During December 27th, The Wall Street Journal (WSJ) published a research finding showing that hundred of cryptocurrency white papers appear to be filled with fraud, plagiarism, or offer improbable returns.
When looking through a white paper for 3,291 cryptocurrency projects that announced Initial Coin Offerings (ICO), an analysis performed by WSJ revealed signs of “duplicate language” reaching up to 10,000 sentences appearing more than once in the papers. They then proceeded to check on the dates these were first published on each of the reappearing sentences to determine the original author.
The identities for these individuals allegedly involved in working for the cryptocurrency projects that had intimate information missing from the white papers had their identities checked through the use of reverse image search. concluding a total of 343 projects having individuals fall in this category. Team members without any image verification had their information confirmed through the 1 million plus people on the US Census Bureau.
Up to 2,000 papers utilized terms such as ” nothing to lose, guaranteed profit, return on investment, highest return, high return, funds profit, no risk, and little risk”, language that US state and Federal regulators have previously come down hard on by issuing cease and desist orders or filing charges for certain cases.
Around 16% of white papers were found to show evidence of either plagiarism, identity theft, or promising dubious returns.
White papers are a great way of finding out if certain projects are worth investing your time too. The problem is that most people don’t seem to really do their research in reading through the white paper, and instead buy into the hype sold to them. This has lead towards loads of people investing into something and coming out flat broke due to trusting someone with dubious intentions.