The ICO performance basically includes the implementation of the code on Mint and coins in the Ethereum network, outlining the project’s ambitions on the website and investment acquisition. “Many projects were not much more than the white book and the destination with the counting meter – the entrance barrier was minimal,” says Wang.
Although a handful of cryptographic projects that collected funds through ICO, remains in action – in the same Ethereum – the boom was largely characterized by grift and chicanery, analysts claim before the financial authorities finally finally finally Broken About practice. Often, developers presented the usability and capabilities of their projects, manipulated the price of coins to generate noise and extremely overestimated the profits available to investors, the analysts say.
The developers “tried to really push the idea for crazy phrases,” says Nicolai Søndergaard, a research analyst at Blockchain Analytics Company Nansen, adding: “This is what Fomo appears.”
The plant around ICO led the gullible investors to carry out due diligence in their desire to profit, in a similar way to traders who are currently racing in doubtful Memecoins. “There are many similarities between the madness of memes and ICO,” says Søndergaard. “It’s easy to sell an idea for the masses and then a carpet.”
The developer, following the name Dylan Kerler, began to promote Ethereumcash, their most popular coin, at the beginning of October 2017.
The developer went largely to the same textbook as their previous premieres: they struck a coin on Ethereum, created a website and sold on BitcoinTalk, Twitter and Telegram. To create enthusiasm, they distributed bundles of coins for free in so -called theft. Then they promised to publish a white book, which at that time was considered a signal of the ID card, which could drive the price up.
“You want to push the white book. This will be interested in people,” says Søndergaard. “Sometimes all that was enough was the promise of the White Book.”
Screenshots of the deleted website published on a telegram reveal how the coin was presented to potential investors. “Our goal is to move from the Currency Fiat to cryptocurrency as easily as possible, while maintaining the heir [sic] honesty and [sic] Sophistication, “said the website. Underneath, the page contained a picture of a bank card that allegedly allowing owners to issue Ethereumcash in stores.
Within a few days, hundreds of people signed up for Ethereumcash Airdrop, a spreadsheet obtained by wired concerts. Meanwhile, the BitcoinTalk thread was full of conversation. “Allow [sic] Spread information and encourage people to notice this wonderful token ” wrote One forum user. Until October 19, Ethereumcash had The value increased up to around $ 1.3 million.
However, when early investors celebrated, behind the scenes, which the developer leading through Dylan Kerler began to sell.
On the days after the creation of Ethereumcash, the developer delivered millions of units to various cryptocurrency portfolios under their control. One of those cryptographic wallets whose alphanumeric identifier begins 0x7F3E2Analysis of certificates was then used for sale of enormous amounts on the market.