How crypto developers commit corruption

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A cryptocurrency is a solution to the current currencies in the world. Satoshi Nakamoto brought a decentralized money system to end the monopoly of central banks.
In its development, cryptocurrency offers more opportunities for a group or an individual to create its own money. It is called a coin or a token. Every coin or token has different functions and purposes.
Everything looks ideal. Unfortunately, there are loopholes that developers use to deceive investors. I will not mention some tokens that were created by ID developers.

Corruption scheme

First, crypto developers usually create a token. A token is not launched in the mainet of a coin, but it is run on the second chain. The most widely used second chain is Ethereum, BNB, and other coins.

Second, the developers will issue or mint the token. Almost all of them are pre-minted tokens.

Third, the developers will create a landing page for the website. The website will offer the token to the public. The public will buy with bitcoin, ethereum, litecoin, and cash money.

Fourth, the developers will hold more than 50 % of the asset tokens. Sadly, there will be wallets that people buy in bulk at the pre-sale price.

Fifth, the developers will list the token on the marketplace. Then they will buy back the token to stimulate the movement of the price. After the price increases, the wallet holders who bought in bulk will sell the tokens. pic : https://iconow.net/ico-scam/

In the end, It is not easy to prove that the mysterious wallets have any relation to the developers. However, it is very easy to guess the scheme. If the developers sell their assets from their official wallets, customers will catch the developers easily. That is why, mysterious wallets are needed in this case.

That is one of the schemes by which crypto developers deceive investors. Be careful when you want to invest in it.



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