The cryptocurrency space has been filled with various scam methods used by projects to rip investors off. Financial Conduct Authority reported that over 27 million Euros have been lost to cryptocurrency and Forex scam between 2018 and 2019. This record has more than tripled the previous year record. This has made investors wary of all new cryptocurrency projects making it even harder for start-ups to get their community to trust them.
Additionally, investors no longer trust cryptocurrency rating websites and news platform for the increase in fake projects. Reports have shown that most crypto-rating websites and media have lost credibility because they do not perform due diligence before presenting start-ups to the public. Most have been alleged of taking money from start-ups to give good ratings.
Can IEOs End Crypto Scam?
Consequentially, many investors have turned to Initial Exchange Offering- IEO in place of Initial Coin Offering- ICO. This is with the hope that their ‘trusted’ cryptocurrency exchange will perform due-diligence on any start-up it will list. It can help them to have at least a certain level of trust in the project their favorite exchange listed. But, recent news showed that even cryptocurrency exchanges may have been compromised.
CryptoMarketAds- CMA related a sadden story of how they have been scammed 10BTC by IDAX, a cryptocurrency exchange. The exchange gave false statistics of how many tokens have been sold during the IEO- possibly to attract investors. But, the amount given to the project at the end of the IEO was incredibly lower than the amount pronounced to be raised on the exchange website. The project reported that many other start-ups have been a victim of this.
The picture the scenario above painted to investors is that: Some Exchanges are more concerned about the fees they will collect from start-ups, they really do not perform their due diligence. This again has left the crypto space to fend for itself in performing due diligence and confirming the real identity of teams behind start-ups.
tStamp: TCA’s Solution
The Currency Analytics- TCA, a top google approved platform has thought of and come up with a solution to the transparency challenge the crypto space is facing- tStamp. tStamp is a concept by TCA to help start-ups prove to their community that they are real. The concept will help investors to know if the team members of the project they wish to invest in or have invested are who they say they are.
While commenting on the concept Sydney Ifergan, the CEO of TCA stated: ‘First of all, documents will be checked… I will need to have a video chat with the owners and some of the team… Not just a KYC… We will need them to prove that they are real’
tStamp follows one of the core visions of TCA which is the REAL protocol. With more projects proving they are real, TCA is pushing for more transparency in the cryptocurrency space. Thus, it is fighting against fake news and cryptocurrency scam.
To know more about tStamp visit: https://thecurrencyanalytics.com/tstamp-label/