December 28, 2018 | AtoZ Markets–A recent study conducted by a New York-based international newspaper showed that hundreds of cryptocurrency projects’ whitepapers had signs of fraudulent activity, promises of incredible income, and plagiarism.
How the U.S. Media Held the Analysis of 3291 Crypto Project?
In the course of its research, the aforementioned media posted on its page “whitepapers” of the 3291 cryptocurrency project, in which the initial coin offerings (ICO) were announced from three websites – ICOBench.com, Tokendata.io, and ICORating.com. A “whitepaper” is a technical document issued by a company that describes the company’s position, team biography and technical features of the project. This document is used as a marketing tool for potential investors. Journalists analyzed documents, excluding duplicates and non-English documents. To identify duplicates news portal experts compared sentences containing at least 10 unique words with each other’s sentences in other documents. Then the journalists read and viewed almost 10,000 sentences that repeatedly appeared among the analyzed 3291 projects, and removed the technical and legally sound wording. After that, the journalists compared the reported dates of the proposals to determine in which document the proposal was first published, and excluded these projects from their database.
What Were the Research Results?
Analysis of the 3291 cryptocurrency project showed that 16 percent – or 513 – of the above-mentioned “whitepapers” had signs of plagiarism, identity theft and promises of incredible profits. Official documents of more than 2,000 out of 3291 projects contained offers with attractive conditions, such as “nothing to lose, guaranteed a profit, return on investment, high income, high profit, profit of funds, lack of risk and little risk”. US state and federal regulators have previously suppressed various sentences with similar wording, issued orders to stop and refrain from the illegal activities of crypto-projects and sometimes accused the alleged perpetrators. In addition, the U.S. news platform tried to identify fake team members by reverse searching for images of photographs of people associated with 343 crypto projects that did not provide key data about team members. In some documents, there were no lists of team members at all, so the American newspaper searched for names appearing on a list of more than a million, managed by the US Census Bureau. In August, American media stated in its study that the manipulation of cryptocurrency prices was mainly carried out by organized “trading groups” using services such as Telegram. The news agency suggested that the coordinated “pumping and dumping” schemes forced traders to inflate and bring down prices for various cryptocurrencies this year.
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