Cryptocurrencies scams

The cryptocurrencies have a side B, the scams. There are so many, and we cannot ignore them. Ponzi schemes, false roadmaps, …

Shit happens, but with a proper due dilligence you can minimize the risks.

Basic due dilligence (basic questions)

The general consensus about due dilligence is: do a standard due diligence as if it is a traditional company, plus check specific questions from the blockchain environment. Things such:

  • Exaggerated returns percentages.
  • Not clear or very complicated transaction fees.
  • Who are the owners? (yes, some of the ICOS I have read they do not add any name, incredible isn’t it?)
  • Do they have a clear roadmap?
  • Are they achieving the defined roadmap?
  • What is the implemented token model?
  • What is the value of the cryptoasset in the value chain of economy?
  • How the crypto asset is evaluated?
  • Is the consensus model a trusted one?

I will list the ones that I know that happened, ordered by scammed amount:

  1. Pincoin token: A Vietnamese cryptocurrency company Modern Tech. The team disappeared after scamming around 660m$ (April/2018)

A complete blacklist of scams and potential scams being evaluated:

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