The Impact of Blockchain on Accounting Information Systems
The Impact of Blockchain on Accounting Information Systems
Triple Entry Bookkeeping With Bitcoin
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/r/Scams Common Scam Master Post
Hello visitors and subscribers of scams! Here you will find a master list of common (and uncommon) scams that you may encounter online or in real life. Thank you to the many contributors who helped create this thread!
If you know of a scam that is not covered here, write a comment and it will be added to the next edition.
Caller ID spoofing It is very easy for anyone to make a phone call while having any number show up on the caller ID of the person receiving the phone call. Receiving a phone call from a certain number does not mean that the person/company who owns that number has actually called you. Email spoofing The "from" field of an email can be set by the sender, meaning that you can receive scam emails that look like they are from legitimate addresses. It's important to never click links in emails unless absolutely necessary, for example a password reset link you requested or an account activation link for an account you created. SMS spoofing SMS messages can be spoofed, so be wary of messages that seem to be from your friends or other trusted people.
The most common scams
The fake check scam (Credit to nimble2 for this part) The fake check scam arises from many different situations (for instance, you applied for a job, or you are selling something on a place like Craigslist, or someone wants to purchase goods or services from your business, or you were offered a job as a mystery shopper, you were asked to wrap your car with an advertisement, or you received a check in the mail for no reason), but the bottom line is always something like this:
The scammer sends you a very real looking, but fake, check. Sometimes they'll call it a "cashier's check", a "certified check", or a "verified check".
You deposit the check into your bank account, and within a couple of days your bank makes some or all of the funds available to you. This makes you think that the check is real and the funds have cleared. However, the money appearing in your account is not the same as the check actually clearing. The bank must make the funds available to you before they have cleared the check because that is the law.
For various and often complicated reasons, depending on the specific story line of the scam, the scammer will ask you to send someone some of the money, using services like MoneyGram, Western Union, and Walmart-2-Walmart. Sometimes the scammer will ask for you to purchase gift cards (iTunes, Amazon, Steam, etc) and give them the codes to redeem the gift cards. Some scammers may also give you instructions on how to buy and send them bitcoins.
Within a couple of weeks, though it can take as long as a month, your bank will realize that the check you deposited was fake, and your bank will remove the funds that you deposited into your account and charge you a bounced check fee. If you withdrew any of the money from the fake check, that money will be gone and you will owe that money to the bank. Some posters have even had their bank accounts closed and have been blocked from having another account for 5 years using ChexSystems.
General fraudulent funds scams If somebody is asking you to accept and send out money as a favour or as part of a job, it is a fraudulent funds scam. It does not matter how they pay you, any payment on any service can be fraudulent and will be reversed when it is discovered to be fraudulent. Phone verification code scams Someone will ask you to receive a verification text and then tell you to give them the code. Usually the code will come from Google Voice, or from Craigslist. In the Google version of the scam, your phone number will be used to verify a Google Voice account that the scammer will use to scam people with. In the Craigslist version of the scam, your phone number will be used to verify a Craigslist posting that the scammer will use to scam people. There is also an account takeover version of this scam that will involve the scammer sending a password reset token to your phone number and asking you for it. Bitcoin job scams Bitcoin job scams involve some sort of fraudulent funds transfer, usually a fake check although a fraudulent bank transfer can be used as well. The scammer will send you the fraudulent money and ask you to purchase bitcoins. This is a scam, and you will have zero recourse after you send the scammer bitcoins. Email flooding If you suddenly receive hundreds or thousands of spam emails, usually subscription confirmations, it's very likely that one of your online accounts has been taken over and is being used fraudulently. You should check any of your accounts that has a credit card linked to it, preferably from a computer other than the one you normally use. You should change all of your passwords to unique passwords and you should start using two factor authentication everywhere. Cartel scam You will be threatened by scammers who claim to be affiliated with a cartel. They may send you gory pictures and threaten your life and the lives of your family. Usually the victim will have attempted to contact an escort prior to the scam, but sometimes the scammers target people randomly. If you are targeted by a cartel scam all you need to do is ignore the scammers as their threats are clearly empty. Boss/CEO scam A scammer will impersonate your boss or someone who works at your company and will ask you to run an errand for them, which will usually be purchasing gift cards and sending them the code. Once the scammer has the code, you have no recourse. Employment certification scams You will receive a job offer that is dependent on you completing a course or receiving a certification from a company the scammer tells you about. The scammer operates both websites and the job does not exist. Craigslist fake payment scams Scammers will ask you about your item that you have listed for sale on a site like Craigslist, and will ask to pay you via Paypal. They are scamming you, and the payment in most cases does not actually exist, the email you received was sent by the scammers. In cases where you have received a payment, the scammer can dispute the payment or the payment may be entirely fraudulent. The scammer will then either try to get you to send money to them using the fake funds that they did not send to you, or will ask you to ship the item, usually to a re-shipping facility or a parcel mule. Craigslist Carfax/vehicle history scam You'll encounter a scammer on Craigslist who wants to buy the vehicle you have listed, but they will ask for a VIN report from a random site that they have created and they will expect you to pay for it. Double dip/recovery scammers This is a scam aimed at people who have already fallen for a scam previously. Scammers will reach out to the victim and claim to be able to help the victim recover funds they lost in the scam. General fraudulent funds scams The fake check scam is not the only scam that involves accepting fraudulent/fake funds and purchasing items for scammers. If your job or opportunity involves accepting money and then using that money, it is almost certainly a frauduent funds scam. Even if the payment is through a bank transfer, Paypal, Venmo, Zelle, Interac e-Transfer, etc, it does not matter. Credit card debt scam Fraudsters will offer to pay off your bills, and will do so with fraudulent funds. Sometimes it will be your credit card bill, but it can be any bill that can be paid online. Once they pay it off, they will ask you to send them money or purchase items for them. The fraudulent transaction will be reversed in the future and you will never be able to keep the money. This scam happens on sites like Craigslist, Twitter, Instagram, and also some dating sites, including SeekingArrangement. The parcel mule scam A scammer will contact you with a job opportunity that involves accepting and reshipping packages. The packages are either stolen or fraudulently obtained items, and you will not be paid by the scammer. Here is a news article about a scam victim who fell for this scam and reshipped over 20 packages containing fraudulently acquired goods. The Skype sex scam You're on Facebook and you get a friend request from a cute girl you've never met. She wants to start sexting and trading nudes. She'll ask you to send pictures or videos or get on webcam where she can see you naked with your face in the picture. The scam: There's no girl. You've sent nudes to a guy pretending to be a girl. As soon as he has the pictures he'll demand money and threaten to send the pictures to your friends and family. Sometimes the scammer will upload the video to a porn site or Youtube to show that they are serious. What to do if you are a victim of this scam: You cannot buy silence, you can only rent it. Paying the blackmailer will show them that the information they have is valuable and they will come after you for more money. Let your friends and family know that you were scammed and tell them to ignore friend requests or messages from people they don't know. Also, make sure your privacy settings are locked down and consider deactivating your account. The underage girl scam You're on a dating site or app and you get contacted by a cute girl. She wants to start sexting and trading nudes. Eventually she stops communicating and you get a call from a pissed off guy claiming to be the girl's father, or a police officer, or a private investigator, or something else along those lines. Turns out the girl you were sexting is underage, and her parents want some money for various reasons, such as to pay for a new phone, to pay for therapy, etc. There is, of course, no girl. You were communicating with a scammer. What to do if you are a victim of this scam: Stop picking up the phone when the scammers call. Do not pay them, or they will be after you for more money. Phishing Phishing is when a scammer tries to trick you into giving information to them, such as your password or private financial information. Phishing messages will usually look very similar to official messages, and sometimes they are identical. If you are ever required to login to a different account in order to use a service, you should be incredibly cautious. The blackmail email scam part 5: https://old.reddit.com/Scams/comments/g8jqnthe_blackmail_email_scam_part_5/ PSA: you did not win a giftcard: https://old.reddit.com/Scams/comments/fffmle/psa_you_did_not_win_a_gift_card/ Sugar scams Sugar scammers operate all over the internet and usually come in two varieties: advance-fee scams where the scammer will ask for a payment from you before sending you lots of money, and fake check style scams where the scammer will either pull a classic fake check scam, or will do a "bill pay" style scam that involves them paying your bills, or them giving you banking information to pay your bills. If you encounter these scammers, report their accounts and move on. Google Hangouts Google Hangouts is a messaging platform used extensively by all kinds of scammers. If you are talking with someone online and they want you to switch to Hangouts, they are likely a scammer and you should proceed with caution. Publishers Clearing House scams PCH scams are often advance-fee scams, where you will be promised lots of money after you make an initial payment. You will never need to pay if you win money from the real PCH. Pet scams You are looking for a specific breed of puppy, bird, or other pet. You come across a nice-looking website that claims to be breeding them and has some available right now - they may even be on sale! The breeders are not local to your area (and may not even list a physical location) but they assure you they can safely ship the pet to you after a deposit or full payment. If you go through with the payment, you will likely be contacted by the "shipper" who will inform you about an unexpected shipping/customs/processing fee required to deliver your new pet. But there was never any pet, both the "breeder" and the "shipper" are scammers, typically operating out of Africa. These sites are rampant and account for a large percentage of online pet seller websites - they typically have a similar layout/template (screenshot - example) If you are considering buying a pet online, some easy things to check are: (1) The registration date of the domain (if it was created recently it is likely a scam website) (2) Reverse image search the pictures of available pets - you will usually find other scam websites using the same photos. (3) Copy a sentence/section of the text from the "about us" page and put it into google (in quotes) - these scammers often copy large parts of their website's text from other places. (4) Search for the domain name and look for entries on petscams.com or other scam-tracking sites. (5) Strongly consider buying/adopting your pet from a local shelter or breeder where you can see the animal in person before putting any money down. Thanks to djscsi for this entry. Fake shipping company scams These scams usually start when you try to buy something illegal online. You will be scammed for the initial payment, and then you will receive an email from the fake shipping company telling you that you need to pay them some sort of fee or bribe. If you pay this, they will keep trying to scam you with increasingly absurd stories