Trader Defense Advisory warns that scam Initial Coin Offerings are becoming increasingly common and recommends caution when investing in crypto currenciesSCHAUMBURG, ILLINOIS, UNITED STATES, April 6, 2021 /EINPresswire.com/ -- SCHAUMBURG, Ill., April 5, 2021 Trader Defense Advisory warns that fake ICOs or scam Initial Coin Offerings are becoming increasingly common and recommends caution when investing in new cryptocurrency coin releases. For example, the recent release of a Star-Wars-themed cryptocurrency seemed exciting for investors in the Mando, but the fun ended soon when it turned out to be a fake ICO.
As reported by Gizmodo, Tiktok influencer Matt Lorion urged his 1.2 million followers to invest in an ICO for the Mando, a new digital coin based on the theme of Disney’s The Mandalorian inspired by the Star Wars theme. The coin was supposed to have been traded as $MANDO and those behind it claimed it was a token based on Bsc that produces a yield and deflates with every transaction.
The Mando was receiving some attention but Matt Lorion’s backing increased the hype over this ICO substantially. It wasn’t long, however, before Lorion had to issue an apology and a retraction for his followers and an admission that he himself had lost $10,000 on the fake digital currency.
The Mando website simply disappeared with the money it raised for its ICO. Its white paper was filled with extravagant claims. The Mando is an example of fraudulent agents designing fake currency to appeal to very young investors who may have little experience in cryptocurrency. For instance, Mando’s biggest advocate, Matt Lorion, was a teenager who was exploited by the scam.
The Mando fiasco is yet another chapter in the continuing story of false ICOs, and Trader Defense Advisory urges consumers to research these ICOs carefully before investing their money.
The Problem of Fake ICOs.
Cryptocurrency represents freedom and innovation in the way people earn, buy and invest in the 21st century. Unfortunately, the anonymity of the currency also provides an opportunity for cybercriminals to launder money and conceal wrongdoing.
In addition, the result of an Investopedia survey revealed a sobering statistic that 80% of ICOs are fraudulent. Only 8% of these ICOs actually end up on exchanges. Therefore, there is reason to be skeptical of ICOs and to check them carefully before investing or passing on information about them.
Social media complicates problems because social media influencers who do not have a background in financial products or any special knowledge about cryptocurrency can promote these products and unwittingly expose their social media followers to fraud. Consumers should not rely on social media for solid financial information but should speak to experts, advises Trader Defense Advisory.
What to Look for in a Legitimate ICO
Cryptocurrency users and investors must take precautions, but they can benefit from investing in cryptocurrencies. TDA suggests taking the following steps for safe cryptocurrency investing.
Invest in Cryptocurrency through approved and legitimate platforms such as Coinbase, Robinhood, SoFi.
Far-fetched ideas, like a coin designed in honor of a TV series or a movie, usually are not reliable
Stick to dependable cryptocurrencies such as Bitcoin, Ethereum and Litecoin
If you feel you must invest in an ICO, research who is behind the deal carefully
Only invest in money you can afford to lose
Investors should always be aware that ICOs are extremely risky. Therefore only invest modest amounts that you can afford to lose, never your savings. Take some time to research the credentials of the crypto coin developers, but be aware that this information could be false. Check all contact information to ensure it is consistent.
When you invest in ICOs, stick with reliable platforms such as Coinbase, Robinhood, and SoFi. Scam ICOs will ask investors to contribute money directly from their own accounts and reject the use of platforms or insist on using those that are not verified. Finally, it is important to keep in mind that there are many cryptocurrency investment opportunities that do not involve risky ICOs. Speak to experts, advises TDA, if you need more information about an ICO.
About Trader Defense Advisory
Trader Defense Advisory offers all clients a free consultation to assess their cases and design a roadmap for pursuing their claims. The TDA team works tirelessly to advocate for clients and will fight back against Bitcoin extortion scams.
Dan Arnheim, Media Relations Director
Trader Defense Advisory
1900 E Golf Rd Suite 950 Schaumburg, IL 60173