The ICO Scam Blueprint
ICO’s are the newest technological innovation scammers have to leach off of buzz words and hype while trying to steal from people. Much like e-mail brought the Nigerian prince scam years ago, ICO’s are the easiest way for fraudsters to try to steal people’s crypto currency.
Over 500 crypto currencies (some part of ICO’s, some not) have completely died since “launching” and taking “investors” crypto currency. Terrible people wanting to steal have made a game out of ICO Scams and it won’t end until there is zero profit for them to stop launching these.
Create a plan to “build a product” that has anything to do with blockchain or a new and better crypto currency.
Newbies to crypto love the opportunity to get into the “next big thing” and people with no money will help promote it once you “airdrop” some free coins.
Doesn’t matter how stupid your idea is, people getting free tokens during airdrop WILL SHILL ANYTHING.
Get a “team” together with real or fake LinkedIn profiles and a limited history of launching or accomplishing anything within the blockchain or crypto currency space. If you can create a good fake team, there will be less people to split your profits from the scam with. Using real people on the team will reap higher rewards though, as more people will believe it and push the ICO as a “good idea.”
Write a white paper. This is the most important step because you need to tell suckers how the “project” will make your team and the “investors” money.
Popular methods include vague estimates of how large a potential market is, vague estimates of competitors’ revenue within the space and “profit share” features for your token to token holders. The last one is a risk-free addition to a white paper because THERE WON’T BE ANY PROFIT.
Being vague with the actual “need” of your project or product is fine, as long as you inflate the potential revenue your project can make. Especially with an airdrop token, people just want free coins, so nobody will really care if it’s “possible” to build whatever you are claiming.
Hire an ICO campaign manager. Someone with experience making sure your token gets promoted and hits targets for taking peoples Ethereum or Bitcoin.
This is where the “Bounty Campaign” usually starts, a small amount of the tokens will be given away to poor people with no morals for promoting the ICO on Bitcoin Talk, Twitter, Reddit, Facebook, Telegram, LinkedIn and Telegram. Everyone involved has to say it’s a great project and post a certain number of times per day or week!
Watch the trolls who want free tokens shill your ICO on every social media platform for a few weeks to hit your ICO goals of $X million dollars.
Thank everyone who contributed to the ICO and promise you will update them on the progress of your project weekly, monthly (whatever).
Sell as many of your ICO’s tokens as possible for the next 3 months, while giving “updates” on progress that sounds amazing or even too good to be true. If more buyers come in while you are unloading your tokens, it’s even more profit.
Options for this include a team member leaving, the technology being harder than your team thought, problems with governments that don’t like your “disruptive” project. Pick any of them, just make sure it’s always up for debate whether people were scammed or you “tried” to make something and failed.
Don’t get sued like Centra Tech. Businesses fail all the time, just don’t let them know you didn’t even try because people love it when you fail but “tried.”
Your coin will die at some point and you might need to assume a different name in any future ICO’s. But you will have over a million dollars if your ICO whitepaper was believable, the team was either “created” or colluded to take certain %’s of the suckers money and you make it look like you tried.