until you stop paying, at which point they will blackmail you. If you are involved in this scam, all you can do is ignore the scammers and move on, and try to dispute your payments if possible. Chinese Upwork scam Someone will ask you to create an Upwork or other freelancer site account for them and will offer money in return. You will not be paid, and they want to use the accounts to scam people. Quickbooks invoice scam This is a fake check style scam that takes advantage of Quickbooks. The blackmail email scam The exact wording of the emails varies, but there are generally four main parts. They claim to have placed software/malware on a porn/adult video site, they claim to have a video of you masturbating or watching porn, they threaten to release the video to your friends/family/loved ones/boss/dog, and they demand that you pay them in order for them to delete the video. Rest assured that this is a very common spam campaign and there is no truth behind the email or the threats. Here are some news articles about this scam. The blackmail mail scam This is very similar to the blackmail email scam, but you will receive a letter in the mail. Rental scams Usually on local sites like Craigslist, scammers will steal photos from legitimate real estate listings and will list them for rent at or below market rate. They will generally be hesitant to tell you the address of the property for "safety reasons" and you will not be able to see the unit. They will then ask you to pay them a deposit and they claim they will ship you the keys. In reality, your money is gone and you will have no recourse. Craigslist vehicle scams A scammer will list a vehicle on Craigslist and will offer to ship you the car. In many cases they will also falsely claim to sell you the car through eBay or Amazon. If you are looking for a car on Craigslist and the seller says anything about shipping the car, having an agent, gives you a long story about why they are selling the car, or the listing price is far too low, you are talking to a scammer and you should ignore and move on. Advance-fee scam, also known as the 419 scam, or the Nigerian prince scam. You will receive a communication from someone who claims that you are entitled to a large sum of money, or you can help them obtain a large sum of money. However, they will need money from you before you receive the large sum. Man in the middle scams Man in the middle scams are very common and very hard to detect. The scammer will impersonate a company or person you are legitimately doing business with, and they will ask you to send the money to one of their own bank accounts or one controlled by a money mule. They have gained access to the legitimate persons email address, so there will be nothing suspicious about the email. To prevent this, make contact in a different way that lets you verify that the person you are talking to is the person you think you are talking to. Digit wallet scam A variation of the fake check scam, the scammer sends you money through a digital wallet (i.e. Venmo, Apple Pay, Zelle, Cash App) along with a message claiming they've sent the money to the wrong person and a request to send the money back. Customer service for these digital wallets may even suggest that you send the money back. However, the money sent is from a stolen credit card and will be removed from your account after a few days. Your transfer is not reversed since it came from your own funds. Cam girl voting/viewer scam You will encounter a "cam girl" on a dating/messaging/social media/whatever site/app, and the scammer will ask you to go to their site and sign up with your credit card. They may offer a free show, or ask you to vote for them, or any number of other fake stories. Amateur porn recruitment scam You will encounter a "pornstar" on a dating/messaging/social media/whatever site/app, and the scammer will ask you to create an adult film with hehim, but first you need to do something. The story here is usually something to do with verifying your age, or you needing to take an STD test that involves sending money to a site operated by the scammer. Hot girl SMS spam You receive a text from a random number with a message along the lines of "Hey babe I'm here in town again if you wanted to meet up this time, are you around?" accompanied by a NSFW picture of a hot girl. It's spam, and they'll direct you to their scam website that requires a credit card. Identity verification scam You will encounter someone on a dating/messaging/social media/whatever site/app, and the scammer will ask that you verify your identity as they are worried about catfishing. The scammer operates the site, and you are not talking to whoever you think you are talking to. This type of scam teases you with something, then tries to make you sign up for something else that costs money. The company involved is often innocent, but they turn a blind eye to the practice as it helps their bottom line, even if they have to occasionally issue refunds. A common variation takes place on dating sites/dating apps, where you will match with someone who claims to be a camgirl who wants you to sign up for a site and vote for her. Another variation takes place on local sites like Craigslist, where the scammers setup fake rental scams and demand that you go through a specific service for a credit check. Once you go through with it, the scammer will stop talking to you. Another variation also takes place on local sites like Craigslist, where scammers will contact you while you are selling a car and will ask you to purchase a Carfax-like report from a specific website. Multi Level Marketing or Affiliate Marketing You apply for a vague job listing for 'sales' on craigslist. Or maybe an old friend from high school adds you on Facebook and says they have an amazing business opportunity for you. Or maybe the well dressed guy who's always interviewing people in the Starbucks that you work at asks if you really want to be slinging coffee the rest of your life. The scam: MLMs are little more than pyramid schemes. They involve buying some sort of product (usually snake oil health products like body wraps or supplements) and shilling them to your friends and family. They claim that the really money is recruiting people underneath you who give you a slice of whatever they sell. And if those people underneath you recruit more people, you get a piece of their sales. Ideally if you big enough pyramid underneath you the money will roll in without any work on your part. Failure to see any profit will be your fault for not "wanting it enough." The companies will claim that you need to buy their extra training modules or webinars to really start selling. But in reality, the vast majority of people who buy into a MLM won't see a cent. At the end of the day all you'll be doing is annoying your friends and family with your constant recruitment efforts. What to look out for: Recruiters love to be vague. They won't tell you the name of the company or what exactly the job will entail. They'll pump you up with promises of "self-generating income", "being your own boss", and "owning your own company." They might ask you to read books about success and entrepreneurs. They're hoping you buy into the dream first. If you get approached via social media, check their timelines. MLMs will often instruct their victims to pretend that they've already made it. They'll constantly post about how they're hustling and making the big bucks and linking to youtube videos about success. Again, all very vague about what their job actually entails. If you think you're being recruited: Ask them what exactly the job is. If they can't answer its probably a MLM. Just walk away.
You should generally avoid answering or engaging with random phone calls. Picking up and engaging with a scam call tells the scammers that your phone number is active, and will usually lead to more calls. Tax Call You get a call from somebody claiming to be from your countries tax agency. They say you have unpaid taxes that need to be paid immediately, and you may be arrested or have other legal action taken against you if it is not paid. This scam has caused the American IRS, Canadian CRA, British HMRC, and Australian Tax Office to issue warnings. This scam happens in a wide variety of countries all over the world. Warrant Call Very similar to the tax call. You'll get a phone call from an "agent", "officer", "sheriff", or other law enforcement officer claiming that there is a warrant out for your arrest and you will be arrested very soon. They will then offer to settle everything for a fee, usually paid in giftcards. [Legal Documents/Process Server Calls] Very similar to the warrant call. You'll get a phone call from a scammer claiming that they are going to serve you legal documents, and they will threaten you with legal consequences if you refuse to comply. They may call themselves "investigators", and will sometimes give you a fake case number. Student Loan Forgiveness Scam Scammers will call you and tell you about a student loan forgiveness program, but they are interested in obtaining private information about you or demanding money in order to join the fake program. Tech Support Call You receive a call from someone with a heavy accent claiming to be a technician Microsoft or your ISP. They inform you that your PC has a virus and your online banking and other accounts may be compromised if the virus is not removed. They'll have you type in commands and view diagnostics on your PC which shows proof of the virus. Then they'll have you install remote support software so the technician can work on your PC, remove the virus, and install security software. The cost of the labor and software can be hundreds of dollars. The scam: There's no virus. The technician isn't a technician and does not work for Microsoft or your ISP. Scammers (primarily out of India) use autodialers to cold-call everyone in the US. Any file they point out to you or command they have you run is completely benign. The software they sell you is either freeware or ineffective. What to do you if you're involved with this scam: If the scammers are remotely on your computer as you read this, turn off your PC or laptop via the power button immediately, and then if possible unplug your internet connection. Some of the more vindictive tech scammers have been known to create boot passwords on your computer if they think you've become wise to them and aren't going to pay up. Hang up on the scammers, block the number, and ignore any threats about payment. Performing a system restore on your PC is usually all that is required to remove the scammer's common remote access software. Reports of identity theft from fake tech calls are uncommon, but it would still be a good idea to change your passwords for online banking and monitor your accounts for any possible fraud. How to avoid: Ignore any calls claiming that your PC has a virus. Microsoft will never contact you. If you're unsure if a call claiming to be from your ISP is legit, hang up, and then dial the customer support number listed on a recent bill. If you have elderly relatives or family that isn't tech savvy, take the time to fill them in on this scam. Chinese government scam This scam is aimed at Chinese people living in Europe and North America, and involves a voicemail from someone claiming to be associated with the Chinese government, usually through the Chinese consulate/embassy, who is threatening legal action or making general threats. Chinese shipping scam This scam is similar to the Chinese government scam, but involves a seized/suspicious package, and the scammers will connect the victim to other scammers posing as Chinese government investigators. Social security suspension scam You will receive a call from someone claiming to work for the government regarding suspicious activity, fraud, or serious crimes connected to your social security number. You'll be asked to speak to an operator and the operator will explain the steps you need to follow in order to fix the problems. It's all a scam, and will lead to you losing money and could lead to identity theft if you give them private financial information. Utilities cutoff You get a call from someone who claims that they are from your utility company, and they claim that your utilities will be shut off unless you immediately pay. The scammer will usually ask for payment via gift cards, although they may ask for payment in other ways, such as Western Union or bitcoin. Relative in custody Scammer claims to be the police, and they have your son/daughtenephew/estranged twin in custody. You need to post bail (for some reason in iTunes gift cards or MoneyGram) immediately or the consequences will never be the same. Mexican family scam This scam comes in many different flavours, but always involves someone in your family and Mexico. Sometimes the scammer will claim that your family member has been detained, sometimes the scammer will claim that your family member has been kidnapped, and sometimes the scammer will claim that your family member is injured and needs help. General family scams Scammers will gather a large amount of information about you and target your family members using different stories with the goal of gettimg them to send money. One ring scam Scammers will call you from an international number with the goal of getting you to return their call, causing you to incur expensive calling fees.
