In the course of its ‘analysis’, the WSJ [Wall Street Journal] downloaded “white papers” of around 3,291 crypto projects that declared an ICO [initial coin offering] from 3 websites : ICOBench.com, Tokendata.io and ICORating.com.
A Technical Paper [or White Paper] is an informational document issued by an organization that describes the company’s position, team story, and technical specifics of a project, and is intended to be used as a promoting tool for potential investors.
The reporters additionally conducted an analysis of the documents, excluding duplicate and non-English papers:
“To determine duplicate language, the WSJ compared sentences with a min. of 10 distinctive words to each alternative sentence in other white papers. Reporters then scanned and reviewed nearly 10,000 sentences showing more than once among the 3,291 papers analyzed and removed technical and legal sounding language. Then, the Journal compared reportable offering dates to determine which document was first published any given sentence and excluded those projects from this data-base.”
The analysis reportedly indicated that 16% — or 513 — of the said white papers showed signs of plagiarism, fraud and guarantees of implausible returns. White papers of around 2,000 of the 3,291 projects contained sentences with luring terms like “nothing to lose, high profit, extra investment returns, funds profit, no risk and little risk.”
State and federal regulators within the U.S have antecedently cracked down on numerous offerings with similar language, issuing cease and desist orders and now filing charges against alleged offenders.
Additionally, the WSJ tried to spot fake team members by reverse image search of photos of individuals related to 343 crypto projects, that failed to cite key information regarding team members. Some documents failed to list team members at all, so the Journal searched for the names appearing during a list of over a million managed by the United States Bureau of the Census.
Earlier in Aug., the WSJ claimed during a study that cryptocurrency value manipulation was for the most part conducted by organized “trading groups” employing services like Telegram. The WSJ recommended that coordinated “pump and dump” schemes had seen traders inflate and crash the prices of several cryptocurrencies this year.