Cryptocoin

ICO scams have become common, but researchers are providing various tools to counter those scams

Dozens of new cryptocurrencies and NFTs are being every month, and along with these new tokens and coins comes a series of ICOs and ICO scams. The appetite to dive deep into the crypto market is growing stronger as pools of investors are entering the market with bigger hopes of gaining high-end profits. But the presence of cyberattackers and illegal practitioners is on the rise, which is also stopping other investors to put their money on digital assets. Crypto and ICO scams have become quite common in 2022 and investors should take extreme precautionary measures to ensure that their precious money is protected against these cybercriminals. To ensure supreme privacy and security for investors, and enhance the experience of their crypto journey, researchers and analysts have implemented AI and machine learning that will be effective in identifying ICO scams in the crypto market. They have made it quite simple for investors to identify the fake initial coin offerings, and invest safely.

Over the past three to four years, there has been an increasing interest in the adoption and use of digital coins like Bitcoin, Ethereum, and Solana. Since these coins are decentralized, hence, their initial funding will not go through the traditional methods, instead, it only goes through ICOs. Now when it comes to ICOs, new ventures raise funds by selling tokens to a pool of investors. Using an ICO would enable startups to raise large amounts of funding with minimal effort while avoiding third parties, intermediaries, and extra costs. But this field lacks transparency, hence, the number of ICO scams is also on the rise. 

How machine learning and AI can be helpful?

Researchers have introduced a new way with the help of machine learning and artificial intelligence that can effectively identify an ICO scam. In the very beginning, this project was initiated by a Chinese startup called Shannon.AI, an artificial intelligence-oriented company that focuses on creating smart AI algorithms to analyze and extract the data out of various financial investment options. The company collaborated with researchers from Stanford University, the University of California, and the University of Michigan. Shannon.AI even released a whitepaper that focused solely on how to track cryptocurrency and ICO scams. 

The name of the project was ICORating, the first deep learning-based cryptocurrency rating system. The company uses NLP techniques to analyze the various aspects of the digital currencies to date, such as their whitepaper content, founding teams, websites, and other resources. This AI-powered system offers several benefits over traditional rating systems. 

This initiative is not only encouraging for investors who were looking to avoid scams but also is revolutionary. Such algorithm-based systems essentially automate what tech-savvy, expert investors are already doing. It is now quite evident to say that global industries are trying to promote crypto adoption by delivering the best possible solutions that will attract more investors.