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Hash Card latest ICO to be accused of duping investors

Another Initial Coin Offering, Hash Card, has found itself in hot water. It should be a reminder to always do your homework before getting caught up in the hype.

Hash Card has suspended their services in the wake of allegations that their ICO is a scam.

The ICO promised investors of a debit card they would be able to use with cryptocurrency.

After suspending their services, they blamed “Fudsters and trolls” as the cause. CoinCodex has written an article in detail about the fiasco.

If you’re going to invest in an ICO, there’s a general rule of thumb to follow which can make your life a lot easier. This may not be 100% foolproof and please don’t take it as financial advice. Always consult with a professional if you are unclear or unsure about an investment.

The holes in Hash Card’s story serves as an example of how to place an ICO under scrutiny.

Research and verifying the team behind the ICO is where you should always start

It’s relatively easy for two or three people to scam investors out of millions through a website; promises of a physical product is all the more alluring.

And it seems Hash Card went out of their way to make all this possible. They possibly hired two men (who aren’t the most convincing of actors) to promote their ICO and even had product placement for an authentic look.

Karol Kozlowski (CEO) and Pawel Goch (CFO) are named in a Facebook post by Hash Card with other pictures of them allegedly conducting business.

Kozlowski’s LinkedIn profile is much more convincing than Goch’s who doesn’t even have a profile photo or information filled in. There’s another man named in their White Paper PDF by the name of Vasiliy Gulyar, but a Google search only turned up results relating to Hash Card.

So it seems Hard Cash got sloppy in trying to create a papertrail which is a red flag.

It’s unclear if those are the real names of the men and to what extent of involvement they have in the ICO. But just with a few Google searches — I was able to put some serious doubt in their startup.

Never hesitate to ask questions

Asking questions is the easiest way to find out all the information you need to know whether to walk away from an investment or not. Scammers absolutely hate having to answer questions. The less questions they answer directly; the less chances there are of them slipping up.

Joining different forums such as Reddit or bitcointalk.org are great ideas. The cryptocurrency community are full of watch dogs who will question every single ICO that crops up and scrutinize the information, photos and products they offer/release.

Hash Card hasn’t responded to any of my inquiries. I asked about their team members and what is the nature of their relationships to Binance and Mastercard.

If it sounds too good to be true…

The old saying of, “If it sounds too good to be true, it probably is” should be the basis of every investment.

Hash Card promoted their ICO very well, but in context and practice — it was guaranteed to hit brick walls right out of the gate even if we’re assuming there is some merit to what they intend to accomplish.

Despite their claims, a debit card working in conjunction with Mastercard is wishful thinking at best since Mastercard is more interested in blockchain technology and not cryptocurrencies (although there is a pilot program in Japan which works with cryptocurrency).

And while the concept of Hash Card itself seems unique and appealing — it’s actually very similar to the Centratech scam which appeared to be authentic since it was endorsed by celebrities such as Floyd Mayweather Jr. and DJ Khaled.

More of these ICO scams are popping up every day which has gotten some people to invent ways to protect investors.

Updates will be provided on my Twitter account about the situation. You can follow me on Twitter here.

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