and rewards viewers with tokens directly through the player. The tool, which can be easily embedded across the web has been quickly adopted by multiple crypto projects looking to build their community and reach investors through the power of video.

With close to 100,000 existing user accounts, crypto enthusiasts and investors can learn about new projects by watching promotional videos. Users can earn between $3 and $5 each view, from an airdrop completed directly through the player. These videos are syndicated across the web, and available on CryptoNow.tv. Users can visit cryptonow.tv and browse featured videos to earn tokens. There is a total of $400k worth of tokens available in total from over 10 promising projects.

You can earn 5 iCash tokens worth $5 by watching all of the video above and signing up for GenesisPlayer. Simple!

Users can also earn an additional 10% through an inbuilt referral programme by sharing the video once they have signed up and claimed tokens. The system is backed by ‘Proof of View’ technology which stops any cheating and users skipping.

Some of the current projects using the Genesis player technology to power their community include iCash, Vreo, Smartree, CoinAnalyst, Autobay, INDX and Fanfare.

GenesisPlayer was built on the Verasity Protocol and was developed out of a successful ICO and the Verasity team understanding the importance of projects needing to build an engaged community and the power video has in selling the potential of a project. Find out more at Verasity.io

The Coin Shark does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any actions. The Coin Shark is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the article.

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What is Ethereum Address (ETH address)?

This information will be useful for those readers who are the beginning of their way in the cryptocurrency world. In this article we will talk about such concept as Ethereum address, find out what it is necessary for, where you can find it and see it. So let’s get started.

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

  1. What is Ethereum address and what is it for?
  2. Difference between online and offline addresses
  3. Conclusion

1. What is Ethereum address and what is it necessary for?

To begin with, it should be noted that Ethereum is the second most popular and capitalized coin. It has significant differences from the flagship of the industry with a good sense of the word. Ethereum has a more advanced technological base. For example, Bitcoin, in fact, is only a payment system, and on the basis of Ethereum you can create your own coins and smart contracts. Ethereum is a platform from which, potentially, a great number of companies and individuals can operate.

So, we are over with the introductory part, now let’s get to the essence of today’s question. ETH address is a certain unique set of letters and numbers, with a help of which a specific wallet can be identified. It is necessary to transfer coins from one wallet to another. It can be easily shared, since knowing it doesn’t reveal any important information about the owner and the state of balance.

Only the owner can receive the address. To get it you have to run the wallet application on a computer or mobile device. Without any doubt, in the interface of any crypto wallet program (there is a large number of services for storing Ethereum) you will find a special button that will automatically generate the wallet address.

2. The difference between online and offline addresses

If you are just starting your crypto journey, then you probably do not know that there are different types of digital wallets. We will dig into this topic too deeply, but just describe the main points. More information about the classification of wallets can be found on our website. So, the wallets can be:

  • Online. These include web-wallets and personal accounts that are on the exchanges. This is the most insecure, but the most convenient way to store and exchange coins.
  • Desktop and mobile apps. These are so-called hot wallets. They are more secure than online solutions, but with their help it is no longer possible to make transfers so quickly.
  • Hardware wallets. They are the safest way to store coins, since it is virtually impossible to hack them and get access to assets. But they are very inconvenient for every day use. This type of wallet is ideal for long-term storage.

So, you can get an Ethereum address both online and conditionally offline, on a desktop or mobile wallet application. Сonditionally offline, because even if the wallet is physically located on the computer, you need access to the Internet to work correctly. There is no principal difference between online and offline addresses, the only thing is that coins will arrive either on an online wallet, or on a desktop or mobile application.

It is very important to use only official wallets for storing ETH or any other coin. Since they are best optimized for work with this or that blockchain, and also have more advanced level of security than a service that was developed by third-party developers.

3. Conclusion

Everything about cryptocurrency topic seems so complicated, but this is only at first glance. Of course, the wilds of cryptography and the operation of algorithms are not easy, but for ordinary users such information is absolutely useless. The knowledge that is necessary in order to use cryptocurrencies can be obtained by any average person in the shortest time possible .

So, in this article, we discussed what Ethereum address is and found out that this is only the identifier of a certain wallet and is needed to transfer coins from one account to another.

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Bitcoin Investment: Should I Invest in Bitcoins?

Bitcoin currency has already been used as a kind of a fiat money alternative for about 9 years. It is relatively popular all around the world. The first digital currency has made many people go nuts following the impressive ups and dramatic downs of its exchange rate.

