Make false marketing claims and make promises of unattainable returns. The con artists vanish after the ICO is finished and the money is collected, and investors are left with worthless tokens.
Before investing, thoroughly investigate the company and its team to avoid fraudulent ICOs. Look for information about their track record, industry experience, and business plan.
Pump and Dump Schemes A pump and dump scheme is when a group of people artificially inflate the demand for a cryptocurrency to manipulate its price. They accomplish this by advertising the cryptocurrency on social media and other platforms after purchasing large quantities of it. Demand and price temporarily rise as a result, and the con artists then sell their holdings, crashing the price.
