Investors Be Warned: ICO Market Attracting Scammers

It hasn't taken very long for initial coin offerings (ICOs) to revolutionize investment. In less than a year, the new crowdfunding model has already surpassed early-stage venture capital. As the market expands, investors can expect more exciting opportunities in the fin-tech domain. They can also expect a huge influx of imposters looking to take advantage of the hype.

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The author has taken special interest in ICO scams in recent weeks after it came to light that ToTheMoon (TMT) essentially lifted, verbatim, Giga Watt's entire whitepaper and website copy. The imposters also listed several professionals as part of their managerial and advisor teams. These individuals have since been alerted that their name and/or picture has been used by the TMT scam. 

Cryptonomos Statement Regarding TMT Scam

Cryptonomos, the platform that hosted the Giga Watt token sale, recently contacted Hacked.com regarding the latest developments. In an email to Jonas Borchgrevink, the Cryptonomos team had the following to say in reference to TMT:

[W]e would like to caution people that the market for ICOs is now being targeted by scammers and fraudsters who can frequently be identified by red flag behaviors such as the one's described above."

In addition to the verbatim copy/paste job and stealing of individual profiles, investors can expect these elaborate schemes to contain an active social media presence, sleek websites and a responsive PR team. That's exactly what TMT delivered, even going as far as contacting Jonas over the initial story we ran last week.

Although it's not always easy to spot an ICO scam, running a simple Google search of the website copy or whitepaper content is a good idea. Looking up the team members on LinkedIn is another good approach. Carefully evaluating the business plan as well as escrow conditions  are also important.

Hacked.com has a growing list of legitimate ICOs listed here. Be sure to check this page for the latest ratings on legitimate ICOs.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.

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