Topic: Developer’s advices to ICO investor. (Read 836 times)

I've seen a lot of projects in the Bounties (Altcoins) that have no smart contracts, and some with whitepapers that have fake team, you can see some of them here, Scam Accusations Board.

thanks for sharing ..it is informative

This is some really enlightening information. thank you for posting your knowledge and I'm sure a lot of people like me who have been conflicted about investing in icos have found this incredibly useful and I am bookmarking this page so I can always refer to it in the future. We need more threads like this so more people can get educateda about ICOs and how to carefully invest in them.

I also have no sMerit left to give it on OP, but I recalled that I endorsed this thread to the owner of this thread https://bitcointalksearch.org/topic/m.28975211 as he's giving 20 merits to post or posts that deserves to be merited.

Unfortunately, this happens often

Thanks for your advice guy. It's good and useful for newbie. I strongly agree that ICO projects must public their smart contracts on Github for everyone can audit. And it will be better if   there is a third party will audit their smart contracts. Some ICO don't have clearly information, no public smart contracts, no infor about total supply...etc

I would appreciate it very much if you could create a thread naming or making a list of all scam/fraud ICO projects.

I don't have merits rights but this post deserves merit. So all those who think this is useful do merit this post.

what are the coins you would be interested in investing for their value both technical and business.

thanks for this post bud, I have to learn more about if they have a smart contract during pre ico

Simple Escrow contract

Schemes of work:
•   Once the customer deposits money for the contract, then his address is remembered and the contract starts counting down 12 days
•   If the developer called failedByDeveloper, then the money is returned to the customer;
•   After 12 days, the contract will count the period for another 5 days. During this period, the customer must make a decision. If the task is completed, the customer should call completed. Then the funds are transferred to the developer on the wallet. If the execution of the customer is not satisfied, then it should call orderNotAccepted;
•   If the work is not accepted, the contract gives another 5 days;
•   If the customer has not made any decision after the expiration of the safe period of five days, the work is deemed to be performed and the funds go to the developer for the purse.

Scheme when a dispute arises:
Terms of dispute
•   The developer did not call failedByDeveloper, thus not saying that the work was not performed;
•   The customer prohibits withdrawal of funds within 5 days of the day using orderNotAccepted. The contract extends the safe period for another five days.

Terms of dispute resolution
•   The developer called failedByDeveloper. Thus, the developer agreed that the work was not performed and the funds go to the customer for the purse they came from earlier;
•   The customer called completed. Thus agreeing that the task is completed and the funds go to the purse developer;
•   The customer did not extend the disputed period until the current orderNotAccepted function terminates.

What to look for in the Whitepaper?

The first ICO I invested in was the Polybius project. For me it was more of an experiment than an investment. How did I find out about this project? Of course from ads. But why did I decide to invest my money there? After some time, being already an "experienced investor", I noticed that every project I analyze primarily WhitePaper. When people tell me about a new project or give a link, I do not consider landings and do not read the comments in the chat rooms. Even being a programmer, I do not climb into the code to look. First of all, I'm looking for the WhitePaper section. It was the well-made made WhitePaper that allowed me to determine my decision for the first time.

In due course I have generated the list of those requirements which I present to the project interesting to me. These requirements can help not only a novice investor. They can be guided by the development team ICO.


1.   When will the ICO begin? In general, the fund-raising process can be in several stages. But we'll talk about a project with one stage of the ICO.
2.   What is the motivation system for investors? The most popular now are two stages. Bonus for early investment and bonus for the amount of the invested air.
3.   When will the ICO end?
4.   Team. Very important part. Who creates the project and what kind of experience they have. And of course links to profiles in social. network.
5.   The main idea is transparent in a few words. This section is for the investor. The section should be short, transparent and without project-specific terminology. If the description of the idea takes more than a page, then something went wrong. For technical details and for geeks there must be another section. Most investors will not understand your formulas. If it is not clear, they will close and will not remember or postpone until next time, which is extremely unlikely.
6.   Necessarily those. details. Section for developers, engineers and geeks. These guys will carefully analyze each line, check the numbers, and then still ask a lot of questions in the chat support.
7.   Comparison of existing projects.
8.   What problem does the project solve?
9.   Motivation to invest is the point of buying tokens. What will I benefit from this?
10.   When is the benefit expected and how will it be distributed?
11.   Why tokens will go up?
12.   Link to the smart contract code.
13.   Who are the partners or advisors.
14.   Stages of project development and background, what has already been done.
15.   Which exchanges will the tokens come out on?
16.   Estimation of the market. At least approximate with the plotted graphics.
17.   On what and how will investors spend money.
18.   Where is the company registered?
19.   Will there be an escrow?

Thank you for sharing.
Indeed, there are serious problems with ICO, most of them are a fraudulent project, but there is a strong speculation in the whole market.
The site will have the code for the ICO project, and the quality of the code will determine the quality of the project, and the smart contract is the key to the token.

Thanks for precious advices. I mostly check token^functions if it is reasonable then many other factors like team, advisors, investors...

Ok. Thank you for your feedback. A while ago, I have stumbled to this thread, https://bitcointalksearch.org/topic/ann-medichain-the-medical-big-data-platform-saving-lives-with-blockchain-2798374 it's about MediChain, The Medical Big-Data Platform - Saving Lives With Blockchain. This is their website, https://medichain.online/... could you please tell us if it's safe to invest in this project? Thank you.

The post was ignored consciously. This is our partner from the old team. Just black PR.

The BLUE project aims to do a lot of what the OP has very helpfully done here manually (BLUE will release an SDK which auto scans contracts to look for malicious code e.g. infinite minting)

They have also launched a wallet which will scan malicious wallet addressed (e.g. known hacker addresses) and give the user a warning before they send funds to that address. Something like this would have saved a lot of people from the recent EtherDelta hack.

You can check https://www.etherblue.org/ for further details.

Hey, hero10! Someone posted a reaction (quoted below) against smartcontract.life on this thread, https://bitcointalksearch.org/topic/m.25705995... Could you say some feedback about it? Thank you.

Interesting topic of course, but I do not know how to read contracts, tell me where  can learn more about reading contracts

Great thread,

These are very important questions that should be asked before investing and usually people do not ask these as they are too interested in the concept and marketing and the ability to make cash of the token they are investing into.