China Uncovers Fake Cryptocurrencies

A Chinese government-backed industry organization, by the name of the National Committee of Experts on the Internet Financial Security Technology (IFCERT), have published a report mentioning 421 discovered fake cryptocurrencies.

The report contains cryptocurrencies which have been discovered up to April 2018. 421 cryptocurrencies have been found to be fake, from which 60% are deployed overseas.

Concerns

The discovery arose concerns about their adoption and schemas that promise investors high revenues. These virtual currencies don’t have a code that they can be certified on. Neither do they have a traceable blockchain that keeps track of transactions and other information.

Uncertain groups and individuals control the fake cryptocurrencies. They manipulate the price changes, which creates the illusion of real trade activities. The warning signs appear when the users want to withdraw cash, but the transactions fail to go through.

The ones behind

It is almost impossible to find out who the individuals behind the fake cryptocurrencies are. IFCERT have commented that the platforms are often deployed overseas, which makes it difficult to recoup the losses for the victims.

While none of such currencies have any real information about them, they remain to coexist among all.

271 from 1450 are fake ICO’s

The Wall Street Journal has recently found out that 271 from the total of 1450 initial coin offerings were fake. The reports account investments of over $1billion in these ICOs, with many firms already vanished from the crypto scene.

John
 

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