He built a factory pump Memcoin.fun. Did you make a little wealth by throwing away your own shit as a teenager?

Performing ICO usually involves the deployment of a code to install a coin on the Ethereum network, outlining the ambitions for a website project and attracting investment. “Many projects were a little more than white paper and a target page with a countdown timer – the entry barrier was minimal,” says Wang.

Although a handful of crypto projects that raised ICO funds remain in operation – including Ethereum itself – the boom is largely characterized by GRIFT and CHICANERY, analysts say that before financial regulators ultimately ultimately cracked down Practice. Often, developers mistakenly presented the usefulness and capabilities of their projects, manipulated the price of coins to generate over and wild overestimated the profits available to investors, analysts say.

The developers “were trying to really push out the idea of ​​getting a crazy return,” says Nikolai Sondergaard, an analyst of research at the Blockchain Nansen analysis company, adding: “This is where Fomo really comes.”

Klamur around iCos made the trusting investors conduct a little duly diligence in their desire for profit, in a similar way to traders who today Compete in dubious memoryS “There are many parallels between the Memo and the ICO,” says Sondergard. “It’s quite easy to sell an idea for the tables and then to cell it.”

The programmer, named Dylan Kerler, began promoting Ethereumcash, their most popular coin, in early October 2017.

The developer followed to a large extent the same play book as their previous launches: they sipped on the Ethereum coin, created a website and launched Bitcointalk, Twitter and Telegram. To create the swelling of enthusiasm, they distributed packages from the coin for free in what is called Airdrop. Then they promised to publish a white book, which at that time was considered a signal of legitimacy, which would probably drive the price up.

“You want to press white paper. It is interested in people,” Sondergaard says. “Sometimes just the promise of white paper was enough.”

The screenshots of the already deleted website posted on Telegram reveal how the coin was presented to future investors. “We strive to make the transition from Fiat Currency to cryptocurrency as easily as possible as we still maintain a heir (SIC) of integrity (SIC) sophistication,” the website said. Below the page included an image of a bank card, which supposedly allows owners to spend Ethereumcash in stores.

Within a few days, hundreds of people have registered for Ethereumcash Airdrop, an electronic table derived from cable broadcasts. Meanwhile, the Bitcointalk thread was offensive. “Let (sic) spread the word and make people notice this awesome token” wrote One forum user. Until October 19 Ethereumcash had increases in value to about $ 1.3 million.

However, as early investors celebrated, behind the scenes, which the developer who went from Dylan Kerler was beginning to sell.

In the days after the creation of Ethereumcash, the developer delivered millions of units to different crypto portfolios under their control. One of those cryptocurrencies whose alphanumeric identifier begins in 0x7f3e2It is then used to sell large quantities on the market, Certik Analysis shows.