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.

 

The Bitcoin SV Mining Pool Was Attacked by Scammers

Some crypto scammers tried to pull off one of the most popular fraudster tricks. They created a copy of the site of a large BSV mining pool – SVPool. The two sites looked identical, the only difference from the real one could be noticed in the URL. The criminals promised to sell BSV hashing power in exchange for Bitcoins. Luckily, the management of SVPool quickly detected the scam and informed their users about it. The official message said:

When clicking through the dupe site, many of the pages results in a 404 error, and in some cases, it takes you to their registrar’s error page. The site uses SVPool’s genuine social media handles to make things look at authentic as possible.”

Most of the crypto platforms now remind people to be careful and check the sites they are using thoroughly before spending their money. We remind you:

The Police of India Uncovered a 60-Million-Dollar Crypto Scam

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GShare Helps to Expand Adoption of MGO Tokens

MobileGo team claim their products are being developed to meet the needs of both gaming community and blockchain enthusiasts.

Starting today beta-testing of MobileGo brand-new product is available for everyone. What is it and why is it worth attention?

What is GShare?

GShare is a special tool for earning GShare Gold. To make a long story short, it converts your computer power into GShare Gold coins. From some point of view it is ‘mining’, with the only difference –  GShare Gold is not cryptocurrency. GShare Gold is a soft currency to bring new possibilities to gamers, expand existing and also open doors to the world of blockchain, by saying that we mean earning MGO tokens using Gshare Gold. GShare Gold is earned without any extra efforts, user just need to run the app, press the ‘Start’ button and that’s it. User is already in, earning GShare Gold while playing his favorite games, working or doing whatever he wants to. Later on this GShare gold coins can be used on esports platform to participate in tournaments and win MGO tokens. GShare is interesting news not only for gamers. GShare is believed to  write a new page in history of social impact as well. So not only gamers can benefit from using GShare platform by earning MGO tokens for victories, but, people who want to make difference in this world, would be able to participate in socially important activities using GShare Gold. But first things first.

How to use GShare Gold earned with GShare

GShare Gold can be used on esports (competitive) platform that is also available for public tests from now. You can use GShare Gold as a tournament entry fee and earn even more with just personal gaming skill, and not only GShare Gold but the MGO tokens as well. The platform beta-version is already live and ready to use. The platform has been developed specially in such a way that no matter of skill level everyone, even people new to esports can find a decent competitors  and spend some good time playing, be victorious and claim his prize in MobileGo tokens. MobileGo team claims that soon GShare gold would also gain adoption in many other spheres. It is being said that GShare Gold will be accepted on social activities platforms to unite non-indifferent people which desire to change the world and make it a better place, which sounds quite intriguing.

How is GShare useful for MobileGo?

The holders of MGO have another cause for excitement. MGO is being accepted as a payment method in both Xsolla Pay Station and esports platform, which makes its adoption even more massive. The key moment is that players who used GShare Gold to enter the tournaments on esports platform and showed their best play and won can claim their victory bounty in MGO, so MobileGo token has all chances to become desired by numerous gamers around the globe.

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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“Don’t do it in Beijing”: Chinese Authorities Banned Security Token Offerings

According to Chinese news media outlet Caijing, Beijing government decided to do away with any types of token sales, namely they banned security token offering (STO) in “Northern Capital”.

The statement was announced at the ‘2018 Global Wealth Management Forum’ by Huo Xuewen, the chief of Beijing’s Municipal Bureau of Finance:

“Recently, ICOs have been abandoned, and a new concept called STO has been advertised. With today’s platform, I will make a risk warning to those who are propagating in Beijing and want to issue STO. Don’t do it in Beijing. If you do it in Beijing, you will be taken away from illegal financial activities. When we have the authority to approve you to do an STO, we will say.”

The STO is a friendly-regulated kind of an initial coin offering (ICO). The STOs are enable to possess securities or stakes in business, as well as get the profits from it. The tokens represent tangible assets.

We remind you that China banned all foreign ICOs inside the country back in April this year. The SEC also decided to introduce fines for celebrities who promote scam ICOs.

