Topic: Read Before Investing funds in IPO's - page 2. (Read 1670 times)

I don't think i've heard the term IPO being used correctly once in this forum.

in the 'real world' a private company seeking to go public attracts investors with strong fundamentals:  cash flow, business model, paperwork of incorporation.  IPOs are for already functional, profitable companies.  Initial Public Offerings are guaranteed by underwriters, who have combed through their paperwork with a bullshit detector.  Anybody seeking to invest in any IPO ask basic questions like:  "who is underwriting the IPO?  what country is the IPO based in?"  "what type of entity is this business?" "are they profitable, and for how long?"

Another red flag are if the 'IPO' is for an Limited Liability Corporation:  LLC are based on state laws, and most USA state laws make it impossible to do an IPO of an LLC.  even if an LLC were to have IPO in an IPO friendly state (e.g. delaware) no underwriter would touch an LLC with a 10 metre cattle prod.

If an underwriter cannot guarantee an IPO, then everyone stay the fuck away.  

can you explain how to sign a message on a wallet like Multi bit, if you know. Also how to get private keys?

I recently felt forced into sending BTC direct to IPO cause I'm a noob who doesn't know how to do this.

Bump.

Because Half of this shit on this earth is a scam and people still invest their funds in them.. as for regulated stock exchange,you should read this article.
http://www.master-of-finance.org/10-most-outrageous-stock-market-scammers/  or http://en.wikipedia.org/wiki/Harshad_Mehta

why create this topic ? don't deal with IPO's at all this is not a regulated stock exchange
it's an unregulated scam coin ponzi scam industry.

anyone that takes part in that shit get what they deserve.

i can never understand why people would even consider this shit seriously.

Nice article , its always wiser to know about the coin before putting  your money into everyday pump n dump coins.

I hope it does

Very intersting. I think it helps me with future investments.

Thanks a lot for the tip list! I was planning to do something like that myself, but I'm glad to be overshadowed by someone more knowledgeable about the tricks.

Allow me to add an item: watch out for glibness from the promoter! Silver-tongued people have a talent for writing evasive answers in a pleasing and satisfying manner. Glibness always says "pig in a poke!"

Unfortunately, thanks to me being singed by Edgecoin, I have to add: don't let yourself be lulled by enthusiasm by the promoter even if it's honest enthusiasm. Some scams are the result of a promoter, who doesn't know what he's doing, finding out that he can't hire a real dev - so he chickens out and steals the IPO funds.

If anyone reading this has some pull with the mods, it would be a great help if you could lobby them to make this a sticky in the Announcement subsection.

What do you guys think of Safecoin that is launching on Tue? I love the fact that the devs are working on a "safe internet", but now I've been reading some FUD about the whole involvement with Mastercoin.

Hehe thanks but I guess people never try to learn from other people's mistakes.

Great tips Escrow.ms, I will print these out and paste them by my monitor 

Escrow.ms is really awesome. I personally recommend him for every incoming ipo.

Fools and their money..

Here are some tips to avoid getting scammed in an IPO and to avoid any kind of problems.

1. Stop Sending funds directly to developers, Use escrow, there are many available who charge low fees.
If developer is legit he shouldn't have any problem.

2. Read escrow agreement carefully.

3. Stop sending funds from trading/exchange sites, it just creates problem in verifying investors identity and giving refunds.
(Use wallets like Bitcoin QT, Multibit, Eelectrum, Blockchain.info, Armory, Android wallets)

4. Don't go on fancy images,logo or GUI looks, sometimes reality can be different.  (for example: Edgecoin,numus,stackcoin)

5. Stop jumping on the bandwagon, think twice if coin is worthy or not.

6. Read what developer is promising you in ANN, Escrow will just protect you till you get your coins,but after that you are responsible for any kind of loss. ie: wallet not working properly, fork or some other issues.

7. Check source code.  Developers are coming up with new algorithms but what if it's not what they promised.
Frankly how many of you check source code or try to know about algorithm before investing funds in an IPO ?

8. Check if common services are available for coin at the time of launch or not, for example: website,social accounts, blockexplorer etc
I've seen people doing IPO's and launching coin without having a block explorer website.

9. Ask your escrow to release bitcoins only once you got what you were promised.
I've seen developers coming up new ways to fool users, ie: Giving coins on alternate client for eg: numus or by asking escrow to release bitcoins right after giving coins to him for distribution before launching wallet files publicly.

Escrow provider should avoid this until they get confirmation from users or they check source code themselves, since every wallet looks same, developer can give you a normal scrypt wallet and transfer coins but those coins will have 0 value without the features etc he promised.


10. Steps for signing a message on blockchain.info, electrum and bitcoin-QT  (I've made this long time ago)
http://pastebin.com/hEf3EP4L  
Images: http://imgur.com/a/z9DzX#0