Dozens of cryptocurrencies launch every month, and so does a series of initial coin offerings (ICO). For a newly launched trend, it has become quite popular among investors. All these facts tend to entice several scammers. The traditional classification of ICO focuses on three categories scam, the successful, and the failed. A scam ICO is a fraudulent exhibition of unethical activities. A successful ICO collects predefined capital within a specified time frame. Otherwise, it is anointed unsuccessful.
With the pace of crypto development, it is hard to keep track of the technical terminologies. For starters, it is better to consider that cryptocurrency is not safe. There is no guarantee of a crypto-based startup being legitimate. However, educating yourself will help minimize the probability of avoiding an ICO scam. In case of a fraudulent act, you must instantly report crypto scam and seek a cryptocurrency recovery expert. Given below are the common types of ICO scams.
An exit scam is when the promoters of a cryptocurrency disappear with investors’ money during or after the initial coin offering (ICO). It is hard to identify an exit scam due to the decentralized and regulation-free nature of the cryptocurrency. However, there are ways to spot an exit scam, such as red flags on team credibility, exceptional return projection, a non-existing working model, and unusual documentation. If you become a victim of an exit scam, you must instantly seek crypto recovery service.
A phishing scam is a process of tricking people into providing their personal information essential to access funds. The scammers are interested in the private crypto wallet keys of the investors. The Phishing scams are executed sometime after the initial coin offering (ICO). In this, the coin promoter sends an email involving a link to a specific website. The visitor is presented with a form asking for the personal information essential to access their crypto wallet. The scammers process unethical activities soon after they receive investors’ personal information. You must not wait to see a cryptocurrency recovery expert in case you suffer one.
Contact Proupshot experts if you need assistance with a complaint relating ICO scams. We deal with a variety of issues, including ICO fraud, data theft, forex scams, and crypto complaints. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you resolve the issue.