Unpacking the 5 Biggest Cryptocurrency Scams

While the smartest minds have created some game-changing companies backed by the power of Blockchain and cryptocurrencies, nefarious minds have also jumped on the bandwagon, fleecing unwitting investors in elaborate scams.

ICOs fever spawns massive scams Since Bitcoin's inception in 2009, people have become increasingly enamoured with the idea of Blockchain technology.

As an ICO is essentially a round of public finding and is typically launched by a tech startup which sells inhouse cryptocurrency tokens to prospective investors, these investors buy tokens in the hopes that company will launch its product and the tokens will grow in value.

This of course has led to a plethora of scams billed as ICOs, which have seen thousands of investors left out of pocket.

The scam is believed to be the biggest in ICO history.

Investors need to wisen up As these five scams show, fraudsters will go to extraordinary lengths to swindle unsuspecting investors.

Overall, Dunn believes that the cryptocurrency community needs to become more discerning towards new ICOs.

"The crypto community needs to promote financial education and ethical investment practices, otherwise governments will over-regulate and stifle real innovation. The most effective way to protect investors is through education. Investors need to learn how to evaluate investment opportunities, quickly spot scams, and know how to manage risk."

ICOs not cut from the same cloth Sadly, scams like these are a blemish for cryptocurrencies in general.

It provides a focus point for skeptics to attack cryptocurrencies, when in fact these scams are anything but legitimate ICOs and cryptocurrencies.