Blockchain technology brought completely new approach of data exchange, demonopolization of information, and financial independents. These opportunities open fast-growing innovative industries (e.g. mining hardware, software instruments and crypto-related spheres)
But such Crypto-rush couldn't`t be ignored by fraudsters. We always hear about fake ICO, cloud-mining without enough power, and other scandals, that is used by Blockchain skeptics to show instability and even danger of the crypto world. Blockchain evangelists and active users know, that all scandals are not rare, but they couldn't compromise idea of the decentralized world.
On the same time, I believe, that we should tell more about fraud-cases and scam to prevent risks of bean deceived and allow everyone discover all benefits of the Blockchain with full information.
I want to tell about, on my opinion, typical crypto-scam case.
Few days ago in China it were arrested founders of the PuerCoin. They created crypto currency, that is should be enforced and can be exchanged to Puer tea. But As it was mentioned at Coinbase, "According to the police investigation, though the firm had only a «very limited amount of the tea in stock,« it promised high short-term returns to investors in social media promotions and roadshows at high-end hotels. "
So basically, these guys collected money to crypto currency, that should be backed by Puer tea (stocks). But in reality, company did not have enough tea to backed all fiat investments.
I must say, that they got really interesting marketing strategy. This is an Asian style of presentation with a taste of traditions. "Creative financial product bearing profound Chinese tea culture to the rest of world in the background of the fast developing internet "
Even their promo video is so confident, that you cannot even imagine, that this is all just a fake.
But, according to Chinese governmental agency , these company is just a scammer.
So what conclusion we should take from this story:
- always be aware about the risk of fraud
- all investment ideas in crypto world should be checked by your own (just imagine, if one of the investors asked proves of amount of resources for backing Puercoin)
- keep digging into opportunities of the Blockchain, despite of the scam scandals!