The Zambian Securities and Exchange Commission has warned the public to beware of scammers using cryptocurrency investing services. Financial regulators received information about a company called KWAKOO, which put forward an initial offer of coins with dubious forecasts for the future.
The Zambian SEC has stated that KWAKOO is promoting an initial offer of coins for cryptocurrencies. It is believed that those behind KWAKOO have told potential investors that an increase of 1000% is expected by June 2021.
The warning states that employees of both agencies recently watched fraudulent investment projects that were provided as “consulting and trading companies engaged in digital assets or cryptocurrency.” In some cases, companies offered services related to specialized cryptocurrency investment projects.
Such scammers often claim that their schemes can guarantee a profit of, for example, 20-50%. Both agencies found six signs of fraudulent projects, and encouraged investors to carefully study investment offers related to cryptocurrency.
The text notes that fraud can use complex jargon opaque or misleading language to disorient investors and hide discrepancies. To facilitate an understanding of this new and complex area, we will consider some basic concepts that you must understand before investing in virtual coins or tokens.