Source: By Shobhit Seth - Investopedia
In November 2017, an escrow-related cryptocurrency startup called Confido disappeared overnight after collecting $175,000 through its initial coin offering (ICO). Following the news of the Confido exit scam, the market cap of the cryptocurrency fell from about $6 million to $70,000 within a week.
LoopX is another crypto startup whose ICO promised: “guaranteed profits every week thanks to the most advanced Trading Software out there to date.” It abruptly shut down in February 2018 after raising $4.5 million from investors through a combination of bitcoin and Ethereum.
Welcome to the exit scams - the new form of forgery now lurking in the anonymous and decentralized cryptocurrency world. (For more, see $9 Million Lost Each Day In Cryptocurrency Scams.)
