Be Aware Of Scams For ICOS
Every month there are always new crypto related projects being created. From tokens and coins. will also get a series of ICO’s or initial coin offerings. In which there are many people out there want to use crypto as means to make massive gains by tomorrow.
All of these factors combine to entice scammers. After all, if investors have proven that they are willing to throw money toward a highly speculative cryptocurrency, they seem to be equally likely to invest in fraudulent tokens or ICOs.
The tech in this space is always growing which makes it hard to keep up with the rapid face.
While there's no guarantee that any cryptocurrency or blockchain-related startup will be legitimate or successful, the steps outlined below can help you to be as sure as possible that you're not falling for a scam.
Many want to get a hold of any investment idea and still be safe from any wrong doings.
Know The Developers
One of the most important factors is the people behind the project. Such as the developers and the admins of the business. It is possible for scammers to create a website with fake names and pictures to make it look like a real project.
Do a research on each person on social media. Most good businesses will have set up accounts on linkedin or other social medias as extra engagement.
If there is no social media. Just look at the contact information. Perhaps give the customer service number a call and ask to speak one of the people available. That is one good way to determine if a project and team is real or not.
Beyond determining whether the development team is real, it's important to make an effort to see if their qualifications measure up. Do the founders have the experience they claim to have? Is it relevant to the current project at hand?
White Paper
For all projects the main document for a crypto or ICO is called a White Paper
The whitepaper should lay out the background, goals, strategy, concerns, and timeline for implementation for any blockchain-related project. Whitepapers can be incredibly revealing: companies that have a flashy website may reveal they lack a fundamentally sound concept. On the other hand, a company with a website containing spelling errors may have a whitepaper that indicates a rock-solid concept and a carefully conceived implementation plan.
Take the white paper and read it front to back. Look for all the financial graphs, any legal concerns, and for sure make sure the road map is there as well.
The white paper should be the first thing you see on the website. If the company does not offer a white paper. I suggest to avoid at all costs. As you will be taking a big risk if white paper is not there and you decide to invest. The white paper should be the bible and answer all your questions you have about the project, the long term plans and main visions.
Token Sales
Crowdfunding is what is needed to get an ICO going. Legitimate companies and endeavors make the system itself and the progress of the token sale easy for potential investors to view. Look for the token sale figures as the ICO is ongoing. I suggest to watch the sale and market over a long period of time and see how it evolve. A major concern would be if the business does not show the movement of the ICO. That is something that must be watched out for .
A Red flag for an ICO is when a business hides the sale movement under varies addresses and prevents people from seeing what is being contributed and time remaining on the sale. This of course is something that means a case of concern.
Feasibility of the Project
The success of a project is when the business has a good structure that is very competitive. In the past some projects were not successful after the start up interest was not generated.
Best chance of a successful investment relies on a company having an achievable, feasible set of aims. The company should have a compelling concept for the time being, but it also must be able to carry that concept over into execution over the short and long terms alike.
Make sure the project is transparent and have many good concepts and models of the vision plan. Look to the business’s social media for the reports on the how the project is doing in the market place. Always useful.
Be Careful
Keep in Mind Even some of the projects with better confidence do have lots of speculation. You will be looking at high degree of risk if your in for an ICO To get rich quick.
Anything that sounds too good to be true, is most likely that. Always go over every detail, ask questions, and research as much as possible before making any move or decision.
Look to other sources and reviews from other investors. There are many great chances for anyone in the spaces of Crypto and ICO to be successful. Always look to the history of the business and projects out there. As there will be some scams and fraud projects around. In others words be careful always.
The crypto space is already saturated with projects. I agree that it is important to read the white paper and know the devs. Unless a crypto project has a really solid plan and contributes something truly novel, I am usually very hesitant to jump on board with my own money.
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