By ICO Alert
- ICO ratings are known to be definitively biased
- DJ Khaled backed Centra an ICO under criminal investigation with the SEC
With the SEC takedown of John McAfee’s Twitter ICO endorsements, many are questioning whether or not ICO ratings are a scam.The answer to that question may be complicated.
Why This Matters: It has become universally recognized that ICO ratings are definitively biased. Typically, companies that are endorsed by celebrities, experts, or influencers usually pay a fee for that endorsement.
Markus Hartmann, Co-Founder of Alathena found that ratings can simply be bought or self-published
For example, Lil Uzi Vert promoted an ICO called DripCoin and DJ Khaled backed Centra. It comes as no surprise that when famous artists endorse ICOs on social media, barely any details were provided regarding their use.
Dripcoin doesn’t even have a secure website, much less a whitepaper featuring any detailed summaries of the initial coin offering’s purpose. ICO ratings site ICO Bench gave a 4/5 rating to Centra an ICO under criminal investigation with the SEC. Outside of celebrity endorsements, there are numerous ICO listing sites popping up that offer ratings in exchange for tokens.
Markus Hartmann, Co-Founder of Alathena found that ratings can simply be bought or self-published. He points out this is why investors should be beware of ICO ratings in their entirety. Hartmann’s team managed to purchase artificial ratings and reviews for just a few hundred dollars each.
Situational Awareness: The fraudster ICO rating sites seem to be independent. However, sites with open review or “expert” systems are keeping the door open to this kind of activity.
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