Did you invest money in HomeBlockCoin?
It was touted as the next big cryptocurrency lending platform in 2017. Unfortunately, things didn’t quite turn out that way.
In fact, HomeBlockCoin did not even make it past the ICO stage. It appears that it was some form of exit scam. And at the time of writing, the cryptocurrency appears to be dead with a total market cap of $2,600 and $0 worth of trading volume since 2019.
Anyway, this article will cover everything you need to know about HomeBlockCoin. And that also included whether you can get any money you lost to the exit scam back.
Can I recover my funds from HomeBlockCoin?
Sadly, it’s not possible to recover any funds invested in HomeBlockCoin. Remember, the blockchain is immutable, which means that it’s impossible to reverse a transaction once it has been posted to the blockchain.
It’s mostly a positive, but it does have drawbacks in the event of a scam.
What happened to HomeBlockCoin?
For those that don’t remember, HomeBlockCoin claimed it would be a major cryptocurrency lending platform at some point.
The usual hype that every company does during an initial coin offering (ICO) to attract investors.
The problem is that HomeBlockCoin did not live up to expectations. Whether it was originally created as a scam or simply failed is still up for debate.
What is not up for debate is the fact that the platform went offline in early 2018 when the cryptocurrency bull run ended. And no one was able to recover their funds.
How much did HomeBlockCoin steal from investors?
HomeBlockCoin raised approximately $40,000,000 worth of BTC for their ICO.
Who was behind HomeBlockChain?
The founders of HomeBlockCoin remained anonymous, which should have been a major red flag.
That obviously did not stop them from scamming millions of dollars, though.
Are there any legitimate cryptocurrency lending platforms?
Yes. Aave (formerly known as ETHLend) appears to be a legitimate cryptocurrency lending platform.
They have not done an exit scam. And so far, it appears they do not plan on running a scam.
If you are looking for a legitimate cryptocurrency lending platform, then that is the one that we recommend.
Avoiding Exit Scams Like HomeBlockCoin
HomeBlockCoin was obviously a scam. However, it does teach us some lessons about avoiding exit scams in the future. Here are some of our tips for avoiding exit scams like HomeBlockCoin.
Avoid Anonymous Projects
The biggest tipoff to an exit scam is an anonymous development team.
In fact, an anonymous development team is the largest indicator that the team will pull an exit scam.
Now, some scammers have gotten more sophisticated with their exit scams and will invent false personas. This is why you must do your due diligence into the background of the development team.
Due diligence includes talking to the development team and thoroughly researching their background. You should also try to contact former employers, see if they have a criminal record, or have too many complaints about them.
If It Sounds Too Good To Be True… It’s a Scam
This is probably the best way to discern if you will fall prey to an exit scam.
Does the ICO sound too good to be true?
If the returns sound too great or the promises sound far too large, then it’s likely an exit scam or some other type of scam.
However, this is often a difficult metric to use because most companies will hype themselves during an ICO.
That said, it’s still worth trusting your gut when it comes to any claims.
Read The Whitepaper
Make sure to read the whitepaper before investing your Bitcoin or Ethereum in an ICO.
Does the whitepaper make sense? Or does it read like gibberish?
If it reads like gibberish, then it’s either a scam or a sign that the team has no idea what they are talking about.
Both of those are bad signs.
Of course, some scams have excellent white papers, so this isn’t a definitive method, but it will eliminate the more obvious ICO scams.
Overseas ICOs Are Suspicious
ICOs not based in the United States, the European Union, or other western countries are sometimes scams.
Are we saying that every ICO outside of the United States and similar countries is a scam?
This is simply an indicator to use in conjunction with other red flags that the ICO might be a scam.
In fact, most ICO scams seem to originate in China, which makes sense because China has very lax enforcement of these types of scams. The United States, on the other hand, will prosecute anyone that does an ICO exit scam.
That covers it for everything you need to know about HomeBlock Coin.
Yes, it was a scam. That has become apparent at this point.
Unfortunately, it was not the first ICO exit scam nor will it be the last ICO exit scam. We just hope our tips for spotting ICO exit scams will prevent someone from falling for the next major ICO exit scam.