With the growing popularity of Blockchain technology and Cryptocurrency projects, investors have got many options to invest their hard money in crypto space. Although cryptocurrency provides the exceptional returns on Investment but at the same time it is prone to many scams, hacks, conspiracies and pump & dump shady techniques to scam people.
With the inception of year 2017, cryptocurrencies rose greatly and currently crypto market capitlisation rest at $135 Billion which is actually a commendable amount for crypto market potential. But if also talk about the ICO scams, then they also leaded in majority during this whole year.
As per a survey, there were currently 500 ICO scams happened, most of all were not so hyped by media and some high profile scam like Billion Coin or One Coin had come into light. But the fact is : ICO remained full of scams and it may also be in future too.
Now, the US Securities and Exchange Commission recently issued a warning to all potential scam coins to shut down all the shady working they are doing in crypto market.
SEC signified that they're warning those public companies which comes up with ICO offering to pump their coin price and later stashed all the investor's money.
Along with this warning, SEC also banned the trading trading activities of three major companies over the concern of possible pump and dump scheme. These companies was named as CIAO Group, Strategic Global and First Bitcoin Capital. They were major OTC -based companies recently trading the possible 'scam' coins which in turn scamming investors.
OneCoin, The Billion Coin, GAW Miners are some the well-known ICO scams which scammed general investors over Millions of dollars without even giving them a single cent back.
They were operated under the nose of government and ICO regulators. But still, because of the power they possessed, they conducted their ICO with full enthusiasm, eventually scammed investors.
So, as per recent SEC warning, if any public or private company found guilty of any pump and dump or ICO scam, then it will be prosecuted with maximum punishment.
I would advise all the Investors to keep your capital safe and never invest in any project without using your own intelligence and research skills.
Thank you.
