$4.5mn ICO Scam Unearthed; Fake Sites Used To Collect Money

When it comes to ICO there is a lot of uncertainty regarding the authenticity and bitcoin loophole. Every day there are many new companies which are launching their coins in a bid to attract investors. People who are new digital currency environment but want to invest in lucrative offers often fall prey to such scams.

Even since cryptocurrency gained its popularity there have been many scams which have taken place regarding cryptos. If recent reports are to be believed that as much as $4.5 million have been stolen using fake websites. These websites imitate the real projects and lure investors into their trap. Investors being unaware about the authenticity would invest considering it to be the real deal. Nikolay Shiklev who is working with many ICO’s has reveled these shocking details.

Etherscan in an LinkedIn post stated that there are about 92945 ERC20 token contracts which are being deployed. If we see more recent standard than the number would swell even more. Most of the token have sale attached with them, and if anyone of them gains even moderate amount of transactions the scammers would spook them in such kind of bitcoin loophole.

Shkilev revealed that scammer put forward some of the domain such as omisegotoken.com or misspelled version of Etherscan, etnerscan.io to allure people into considering it as a real deal. If we see the list out than one can find many such imitation of the real projects. Even the blockchain cloud server, DADI has been imitated as dadi-cloud.net.

Stay Away From Fake URLs

Most of these fake ICO are being successfully able to lure people into investing into their trap and steal the money. Some unfortunate victims have spend a huge amount money into these ICOs. According to a report in Cryptovest, spam OmiseGo token received more than 194.8431 ETH which is about $93,000 from just one person.

People should check the project properly before investing any money in them or they can fall prey to bitcoin loophole. It is very important to check for the authenticity of the site properly before transferring any money.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Aditya is a content writer with four years of experience. His passion to deliver top trending news drives him to work hard every day.

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