Since the success of Bitcoin, cryptocurrencies have exploded in the past year. Almost every other week, a new promoter introduces an initial coin offering (ICO). Cryptocurrencies are much more fickle than stocks and bonds, and the industry evolves expeditiously. Despite the huge risk of investment, everyone who missed out on Bitcoin wants a chance to get in on the action. Many scammers have picked up on this eagerness and are taking advantage of trader greed.
In 2018 alone, investments in initial coin offerings could very well exceed one trillion dollars. While many ICOs are lawful, a vast majority of them have no real business plans or technology behind them; launching with nothing more than a “white paper” by individuals with no experience. The purpose of the “white paper” is supposedly to lay out the projected objective for the token, the technology behind it, the biographies of the promoters, and the sales goals the promoters have put in place for the cryptocurrency launch. It is then posted online to the public for a limited time as it simultaneously victimizes investors that are ready to take a chance.
