Categories: Ethereum

Ethereum Blockchain is the Platform of Choice for Scammers, ICO Exits to Ponzi Schemes

Click here to view original web page at
Share with your friends

Ethereum has been voted as the preferred platform for scammers, according to the research report by Chainanalysis. In its report, it has stated that Ethereum continues to be one of the most commonly used blockchain platforms for conducting scams against otherwise unsuspecting patrons.

The amount stolen through ETH-based scams in 2018 amounted to $36 million, which is more than double that of 2017 from $17 million, and this equates to 0.01 per cent of the total ETH circulation.

According to Chainanalysis, over 2000 scam ETH addresses has managed to steal nearly 40,000 unique users in the network, and in two years scammers have significantly changed their modus operandi. The popular ways deployed by scammers are phishing, Ponzi schemes and ICO exits.

Phishing scams were very popular during 2017 but awareness among users led to a decrease in the efficacy of phishing scams. As per Chainanalysis estimates, the amount sent in 2018 to scam was $94, which is nearly $50 less than 2017’s median. The median total revenue made in 2017 was more than $6,500 but has dropped to $2,500 in 2018.

In 2018, more sophisticated type of scams emerged and witnessed the rise of elaborate Ponzi schemes and ICO exits, yielding millions of dollar in income. Scammers deployed complex scams and targetted potential victims that helped them to garner massive money. Chananalysis explains that twice the number of users compared to 2017, lost up to four times as much in 2018 compared to 2017.

Towards the end of 2018 witnessed a massive spike in Ponzi schemes and ICO exit scams, and still, there is a big threat to the crypto ecosystem. According to data from crypto analytics company Ciphertrace, it states that overall around $725 million was lost in 2018 to scams including Ponzi schemes, ICO exits and fraudulent ICOs.

Join the Discussion on Telegram


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by
Tags: eth ether ethereum blockchain platform

Recent Posts

  • Altcoins

Denarius – A true cryptocurrency in a sea of ICOs

In a sea of altcoins, Denarius is by far one of the more interesting, innovative blockchain projects released yet. With… Read More

6 mins ago
  • Bitcoin Business

Donald Trump’s bitcoin takedown signals global currency war

US President Donald Trump’s tweet attacking bitcoin ( BTC-USD ) highlights his increasing interest in controlling global currency markets —… Read More

6 hours ago
  • Bitcoin Business

Iran Legalizes Crypto-Mining As “Official Industry”

After weeks of uncertainty, the Iranian government’s Economic Commission has approved a mechanism of cryptocurrency mining in the country, according… Read More

6 hours ago
  • Bitcoin Business

Bullish For Bitcoin? Trump Turns Up Pressure on Federal Reserve to Cut Interest Rates

President Trump is continuing to pressure the Federal Reserve for dragging its feet on interest rate cuts. For some, such… Read More

6 hours ago
  • Bitcoin Business

Blockchain Center’s grand opening attracts local, international leaders

Pictured (l-r) are Eryka Gemma, Nick Spanos, Miami Mayor Francis Suarez, and Scott Spiegel. (Photo credit: World Red Eye) Blockchain… Read More

6 hours ago
  • Bitcoin Business

Bitcoin buyers beware

by Mike Connon As advisors, we typically advise families to take a patient, long-term approach to investing in the market,… Read More

6 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More