THELOGICALINDIAN - A Wall Street Journal assay of 1450 cryptocurrency offerings has apparent absolved appropriation aggressive character annexation and apocryphal promises of absurd banking gains
Though it ability not appear as abundant of a abruptness to those added carefully accustomed with the cryptocurrency space, a Wall Street Journal review of 1,450 abstracts for agenda bread offerings as apparent 271 indicators of counterfeit tactics — including “plagiarized broker documents, promises of affirmed allotment and missing or affected controlling teams.”
Investors accept reportedly dumped added than $1 billion into the flagged projects, with $273 actor already claimed as losses.
Plagiarism is one of the best aggressive signs of counterfeit action in the cryptocurrency space. The Wall Street Journal explains:
Swiss-based UTrust has had its whitepaper acquired abundant times – article CEO Nuno Correia already knows. “We get a lot copies of our white paper,” Mr. Correia told The Wall Street Journal, “My picture, my description, my team, alike our website was copied.”
Even high-profile projects like TRON (TRX), the 10th best admired cryptocurrency by bazaar capitalization, has been accused of appropriation by abounding in the blockchain space, including Ethereum architect Vitalik Buterin.
The Wall Street Journal additionally begin that “at atomic 121 of the projects didn’t acknowledge the name of a distinct agent and several of them listed aggregation associates who either didn’t arise to abide […] or were absolute bodies who said their identities were actuality acclimated after their knowledge.”
Companies able unrealistic returns – such as account payouts or angled returns – after any accident are additionally active aggressive in the cryptocurrency space, admitting such practices actuality banned by the US Securities and Exchange Commission.
All of these red flags should be austere “warning signs for investors,” Bradley Bennett, a above administration arch at the Financial Industry Regulatory Authority, told The Wall Street Journal. Bennett explained:
What do you anticipate about the aggressive artifice currently present in the cryptocurrency marketplace? Do you anticipate this trend will continue, or die out as the chrism rises to the top? Be abiding to let us apperceive in the comments below!
Images address of Shutterstock, Bitcoinist archives
