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How is the credibility of legitimate energy blockchain platforms being hurt by ICO scams?

There are many different applications for blockchain technology, no matter what sector you are talking about. It has revolutionised the way the world works and there are going to be many exciting benefits reaped for years to come.

How is the credibility of legitimate energy blockchain platforms being hurt by ICO scams? July 11, 2018Leave a comment

There are many different applications for blockchain technology, no matter what sector you are talking about. It has revolutionised the way the world works and there are going to be many exciting benefits reaped for years to come.

One of the areas in particular that a lot of people are bullish about when talking blockchain technology is that of energy. This is a sector that is constantly scrutinised and has a lot of attention placed upon it. There have been a few different legitimate blockchain-based energy companies that have proposed solutions to many of the common issues that afflict the sector. However, due to the abundance of ICO scams, these legitimate companies are not getting as much traction as they perhaps deserve.

What are some specific cases of this happening?

One of the major energy companies to get involved in the blockchain space is Turbulent. This is a developer of micro-hydropower based out of Belgium and it was last year that they caught a lot of people off-guard when they announced that they would be holding their own ICO.

The chief innovator and co-founder of the company Geert Slachmuylders was also surprised when he was approached for a comment on the matter. This is due to the company not planning any ICO. This was entirely a scam.

People were impersonating a successful company such as Turbulent and using this social value to try and hoodwink people into investing into a fake ICO. Everything from the website to the social media pages looked almost identical as all of the branding had been identically copied. This occurred during February 2018 amidst a boom in the popularity of ICOs, with it being a record month for funds raised in this space, with nearly $2.4 billion garnered across 63 different offerings.

The followers of Turbulent realised that this was a scam and sent the authorities countless messages detailing this scam, with it taking about a day for the fake website to be removed, but the social media accounts are still up and running.

Thankfully, it appears that as little as $1,000 was gathered by this scam so they didn’t do much damage. However, the reputational damage for the energy division in the blockchain space was damaged. Investors are mistrusting of these token sales, which means that they are not able to raise the funds they need because investors are unsure of their legitimacy.

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