Online shopping scams
THE GOLDEN RULE OF ONLINE SHOPPING: If it sounds too good to be true, it probably is. Dropshipping An ad on reddit or social media sites like Facebook and Instagram offers items at huge discounts or even free (sometimes requiring you to reblog or like their page). They just ask you to pay shipping. The scam: The item will turn out to be very low quality and will take weeks or even months to arrive. Sometimes the item never arrives, and the store disappears or stops responding. The seller drop-ships the item from China. The item may only cost a few dollars, and the Chinese government actually pays for the shipping. You end up paying $10-$15 dollars for a $4 item, with the scammer keeping the profit. If you find one of these scams but really have your heart set on the item, you can find it on AliExpress or another Chinese retailer. Influencer scams A user will reach out to you on a social media platform, usually Instagram, and offer you the chance to partner with them and receive a free/discounted product, as long as you pay shipping. This is a different version of the dropshipping scam, and is just a marketing technique to get you to buy their products. Triangulation fraud Triangulation fraud occurs when you make a purchase on a site like Amazon or eBay for an item at a lower than market price, and receive an item that was clearly purchased new at full price. The scammer uses a stolen credit card to order your item, while the money from the listing is almost all profit for the scammer. Instagram influencer scams Someone will message you on Instagram asking you to promote their products, and offering you a discount code. The items are Chinese junk, and the offer is made to many people at a time. Cheap Items Many websites pop up and offer expensive products, including electronics, clothes, watches, sunglasses, and shoes at very low prices. The scam: Some sites are selling cheap knock-offs. Some will just take your money and run. What to do if you think you're involved with this scam: Contact your bank or credit card and dispute the charge. How to avoid: The sites often have every brand-name shoe or fashion item (Air Jordan, Yeezy, Gucci, etc) in stock and often at a discounted price. The site will claim to be an outlet for a major brand or even a specific line or item. The site will have images at the bottom claiming to be Secured by Norton or various official payment processors but not actual links. The site will have poor grammar and a mish-mash of categories. Recently, established websites will get hacked or their domain name jacked and turned into scam stores, meaning the domain name of the store will be completely unrelated to the items they're selling. If the deal sounds too good to be true it probably is. Nobody is offering brand new iPhones or Beats or Nintendo Switches for 75% off. Cheap Amazon 3rd Party Items You're on Amazon or maybe just Googling for an item and you see it for an unbelievable price from a third-party seller. You know Amazon has your back so you order it. The scam: One of three things usually happen: 1) The seller marks the items as shipped and sends a fake tracking number. Amazon releases the funds to the seller, and the seller disappears. Amazon ultimately refunds your money. 2) The seller immediately cancels the order and instructs you to re-order the item directly from their website, usually with the guarantee that the order is still protected by Amazon. The seller takes your money and runs. Amazon informs you that they do not offer protection on items sold outside of Amazon and cannot help you. 2) The seller immediately cancels the order and instructs you to instead send payment via an unused Amazon gift card by sending the code on the back via email. Once the seller uses the code, the money on the card is gone and cannot be refunded. How to avoid: These scammers can be identified by looking at their Amazon storefronts. They'll be brand new sellers offering a wide range of items at unbelievable prices. Usually their Amazon names will be gibberish, or a variation on FIRSTNAME.LASTNAME. Occasionally however, established storefronts will be hacked. If the deal is too good to be true its most likely a scam. Scams on eBay There are scams on eBay targeting both buyers and sellers. As a seller, you should look out for people who privately message you regarding the order, especially if they ask you to ship to a different address or ask to negotiate via text/email/a messaging service. As a buyer you should look out for new accounts selling in-demand items, established accounts selling in-demand items that they have no previous connection to (you can check their feedback history for a general idea of what they bought/sold in the past), and lookout for people who ask you to go off eBay and use another service to complete the transaction. In many cases you will receive a fake tracking number and your money will be help up for up to a month. Scams on Amazon There are scams on Amazon targeting both buyers and sellers. As a seller, you should look out for people who message you about a listing. As a buyer you should look out for listings that have an email address for you to contact the person to complete the transaction, and you should look out for cheap listings of in-demand items. Scams on Reddit Reddit accounts are frequently purchased and sold by fraudsters who wish to use the high karma count + the age of the account to scam people on buy/sell subreddits. You need to take precautions and be safe whenever you are making a transaction online. Computer scams Virus scam A popup or other ad will say that you have a virus and you need to follow their advice in order to remove it. They are lying, and either want you to install malware or pay for their software.
Chinese Brushing / direct shipping If you have ever received an unsolicited small package from China, your address was used to brush. Vendors place fake orders for their own products and send out the orders so that they can increase their ratings. Money flipping Scammer claims to be a banking insider who can double/triple/bazoople any amount of money you send them, with no consequences of any kind. Obviously, the money disappears into their wallet the moment you send it.
