With the cryptocurrencies gaining popularity various fraudulent schemes has been in upswing too. And now the largest South Korean exchange Upbit launched a reward system for users who report such schemes.
Upbit has created the reward system for the platform users to report fraudulent ICOs and illegal scams posing as cryptocurrencies. The aim of such a campaign is to “prevent damage due to illegal fraud and to create a sound cryptocurrency ecosystem”. The exchange asks all of its users to participate in the program in order to fish out the scammers and clean up the stage for the real ICOs to shine.
The reward program has been launched just recently and is already providing the results, confirming that it indeed works. At this time, more than 20 cases of fraud were reported to the police.
If several witnesses or victims report the same ICO or currency offering, then the cash award will go to the first reporter of the illegal case. The reward Upbit pays for the original compliant is 1 million won, which is approximately $930. A good incentive for a good cause, you may say. The campaign on Upbit will be held for a year, ending in March 2019.
And yesterday, Upbit's rival exchange Bithumb has started to distribute brochures with the information about common scam schemes and how to prevent the damage from them in easy to understand format, aimed at common user base.