Exit Scam

In the field of cryptocurrencies, an “exit scam” occurs when cryptocurrency advocates disappear with investors’ money during or after an ICO (ICO). Promoters build a new cryptocurrency platform, advertise the coin and concept, solicit funding from investors, potentially manage the company for a brief period of time, and then vanish with the funds and leave the initiative.

Due to the decentralized, anonymous, and regulation-free activities of the virtual currency system, it is challenging to identify these con artists. However, there are indicators that might point to an exit scam, such as a lack of a functional model, excessive return estimates, paperwork requirements, and extensively advertised products.