As far as fake cryptocoins go the Bitcoin community has seen its fair share. From the likes of JP coin which attempted to use the bank giants name and reputation to entice user to invest, to Kanye coin which didn’t take itself too seriously. However a much more sinister coin, Rothschild coin has been launched targeting China has fooled quite a few consumers which lead to the real company having to issue a warning and further promised to aid local authorities.
“This scheme purports to be a fund for investment in relation to virtual currencies and the “Internet of Things” and to pay out money in tranches based on the time people invested. This indicates that the fund is very similar to a Ponzi scheme.”
Fake cryptocoins have been the latest target of scammers as they look to expand their domain into other activities designed to defraud users out of their hard earned money. ICO’s and ponzi schemes have been discussed before on the site, but fake cryptocoins are much rarer due to the cost and maintenance required to keep a coin running just past its funding rounds.
This shouldn’t deter crypto users as there are various methods to prevent entering into a fraudulent cryptocoins. Using various forums such as Bitcointalk will help to reveal the coins aims and its origins as announcements for many coins are often made on the largest community for crypto users. While fake coins such as the Rothschild coin do taint the reputation of Crypto, the initiative taken by respective companies is current safeguarding interests of the investors.