Today, in October 2018, the whole cryptocurrency industry is looking forward to observing a new crypto-“miracle”. Search engines are overflowed with all those “How to invest in cryptocurrency?”. And this is not particularly surprising. Traders and different investors who own a significant capital expect cryptocurrency to be a promising investment tool in the long term. And if we talk about cryptocurrency, that basically means Bitcoin. Well, of course, there is a number of altcoins that can be worth making investments, but the first digital currency is definitely the most popular one.  

People still talk about investing in Bitcoin and this topic is interesting for many traders, investors and casual users. So, let’s take a closer look at this issue.

How to invest in Bitcoin

Before making an investment, one should obviously choose the way he or she wants to get some BTC. First of all, it depends on financial capacities. There are indeed many different options to invest in Bitcoin, but we will focus on two main ways that are currently the most popular and probably also the most effective.

Option №1: Taking advantage of the rate differences as a way of BTC investing

You might have already come up with the question, why people are still interested in making investments in Bitcoin when it costs less than $7 thousand per a coin? Well, influencers, opinion leaders, independent experts, and different analysists are confident that we will soon observe another sustainable increase of Bitcoin rate. And that is why many people start thinking about investing in cryptocurrency to make money out of the rate differences.

But what is the way to do that? It is actually pretty simple. All you need is some basics of math. In fact, investors are not really sad about the fall of Bitcoin. Many of them are even happy, especially those who believe that the cryptocurrency has a great future ahead. Today, if a trader purchases a BTC for $6,5 thousand, he or she will manage to make a good profit, in case BTC rate increases. Some really expect it to rise up to $30 thousand, and in this case, it will really be a good bargain. The key point here is whether the rate increases or not, of course.

Option №2: BTC mining

Besides, users can invest the special equipment that is used to mine Bitcoin. You may already know, that each BTC is actually a kind of a reward, given for the performance of certain calculations, necessary to issue new coins. Today these calculations are rather complex and require special high-performance equipment called ASIC-miners. The more users are there in the system, the more difficult are these calculations. This is called Bitcoin difficulty and it ensures that it always takes around 10 minutes to create a new Bitcoin block.

Investing Bitcoin this way means that you can get a certain number of BTC and store it till the rates grow or exchange it for another digital currency like Ethereum.

However, you’d better do not think that these two investment options will bring you fast and easy profit. This is possible only if the cryptocurrency rate increases significantly and in the case of mining, if your equipment has enough performance.

By the way, here is one more option of BTC investing. It`s actually difficult to say that it is a comprehensive way to invest in the cryptocurrency, but, anyway, many people use it today.

Bitcoin faucets

These are special websites, where users can get a reward for making certain easy tasks, usually related to online advertising. These rewards are paid in satoshi. The thing is, that one BTC includes as many as 100 000 000 satoshi, so one satoshi is only 0,00000001 BTC. So it`s actually a tiny piece of the market`s largest cryptocurrency. Investing BTC using Bitcoin faucets is not really effective, as you may never manage to collect at least one single coin.

Is Bitcoin a good investment

Well, if you have already decided to invest in digital currencies then Bitcoin will probably be the best option. Not only this cryptocurrency is a market leader and the most popular digital coin, but also it has relatively good liquidity as compared to other virtual assets. Many cryptocurrency followers believe that Bitcoin has a potential to become the main means of payment in the future. However, there are also those who bet on other digital currencies, as well as those who do not consider virtual coins as an investment option at all.

By far it seems that the question is it worth investing in Bitcoin remains undetermined, so let’s make it a little bit more clear. Bitcoin is relatively anonymous, decentralized and has a limited number of coins available for mining. This is, in fact, why hundreds of thousands of cryptocurrency followers made their decision in favor of BTC.

Anonymity

Investors do not have to disclose their personal data. The information about each transaction is public and everyone can see the address of the cryptocurrency wallets of a sender and a receiver, as well as how many BTC were transferred. However, the information related to owners of cryptocurrency wallets is not disclosed, so the whole system is relatively anonymous.

Decentralization

Bitcoin worth investing, as it has a decentralized management, which means there is no single administrative center. Transactions are carried out directly between users in a peer-to-peer network. However, Bitcoin users still have to pay certain commission fees for transfers of their virtual assets, because every transaction is confirmed and recorded in the blockchain by miners who receive rewards for this. Today small transactions are often not effective at all, as the commission fee is rather big. However, if a transaction is large, the commission fee will be relatively low.

