Bitcoin Revolution: Side-Stepping Potential Scams

Bitcoin Revolution Scams

There’s an ongoing explosion of interest in Bitcoin, and that’s not going away anytime soon. Cryptocurrency projects raise money through ICOs. While two-thirds of all ICOs are genuine, it’s the reminder that worries the everyday investor per a credible estimate. One-third of all ICOs being fraudulent is a massive strain on the investor pool. Furthermore, the insidious ways fake crypto projects infiltrate even genuine websites, leaving positive reviews and creating a following, gives ‘fake news’ a whole new meaning.

Fake cryptocurrencies do real wash out genuine ones. The fairest course of action would be to be aware of measures that ensure the crypto under examination is real. Are there Bitcoin Revolution scams? These days there’s no detailed set of guidelines or policy statements regarding cryptos and derivatives from public agencies. The investor must follow her common sense.

Trail by elimination is the only way to know if their burgeoning crypto ios is a scam. And one must not get too excited over cryptos. Income possibilities are not unrealistically fantastic, even with cryptos. You ought to fight shy of the urge to have very high passive income, mainly courtesy of cryptocurrencies and their derivatives. 

Sketchy coins, dubious tokens, and fraudulent ICOs

A plethora of new cryptocurrencies launch each month, and alongside these new tokens and coins comes a series of initial coin offerings, or ICOs. The hunger among a broad pool of investors for these opportunities has grown, even though cryptocurrencies were drubbed in 2018. All of these factors join together to entice scammers. After all, if investors have plainly evidenced that they are willing to throw money toward a highly speculative cryptocurrency, they seem to be equally likely to invest in fraudulent tokens or ICOs.

The prospect can be daunting for the cryptocurrency investor looking to make the most of the host of new investment opportunities while remaining safe from fraudulent ICOs and sketchy coins and tokens. 

Get to Know the Team

Perhaps the most important success factor for any ICO or cryptocurrency is the developers and administrative team behind the project. The cryptocurrency space is dominated by prominent names, with superstar developers like Ethereum founder Vitalik Buterin capable of making or breaking new projects simply by having their names listed on a development

team. Unfortunately, therefore, it’s increasingly the norm for scammers to dream up fake founders and biographies for their projects.

The best protection against this dishonest tactic is to thoroughly research the individual team members before you invest. 

Beyond resolving whether the development team is real, it’s important to make an effort to see if their qualifications measure up. For example, do the founders have the experience they claim to possess? Is it relevant to the current project?

Peruse the Whitepaper

  • A cryptocurrency or ICO whitepaper is the basic document for that project. The whitepaper ought to lay out
  • strategy, 
  •  the background, goals, 
  • concerns, and 
  • timeline for any blockchain-related project implementation 

. Whitepapers can divulge a great deal – companies that have a flashy website may reveal they are going without a fundamentally sound concept. Conversely, a website containing spelling errors may have a whitepaper indicating a rock-solid concept and a well-conceived implementation plan.

The first step toward a whitepaper analysis is to read it very thoroughly. Then, check to see if the whitepaper has complementary resources, including financial models, legal concerns, SWOT analysis, and a roadmap for implementation.

A whitepaper ought to reply to all of the questions a potential investor might have about what sets this particular project apart from its competitors, how it aims to be successful, and the measures it will take to gain its goals.

Scrutinise the Token Sale

Any ICO will be contingent upon a token or currency system in order to facilitate the crowdfunding process. Legitimate companies and endeavours make the system itself and token sale’s progress easy for potential investors to view. Carefully observe the token sale figures as the ICO is ongoing. Better still, watch the token sale over time to jot down how it is progressing. If a company makes it impossible for anyone to chart the progress of its ICO, this is a major red flag. 

How transparent Is the Project?

Companies that have outstanding concepts and models will be more likely than others to seek to be as transparent as possible with the broader community. Watch out for companies that intend to keep potential investors up to date with thorough, fairly frequent progress reports on a company website or on social media. It’s instructive to look if a company is motivated enough to have a timeline for what has taken place in the development process.

Be cautious             

Even the most successful ICOs and cryptocurrencies are severely criticised for being propelled by speculative investing. The thought of getting rich quick on investment is tempting enough to attract seasoned investors and beginners into risky areas. Keep an eye for caution as you examine new investment opportunities in the ICO and cryptocurrency spaces. Be aware that projects sounding too good to be true most likely are.

Spend time scrutinising every detail, and assume that the absence of a piece of crucial information may be an attempt to obfuscate – hide an unsound model or concept. Look up outside sources to verify any project’s legitimacy before investing.

Fake wallet apps: Being on Google Play is no guarantee of bona fides

Other scammers have become attentive to creating quite sophisticated fake wallet apps that can be used to steal critical account details once downloaded to a user’s smartphone. These apps have reached official, legitimate app stores like Google Play, so it pays to do your research before downloading anything to your phone.

Fake exchanges 

In a similar vein to phishing scams, look out for fake Bitcoin exchanges. They might walk and talk like a reputable exchange, but they’re merely a front to separate consumers from their hard-earned cash.

