The very latest scenario in the crypto market which might have turned your head in 360° is- The Foin Token Scam. Most of you have already Known that one unregulated fintech company Financial.org has closed down the Foin token and its related all schemes. It was founded very likely in 2016 (Founder and CEO are Unknown). But currently, it is not trading on any exchange. Thus, both ICO buyers and other investors in the blockchain startup Foin asset were left without their coins. Despite promises, they would be unlocked for trading very soon.
Foin token scam is such a phenomenon that hurts people’s faith in new crypto projects. But we have incorporated a phrase as an alert that can aid before investing. So for that, you have to go through the article whole.
Some Signs of Faking
According to Reuters, it was created back in 2016 and spread throughout the Southeast Asian market in the guise of a fintech operation. The firm kept a high profile. Moreover, sponsoring a logo on the Williams Formula One team cars.
Meanwhile, Financial.org had already made its plan to exit from the crypto market. Suddenly, they started to vacant its offices in Canary Wharf, London, at the end of 2019. The firm had also abandoned its Abu Dhabi offices. So, it seemed a very big escape and prepared to give a big new year surprise to their investors.
Another important point was, despite the link between Financial.org and the FOIN project, this fact remained relatively obscure to investors. It was just days ago that CoinMarketCap posted a warning. Linking the FOIN token to Financial.org.
These are all of the signs of the faking activity of the Foin Project. Though they had made promises of exciting new developments in the last moment. For a while, things looked much like a regular ICO-based startup going through growth stages. But in the case of the FOIN token, investors soon turned skeptical. Some indications of scam were comming at that time: foin token scam.
Doubt becomes Reality
First, there was the token lockdown period. FOIN holders found their funds were taken and exchanged for a digital asset. That was very common for any startup. Then, there were highly suspicious calls for token swaps and transfers. First, investors were called to swap their tokens through a dedicated site. Meaning to migrate to the FoinWallet version.
Then, holders of FOIN were required to move their digital assets to the FoPay platform. With only a two-week deadline and a fee of $8.75 for moving each token. The sites requiring the token transfers are now also defunct. So, foin token scam is done ultimately!
AliExchange Acquisition Pumped Optimism before Crash
FOIN holders expected their tokens would be finally usable. But the startup posted another delay in allowing withdrawals. In the meantime, the firm announced the acquisition of an Estonian-based exchange, AliExchange. Right in the midst of an already planned scam, as the Financial.org firm was unraveling. FoPay and Foin released a breathlessly cheerful announcement of the acquisition.
The AliExchange was supposedly purchased for 1 million FOIN or roughly $2.5 million back in December. The market was supposed to be the “home exchange” for FOIN. At that time, the asset was already trading on two exchanges known for their shady nature and listing of dubious assets: HotBit, and P2PB2B.
The HotBit price was also vastly different from the one on P2PB2B. Where a price anomaly raised FOIN to as high as $3,949 at the time of writing. The behavior of FOIN added to the suspicions that the price growth was not organic. And may have been a decoy for investors.
The fact that the Foin scheme operated in Southeast Asia allowed for the scam to continue while law enforcement was already on its tracks. Reportedly, a crackdown in Taiwan held 10 members of the Foin team. A complaint was issued against Foin in Thailand on December 17. Just days after the AliExchange acquisition news. Somehow, Foin and FoPay managed to retain some true believers and pretend all was OK, just as the scheme was unraveling.
The Financial.org firm in the meantime had already received warnings for potential fraud from financial authorities. Especially from theUnited Arab Emirates, Malaysia, Singapore, Indonesia, and Thailand.
Study before Investing
Actually, dozens of new cryptocurrencies launch each month and alongside these new tokens or coin comes a series of Initial Coin Offering. But most of them may not be the real one. Many frauds are available in the market. Their purpose is to make money from the investor strategically in a different way. And in this way, they can benefit from one masterstroke. Blockchain and cryptocurrency technology is developing at a rapid pace. And even experienced investors may find it hard to keep up with the terminology. While there’s no guarantee that any cryptocurrency or blockchain-related startup will be legitimate or successful. But we have discussed over some points below which can help you not to fall on any scam.
Know the Team first and Who is backing the Project
The most important fact is for any ICO or cryptocurrency is the developers and administrative team behind the project. The cryptocurrency space is dominated by major names developers, founders and all. They are mainly listed on the team page. So now it is very easy for scammers to invent fake founders and biographies for their projects. The best protection against this fraudulent tactic is to do thorough research on the individual team members. If you are not able to find any social media account (LinkedIn, Facebook, etc) for developers and founders. Then it’s a simple bad sign! So, don’t invest in it. Another factor- who is investing the project to run on? Initially, any big organization or any eminent person should make the tie with that ICO or coin-related project. Do research on it also. If you get any unambiguous information meaning don’t invest.
Go through the Whitepaper
A cryptocurrency or ICO whitepaper is the foundational document for that project. The whitepaper should lay out the background, goals, strategy, concerns, and timeline for implementation for any blockchain-related project. Whitepapers can be incredibly revealing companies. It has a flashy website that may reveal they lack a fundamentally sound concept. On the other hand, a company with a website containing spelling errors may have a whitepaper. Actually, it indicates a rock-solid concept and a carefully conceived implementation plan.
The first step is to read it very thoroughly. Check to see if the whitepaper has complimentary resources as well. Including financial models, legal concerns, SWOT analysis, and a roadmap for implementation.
Companies that don’t offer whitepapers meaning just avoid it. Still, it’s possible for a fraudulent company to put forward a convincing whitepaper. But a whitepaper should answer all of the questions. A potential investor might have about what sets this particular project apart from its competitors. how it aims to be successful. And the measures it will take to achieve its goals.
Look into the Toke Sale
Any ICO will depend upon a token or currency system. In order to facilitate the crowdfunding process. Legit companies and endeavors make the system itself and the progress of the token sale easy for potential investors to view. Look for the token sale figures as the ICO is ongoing. Watch the token sale over time to see how it is progressing. If a company makes it difficult for anyone to chart the progress of its ICO, this is a major red flag. Some scam ICOs will hide their token sale progress under the hypocrisy of individual contribution addresses. This prevents potential investors from seeing exactly how much has been raised. And how much time remains in the sale. In some cases, this might be an effort to generate a sense of urgency among potential investors. Even if there isn’t evidence of a successful sale going on at the same time.
The project is feasible or not?
The question of feasibility is the issue of transparency. Companies that have outstanding concepts and models are more likely than others to want to be as transparent as possible with the broader community. Look for companies that aim to keep potential investors up to date with regular. Detailed progress reports on a company website or on social media. It’s also useful to look if a company has a timeline for what has taken place in the development process, as well.
Above all is some caution that all of us need to follow before investing in the new crypto-related project. Except above all another important factor is do practice on the crypto or ICO project research. Once you are accustomed to all caution practices. You will easily get the scam one. Foin token scam has really opened our eyes once again. Those who have been their money in such a scam, just take it as a life lesson. So that it doesn’t happen again!
Writer, researcher, and analyst on cryptocurrency and blockchain technology at L&P Digitech Pvt. Ltd. Also managing the content with SEO at this current company. Keen interest to know more about new technologies related to the crypto world and blockchain technology. Completed Masters in Computer Application (MCA) and holds Post Graduate Diploma in Instructional Designing with sound knowledge in Articulate3. Out of all, love to travel, listen to music, and to eat also.