The first quarter of 2018 has seen a growing trend of proliferating exit scams across the ICO industry, some of which notoriously include Confido, PlexCoin, LoopX, and Prodeum. All of which have so far raised a relatively small amount of fund before disappearing altogether.
In addition to the aforementioned scams, there is also Savedroid, another alleged exit scam in the guise of a German cryptocurrency startup. Albeit the company’s founder claimed that the debacle is nothing more than a publicity stunt gone wrong, the verdict on the company remains undecided.
It is clear that exit scam incidents continue to rise exponentially, albeit its economic impact remains minimal. And though it would be impossible to put a precise figure on how much money is lost through such exit scams, in the first two months of 2018 alone, there have been a total of 22 separate crypto-related scams reported so far, 17 percent of which were found to be exit scams.
As it stands, the risk of the ICO industry being exploited to commit such schemes remains high. Until these threats are taken more seriously by imposing more stringent regulatory oversight, exit scams will most likely continue to proliferate, consequently tainting the industry’s reputation and curbing its potential to go mainstream.