RealEst. Coin ICO Announcement - The Real Estate Coin with a Real Address! (REALEST)
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That difference has only continued to increase over the last four years. When RealEst. coin is available now. We plan on completing Phase 1 and purchasing the first round of investment properties in Q4 2016. We will begin paying out RealEst. coin rewards on a monthly basis beginning Q1 2017. The sooner we are able to complete funding then the quicker the rewards will be realized. We are at the perfect cusp of the real estate market to purchase some really wonderful commercial properties at great deals, and the demand from national tenants is at an all-time high. Chains are expanding and they are looking for their next location. We are in the middle of the equilibrium now. Why Bitcoin has its advantages, but it also has its limitations. For one, the volatility of btc is enough to give you the shivers. Also, the fee that btc exchanges charge is down-right criminal. And remember, btc is not tied to any real asset; if the popularity or support of btc drops then so will the amount in your account. Btc is a wonderful tool in the business world, but should not be one’s only option. Closing We are excited to get this project off the ground. We know there are many different avenues when it comes to crowdfunding, real estate, and technology; this is the perfect synergy of their benefits. It is easy, fast, secure, and safe. There is an abundance of coin offerings, but do you know what your money is really being invested in? Can you go visit that investment or take pictures of the asset? With RealEst. coin, you would be able to go visit the investment. The asset would have a physical address with a national level tenant. "90% of all millionaires become so through owning real estate." -Andrew Carnegie Please feel free to check out our whitepaper for RealEst. coin here: http://RealEstCoin.com Let us know if you have any questions. Thank you for your time. Due to the current legal nature of digital currencies, we must disclose that the use of RealEst. coin is explicitly for entertainment purposes only. The following information is provided to explain the utility of RealEst. coin in regards to real estate. However, professional legal, accounting, and financial advice is recommended before proceeding. Exchange BTC for RealEst. Coin HereREALEST Vending MachineIndieSquare Mobile WalletCounterwallet Desktop WalletsRealEst. Coin (REALEST) Whitepaper - RealEstCoin.comRealEst. Coin TwitterRealEst. Coin InstagramReal Est. Coin FacebookLinkedInThe complete RealEst. Coin Whitepaper is below. Please click all of the provided links when reading. Thank you!Net Leased Investments with RealEst. CoinWhat are Triple Net Leased Investments? Many real estate investors become dissatisfied with the management problems associated with real estate investment ownership. In recent years, more investors are becoming familiar with the ease of owning commercial property occupied by a single credit rated national tenant, using the vehicle of a long term triple net lease (NNN). The advantage of NNN leases is that the tenant is obligated to pay for all expenses associated with the operation of the property including property taxes, maintenance, insurance etc. When a NNN lease is executed with a national credit tenant, the investor can be assured of a management free property with minimal risk. Companies with a net worth of over $1 billion, such as Walgreens, Walmart, O’Reilly, Jack-in-the-Box, Barnes and Noble, Winn-Dixie, 7-Eleven, Inc. and Sherwin Williams, are the typical types of NNN leased investment properties that investors seek. Please watch the following video for more information on NNN leased properties. Net Leased Investing 101 - VideoWhat are the typical returns from Triple Net Leased Investments? That depends on how you evaluate your investment. Capitalization Rates are the most common way to evaluate returns (take 1 year’s net income/purchase price). NNN leased investments currently average 5% to 8% capitalization rates depending on credit risk, location and value of the income stream. With the ups and downs of the stock market and the recent turmoil in residential housing, more and more investors are seeking refuge in single tenant NNN leased real estate investments. This increased demand, coupled with low interest rates, has produced favorable cap rates over the past 10 years. Internal rate of return (IRR) is the value of an investment over a period of time. Assuming over a specified period (usually 10 years) of income, appreciation, payment of debt (if any), resale value, cost of resale and discounting the numbers into today’s dollars, IRRs for NNN leased investments are usually 10%-14%. Yield from single tenant NNN leased real estate exceeded that of 10-year U.S. Treasury securities by 467 basis points as of November 2012. Upward Trajectory of Net Leased Real Estate Buyers - ChartWhat is RealEst. coin? The need for financial technology innovation in the commercial real estate industry is the inspiration behind RealEst. coin. RealEst. coin (REALEST) is an application coin based on the Bitcoin blockchain that can be used to purchase net leased real estate. RealEst. coin becomes an immediate, real world asset because its inherent value is in triple net leased properties acquired through the initial coin offering (ICO). RealEst. coin is vital to commercial real estate investing because its ability to be traded offers tax advantages similar to traditional 1031 Exchanges, but with more flexibility to the investor. Tax deferred real estate exchanges are a cornerstone to financial wealth building and RealEst. coin will help both novice and experienced investors achieve returns that are typically seen by well capitalized institutional funds and REITs. Due to the current legal nature of digital currencies, we must disclose that the use of RealEst. coin is explicitly for entertainment purposes only. The following information is provided to explain the utility of RealEst. coin in regards to real estate. However, professional legal, accounting, and financial advice is recommended before proceeding. The Pros of RealEst. Coin - ChartRealEst. coin Investing RealEst. coin allows investors to acquire ownership interest in net leased real estate. Stabilized net leased properties offer in-place cash flow that is guaranteed to the investor by the tenant or tenants leasing the property. We are able to source cash flowing and value-add triple net leased properties with attractive financing terms and transform them into beautiful investment projects. These properties are tangible assets that provide returns for your RealEst. coin portfolio. RealEst. Coin Flow - ChartHow do I get RealEst. coin? RealEst. coin can be exchanged with Bitcoin through the Vending Machine or Quick Exchange below. Two more simple ways to get RealEst. coin are with IndieSquare for mobile devices, or with Counterwallet for desktop access. Once a wallet is setup, go into the Exchange page > Select token > Search REALEST > Buy. Please note that a positive Bitcoin balance in your wallet is needed to exchange RealEst. coin. Exchange RealEst. Coin below: 1 REALEST = .02 BTC 1 BTC = 50 REALEST REALEST Vending MachineIndieSquare Mobile WalletCounterwallet Desktop WalletsBlockscan Block ExplorerHow do I get Bitcoin? Bitcoin can be exchanged through any of the following services. Please conduct necessary due diligence before selecting your exchange. How To Buy BitcoinsCoin ATM RadarWhy is RealEst. coin on the Bitcoin blockchain? Bitcoin is the most widely trusted and used digital currency in circulation. In 2012, 1 BTC was trading around $50; as of June 2016, 1 BTC is trading just over $600. This is the market performance since 2012 for comparable investments: BTC vs. Comps Performance - Chart Bitcoin is the epitome of how a digital currency expands its ecosystem through real world applications, and as a result increases its intrinsic value. RealEst. coin is positioned to follow, and hopefully surpass, the trajectory of Bitcoin because our application is specific to one use; net leased real estate investing. Real estate investing, whether individually or in a partnership, generally takes a significant amount of capital to acquire a property. Net leased investments offer the highest returns and lowest risk of all commercial real estate asset types. They are typically priced above $1,000,000 and available only to accredited investors who have an income of $200,000 annually or a net worth of at least $1,000,000. This financing requirement creates a higher barrier to entry to net leased property ownership. In comparison, RealEst. coin investors can realize the same long-term, stabilized returns as accredited investors because RealEst. coin eliminates the accreditation requirement and leverages a decentralized crowdfunding ecosystem that offers ownership for as little as $10, the opening price of 1 RealEst. coin. CoinDesk Bitcoin Price IndexWhat is the property acquisition criteria for RealEst. coin? RealEst. coin targets new and remodeled, stabilized single-tenant net leased properties nationally. Value-add net leased multi-tenant properties in California will also be considered. There is an emphasis on medical, retail, financial services, and automotive tenants in primary metropolitan markets with strong economic demographics. Properties and portfolios will be acquired from developers, asset managers, sale-leasebacks, and brokers. Every acquisition will be announced so that investors know what properties are funded with RealEst. coin. All properties acquired will be insured. The requirement for first year cap rates is a minimum of 6%. All leases must contain rent escalations and renewal options. For single-tenant acquisitions a minimum of 12 years left on the primary term of the lease is required, with a preference for credit rated tenants that will corporate guarantee the lease. This means that in the event that the store ceases operations locally, their corporate entity is obligated to continue paying rent at the location through the duration of the primary lease term. Financially strong franchisees that operate multiple locations may be considered. For multi-tenant properties there is a preference for at least 9 years left on the primary lease term with renewal options. Properties will typically be held for approximately 8 years and then exchanged for replacement properties. In prevailing cases, the tenancy may be renewed with a long term lease at fair market value which would offer a higher return on investment (ROI) than projected in the following examples. The purpose of this management strategy is to offer diversity, low exposure, and sustainable returns during economic uptick and downturn cycles. Sample PropertiesCVS Pharmacy located in Virginia Priced at $3,974,335 6.3% Capitalization rate, 50.4% ROI 13 years remaining on the initial NNN lease Buffalo Wild Wings in Alabama Priced at $3,824,971 7.0% Capitalization rate, 56% ROI 15 years remaining on the initial NNN lease Starbucks & Mattresss Firm in North Carolina Priced at $3,393,600 6.25% Capitalization rate, 50% ROI 10 years remaining on the initial NNN lease How many RealEst. coins will be in circulation? There will be 1,000,000 RealEst. coins in circulation initially. Pricing for 1 RealEst. coin will open at .02 BTC or approximately $10 USD as of October, 2016. The second phase will include the release of an additional 1,000,000. How will RealEst. coins be allocated? Approximately half of the RealEst. coins raised through the ICO will be used to purchase 1 single tenant net leased property during Q4 2016. The remaining coins will be used to purchase 1 to 2 more net leased properties during Q1 2017. RealEst. coin payouts will be distributed monthly starting with the first lease payment from the first acquisition; this target date is between January 1 and February 1, 