Why is this scam

Scammers reportedly created a fake initial coin offering (ICO) to crowdfund for a startup called Giza, which they claimed would help to develop a device to store cryptocurrencies.

The ICO kicked off in January and by February had raised 2,100 Ethereum coins – at the time the equivalent of $2.4million.

Alarm bells rang when Russian firm Third Pin who had been assigned to manufacture the cryptocurrency device halted manufacture of Giza, alleging that no payment had been received.

The signs of confirmation

The funds were supposed to be used to fund the development of a “super secure storage device” for cryptocurrencies.

The individual or group of individuals used a fake LinkedIn profile and copied pictures from another user’s Instagram profile to create a false persona. The scammers managed to dupe more than 1,000 investors. The ICO kicked off in January and by February had raised 2,100 ether, which, at the time, was worth about US$2.4 million.

The project seemed legitimate at first until warning signs began to appear. This included a falling out with the company’s sole supplier, a lack of communication from its supposed founders, and failed attempts to recoup the lost funds. Since then, the Giza official website has vanished and its Twitter account @GizaDevice has been inactive since late-January.

Let’s see the other signs.

Giza Device signed a contract with Russian firm Third Pin LLC in December 2017 to manufacture the cryptocurrency hardware wallets. Third Pin CEO Ivan Ioan Larionov wrote in a post on BitcoinTalk that his company cut ties with Giza in late-January 2018 after the startup failed to pay its invoices. Money from Giza’s wallet was allegedly drained over the course of two weeks and sent onto other wallets. Former employees suspect Giza started off legitimate before turning into a scam. Aleksandar Rajic (developer from Novi Sad, Serbia), who was listed as a software developer on Giza’s site, said his mysterious boss stopped contact in January. “When they stopped responding to my Skype and LinkedIn messages, I suspected it is a scam,” Rajic said.

Recommendation –  A startup that promised “the most advanced trading-algorithm in the cryptocurrency market” was a scam, completely dump. Follow these signals because such scammers are always coming back. With the same or slightly altered face.