Investors have despatched $1 billion into virtual coin initiatives that flash caution indicators for fraud, The Wall Street Journal reported Thursday. The revelation comes an afternoon after the SEC created its own fake ICO to teach investors a lesson. From a file: In a overview of one,450 virtual coin choices, the Journal mentioned it found 271 bore red flags such as plagiarized documents or fake executive information. Investors have already claimed losses of as much as $273 million in those initiatives, the newspaper mentioned, in keeping with complaints and regulatory movements. The coin gross sales, or “initial coin offerings,” give buyers the danger to shop for into a brand new virtual token whilst letting builders get simple get entry to to investment. The procedure is also a bit of too simple for plenty of initiatives which are unproven or outright scams.
Coin choices have raised more or less $nine.eight billion in the 2 years via mid-March, in keeping with monetary analysis company Autonomous Next. The Journal discovered popular plagiarism in 111 initiatives’ on-line whitepapers, together with word-for-word copies of promoting plans and technical options.