A recent initial coin offering (ICO) by Blockstack was almost thwarted by con artists, but Blockstack knew how to fight back.
Blockstack is a startup building a decentralized internet. Its token sale was limited to accredited investors only, and so scammers were looking to lure the left out investors to phishing sites which had copied the entire blockstack.com code.
However, this is what led to the scammers’ downfall. By publishing their sites with Blockstack’s code, they were actually connecting themselves to a Blockstack server as well. This server was meant to provide the legitimate site with tweets from the company’s Twitter account in the form of a banner at the top of the page.
Noticing the phishing sites, Blockstack was able to alter the banner feed on the fake sites to read “THIS IS A PHISHING SITE”. This ingenious idea was able to warn everyone on those sites and stop them from potentially losing their money on a fake investment.
“We made it very clear to only trust blockstack.com. So we primed everyone ahead of time,” said Ryan Shea, a co-founder of Blockstack.
Blockstack’s token sale is still ongoing, and one of the phishing sites is still active. It has redesigned its front page, eliminating the banner space, and thus the “phishing site” message. It can be recognized by its offer of a 10% discount, so be aware of what site you are using if you’re looking to take part in the remainder of the token sale.
Featured Image: twitter