2017. RealEst. coin performance will be announced quarterly. RealEst. Coin Allocation - ChartRealEst. Coin Project TimelineRealEst. coin Promise At the LeGrand Group, we are more than your real estate team: we're a member of each and every community we serve. There are many ways that we give back, and the one we are most proud of is our RealEst. Coin Promise. We are proudly pledging a portion of our company's RealEst. coin rewards to local nonprofits. We promise to better our community and believe tomorrow will be even better than today. Cause and Effect of RealEst. Coin Commercial real estate is an antiquated industry in terms of its implementation of modern financial technologies. For international investors, RealEst. coin offers a seamless gateway into ownership of net leased real estate located in the U.S. For U.S. investors, industry wide adoption of RealEst. coin will give buyers and sellers of commercial real estate another way to realize some of the same benefits of traditional 1031 Exchanges. Unlike traditional 1031 Exchanges, RealEst. coin has no constraints in regards to timelines to execute an exchange and the amount of capital gains tax that can be deferred. RealEst. coin is an innovative technology that makes it easier for real estate investors, regardless of their capital resources, to take steps towards wealth building. Its flexibility makes it easy to use in the residential, development, and financing sectors which will be included in the near future. We are confident RealEst. coin will allow more real estate investors to obtain long term financial security needed to establish generational wealth. RealEst. Coin Advantages Over 1031 Exchanges - Chart Please follow and like our Social Media pages!RealEst. Coin TwitterRealEst. Coin InstagramReal Est. Coin FacebookLinkedIn
Hello! My name is Slava Mikhalkin, I am a Project Owner of Crowdsale platform at Platinum, the company that knows how to start any ICO or STO in 2019. If you want to avoid headaches with launching process, we can help you with ICO and STO advertising and promotion. See the full list of our services: Platinum.fund I am also happy to be a part of the UBAI, the first educational institution providing the most effective online education on blockchain! We can teach you how to do ICO/STO in 2019. Today I want to tell you how to sell and transfer cryptocurrencies. Major Exchanges In finance, an exchange is a forum or platform for trading commodities, derivatives, securities or other financial instruments. The principle concern of an exchange is to allow trading between parties to take place in a fair and legally compliant manner, as well as to ensure that pricing information for any instrument traded on the exchange is reliable and coherently delivered to exchange participants. In the cryptocurrency space exchanges are online platforms that allow users to trade cryptocurrencies or digital currencies for fiat money or other cryptocurrencies. They can be centralized exchanges such a Binance, or decentralized exchanges such as IDEX. Most cryptocurrency exchanges allow users to trade different crypto assets with BTC or ETH after having already exchanged fiat currency for one of those cryptocurrencies. Coinbase and Kraken are the main avenue for fiat money to enter into the cryptocurrency ecosystem. Function and History Crypto exchanges can be market-makers that take bid/ask spreads as a commission on the transaction for facilitating the trade, or more often charge a small percentage fee for operating the forum in which the trade was made. Most crypto exchanges operate outside of Western countries, enabling them to avoid stringent financial regulations and the potential for costly and lengthy legal proceedings. These entities will often maintain bank accounts in multiple jurisdictions, allowing the exchange to accept fiat currency and process transactions from customers all over the globe. The concept of a digital asset exchange has been around since the late 2000s and the following initial attempts at running digital asset exchanges foreshadows the trouble involved in attempting to disrupt the operation of the fiat currency baking system. The trading of digital or electronic assets predate Bitcoin’s creation by several years, with the first electronic trading entities running afoul of the Australian Securities and Investments Commission (ASIC) in late 2004. Companies such as Goldex, SydneyGoldSales, and Ozzigold, shut down voluntarily after ASIC found that they were operating without an Australian Financial Services License. E-Gold, which exchanged fiat USD for grams of precious metals in digital form, was possibly the first digital currency exchange as we know it, allowing users to make instant transfers to the accounts of other E-Gold members. At its peak in 2006 E-Gold processed $2 billion worth of transactions and boasted a user base of over 5 million people. Popular Exchanges Here we will give a brief overview of the features and operational history of the more popular and higher volume exchanges because these are the platforms to which newer traders will be exposed. These exchanges are recommended to use because they are the industry standard and they inspire the most confidence. Bitfinex Owned and operated by iFinex Inc, the cryptocurrency trading platform Bitfinex was the largest Bitcoin exchange on the planet until late 2017. Headquartered in Hong Kong and based in the US Virgin Island, Bitfinex was one of the first exchanges to offer leveraged trading (“Margin trading allows a trader to open a position with leverage. For example — we opened a margin position with 2X leverage. Our base assets had increased by 10%. Our position yielded 20% because of the 2X leverage. Standard trades are traded with leverage of 1:1”) and also pioneered the use of the somewhat controversial, so-called “stable coin” Tether (USDT). Binance Binance is an international multi-language cryptocurrency exchange that rose from the mid-rank of cryptocurrency exchanges to become the market dominating behemoth we see today. At the height of the late 2017/early 2018 bull run, Binance was adding around 2 million new users per week! The exchange had to temporarily disallow new registrations because its servers simply could not keep up with that volume of business. After the temporary ban on new users was lifted the exchange added 240,000 new accounts within two hours. Have you ever thought whats the role of the cypto exchanges? The answer is simple! There are several different types of exchanges that cater to different needs within the ecosystem, but their functions can be described by one or more of the following: To allow users to convert fiat currency into cryptocurrency. To trade BTC or ETH for alt coins. To facilitate the setting of prices for all crypto assets through an auction market mechanism. Simply put, you can either mine cryptocurrencies or purchase them, and seeing as the mining process requires the purchase of expensive mining equipment, Cryptocurrency exchanges can be loosely grouped into one of the 3 following exchange types, each with a slightly different role or combination of roles. Have you ever thought about what are the types of Crypto exchanges?
Traditional Cryptocurrency Exchange: These are the type that most closely mimic traditional stock exchanges where buyers and sellers trade at the current market price of whichever asset they want, with the exchange acting as the intermediary and charging a small fee for facilitating the trade. Kraken and GDAX are examples of this kind of cryptocurrency exchange. Fully peer-to-peer exchanges that operate without a middleman include EtherDelta, and IDEX, which are also examples of decentralized exchanges.
Cryptocurrency Brokers: These are website or app based exchanges that act like a Travelex or other bureau-de-change. They allow customers to buy or sell crypto assets at a price set by the broker (usually market price plus a small premium). Coinbase is an example of this kind of exchange.
Direct Trading Platform: These platforms offer direct peer-to-peer trading between buyers and sellers, but don’t use an exchange platform in doing so. These types of exchanges do not use a set market rate; rather, sellers set their own rates. This is a highly risky form of trading, from which new users should shy away.
To understand how an exchange functions we need only look as far as a traditional stock exchange. Most all the features of a cryptocurrency exchange are analogous to features of trading on a traditional stock exchange. In the simplest terms, the exchanges fulfil their role as the main marketplace for crypto assets of all kinds by catering to buyers or sellers. These are some definitions for the basic functions and features to know: Market Orders: Orders that are executed instantly at the current market price. Limit Order: This is an order that will only be executed if and when the price has risen to or dropped to that price specified by the trader and is also within the specified period of time. Transaction fees: Exchanges will charge transactions fees, usually levied on both the buyer and the seller, but sometimes only the seller is charged a fee. Fees vary on different exchanges though the norm is usually below 0.75%. Transfer charges: The exchange is in effect acting as a sort of escrow agent, to ensure there is no foul play, so it might also charge a small fee when you want to withdraw cryptocurrency to your own wallet. Regulatory Environment and Evolution Cryptocurrency has come a long way since the closing down of the Silk Road darknet market. The idea of crypto currency being primarily for criminals, has largely been seen as totally inaccurate and outdated. In this section we focus on the developing regulations surrounding the cryptocurrency asset class by region, and we also look at what the future may hold. The United States of America A coherent uniform approach at Federal or State level has yet to be implemented in the United States. The Financial Crimes Enforcement Network published guidelines as early as 2013 suggesting that BTC and other cryptos may fall under the label of “money transmitters” and thus would be required to take part in the same Anti-money Laundering (AML) and Know your Client (KYC) procedures as other money service businesses. At the state level, Texas applies its existing finance laws. And New York has instituted an entirely new licensing system. The European Union The EU’s approach to cryptocurrency has generally been far more accommodating overall than the United States, partly due to the adaptable nature of pre-existing laws governing electronic money that predated the creation of Bitcoin. As with the USA, the EU’s main fear is money laundering and criminality. The European Central Bank (ECB) categorized BTC as a “convertible decentralized currency” and advised all central banks in the EU to refrain from trading any cryptocurrencies until the proper regulatory framework was put in place. A task force was then set up by the European Parliament in order to prevent and investigate any potential money laundering that was making use of the new technology. Likely future regulations for cryptocurrency traders within the European Union and North America will probably consist of the following proposals: The initiation of full KYC procedures so that users cannot remain fully anonymous, in order to prevent tax evasion and curtail money laundering. Caps on payments that can be made in cryptocurrency, similar to caps on traditional cash transactions. A set of rules governing tax obligations regarding cryptocurrencies Regulation by the ECB of any companies that offer exchanges between cryptocurrencies and fiat currencies It is less likely for other countries to follow the Chinese approach and completely ban certain aspects of cryptocurrency trading. It is widely considered more progressive and wiser to allow the technology to grow within a balanced