SEC Is Going to Fine Social Media Celebrities Who Promote Scam ICOs

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How to Explain to Your Grandparents in 10 Minutes What is Bitcoin?

The older generation often perceive innovations as something supernatural and incredulous refer about them. But, what should you do, if you need to explain to your grandparents what is bitcoin, despite the fact they are afraid of picking up a mobile phone? 🙂
Of course we exaggerate! But since, the cryptocurrency little by little captures the world finance market, bursting into the life of those, who aren’t interested in it – your grandparents should be prepared.

For this The Coin Shark had developed a strategy, which will help you to explain what is Bitcoin in 10 minutes. During the experiment, none of the grandparents didn’t refuse to descend the legacy to their grandchildren 🙂

Stage #1: “Bitcoin – is like a paper money, but not made of paper”

Remember, never try to explain to older generation about the innovations on the developers slang. We recommend you to draw an analogy with the things which are more understandable for them.

It is better to compare Bitcoin with the ordinary money. Explain them, that it has the same value as the paper money, in which they receive the allowance. You can also buy goods and pay for services by using Bitcoin.

Do not forget to specify that the cryptocurrency are not made of paper, but encrypted by computer code. The ordinary money which we receive we can touch but the digital – not. Because they are stored on the computer, while the ordinary money in the wallet.

As far back as you can go that cryptocurrency is based on cryptographic methods, its management is decentralized and it works on the blockchain technology – your grandparents may think that you are possessed by a demon. All this stuff are clear only to our crypto space.

Stage #2: “Miners – are gold miners”

After the first stage is complete, it is logically that your grandparents will ask you – “how to get them?”

The old and proven method of the analogy also works here. We all know that we earn Bitcoin by mining. We associate it with a gold mining. And we clarify that while mining the cryptocurrency hoes,picks are not used, but a computer.

If you see understanding in the eyes of your beloved grandparents, than you can add, that Bitcoin can be bought on the internet. Specify, where and how is not necessary.

Stage #3: “Spend Bitcoin in the specialized store”

Before telling to your grandparents, where they can buy products by bitcoin, they need to know, that it has its own rate as well as the dollar. Except the rate depends on demand. Prepare sedative, because once they know the price for one BTC they will be very surprised. Only we are complaining here, that “Bitcoin is dying” , and it will be shock for them, that only one coin can cost 4 thousand dollars. I guess you realise that you should keep silence about the rate of 20 thousand dollars.

Now you can tell them : “Since Bitcoin – is unusual money, they are spent only in the special stores”.
Good job, the grandparents are ready! Now they can tell to their friends about Bitcoin. And if they are not afraid of computer, and they were interested in your story, than in the “For Beginners” section, they may find more about the cryptocurrency #1.   

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SEC Is Going to Fine Social Media Celebrities Who Promote Scam ICOs

The new wave of cryptocurrency and ICO coming from the Securities and Exchange Commission regulation has influenced Hollywood celebrities, sports stars and now social media influencers.

SEC chairmanship claims that any content creator, Youtuber, blogger, ad platform etc. that is paid for endorsing a fraudulent ICO project or startup, or hiding some important details about this project, could be persecuted by the Commission.

The Securities and Exchange Commission came out with a press release, where it recommends the investors to be “skeptical of investment advice posted to social media platforms” and warns them to be careful when choosing the project to invest in.

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A Member of ISIS Sponsored Her Acts of Terror with Bitcoins

According to the report published by the US Department of Justice, a woman named Zoobia Shahnaz bought Bitcoin and altcoins and transferred the assets to the most dangerous terrorist organization in the world – ISIS.

The report states:

She fraudulently applied for and used over a dozen credit cards, which she used to purchase approximately $62,000 in Bitcoin and other cryptocurrencies online.  She then engaged in a pattern of financial activity, culminating in several wire transactions totaling over $150,000 to individuals and shell entities in Pakistan, China and Turkey that were fronts for ISIS.

Shahnaz has already confessed her crimes. She is now facing up to 20 years in prison as well as a huge fine.

Maybe, crypto actually can be involved in terrorism. We remind you:

Crypto Will Hardly Ever Sponsor Terrorist Attacks Like 9/11

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