ICO advisory firm Statis Group recentlya study shows, conducted in 2017initial public offeringMore than 80% of (ICOs) were identified as scams. The study considered the lifecycle of ICOs running in 2017 from initial sales feasibility proposals to the most mature transaction stages on crypto exchanges.
for:definitionfor:Anyone who has disclosed ICO investment information (including posting fundraising addresses on websites or social media, etc.), but has not fulfilled the obligation to use funds for project research and development, or the community (major forums, websites, etc. online information) thinks it is a scam s project.”
Compared with other methods of stealing money, the main characteristic of Bitcoin scam is that it usually exploits peoples trust and negligence. Currently there is not enough regulation in the cryptocurrency market to protect people from fraud, making scams prevalent in the digital currency market. ICOs are one of the most popular forms of fraud as many people try to make money by investing in new projects related to cryptocurrencies.
The study showed that in 2017, “70% of ICO funding (by sales) went to higher-quality projects, although more than 80% of projects (by share) were identified as scams,” the analysts found. 4% of ICOs fail, 3% are dead. The study identified ICOs as dead when they were not listed on an exchange and had no code contributions on Github for three consecutive months.
According to the study, total ICO funding reached $11.9 billion in 2017. $1.33 billion (11%) of ICO funds went to scams, with the vast majority going to the three mega scam projects of Pincoin ($660 million), Arisebank ($600 million) and Savedroid ($50 million), totaling $1.31 billion. This shows that while a large number of ICOs are scams, they receive very little funding compared to the industry as a whole.
releasereleaseA report based on data from Coinopsy and DeadCoins found that over a thousand crypto projects were dead as of June 30, 2018. According to Coinopsys list, there are 247 dead coins, while DeadCoins has a list of 830 dead coin projects.
ResearchResearchIn the first half of 2018, approximately $1.1 billion worth of digital currency was stolen. Criminals are using the dark web to facilitate large-scale cryptocurrency theft, the security firm said. There are an estimated 12,000 marketplaces and 34,000 password-theft-related products available to hackers.
showshow(I am Mu Xinxin, a reporter from Odaily. I am exploring the real blockchain. Please add WeChat wsuixin12 for breaking news and communicating. Please note your name, unit, position and reason.)
(I am Mu Xinxin, a reporter from Odaily. I am exploring the real blockchain. Please add WeChat wsuixin12 for breaking news and communicating. Please note your name, unit, position and reason.)
