TL;DR Breakdown
• Reporter David Segal shows how easy it is to create a fraudulent token.
• The Idiot Coin plan affected no investor but reveals the modus operandi of crypto developers who scam them.
Overrated coins abound in the crypto financial market. The creators of the high-speculation tokens guarantee riches to the people who invest. However, these cryptocurrencies of unpredictable value lend themselves to investment scams leaving the crypto market in a bad position. A journalist from the prestigious New York Times magazine launched Idiot Coin to explain these virtual scams.
The journalist named David Segal clarifies that his goal was to show that to create an overestimated crypto, he does not need experience. He even suggests these crypto are weak, so their investment danger is high. Segal explains the hyped cryptocurrencies’ investigation in the article called “Going for broke in cryptoland.”
Idiot Coin plan shows crypto market demerits
The reporter details this crypto plan was not intended to harm the economy. The report clarifies that at least a dozen advertising cryptocurrencies are released every day by poorly trained programmers.
Segal clarifies these investments in new cryptocurrencies yield irrelevant results since they become useless weeks after the launch. But the programmers who create the token can earn a lot of dollars from their useless project.
When Segal launched Idiot Coin, he consulted with a couple of attorneys regarding creating an asset with fluctuating value. The lawyers opined that cryptocurrency regulatory organizations might sue the token developers.
According to Segal estimates, these investment losses exceed $1 billion per year. The journalist had to pay about $300 in fees to exceed $21 million Idiot Coin.
Segal took the help of Dan Arreola, an entrepreneur, who has consistently warned about overrated coin scams. The reporter also paid a website designer to make the token’s website look real. The website adopted the name Coinforidiots.com with some attractive advertisements.
Even Segal went so far in advertising he made a deal with a TikToker to praise Idiot Coin. Segal attracted over 300 investors globally; some were confused by this propaganda which revealed that the token was a scam.
The overestimated cryptocurrency experiment was a success
Segal clarifies that participants were disappointed that the token did not promise riches like its fraudulent counterparts. Undoubtedly, the Idiot Coin project was a success, and no one was hurt in this financial experiment. Segal cautions investors not to trust those new token ad campaigns that promise to give you a lot of wealth.
With this experiment, the journalist shows how easy it is to create a token from scratch, promise profits and then disappear with the money. Crypto scams will increase as legitimate tokens like Bitcoin attract more people to the new financial market. However, investors should be on the lookout for these overrated tokens and report scams so that the crypto market does not lose credibility.
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