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5 Biggest ICO Scams in the History

7 months ago

Initial Coin Offerings have paved the way for newer investment strategies and methods causing a lot of disruption in the current systems of crowdfunding or investment of any sort. ICOs offer tokens in return to the investment offered which has a value of it’s own.


ICOs are unregulated and have no interrogation from the relevant authorities, making it susceptible to scams, below are 5 major incidents that happened.


Plexcoin was an ICO that labelled itself a security without the help or licensing of the SEC, retaining a simple template of money swindling schemes like pyramid schemes and MLM this attracted many investors and a bold claim of thousands in return, it amassed about 15 million dollars worth of cryptocurrencies but was stopped by the SEC.


Bitcard was an ICO that seemed normal, the scammers never released a whitepaper, roadmap or announcements of any sort, there was incoherence and misstatements made regarding the token on the website, the team raised $5 Millions but vanished after some awareness by concerned investors.


Enigma already established itself as the best coin out there, but in pre-ICO, hackers gained access to the teams communication channels and advertised a fake ICO which caused investor cumulate 500,000$ in investment and run away from the investors, the CEO had not configured 2FA which allowed the hackers to gain access.


An ICO that was hacked and a lot of tokens were stolen from, concerns regarding the audit report and many more were raised but the team was not concerned yet avoided the questions indirectly, the hacker exchanged the tokens for ETH and liquidated them.


Making a new change in the form of loyalty points and customer retention on a global scale, the benebit token offered much more value added services but alas, this was a cryptocurrency made as a token, the team was fake and most of them were copy pasted from existing websites. The team ran away with 2.7 million dollars in cryptocurrency. We've recently written another article which tell you how you can avoid being scammed by ICOS.