accommodative regulatory framework that takes all interests and factors into consideration. It is probable that the most severe form of regulation will be the formation of new governmental bodies specifically to form laws and exercise regulatory control over the cryptocurrency space. But perhaps that is easier said than done. It may, in certain cases, be incredibly difficult to implement particular regulations due to the anonymous and decentralized nature of crypto. Behavior of Cryptocurrency Investors by Demographic Due to the fact that cryptocurrency has its roots firmly planted in the cryptography community, the vast majority of early adopters are representative of that group. In this section we cover the basic structure of the cryptocurrency market cycle and the makeup of the community at large, as well as the reasons behind different trading decisions. The Cryptocurrency Market Cycle Bitcoin leads the bull rally. FOMO (Fear of missing out) occurs, the price surge is a constant topic of mainstream news, business programs cover the story, and social media is abuzz with cryptocurrency chatter. Bitcoin reaches new All Timehigh (ATH) Market euphoria is fueled with even more hype and the cycle is in full force. There is a constant stream of news articles and commentary on the meteoric, seemingly unstoppable rise of Bitcoin. Bitcoin’s price “stabilizes”, In the 2017 bull run this was at or around $14,000. A number of solid, large market cap altcoins rise along with Bitcoin; ETH & LTC leading the altcoins at this time. FOMO comes into play, as the new ATH in market cap is reached by pumping of a huge number of alt coins. Top altcoins “somewhat” stabilize, after reaching new all-time highs. The frenzy continues with crypto success stories, notable figures and famous people in the news. A majority of lesser known cryptocurrencies follow along on the upward momentum. Newcomers are drawn deeper into crypto and sign up for exchanges other than the main entry points like Coinbase and Kraken. In 2017 this saw Binance inundated with new registrations. Some of the cheapest coins are subject to massive pumping, such as Tron TRX which saw a rise in market cap from $150 million at the start of December 2017 to a peak of $16 billion! At this stage, even dead coins or known scams will get pumped. The price of the majority of cryptocurrencies stabilize, and some begin to retract. When the hype is subsiding after a huge crypto bull run, it is a massive sell signal. Traditional investors will begin to give interviews about how people need to be careful putting money into such a highly volatile asset class. Massive violent correction begins and the market starts to collapse. BTC begins to fall consistently on a daily basis, wiping out the insane gains of many medium to small cap cryptos with it. Panic selling sweeps through the market. Depression sets in, both in the markets, and in the minds of individual investors who failed to take profits, or heed the signs of imminent collapse. The price stagnation can last for months, or even years. The Influence of Age upon Trading Did you know? Cryptocurrencies have been called “stocks for millennials” According to a survey conducted by the Global Blockchain Business Council, only 5% of the American public own any bitcoin, but of those that do, an overwhelming majority of 71% are men, 58% of them are between the ages of 18 and 35, and over half of them are minorities. The same survey gauged public attitude toward the high risk/high return nature of cryptocurrency, in comparison to more secure guaranteed small percentage gains offered by government bonds or stocks, and found that 30% would rather invest $1,000 in crypto. Over 42% of millennials were aware of cryptocurrencies as opposed to only 15% of those ages 65 and over. In George M. Korniotis and Alok Kumar’s study into the effects of aging on portfolio management and the quality of decisions made by older investors, they found “that older and experienced investors are more likely to follow “rules of thumb” that reflect greater investment knowledge. However, older investors are less effective in applying their investment knowledge and exhibit worse investment skill, especially if they are less educated and earn lower income.” Geographic Influence upon Trading One of the main drivers of the apparent seasonal ebb and flow of cryptocurrency prices is the tax situation in the various territories that have the highest concentrations of cryptocurrency holders. Every year we see an overall market pull back beginning in mid to late January, with a recovery beginning usually after April. This is because “Tax Season” is roughly the same across Europe and the United States, with the deadline for Income tax returns being April 15th in the United States, and the tax year officially ending the UK on the 6th of April. All capital gains must be declared before the window closes or an American trader will face the powerful and long arm of the IRS with the consequent legal proceedings and possible jail time. Capital gains taxes around the world vary from jurisdiction to jurisdiction but there are often incentives for cryptocurrency holders to refrain from trading for over a year to qualify their profits as long term gain when they finally sell. In the US and Australia, for example, capital gains are reduced if you bought cryptocurrency for investment purposes and held it for over a year. In Germany if crypto assets are held for over a year then the gains derived from their sale are not taxed. Advantages like this apply to individual tax returns, on a case by case basis, and it is up to the investor to keep up to date with the tax codes of the territory in which they reside. 2013 Bull run vs 2017 Bull run price Analysis In late 2016 cryptocurrency traders were faced with the task of distinguishing between the beginnings of a genuine bull run and what might colorfully be called a “dead cat bounce” (in traditional market terminology). Stagnation had gripped the market since the pull-back of early 2014. The meteoric rise of Bitcoin’s price in 2013 peaked with a price of $1,100 in November 2013, after a year of fantastic news on the adoption front with both Microsoft and PayPal offering BTC payment options. It is easy to look at a line going up on a chart and speak after the fact, but at the time, it is exceeding difficult to say whether the cat is actually climbing up the wall, or just bouncing off the ground. Here, we will discuss the factors that gave savvy investors clues as to why the 2017 bull run was going to outstrip the 2013 rally. Hopefully this will help give insight into how to differentiate between the signs of a small price increase and the start of a full scale bull run. Most importantly, Volume was far higher in 2017. As we can see in the graphic below, the 2017 volume far exceeds the volume of BTC trading during the 2013 price increase. The stranglehold MtGox held on trading made a huge bull run very difficult and unlikely. Fraud & Immoral Activity in the Private Market Ponzi Schemes Cryptocurrency Ponzi schemes will be covered in greater detail in Lesson 7, but we need to get a quick overview of the main features of Ponzi schemes and how to spot them at this point in our discussion. Here are some key indicators of a Ponzi scheme, both in cryptocurrencies and traditional investments: A guaranteed promise of high returns with little risk. Consistentflow of returns regardless of market conditions. Investments that have not been registered with the Securities and Exchange Commission (SEC). Investment strategies that are a secret, or described as too complex. Clients not allowed to view official paperwork for their investment. Clients have difficulties trying to get their money back. The initial members of the scheme, most likely unbeknownst to the later investors, are paid their “dividends” or “profits” with new investor cash. The most famous modern-day example of a Ponzi scheme in the traditional world, is Bernie Madoff’s $100 billion fraudulent enterprise, officially titled Bernard L. Madoff Investment Securities LLC. And in the crypto world, BitConnect is the most infamous case of an entirely fraudulent project which boasted a market cap of $2 billion at its peak. What are the Exchange Hacks? The history of cryptocurrency is littered with examples of hacked exchanges, some of them so severe that the operation had to be wound up forever. As we have already discussed, incredibly tech savvy and intelligent computer hackers led by Alexander Vinnik stole 850000 BTC from the MtGox exchange over a period from 2012–2014 resulting in the collapse of the exchange and a near-crippling hammer blow to the emerging asset class that is still being felt to this day. The BitGrail exchange suffered a similar style of attack in late 2017 and early 2018, in which Nano (XRB) was stolen that was at one point was worth almost $195 million. Even Bitfinex, one of the most famous and prestigious exchanges, has suffered a hack in 2016 where $72 million worth of BTC was stolen directly from customer accounts. Hardware Wallet Scam Case Study In late 2017, an unfortunate character on Reddit, going by the name of “moody rocket” relayed his story of an intricate scam in which his newly acquired hardware wallet was compromised, and his $34,000 life savings were stolen. He bought a second hand Nano ledger into which the scammers own recover seed had already been inserted. He began using the ledger without knowing that the default seed being used was not a randomly assigned seed. After a few weeks the scammer struck, and withdrew all the poor HODLer’s XRP, Dash and Litecoin into their own wallet (likely through a few intermediary wallets to lessen the very slim chances of being identified). Hardware Wallet Scam Case Study Social Media Fraud Many gullible and hapless twitter users have fallen victim to the recent phenomenon of scammers using a combination of convincing fake celebrity twitter profiles and numerous amounts of bots to swindle them of ETH or BTC. The scammers would set up a profile with a near identical handle to a famous figure in the tech sphere, such as Vitalik Buterin or Elon Musk. And then in the tweet, immediately following a genuine message, follow up with a variation of “Bonus give away for the next 100 lucky people, send me 0.1 ETH and I will send you 1 ETH back”, followed by the scammers ether wallet address. The next 20 or so responses will be so-called sockpuppet bots, thanking the fake account for their generosity. Thus, the pot is baited and the scammers can expect to receive potentially hundreds of donations of 0.1 Ether into their wallet. Many twitter users with a large follower base such as Vitalik Buterin have taken to adding “Not giving away ETH” to their username to save careless users from being scammed. Market Manipulation It also must be recognized that market manipulation is taking place in cryptocurrency. For those with the financial means i.e. whales, there are many ways in which to control the market in a totally immoral and underhanded way for your own profit. It is especially easy to manipulate cryptos that have a very low trading volume. The manipulator places large buy orders or sell walls to discourage price action in one way or the other. Insider trading is also a significant problem in cryptocurrency, as we saw with the example of blatant insider trading when Bitcoin Cash was listed on Coinbase. Examples of ICO Fraudulent Company Behavior In the past 2 years an astronomical amount of money has been lost in fraudulent Initial Coin Offerings. The utmost care and attention must be employed before you invest. We will cover this area in greater detail with a whole lesson devoted to the topic. However, at this point, it is useful to look at the main instances of ICO fraud. Among recent instances of fraudulent ICOs resulting in exit scams, 2 of the most infamous are the Benebit and PlexCoin ICOs which raised $4 