I've been curious how many of the hundreds of emerging crypto currencies might be scams. I read somewhere that there's close to 1,000 types of currency now and who knows how many of them are legit. Whenever there's growth potential due to high demand for a product, there's gonna be fraudulent entities born of it.

It kind of reminds me of the penny stock market in the United States when some states started legalizing marijuana...In the beginning of winter of 2014 some of these stocks gained 1000's of % in mere days even though most were pump and dumps / scams. It was nothing but empty promises and a lot of hype then the CEO and the stock promoters dump their holdings onto the gullible public that bought into their scheme as the price of the stock was soaring. After a few months, there were literally hundreds of new or newly active ticker symbols on the OTC stock market related to MJ and everyone and their dog wanted in. Predictably, pretty much all of them came crashing down and the people who bought in were left holding the bag--a bunch of worthless stock in a market where much of the liquidity dried up after so many months.

I'm still learning about crypto currencies and I found your post informative. Some of this I already knew / suspected but I did learn a few things so thank you!