Detecting cryptocurrency scams: The EDGE Malaysia

Good story to distinguish the real from the fake crypto tokens:

Cryptocurrency schemes are so common in Malaysia that it is hard to tell the genuine ones from the get-rich-quick scams. Industry players give us the low-down on these schemes.

Jason* first learnt about Lara With Me in July last year while he was surfing the internet. The cryptocurrency scheme promised a guaranteed daily return of 3% with a minimum investment of US$100. The website looked professionally designed and claimed that the returns came from the trading of different cryptocurrencies.

“At first, I thought, ‘Wow, how do they get 3% per day? That is crazy. In one month, you can recoup almost all of your initial investment,’” he says.

“But I did my research and I thought it was still possible. There were about 500 cryptocurrencies back then and there was heat in the cryptocurrency world. Investors had little knowledge about what it was and went in fervently, which drove prices up.”

Despite being new to the world of cryptocurrencies, Jason, who is in his mid-thirties, was not a stranger to investing. He had already ventured into stocks, foreign exchange and properties. Yet, he was attracted to the scheme’s promised returns.

More at
http://www.theedgemarkets.com/article/cover-story-detecting-cryptocurrency-scams