million for the former and $15 million for the latter. Perhaps the most brazen and damaging ICO scam of all time was the Vietnamese Pincoin ICO operation, where $660million was raised from 32,000 investors before the scammer disappeared with the funds. In case of smaller ICO “exit scamming” there is usually zero chance of the scammers being found. Investors must just take the hit. We will cover these as well as others in Lesson 7 “Scam Projects”. Signposts of Fraudulent Actors The following factors are considered red flags when investigating a certain project or ICO, and all of them should be considered when deciding whether or not you want to invest. Whitepaper is a buzzword Salad: If the whitepaper is nothing more than a collection of buzzwords with little clarity of purpose and not much discussion of the tech involved, it is overwhelmingly likely you are reading a scam whitepaper. Signposts of Fraudulent Actors §2 No Code Repository: With the vast majority of cryptocurrency projects employing open source code, your due diligence investigation should start at GitHub or Sourceforge. If the project has no entries, or nothing but cloned code, you should avoid it at all costs. Anonymous Team: If the team members are hard to find, or if you see they are exaggerating or lying about their experience, you should steer clear. And do not forget, in addition to taking proper precautions when investing in ICOs, you must always make sure that you are visiting authentic web pages, especially for web wallets. If, for example, you are on a spoof MyEtherWallet web page you could divulge your private key without realizing it and have your entire portfolio of Ether and ERC-20 tokens cleaned out. Methods to Avoid falling Victim Avoiding scammers and the traps they set for you is all about asking yourself the right questions, starting with: Is there a need for a Blockchain solution for the particular problem that a particular ICO is attempting to solve? The existing solution may be less costly, less time consuming, and more effective than the proposals of a team attempting to fill up their soft cap in an ICO. The following quote from Mihai Ivascu, the CEO of Modex, should be kept in mind every time you are grading an ICO’s chances of success: “I’m pretty sure that 95% of ICOswill not last, and many will go bankrupt. ….. not everything needs to be decentralized and put on an open source ledger.” Methods to Avoid falling Victim §2 Do I Trust These People with My Money, or Not? If you continue to feel uneasy about investing in the project, more due diligence is needed. The developers must be qualified and competent enough to complete the objectives that they have set out in the whitepaper. Is this too good to be true? All victims of the well-known social media scams using fake profiles of Vitalik Buterin, or Bitconnect investors for that matter, should have asked themselves this simple question, and their investment would have been saved. In the case of Bitconnect, huge guaranteed gains proportional to the amount of people you can get to sign up was a blatant pyramid scheme, obviously too good to be true. The same goes for Fake Vitalik’s offer of 1 ether in exchange for 0.1 ETH. Selling Cryptocurrencies, Several reasons for selling with the appropriate actions to take: If you are selling to buy into an ICO, or maybe believe Ether is a safer currency to hold for a certain period of time, it is likely you will want to make use of the Ether pair and receive Ether in return. Obviously if the ICO is on the NEO or WANchain blockchain for example, you will use the appropriate pair. -Trading to buy into another promising project that is listing on the exchange on which you are selling (or you think the exchange will experience a large amount of volume and become a larger exchange), you may want to trade your cryptocurrency for that exchange token. -If you believe that BTC stands a good chance of experiencing a bull run then using the BTC trading pair is the suitable choice. -If you believe that the market is about to experience a correction but you do not want to take your gains out of the market yet, selling for Tether or “tethering up” is the best play. This allows you to keep your locked-in profits on the exchange, unaffected by the price movements in the cryptocurrency markets,so that you can buy back in at the most profitable moment. -If you wish to “cash out” i.e. sell your cryptocurrency for fiat currency and have those funds in your bank account, the best pair to use is ETH or BTC because you will likely have to transfer to an exchange like Kraken or Coinbase to convert them into fiat. If the exchange offers Litecoin or Bitcoin Cash pairs it could be a good idea to use these for their fast transaction time and low fees. Selling Cryptocurrencies Knowing when and how to sell, as well as strategies to inflate the value of your trade before sale, are important skills as a trader of any product or financial instrument. If you are satisfied that the sale itself of the particular amount of a token or coin you are trading away is the right one, then you must decide at what price you are going to sell. Exchanges exercise their own discretion as to which trading “pairs” they will offer, but the most common ones are BTC, ETH, BNB for Binance, BIX for Bibox etc., and sometimes Tether (USDT) or NEO. As a trader, you decide which particular cryptocurrency to exchange depending on your reason for making that specific trade at that time. Methods of Sale Market sell/Limit sell on exchange: A limit sell is an order placed on an exchange to sell as soon as (also specifically only if and when) the price you specified has been hit within the time limit you select. A market order executes the sale immediately at the best possible price offered by the market at that exact time. OTC (or Over the Counter) selling refers to sale of securities or cryptocurrencies in any method without using an exchange to intermediate the trade and set the price. The most common way of conducting sales in this manner is through LocalBitcoins.com. This method of cryptocurrency selling is far riskier than using an exchange, for obvious reasons. The influence and value of your Trade There are a number of strategies you can use to appreciate the value of your trade and thus increase the Bitcoin or Ether value of your portfolio. It is important to disassociate yourself from the dollar value of your portfolio early on in your cryptocurrency trading career simply because the crypto market is so volatile you will end up pulling your hair out in frustration following the real dollar money value of your holdings. Once your funds have been converted into BTC and ETH they are completely in the crypto sphere. (Some crypto investors find it more appropriate to monitor the value of their portfolio in satoshi or gwei.) Certainly not limited to, but especially good for beginners, the most reliable way to increase your trading profits, and thus the overall value and health of your portfolio, is to buy into promising projects, hold them for 6 months to a year, and then reevaluate. This is called Long term holding and is the tactic that served Bitcoin HODLers quite well, from 2013 to the present day. Obviously, if something comes to light about the project that indicates a lengthy set back is likely, it is often better to cut your losses and sell. You are better off starting over and researching other projects. Also, you should set initial Price Points at which you first take out your original investment, and then later, at which you take out all your profits and exit the project. That should be after you believe the potential for growth has been exhausted for that particular project. Another method of increasing the value of your trades is ICO flipping. This is the exact opposite of long term holding. This is a technique in which you aim for fast profits taking advantage of initial enthusiasm in the market that may double or triple the value of ICO projects when they first come to market. This method requires some experience using smaller exchanges like IDEX, on which project tokens can be bought and sold before listing on mainstream exchanges. “Tethering up” means to exchange tokens or coins for the USDT stable coin, the value of which is tethered to the US Dollar. If you learn, or know how to use, technical analysis, it is possible to predict when a market retreatment is likely by looking at the price movements of BTC. If you decide a market pull back is likely, you can tether up and maintain the dollar value of your portfolio in tether while other tokens and coins decrease in value. The you wait for an opportune moment to reenter the market. Market Behavior in Different Time Periods The main descriptors used for overall market sentiment are “Bull Market” and “Bear Market”. The former describes a market where people are buying on optimism. The latter describes a market where people are selling on pessimism. Fun (or maybe not) fact: The California grizzly bear was brought to extinction by the love of bear baiting as a sport in the mid 1800s. Bears were highly sought after for their intrinsic fighting qualities, and were forced into fighting bulls as Sunday morning entertainment for Californians. What has this got to do with trading and financial markets? The downward swipe of the bear’s paws gives a “Bear market” its name and the upward thrust of a Bull’s horns give the “Bull Market” its name. Most unfortunately for traders, the bear won over 80% of the bouts. During a Bull market, optimism can sometimes grow to be seemingly boundless, volume is rising, and prices are ascending. It can be a good idea to sell or rebalance your portfolio at such a time, especially if you have a particularly large position in one holding or another. This is especially applicable if you need to sell a large amount of a relatively low-volume holding, because you can then do so without dragging the price down by the large size of your own sell order. Learn more on common behavioral patterns observed so far in the cryptocurrency space for different coins and ICO tokens. Follow the link: UBAI.co If you want to know how do security tokens work, and become a professional in crypto world contact me via Facebook to get all the details: Facebook
When a stock's value goes up so much that it becomes out of reach to casual investors, the company will perform a stock split, assigning all holders of the stock some multiple of their current shares in an effort to drop the price of each individual share. For example, in a 3-for-1 stock split, every share that is owned gets tripled, so that those who are holding 100 shares are granted 200 more shares for a total of 300 shares. The effect of this maneuver is that the price would fall to 1/3rd its current value while the value of shares held does not change at all. Is a coin split possible? I know, of course, that Dash is infinitely divisible. But right now, a $3 cup of coffee costs 0.002 Dash, which isn't easy or pleasurable to communicate. I also know there are names for particular divisions of Dash - i.e. that $3 cup of coffee is really just 2 "mDash" - but then we have the problem of brand identification. What is an mDash? Is that like Dash in the way Bitcoin Cash is like Bitcoin? The only potential flaws I see in this is the possibly odd effects it could have on exchanges. If the "wallet" you see in your exchange account isn't actually a representation of what is on the blockchain, but instead your "wallet" is an entry in the exchange's own private database, then this could cause problems. However, we should give this serious consideration. I like Dash because the development team and community are focused on making it a medium of exchange. If each Dash is worth $2000 (or, I think, more) then it will be very difficult to talk transactions in Dash. Thoughts?
What kind of problems do ordinary people face when they try to purchase cryptocurrency?
