Topic: 10 signs to identify a fraudulent ICO (Read 201 times)

I don't believe anyone would not check that first place.
But this is nothing, most dangerous for people in ICO's are huge return promises. When people believe in that, they turn off thinking or even they feel its scammy/dangerous but they don't want to miss opportunity. Oldest marketing and scammers trick.

So its hard to verify words, try to verify your common sense first.

I have been having problems on how to detect fake ICOs but this post comes in handy. Now, I know what to look for when searching for ICOs. Good job. Thanks.

Good signs for beginner! thanks

Good post mate, although its a long post its still worth reading. Newbies should read this to avoid being scammed of those possible fake icos in the future.

Good to know about this.Will always watch out Thanks

The very first thing to check is Team Profile first glance you will know if it is a scam if accounts are newly made no need to read whitepaper !

Good signs for beginner!  Read this post regarding ICO fraud to learn more tips.

https://medium.com/@luvdubcoin/beware-all-icos-and-ico-issuers-part-2-333889624c87

Here is full of posts that tell us to deeply research the projects before investing our money or join a bounty, but nobody tells us exactly how to do it, and this is the information that newcomers need to not make so many mistakes when starting in this crypto world.
This info is very useful and with easy steps to follow to identify bad projects that only make us lose time or money.
Thanks a lot.

We've been trying to put up a community-made checklist for newbies for ICOs and scams for quite some time now.

https://bitcointalksearch.org/topic/guide-newbie-guide-how-to-dyor-and-avoid-wasting-money-on-scams-4388247

1. Anonymous Team DEV - Fake profile

Before investing in any ICO project, the first thing we need to care about is the development team. But their names, positions, degrees do not measure the quality of the team as people often mistakenly, but the previous projects that they have made and succeed.
In short, if any ICO project does not provide clear information about the dev team or deliberately fake profile is a sign of a potentially bad project.

2. No purpose of using coin

If we do not understand the purpose of coin use, it is difficult to determine where the demand for coin comes from, and if this source of demand is not identified then an electronic money news. We do not know how it will affect the price of coin we hold.

3. Sketchy whitepaper

When referring to a whitepaper, there are two things to clarify: First, the project must provide specific and detailed information as possible. This will help the investor better understand the project and make it easier to make investment decisions.
Secondly, reading and understanding the project is an act that shows that we are more responsible for our investment. If we do not read the whitepaper and invest in losses, the first mistake is because we have not studied it thoroughly, and not by anyone else.

4. Do not provide contact

This is so obvious, because the ICO investment process is not always smooth, and sometimes we often get this error, that error, then we will need help from the project.

Without communication, what can we do now?

When investing in ICO, you will sometimes find the feeling of reading over and over again the whitepaper many times but still have not understood the point. This is the time when we will need contact information to ask more about the issues involved.

5. Commitment to profit when investing

It is difficult for a project to find a sufficiently large and stable source of capital to commit to profit for all investors every month. The truth is, business is not always convenient, sometimes development is difficult but not stable from start to finish. That is absolutely impossible.

6. Use sentences that are passive, engaging

If a project emphasizes their message is to bring in an attractive profit for you, your customers may not be what they say, but maybe their target audience is you invest.

If their product / service is good enough, they certainly bring it out, and there is no reason to hide it. The high possibility is that the dev team itself is not confident enough with its product / service to use the profit message to attract investors.

7. Use multiple buzzwords

Buzzword is one of the terms used to describe the use of high-end, dangerous, but very cliché, not informative content, intended to confuse the reader.

For those who are not professionals in the industry, hearing these buzzwords will feel like this is very specialized, majestic and specialized information. But actually they intentionally make the reader do not understand or misunderstand.

8. No roadmap or yes that is not realistic

It is difficult to mobilize capital to start a project, but using it wisely to get the project to the destination is the hardest problem. For projects that do not provide roadmap, we will not be able to know where this project will go and how.

When we do not know how they will use our money to develop the project, will you still be comfortable investing? Or, if they provide a road map, but it's a very unreasonable route, it's very difficult for the project to succeed.

9. No demo products

Easy to say, hard refresh. Obviously when you start to work then you see a lot of problems exposed. And with a project that just stops in the whitepaper, they will not know what problems can arise when deploying, so that their deployment plans will be much harder to correct.

What will happen if they plan to call $ 10 million but when they start to know that it really takes $ 50 million! Need to issue more coins to ICO next?

10. Intuition

Article 10 is based on the actual experience of the writer himself during the review of ICO projects. Invested of course everyone is expected to make a profit, but of course the risks will also be inevitable, so the spirit of your own investment must be comfortable, do not squeeze FOMO in this market.

GOOD LUCK!!!