{"id":39818,"date":"2018-06-06T16:02:48","date_gmt":"2018-06-06T14:02:48","guid":{"rendered":"https:\/\/www.coinpro.ch\/uncategorized\/dubious-hype-characteristics-of-ico-fraud\/"},"modified":"2025-08-08T17:09:25","modified_gmt":"2025-08-08T15:09:25","slug":"dubious-hype-characteristics-of-ico-fraud","status":"publish","type":"post","link":"https:\/\/www.coinpro.ch\/en\/knowledge\/dubious-hype-characteristics-of-ico-fraud\/","title":{"rendered":"Dubious Hype \u2013 Characteristics of ICO Fraud"},"content":{"rendered":"

Until a few years ago, there was exactly one cryptocurrency: Bitcoin. But with the big hype surrounding the \u201cmeans of payment of the future\u201d, many wanted to join in and so, depending on the source, there are already between 1,800 and over 4,000 different cryptocurrencies. Apart from Bitcoin, they all fall under the so-called altcoins<\/a>, so they should offer an alternative to the pioneer Bitcoin. However, only a few have been a real alternative so far. <\/p>\n

Nevertheless, new cryptocurrencies are constantly coming onto the market. Most of them are financed via a kind of crowdfunding: The founders collect capital in the form of central bank money and the investors receive brand new coins or tokens<\/a> in return. <\/p>\n

ICO vs. IPO<\/strong><\/h2>\n

This first round of financing for digital currencies is called Initial Coin Offering<\/a>, or ICO for short. The term is based on the Initial Public Offering, or IPO for short, i.e. the initial issue of shares on the stock exchange. The crucial difference between the two investments lies in the regulation: While strict guidelines apply to IPOs, ICOs are hardly monitored. <\/p>\n

Billions are now being invested in ICOs and the trend is continuing upwards. CoinDesk<\/a> reports that $6.3 billion US dollars flowed into ICOs worldwide in the first quarter of 2018 alone. That is 118 percent of the total year 2017. <\/p>\n