The Ubcoin Market team prepared a new article on how difficult it might be to buy cryptocurrency for the first time. We made a short analysis of exchanges, ICOs, P2P platforms and mining as means of purchasing cryptocoins for the first time. The analysis concluded that all these methods have drawbacks. Ubcoin Market is designed to be a platform that facilitates the process of becoming a crypto investor by giving the ability to people to sell their possessions for cryptomoney. If you need to buy some greens for your dinner, you go to the grocery store. If you need some fish you go to the fish market. If you need a book you go to the nearest bookshop or shop online using Amazon. But what if you want to buy cryptocurrency? Where do you go? 2017 appeared to be the year of ICO. Unlike most predictions the cryptocurrency hype train is still on the rails. One can see that the fluctuations of Bitcoin are keeping the whole topic on the boil with increasingly more people becoming interested in cryptocurrency. Many people consider cryptocurrency as an investment tool or believe enticing stories of an easy and lucrative investment. The new aspiring crypto investors often are not only from the upper or business class or so called active ‘classical’ investors, but also includes non-classical grassroots investors. Many people from various backgrounds keep wondering how they can jump on the cryptocurrency bandwagon and become part of the new trend. Alas, there are more questions than answers. Exchanges The first and most probable choice an aspiring crypto investor might make is choosing an exchange. An exchange is where one can buy cryptocoins for fiat money. The mechanism seems pretty easy and similar to the typical trading on mainstream fiat exchanges. However, with cryptocurrency various difficulties arise. First of all, the boom of cryptocurrencies over the last few years induced the establishment of numerous exchanges all over the world and they keep rising in number. A number of such exchanges are fraudulent and may close without notice, taking all your money. The main problem here is that for now in many countries there are no external regulators for these crypto-exchanges. In the worst scenario you won’t be able to address your loss to any governmental body to obtain your money back. Therefore, choosing a safe and appropriate exchange to store your cryptocoins is not a straightforward task. Moreover, in many countries cryptocurrency in general and crypto-exchanges remain a grey area for legislation. Although, some countries have already articulated their attitude towards cryptocurrency negatively or positively. For example, China keeps shutting down everything related to cryptocurrency. The government has already banned ICO and ordered to close all domestic Bitcoin exchanges, what BTCC did. The authorities go further and shoot down the access to any overseas exchanges and platforms. One of the local banks of Hong Kong even suspended a company account of Hong Kong-based cryptocurrency exchange. If authorities shut down an exchange, very little can be done for customers of the exchange platform. Meaning the customers may irreversibly lose their cryptocurrency due to the closure of the exchange by authorities. Barely anything can help a private customer to escape the same destiny if his or her account is somehow related to cryptocurrency transactions. Japan in the past has had a much less hostile cryptocurrency environment compared to other Asian countries. Nevertheless, Japan appears to be reconsidering its policy towards exchanges after a massive breach in one of the biggest Japanese cryptocurrency exchanges. Initial Coin Offering(s) The second feasible way to obtain some cryptocurrency is to participate in an ICO. According to statistics nearly 350 fully completed ICO were carried out in 2017. The number of ICOs this year so far stands at 92. In addition to the previous stated amounts of ICO, there were also numerous ICO that either failed or never intended to fulfill their projected promises in order to steal investors’ money. The first question is how to navigate through the ocean of ICO and how to decide whether an altcoin is worth your investments. Even if you’ve researched and studied about cryptocurrency there are many dynamics and unknowns. For example, as a small private investor you cannot bear all the risks as a big investment firm can. On the other hand you will still need to use an exchange to procure altcoins since they are usually not traded for fiat money. After the first step, you then have to exchange your tokens for fiat money or the cryptocurrency that is actually accepted through the exchange of fiat money. Unfortunately, the convoluted process is only one of the issues of exchanges. For example, China banned ICO. Furthermore, Japan is not particularly friendly towards the new way of raising capital for startups. After a series of fraudulent ICO in Austria, the authorities in Vienna are now trying to involve Interpol to track down dishonest crypto-entrepreneurs. Austria is working on the restriction of transactions and any activities in the field of cryptocurrencies. The USA has a generally friendly regulation policy towards cryptocurrency. However, since the US Securities and Exchange Commission equated ICO to an IPO, the companies issuing tokens and also exchanges trading them are subject to the same laws. That implies that that all transactions must be registered as transactions with stocks or securities. The US neighbor, Canada, holds the same positions on policy. Canadian authorities are considering the potential applicability of Canadian securities laws to cryptocurrencies and related trading and marketplace operations. The overall result for ordinary people, willing to purchase and trade tokens, is that all these transactions have to be registered with corresponding governmental or regulatory bodies, but no such procedures have been adapted for the crypto market yet. Additionally, such transactions are going to be taxed in the future similar to security transactions. One should be extremely cautious when taking part in an ICO. One can very easily find himself involved with a scam ICO resulting in a loss of funds. One also must keep in mind that even if the entrepreneur you trusted with your money is, in fact, honest, your activity can become subject to taxation or other laws, which could render your venture illegal. However, there is a third way. Peer-to-Peer Platforms With the spread of cryptocurrency and as the number of people wanting to purchase cryptocurrency grows, the demand has led to the rise in platforms that conduct crypto-to-fiat exchange offline. Most well-known platform is Local Bitcoins. Usually, if you are interested in the topic and join various crypto-related chats and forums, they find you on their own. The most commonly exchanged coin on such peer-to-peer offline platforms is Bitcoin, however sometimes they offer transactions with other popular altcoins. If you decide to use such a service, you may find yourself entering some real life detective or thriller film. The scenario may unfold itself something similar to this: your online counterpart suggests an offline meeting place, hopefully, a public one. The location is where you will exchange your fiat money for some crypto-tokens. Now you have to use some muscle and drag a big sports bag stuffed with fiat cash, across the city to meet your contact. Once you meet, you verify each other’s identity and signal the successful transaction through numbers or QR codes on your mobile devices. In the end, if you are a fan of thriller films with briefcases stuffed with cash, this would be a decent way to roleplay such. However, in reality, the security and safety of your money and your own self are extremely questionable when employing this method of buying cryptocurrency. Moreover, if the transaction wasn’t fraudulent and everything went smoothly, then you still will face the question ‘what do I do next?’. And the paths are more or less the same. You either go to an exchange and have to cope with all the previously stated problems, or you wait some time to switch sides and become a ‘dealer’ yourself. Mining The last, and for many reasons, the least feasible way to obtain cryptocurrency is mining. Mining was the initial way of getting tokens. It was a bonanza for early miners, but nowadays the entry threshold is too high. The mining boom a few years ago hugely impacted the market of graphics cards pushing the prices to their highest points resulting in doubled or tripled prices for the most popular devices. Some of the biggest producers on the market even launched new series of specialized hardware tailored to mining certain cryptocurrency. The costs per one ‘mining farm’ and electricity now are covered, at best, within 6–9 months, compared to 3–4 months at the beginning of the more recent ‘mining fever’. Moreover, it is hard to compete with ‘mass-mining’ in countries like China. Over the last year Chinese bitcoin miners made up over 50 percent of the worldwide mining population, building farms with high capacities. So as for now, this hype-train is way out of reach for private aspiring crypto-investors. Up to this moment, everything related to cryptocurrencies was more about it’s first part — ‘crypto’. But how can one actually derive value and use it as means of exchange for benefits in everyday life? Our team understands all the risks and issues in addition to the interests of aspiring crypto-investors. Therefore, we decided to create an advanced platform that is transparent, easy to use, easy to understand and ultimately a simple way into the world of cryptocurrency. Our project is called the Ubcoin Market. A platform where people can purchase and sell real goods in a secure and simple manner using our specialized eretheum based altcoin.
The Impact of Blockchain on Accounting Information Systems Zeyad Hashim ALSaqa Professor, Department of Accounting, College of Administration and Economics, University of Mosul, Iraq. E-mail: [email protected] Ali Ibrahim Hussein Professor, Department of Accounting, College of Administration and Economics, Tikrit University, Iraq. E-mail: [email protected] Saddam Mohammed Mahmood ... Triple Entry Accounting. I wrote the following article in 1994 while working on my Masters degree. In conjunction with writing this paper, we were required to make a presentation to our faculty and peers. The paper and presentation were the entire basis for our grade. Accountants are typically conservative and professional. I took a big chance with my presentation and showed up in a T-shirt ... While triple-entry accounting isn’t the term for it, there are considerable benefits in writing transactions to a blockchain. Much like journal entries are currently recorded in an organization ... Triple entry accounting is an enhancement to the traditional double-entry system in which all accounting entries involving outside parties are cryptographically sealed by a third entry. These include purchases of inventory and supplies, sales, tax and utility payments and other expenses. Placed side by side, the bookkeeping entries of both parties to a given transaction are congruent. A seller ... Ian seems to have come up with his ideas independently, and I can’t sew where understanding your triple entry accounting system was necessary to create Bitcoin. If you’re an academic like me, you can’t help but feel sorry for Dr. Ijiri. What happened to him seriously sucked. But none of this means that blockchain won’t have a major impact on the accounting profession and the future of ...
Why does bitcoin have value? Anthony Pompliano, host of the Pomp Podcast. shares why "Triple-Entry Accounting Will Be The Most Disruptive Innovation In Our Lifetime!” Altcoin Daily has the best ... Bitcoin Might Fail but the Blockchain is Here to Stay WIRED ... 19:22. DEVCON1: Balanc3 - Triple Entry Accounting - Duration: 15:07. Ethereum 11,157 views. 15:07. The Best Accounting Career Path ... Its been 600 years since we have been using Double entry system of Accounting, and now its time for evolution. The video describes concept and implementation... Tech Talk'da bu hafta Furkan Yılmaz bize Bitcoin'in de kullandığı Triple-Entry Accounting sistemini ve ekonomideki yerini anlattı. Furkan Yilmaz: thellimist.com Görüş ve sorularınızı ... Take the full course: https://systemsinnovation.io/course/ Follow along with the eBook: https://systemsinnovation.io/books/ Twitter: http://bit.ly/2JuNmXX Li...