Some will coax users with promotional offers that sound too good to be true. Others pressurise users into creating an account and depositing funds, offering “bonuses” to those who deposit more significant amounts. But once you are in possession of your money, these platforms might charge abnormally high fees, make it very difficult to withdraw funds or simply steal your deposit altogether.

Case study: BitKRX

In December 2017, the Bitcoin community and South Korean authorities revealed a fake exchange by the name of BitKRX. 

By posing as a legitimate exchange and passing itself off as a branch of KRX, a massive trading platform, it was able to ensnare innocent users.

Impersonation giveaway scams

One type of scam common to many large sites and social media platforms is a celebrity impersonation giveaway scam. Here, the scammers will impersonate a celebrity or other notable person and announce that they’re giving away a lot of cryptocurrency for free, as long as you send them some cryptocurrency first.

Fraudulent ICOs

And if you want to get in with the minimum of fuss, the easiest option for the average person is to buy coins or tokens in an ICO. There’s a huge appetite for new cryptocurrencies – in the first half of 2018, ICOs raised a total of US$11.69 billion – and with many new buyers having limited knowledge of how the crypto industry works, it’s the perfect nesting ground for scammers.

Case study: Pincoin and iFan

In April 2018, the Pincoin and iFan ICOs, operated by the same Vietnam-based company, are believed to have cheated 30,000+ investors out of a combined total of US$660 million.

iFan was intended to be a social media platform for celebrities, and Pincoin promised 40 per cent monthly returns to investors. Both were later proved to be multi-level marketing (MLM) scams.

How to sidestep fraudulent ICOs

Research detailedly any ICO before buying in. Examine the team behind the project, its whitepaper, the currency’s purpose, the tech behind it, and the token sale specifications.

The case against Bitcoin Revolution 

Official agencies in UK, Australia, and Malta warn against Bitcoin Revolution

In 2019, the Malta Financial Services Authority (MFSA) issued a warning about a Bitcoin Future scam.

In the warning, the agency noted that “this entity appears to present the same deceitful characteristics as another entity, Bitcoin Revolution.”

The MFSA had earlier issued two separate warnings about Bitcoin Revolution in January and August 2019, with the caveat to its citizens that “information available to the MFSA suggests that Bitcoin Revolution is likely to be an international “get-rich-quick” Bitcoin revolution scams.”

“The public should, therefore, refrain from undertaking any business or transactions with the entity operating under the name of Bitcoin Revolution,” it reiterated.

In 2018 in the United Kingdom, the Financial Conduct Authority issued its own warning about similar scams.

While it did not particularly mention Bitcoin Revolution, the FCA did warn about a similar scam called the Bitcoin Loophole. 

ASIC or Australian Securities and Investments Commission has also concluded that there’s overwhelming evidence of wrong-doing from the Bitcoin Revolution Scams. 

Check to see if the purported crypto website is genuine or not

  • The website ought to connect securely over HTTPS; 
  • Web browser address bar ought to show a padlock or the word ‘secure’; 
  • The URL has to be without any grammatical errors; 
  • The promise of ginormous returns is a red flag; 
  • The ‘About Us’ section has to point to detailed descriptions over team members of the crypto project; 
  • Is the site linked to reputable websites?; 
  • URL registration details will give you the registered owner’s details; 
  • Celebrity endorsements have to be verifiable.

Bolster yourself against crypto fraud online

  • Two-factor authentication If you’re using a crypto wallet or exchange that is compatible with 2-factor authentication, remember to enable this feature prior to depositing any funds. It’s simple to set up and is the source of an extra layer of account security.
  • Use a cold wallet.         

A “hot” wallet is connected to the Internet, while a “cold” wallet is one that’s held offline. Storing your crypto offline in a physical cold wallet is a much more secure option than using an online wallet.

  • Stay loyal to established providers. 

Avoid new and untested platforms. Instead, let the early adopters take risks and ensure you don’t have any truck with an exchange or wallet until you can ascertain it’s legitimate.

  • Ensure your PC is protected against malware by keeping your antivirus software up to date.
  • Double-check addresses – always! 

Remember to scan the URL bar to look for the HTTPS and “secure” lock symbol, and remember to double-check the URL to make sure you’re visiting the correct site.

  • Your private keys are not for sharing. 

You need your private key to access your crypto holdings, so make certain you never disclose any of your private keys to a third party.

  • Report scams 

Delimit the operations of the scammers by doing your bit for community security. If you smell a rat, report your concerns to

  • National Cyber Crime Reposting Portal

https://www.nationalcrimeagency.gov.uk/what-we-do/crime-threats/cyber-crime

  • National Cyber Security Centre

https://www.ncsc.gov.uk/

Conclusion 

We have seen that while the bona fides of most cryptocurrencies are good, a few bad eggs damage investor confidence for good reasons. You have observed checklists that eliminate all probabilities as to malfeasance. Passing cryptos are valid investment options. And failing cryptos are going to be deprived of the number of investors they could dupe with impunity.

Cryptocurrencies are complex, and the outcome of examinations of their purposes are complicated, too. Vigilant investors can ensure those good cryptocurrencies are not washed out with the bad ones. And our discussion above and suggested remedies do just that.

 Should you be in need of assistance, however, Fast Action Refund(https://fastactionrefund.com/) would gladly help.

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