According to a report published today, 421 counterfeit crypto coins were identified as a result of a study conducted by the government in China.
IFCERT, an internet financial security experts committee within the Ministry of Industry and Information Technology of China, warned against counterfeiting in the field of cryptography . According to the committee’s report, as of April, 421 fake crypto paranoids come from more than 60 percent of foreign servers, making it difficult to find and monitor them.
Three key features of fake crypto money
The committee raporda also identified three key features for fake digital money.
First, they use an operational model called the “pyramid scheme” where investors are forced to make a payment, and then give the promise of incorporating others into the program.
The second feature of a fake crypto para according to IFCERT is the lack of open source code.
Another prominent feature of these funds is that their trades are carried out off-the-shelf, in other words off-the-shelf transactions called OTC, because they can not trade in legitimate crypto money exchanges.
The features of a fake crypto-currency identified by the IFCERT affiliated with the Chinese government resemble those described by the US Securities and Exchange Commission (SEC). The SEC has created a fake ICO site in a new campaign aimed at educating investors. The SEC’s website is accessible via HoweyCoins.com .