EC Pincoin: A $660m ICO Scam That Deceived 32,000 People

Pincoin is the latest in a series of high profile ‘exit’ scams. Their ICO has made off with more than $660 million of investors' hard-earned money. With over 32,000 people conned, the Pincoin scam is one of the most "successful" in recent times.

And the funny thing is, it was always going to happen.

From the very beginning, the Pincoin project bore obvious signs of a Ponzi scheme. But the lure of 48% monthly returns proved too big a draw for many to refuse, leading to thousands of investors being scammed in broad daylight.

Join us as we explore how the scam came to be – and learn to spot the telltale signs of a Ponzi scheme in the making.

  • 1 How the scam unfolded
  • 2 How the situation stands now
  • 3 The clear Red Flags in the Pincoin ICO
  • 4 How to avoid such scams
  • 5 Conclusion

How the scam unfolded

The Initial Coin Offering

On the 12th Jan 2018, a new crypto called Pincoin (PIN) hit the market.

At first glance, the project seemed legitimate, boasting about a well-planned roadmap and a professional whitepaper. However, the coin offered a phenomenal rate of return – 48% per month and that’s when alarm bells should have been ringing for potential investors.

Unsurprisingly, speculators flocked to its crowdsale and invested an incredible $660,000,000 in Pincoin. The funds went to the so-called ‘PIN foundation’, a non-profit group made up of a number of unknown Vietnamese individuals.

People were not worried though; the project had apparently been under development for more than a year already, with a slew of features still to come in the future. As the whitepaper put it; the aim of the Pincoin was ‘building an online collaborative consumption platform for the global community’. Whatever that is supposed to mean.

 

Promises of the moon

It’s common for crypto projects to set themselves one or two ambitious goals. However, Pincoin was special.

The Pincoin roadmap promised not one, not two, but a whopping eight blockchain based products. These products ranged from decentralized hedge-funds to P2P marketplaces to even a PIN game portal. In short, Pincoin promised the world to investors.

The website was pretty well designed and was elevated by some nice graphics. It’s not difficult to see why so many fell for the lies spread by Pincoin. After all, they were selling a dream. The problem with dreams is that they only take you so far and at some point, everyone wakes up.

Vanishing tricks

iFan

It was after making the first payment to investors in cash that the deception began in earnest.

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Comments

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Susan Miller 1 week ago Member's comment

This is why I don't trust ICOs or cryptos.

Dan Jackson 1 week ago Member's comment

Worrisome to say the least.

Michele Grant 1 week ago Member's comment

The lack of regulation for #cryptocurrencies and #ICOs make the risk for scams like this very high! I'm surprised more people weren't affected.