China Has Found 421 Fake Cryptocurrencies

[CaptainLorca]

Thats a lot of fake for one day! A report on fake cryptocurrencies has been dropped on friday by a Chinese government-backed Industry Organization. They found 421 fake cryptos, 60% of it developed in overseas countries.

The National Committee of Experts on the Internet Financial Security Technology (IFCERT) just published a detailed report (https://www.ifcert.org.cn/industry/208/IndustryDetail) of 421 fake cryptos. With future interest on cryptos like bitcoin, ethereum, litecoin or other call for frauds and pyramid schemes. 

Criminals using this attention for cryptos to get people in their pyramid schemes and frauds, causing major losses for any investor, walking in their traps. The IFCERT is continuously  observing those potential scams:

Quote

As of April 2018, the technology platform has found 421 fake virtual currencies, of which more than 60% of fake virtual currency website servers are deployed overseas. Such platforms are difficult to find and difficult to track.

They also dropped the red flags on potential scams:

• "pyramid-based schemes" - Promising big winnings
• There is no official code that code operate on the Blockchain
• They're not listed on any exchanges.

Since these fake cryptos are often launched overseas, its a problem to recover losses through a scam for Chinese citizens.

Source: https://news.bitcoin.com/china-fake-cryptocurrencies/

[nhoyasim101]

i am about to post this news as i read this on bitcoin news😁 i only have a question with this news, why they don't put list of that 421 fake crypto so that cryto enthusiast will be inform with this? 

[xtinepink]

2 hours ago, CaptainLorca said:

 

They also dropped the red flags on potential scams:

• "pyramid-based schemes" - Promising big winnings
• There is no official code that code operate on the Blockchain
• They're not listed on any exchanges.

Since these fake cryptos are often launched overseas, its a problem to recover losses through a scam for Chinese citizens.

Source: https://news.bitcoin.com/china-fake-cryptocurrencies/

Yeah those high promising gains are really a no-no. Its give too much profit than your investment in a couple of days or weeks. But still many people do engage on this. 

It will be pretty much useless to invest in coins/tokens that will never be seen on exchanges. 

Stay away from those projects, sometimes it’s just too good to be true.

[CaptainLorca]

7 hours ago, nhoyasim101 said:

i am about to post this news as i read this on bitcoin news😁 i only have a question with this news, why they don't put list of that 421 fake crypto so that cryto enthusiast will be inform with this? 

It’s listed in the report that I linked also... but I speak like 0.01% Chinese and don’t ask me about reading it. I‘m confident that it will be translated soon.

6 hours ago, xtinepink said:

Yeah those high promising gains are really a no-no. Its give too much profit than your investment in a couple of days or weeks. But still many people do engage on this. 

It will be pretty much useless to invest in coins/tokens that will never be seen on exchanges. 

Stay away from those projects, sometimes it’s just too good to be true.

I think it is absolutely worth it to make those sites. Even the amount of frauds they found is impressive. Even if 421 doesn’t sound much globally seen, it’s still a lot and I‘m sure that a lot of people ran into this trap.

the promised return can get you really fast into believing „wow. Let’s do it“.

[barbaris]

Unfortunately, there are a lot of them, many people lose money, thereby enriching the scamers.

[CaptainLorca]

8 minutes ago, Kate said:

There are a lot more than that. They said that these are the accurate amount of Fake coins so its just an accurate not exact.

Feels bad that many people get scammed by these. I don't get it what do these scammers get by scamming them ? Placement in the top wanted list ? LOL  

Anyway stay safe there guys do some reviews or just wait until it hits exchanges so that they are legit and not fake. 

Now i understand why China banned some crypto's though. Due to these scammers crypto's can't develop  

Why scammer do it? Because it works. They make enough money over time. You also can make yourself anonyme on such an operation easily. You wouldn't create a side and write down who you really are. That would be insane. They usual customer who runs into a fraud is just disappointed and moves on.

[Paul112]

1 hour ago, CaptainLorca said:

Why scammer do it? Because it works. They make enough money over time. You also can make yourself anonyme on such an operation easily. You wouldn't create a side and write down who you really are. That would be insane. They usual customer who runs into a fraud is just disappointed and moves on.

This is a very good point. They can remain anonymous and put nothing at risk. And many dont lose enough to be worth going after. maybe big investors tho.