Exit Scam

Time and again, so-called Exit Scam(s) occur in the context of Initial Coin Offerings (ICO). In the process of an Exit Scam, the supposed project founders initially advertise a fake business model in order to raise capital from investors to fund a new blockchain project. The investors’ capital is then stolen in an insider market sale and the supposed project founders disappear without a trace.

Due to a constantly high number of fake projects and exit scams in the crypto sector, it is even more important to do accurate research before investing in new projects.

See also: 51% attack, Shilling.