The 421th Fake Cryptocurrency Was Detected in China 362

There launched a fake ICO, organized by the Securities and Exchange Commission (SEC). An event of this kind was needed by the regulator in order to secure investors by teaching them to distinguish scam projects independently. It is assumed that this will reduce the “sponsorship” of scammers’ pockets. This is a forced measure for the Chinese, because about 421 fake coins were found in country, the Bitcoin.com news portal reports.

The overwhelming data belongs to the subordinate government of China, The National Committee of Experts on the Internet Financial Security Technology (IFCERT). About 60% of digital coins belong to foreign companies.


“Recently such virtual currencies as Bitcoin, Litecoin and Ethereum are under scrutiny. Technology also attracts scammers: they create financial pyramids, which are masked in the guise of cryptocurrency. Such projects force investors to incur large losses.”

IFCERT published three main criteria that will help determine the real coin.

Marker #1: To begin with, all intruders are working on the strategy of the financial pyramid, promising investors a multiplied income from the invested funds, provided that they will not sell or exchange tokens.

Marker #2: Fake coins do not have this code and transactions with them are not recorded to the blocks, since such coins have nothing in common with the blockchain.

Marker #3: Another clearly expressed distinctive feature of fake coins is the lack of trading on the stock exchange, they are usually presented on the off-exchange sites.

“The price of coins is set by individuals or companies on over-the-counter platforms. This allows you to create the illusion that the coin is in demand.”

The SEC and IFCERT hope that their warnings will help many investors and prevent them from falling into the hands of scammers with ICO projects and coins in particular.

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