How To Spot A Cryptocurrency Scam

Do you tend to hear about the next hot new cryptocurrency from your friends or Twitter feed and your FOMO kicks in!? The Wall Street Journal analyzed about 1,450 cryptocurrency offerings revealing blatant plagiarism, identity theft and promises of improbable returns. Companies use coin offerings to raise funds by selling their own digital currency. The SEC also launched a fake website with a fake crypto coin offering as an example of what to avoid in these crypto scams. Of 1450 crypto coins the WSJ analyzed, 111 of them had the exact same white papers, at least 121 of the projects didn’t disclose the name of a single employee, dozens of companies promised investors financial rewards without any risk - all of these are red flags for any sensible investor. 


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