Here are certain steps you can take to check whether an ICO is a scam -
1. Are the team members on the website and included in the whitepaper? Do they have Linkedin profiles and an online presence? If the team members have funny names and the pictures look too perfect, check and double check on the authenticity of the profiles.
2. Read the whitepaper carefully. Is the writer making far-fetched claims? Is the technical architecture and tokenomics included in the whitepaper? Is the business idea expressed simply enough or is it a buzzword salad?
3. Check for code. Is the code on github during the ICO? If it's not, the dev team probably has no intentions of building the product. If the code is there, has it been audited by a third party?
4. Are the members of the team available on Slack or Telegram to answer your questions?
Topic: how to identify a scam ICO project - page 2. (Read 341 times)
It is very difficult to find out a real and successful ICOs. There are a lot ICO here. And every day a lot of ICO are coming on the market. But all are not real. Some are scam and fake. So if you want to find you a scam ICO you have to see their whitepaper, roadmap, team member. Most of the scam ICO don't have an escrow. On the other had a lot of successful ICO didn't have any escrow I have seen. So you have to see carefully to find out andy scam ICO. Becuase scammer is very clever.
There are 3 categories :
Scam projects ( easy to catch ) : poor idea , poor white paper, bad quality website, fake team, lack of information.
Legit project, but not worth investing : Some projects have honest team, all necessary information, but their business will not succeed.
Legit projects and worth investing : Have good idea, strong team, ready product or code, creating new technology etc ...
Scam projects ( easy to catch ) : poor idea , poor white paper, bad quality website, fake team, lack of information.
Legit project, but not worth investing : Some projects have honest team, all necessary information, but their business will not succeed.
Legit projects and worth investing : Have good idea, strong team, ready product or code, creating new technology etc ...
I would say that the best way to identify if an ICO is a scam or not is to read and research everything about them. First, read their whitepaper in its entirety. One thing that you will notice with almost all of the ICOs is that their whitepapers are littered with grammatical errors and appear as if it was put together like a scrapbook, some appear to have been written by a high-schooler. Look for fluffs and words such as the mention of the phrase "price appreciation", "guarantee", "put flag on the moon", "the first, the only" etc.. Whitepaper will tell you all kind of tell-tale of an ICO. It should be written for an average reader, not filled with marketing gimmick mumbo jumbos or words you do not understand as if they're trying to impress you.
Once you're finish reading the whitepaper the first time, read it again. Then move on to their team, see who they are and what they've done. Look at their Linked In. Then look at the website and everything else. If you've completely satisfied, then you should consider if the project is truly disruptive, revolutionary, or technologically advanced. Avoid ICOs that mention Amazon, UBer, Netflix etc.. If an ICO is a good ICO, there is no need to psychologically try to manipulate people, all they need is just to present an idea. That's my take.
Once you're finish reading the whitepaper the first time, read it again. Then move on to their team, see who they are and what they've done. Look at their Linked In. Then look at the website and everything else. If you've completely satisfied, then you should consider if the project is truly disruptive, revolutionary, or technologically advanced. Avoid ICOs that mention Amazon, UBer, Netflix etc.. If an ICO is a good ICO, there is no need to psychologically try to manipulate people, all they need is just to present an idea. That's my take.
I have to agree with you 100%. As a translator for ICOs, I felt the same way. I've translated dozens of whitepapers and most of them are poorly written. I won't repeat what you said, but once you're read the whitepaper, everything will become clear as to whether or not you should invest in the ICO. Take it from me as a translator. Whitepaper is the first of many obvious signs of scam.
I would say that the best way to identify if an ICO is a scam or not is to read and research everything about them. First, read their whitepaper in its entirety. One thing that you will notice with almost all of the ICOs is that their whitepapers are littered with grammatical errors and appear as if it was put together like a scrapbook, some appear to have been written by a high-schooler. Look for fluffs and words such as the mention of the phrase "price appreciation", "guarantee", "put flag on the moon", "the first, the only" etc.. Whitepaper will tell you all kind of tell-tale of an ICO. It should be written for an average reader, not filled with marketing gimmick mumbo jumbos or words you do not understand as if they're trying to impress you.
Once you're finish reading the whitepaper the first time, read it again. Then move on to their team, see who they are and what they've done. Look at their Linked In. Then look at the website and everything else. If you've completely satisfied, then you should consider if the project is truly disruptive, revolutionary, or technologically advanced. Avoid ICOs that mention Amazon, UBer, Netflix etc.. If an ICO is a good ICO, there is no need to psychologically try to manipulate people, all they need is just to present an idea. That's my take.
Once you're finish reading the whitepaper the first time, read it again. Then move on to their team, see who they are and what they've done. Look at their Linked In. Then look at the website and everything else. If you've completely satisfied, then you should consider if the project is truly disruptive, revolutionary, or technologically advanced. Avoid ICOs that mention Amazon, UBer, Netflix etc.. If an ICO is a good ICO, there is no need to psychologically try to manipulate people, all they need is just to present an idea. That's my take.
