According to WSJ study, almost one in five ICOs are fraudulent
The Wall Street Journal analyzed 1,450 Initial Coin Offerings (ICOs) and found that nearly 19 percent of them had fraudulent elements. Non-existent team members, plagiarized white papers, and promises of guaranteed returns were repeatedly discovered among crypto-funded projects, giving credence to the many warnings about investing in what has been a mostly unregulated space. Out of 124 of the projects studied had either no or fake team members; 111 used the same language as other projects, suggesting plagiarism; 48 had no website; and 25 offered a guaranteed return on investment.
Bradley Bennett, a former employee at the Financial Industry Regulatory Authority, told the WSJ that these are all “warning signs for investors”.