Limited number of coins

Is Bitcoin a safe investment –  “yes” is the answer of many people, who believe that a limited number of Bitcoins to be mined is a strong advantage of the digital currency. It will prevent BTC from inflation.

“Why should i invest in bitcoin?– you may ask. The answer will probably contain both pros and cons. And that`s because Bitcoin has some special features, which are:

  • 24/7 trades, that allow making investments at any time;
  • most indicators have a rather good quality;
  • high volatility;
  • possible positive prospects of cryptocurrencies and, as follows, positive expectations related to Bitcoin investments.

Bitcoin investment trust

The risk remains here almost all the time and no one can guarantee that your money is 100% safe. Here are several examples why it can be rather risky to make investments in the largest cryptocurrency by market capitalization. Yes, Bitcoin still has a decentralized management, however, in a certain way the system is getting more and more centralized. This risk of investing in cryptocurrency is related to the fact that BTC rate starts depending on cryptocurrency exchanges.

Moreover, the significant part of all Bitcoins is owned by those who are engaged in mining or lease out high-performance mining equipment. Making new Bitcoins requires really a lot of computing power and gets more and more expensive. The competition within the system increases and it is almost impossible for casual users to join Bitcoin mining. That is why many people have already switched for other digital currencies that are easier to mine and can be later exchanged for BTC.

In some cases, Bitcoin`s anonymity is also a risk. Anonymous deals can be used for money laundering, as there is no effective state regulation of cryptocurrency transactions.

How to invest in Bitcoin stock

There are special cryptocurrency funds, similar to mutual funds that exist in the world of bonds and stocks. These funds are managed by private parties and it influences the interest rate. For instance, some cryptocurrency funds provide 1-2% per day.

Bitcoin investment strategy

There are two main types of cryptocurrency investment strategy.

The first one: investors buy BTC and sell the cryptocurrency when its rate increases.

The second one: Bitcoin holders trade their digital assets on cryptocurrency exchanges. This strategy is very similar to Forex trading.

Minimum Bitcoin investment

Many people decide to invest in Bitcoin because they hope to get huge profits in the long term. So, even a small investment is considered to be rather promising by many cryptocurrency followers. Eventually, the smaller is an investment – the lower is the risk. But, on the other hand, a really small investment can just be useless. Anyway, how much to invest in Bitcoin remains an open question and everyone has their own opinion.

Who said users can only invest their money? It is also possible to get BTC for free by investing one`s intellectual work. Well, just a bit of BTC, to be honest. Special websites offer users the opportunity to earn satoshi – the smallest fraction of Bitcoin – for the performance of different easy tasks, usually related to advertising. These websites are called Bitcoin faucets.

The main advantage of such an option is that users do not have to invest a single penny to get a piece of BTC, however, the drawback is also rather significant – it will take a really long time to get at least one BTC.

Invest in Bitcoin mining

Mining is actually how new digital currency is issued. Making investments in Bitcoin mining means buying special mining equipment or renting it from different providers. Cloud cryptocurrency mining is also possible. These services lease out their mining equipment for users to rent a particular amount of processing power.

There are some experts who think that cloud mining is actually the best way to invest in Bitcoin, as users don`t have to purchase, set, maintain and update expensive mining equipment.  

Anyway, both traditional and cloud mining still require preliminary investments.

Bitcoin investment sites

Before making investments in Bitcoin, basically, before purchasing it, you should have a cryptocurrency wallet to store your digital assets. Today Bitcoin holders and those who want to join them are lucky to have a large variety of different cryptocurrency wallets. These are, for example, mobile, hardware, online, desktop, cold, and even paper wallets.

If you are planning regular digital currency investment, we recommend having a local hardware wallet. However, it actually depends on what is more convenient for you and what meets all your requirements and there is really a number of options you can choose from. Do not forget to activate your cryptocurrency wallet.  

Usually, Bitcoin is purchased on cryptocurrency exchanges. It is really important to choose the right one, so we recommend taking the following criteria into account:

  • a region, where the exchange is registered;
  • input and output, exchange, transfer options, etc. – basically, what you can do with your funds in a digital wallet;
  • commission fee level;
  • reputation;
  • security level.

This will help you figure out whether is it safe to invest in Bitcoin.

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