Pretty complete responses already. I would just add: If they do not have a working demo better avoid this ICO. In 2018, a white paper and a roadmap should not be enough to launch an ICO. Need to show much more than this. Just my advice.
1. The Developers Are Anonymous
The first and most blatant sign of an ICO scam is that the token’s developers are anonymous or otherwise-unknown. While it’s true that the creator of Bitcoin — a pseudonymous individual or group operating under the name Satoshi Nakamoto — did not reveal his true identity, he was able to this because he created a network that did not depend on the trustworthiness of a central authority. This is not the case with ICOs and TGEs. By holding an ICO, a startup is asking token buyers to trust that the developers will deliver a working product instead of running off with their money, so the team should be willing to back up its promises and claims with verifiable identities.
If a team is unwilling to identify itself, token buyers should be very cautious about contributing to the project. While there may be valid reasons to desire this privacy, it is far more likely that their purposes are nefarious. PlexCoin, for instance, declined to reveal the identities of its team members, obfuscating the fact that one of its organizers had run afoul of securities regulations in Quebec on several occasions, both before and during the PlexCoin ICO.
2. The Token Does Not Have a Clear Use Case
Another sign of an ICO scam is that the developers are unable to clearly articulate a valid use case for the token. The token should serve a key purpose in the startup’s platform. If it does not, the token will not sustain its value over the long-term. Related to this problem are tokens that advertise themselves merely as digital currencies without offering any real innovations or improvements upon existing cryptocurrency technology.
3. The Whitepaper Sets Unrealistic Goals
However, even if the token does have a clear use case, token buyers should be wary of startups that advertise overly-optimistic roadmaps. If the whitepaper sets an unrealistic development schedule, it either means the developers are using deceptive tactics to attract token buyers or they lack the necessary experience to give a sensible scope to the project. Either way, this does not bode well for the success of the project and its corresponding token.
The first and most blatant sign of an ICO scam is that the token’s developers are anonymous or otherwise-unknown. While it’s true that the creator of Bitcoin — a pseudonymous individual or group operating under the name Satoshi Nakamoto — did not reveal his true identity, he was able to this because he created a network that did not depend on the trustworthiness of a central authority. This is not the case with ICOs and TGEs. By holding an ICO, a startup is asking token buyers to trust that the developers will deliver a working product instead of running off with their money, so the team should be willing to back up its promises and claims with verifiable identities.
If a team is unwilling to identify itself, token buyers should be very cautious about contributing to the project. While there may be valid reasons to desire this privacy, it is far more likely that their purposes are nefarious. PlexCoin, for instance, declined to reveal the identities of its team members, obfuscating the fact that one of its organizers had run afoul of securities regulations in Quebec on several occasions, both before and during the PlexCoin ICO.
2. The Token Does Not Have a Clear Use Case
Another sign of an ICO scam is that the developers are unable to clearly articulate a valid use case for the token. The token should serve a key purpose in the startup’s platform. If it does not, the token will not sustain its value over the long-term. Related to this problem are tokens that advertise themselves merely as digital currencies without offering any real innovations or improvements upon existing cryptocurrency technology.
3. The Whitepaper Sets Unrealistic Goals
However, even if the token does have a clear use case, token buyers should be wary of startups that advertise overly-optimistic roadmaps. If the whitepaper sets an unrealistic development schedule, it either means the developers are using deceptive tactics to attract token buyers or they lack the necessary experience to give a sensible scope to the project. Either way, this does not bode well for the success of the project and its corresponding token.
The ICO landscape has changed significantly since the early days of crypto and as you said, there are a lot of scams out there. Investors must practice vigilance, they must exercise their due diligence and research thoroughly before investing. Research the project, the development team, assess their growth potential, their potential for mass adoption, look into their social media presence (does their community look legit or paid?), overall you should be looking at how transparent/honest they are. In the end, even with all of this research, you still can't be 100% sure of the project's future or validity--that's just the nature of the business. If you believe in a project, though, invest in it. If you'd like to learn more about ICO's feel free to check out our blog, we expand on everything you should know before participating in an ICO: http://bit.ly/ICOGuide
Cheers!
Cheers!
Check everything on their website. Their team, their whitepaper, everything.
But you know what the secret tip on not getting scammed by ICOs is? Don't invest in ICOs. Simple as that. Get in on the reputable coins instead. If you REALLY still want to invest on a certain ICO though, probably just put in small amounts. Just so you don't get rekt if ever the ICO you invested on ended up being a scam.
But you know what the secret tip on not getting scammed by ICOs is? Don't invest in ICOs. Simple as that. Get in on the reputable coins instead. If you REALLY still want to invest on a certain ICO though, probably just put in small amounts. Just so you don't get rekt if ever the ICO you invested on ended up being a scam.
2017 is a successful year, with many hot projects, maybe x5, x10, x20 ttaif investor's account
but in 2018 there will be many ICO scam projects, investors need vigilance
but in 2018 there will be many ICO scam projects, investors need vigilance
Jump to: