Dark side of cryptocurrency projects

loading WSJ Reveals Plagiarism and Fraud in Cryptocurrency Projects

There is a rapid growth in cryptocurrency space where the incidents of scams, frauds, and hacks have increased in which it results in digital asset put up in a risky environment. Investors and users are in a doubtful phase considering the crypto market. The recent report of the research claims that there are hundreds of cryptocurrency offerings which are indicated signs of the fraudulent activity that is improbable return and plagiarism. In order to analyze the cryptocurrency projects, WSJ evaluated “Whitepapers “of nearly 3,291 cryptocurrency projects which are announced as an initial coin offering (ICO). The white paper is an important document for an Initial coin Offering (ICO) which is an informational document issued by a company which describes the position of the company, team biography and the technical specifics of a project and it is drafted to be used as a marketing tool for potential investors. The basic structure of the project is designed. Once the documents are downloaded the reporters consider both the native and duplicate language papers. They noted that, “To identify the duplicate language, the Journal compared sentences with at least ten unique words to every other sentence in other white papers. Reporters then read and reviewed nearly 10,000 sentences appearing more than once among the 3,291 papers analyzed and removed technical and legal sounding language. Then, the Journal compared reported offering dates to determine which document first published any given sentence and excluded those projects from this database.” The study finds that out of 16% or 513 out of 3,219 white papers are found with plagiarism, identity theft, and implausible return promises. More than 2000 white papers contained terms like “nothing to lose, guaranteed profit, return on investment, highest return, high return, funds profit, no risk, and little risk.” Some of the crypto projects show fake team on their websites to balloon the project’s credibility and the operation size. The effort put by WJS to discover the fake team members by reversing the image search of all the photos of 343 projects. WSJ then unveiled in a study that through organized “trading groups” cryptocurrency price manipulation is been hugely conducted.

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