Who’s Scamming Who? ICOs Face Rampant Price Gouging
Seasoned crypto heads may consider the current ICO marketplace to be a bit tame compared with a few months ago. As the rapid-fire line of bogus start ups begins to fade into the shitcoin cemeteries of the past, more established teams and projects are coming to the forefront. But now we are seeing a different kind of scam. The tables have turned and evolved scammers are migrating to ‘serve’ these new and improved ICO startups.
True, it really is still the wild west in terms of ICOs. There are promises of turning lead into gold (“We just need $13 million to build a lab!”) and regulation has not yet taken hold. But we are seeing the crypto industry mature just a little, maybe to a later stage of infancy.
Whereas the earlier stages of crypto scammery revolved around hackers and honeypots, and while the hacking of exchanges and redirections of wallets remain a problem, now we are seeing a different kind of scam. The ICO price gouge.
Scammers have watched long enough as crap ICO after crap ICO raked in millions of dollars in Q4 2017 and Q1 2018. So they have turned their attentions to the ICO startups for potential money grabs. These often come in the form of ICO ‘services’. One outfit I came across recently is charging $80,000 (current market value) for a white paper. I am not making this up:
A landing page? $40,000? Come on. Call me crazy but this seems over the edge. How about a code audit for $15,000 or $500/hour for a white paper consult? Maybe a $160,000 ICO legal consult is what you’re after.
It would be one thing if these “service providers” were targeting the scam ICOs. But of course, they are not because, well, it takes one to know one. A scammer is not going to pay 40 btc to have their ICO completely serviced. So as better, projects emerge, this new brand of scam awaits them.
It doesn’t mean there aren’t trustworthy ICO service providers, they just may be a little harder to find.
Building Your ICO? Here are a few tips:
- If the price is not listed, you can’t afford it.
- If you are asked to put a $1500 deposit down before you even know what you’re getting, take a step back.
- Just because a team looks legit, their website ranks well, and their ICO service or product sounds great, remember, this industry is only months old. Before you pay hundreds of thousands of dollars to hire experts, keep in mind that most of these people are brand new to this business.
- Even though a service provider or ICO consultant may say that their client raised 10 million dollars, it doesn’t necessarily mean it was due to their expertise. ICOs, even some of the worst, are reaching their hardcaps in days if not minutes.
- Come to TruDex. Real people, who have spent the last 6 months researching and analyzing ICO data. Let us help you.
Everyone on the team here at TruDex is of the same mind when it comes to cryptocurrencies. We are here because of the potential that decentralized currencies represent in making our world a better place. It’s our job to find and support the ICO projects that have the most potential for impacting daily lives. Join us today.