agree with team check advice first, then quantity of info about the project and timeline of development, then amount of funds needed (less Is better in my opinion), last how difficult is to contact team member or support in general
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Topic: What is the first sign of a scam project (ico) for you? - page 4. (Read 2723 times)
As stated in the topic, what is the first thing that makes you raise the alarm?
I do not think I have a thing that tells me this is a scam, it is more about the whole picture, if the coin does not seem to solve any problem, if there is nothing to show for before the ICO, ridiculous bonuses, fake pictures, unrealistic goals, a complicated road map. 
the fact that it's an ico is enough. i don't need any other details. even if the people involved are honest it's shitty setup that'll provide a shitty experience for the majority.
at first time check their escrow system. becouse without escrow many project can easily scam a ICO.so first think is you must be aware this. i never join any ICO that has no escrow.its the best way for detect a ICO that its real or fake. than the team member, future plan etc is the most important things that i followed. also their working progress is also a best source of know that its scam or real.
Team is the most important thing. There should be at least one known and real person in the team.
Fake names, fake photos, fake titles are the first signs for me.
Fake names, fake photos, fake titles are the first signs for me.
Yes, definitely. The team is the main thing IMHO. Second and also important things are escrow, project (am I need it or not? problem solving or not?)
Well Im just newbie here in forum as well as in the world of ICO. At first, when I am reading on ANN section as well as altcoin marketplace where ICO related threads are posted, I have this idea that "if its so good to be true"( Im reffering to such things like really high value as start up or very insane amount of bounties) then possibly it wont be real. I see some ICO that even on the first bump of their thread you will be suspicious already on the way how their project would work. I even see some that moves like HYIP promissing insane profits in exchange of early investment without detailed information who they really are. In this world where scam is all around all of us just need to be really cautious to avoid being a victim.
What is the product they are offering? Does using blockchain. Actually make sense?
Tons of icos use blockchain simply to raise millions.
Also, the team is very important. I'd they are known in the scene it is generally more likely that they will not scam you (remember, the project can still fail!)
sure, team profile very important. since many ico coming and failed every moment.Tons of icos use blockchain simply to raise millions.
Also, the team is very important. I'd they are known in the scene it is generally more likely that they will not scam you (remember, the project can still fail!)
and i seen Timeline is something that needed to pay attention.
when the announcement has short time period, it looks to fast collect money without long planning term.
Here are my red flags (no particular order):
- Anonymous Team ie. FuckToken
Is anyone comfortable handing over money to someone they have never met, seen, or heard of before?
- Inexperienced Teams
I prefer to see teams and developers that have been in their respective industries for years. Startup and corporate experience are very important here too.
- Fake Profiles
Integrity is perhaps the most important trait for me personally. Once that is betrayed, it can't be recovered.
- No Prototype
Teams with no prototype give me a good indication of a team's ability to execute and gain traction. It doesn't require much time to develop a proof-of-concept for any demo. And quite frankly, every team should be required to prove that they can sweat and hustle (in a short period of time) before trying to raise millions on the open market.
- One Person Companies
Self-explanatory
- A large number of team members and advisors
This scares me for multiple reasons. First, I always laugh when a startup has no prototype but displays a large team of employees and advisors. Additionally, teams can not be efficient at the startup stage with both. Having a large team increases payroll and operating expense. If a team doesn't have a product or prototype, a large team is not going to be efficient in the early stages of the company. The same goes with having a lot of advisors as the leadership team will be pulled in many different directions.
- Quick ICO Timeline
Everything that is worthwhile in this world takes time. Companies that drum up an announcement, website, and try to ICO in short period of time are always questionable.
- Questionable ICO Terms
If a team is raising an large amount of funds despite not having a product or vision to accompany the raise amount, that is always questionable. Additionally, if the token distribution favors the founders versus the investors.
- Solution vs. Problem
If a team isn't solving a problem with a large pain point across many people, it is likely to not have a lot of impact and potential.
- No Clear Roadmap
A team should be able to articulate the results and direction for the company the last six and next six months, respectively. If not, then they haven't done the necessary diligence to plan and succeed.
- Anonymous Team ie. FuckToken
Is anyone comfortable handing over money to someone they have never met, seen, or heard of before?
- Inexperienced Teams
I prefer to see teams and developers that have been in their respective industries for years. Startup and corporate experience are very important here too.
- Fake Profiles
Integrity is perhaps the most important trait for me personally. Once that is betrayed, it can't be recovered.
- No Prototype
Teams with no prototype give me a good indication of a team's ability to execute and gain traction. It doesn't require much time to develop a proof-of-concept for any demo. And quite frankly, every team should be required to prove that they can sweat and hustle (in a short period of time) before trying to raise millions on the open market.
- One Person Companies
Self-explanatory
- A large number of team members and advisors
This scares me for multiple reasons. First, I always laugh when a startup has no prototype but displays a large team of employees and advisors. Additionally, teams can not be efficient at the startup stage with both. Having a large team increases payroll and operating expense. If a team doesn't have a product or prototype, a large team is not going to be efficient in the early stages of the company. The same goes with having a lot of advisors as the leadership team will be pulled in many different directions.
- Quick ICO Timeline
Everything that is worthwhile in this world takes time. Companies that drum up an announcement, website, and try to ICO in short period of time are always questionable.
- Questionable ICO Terms
If a team is raising an large amount of funds despite not having a product or vision to accompany the raise amount, that is always questionable. Additionally, if the token distribution favors the founders versus the investors.
- Solution vs. Problem
If a team isn't solving a problem with a large pain point across many people, it is likely to not have a lot of impact and potential.
- No Clear Roadmap
A team should be able to articulate the results and direction for the company the last six and next six months, respectively. If not, then they haven't done the necessary diligence to plan and succeed.
Cool, you have listed almost all my red flags for a ICO project scam. I think the team and the idea are the most important factors to be a successful ICO project.
Team is the most important thing. There should be at least one known and real person in the team.
Fake names, fake photos, fake titles are the first signs for me.
Fake names, fake photos, fake titles are the first signs for me.
Exactly. First thing you do is to check people involved. Best is if you know some from before. Not know know, but had heard of them and their previous projects.
OP asked question a bit strange. I would never enter any non opensource project unless would know people behind it are trustworthy and passionate about the project. So latter on there will be no signs since scams will not happen.
Thing is there are now so many good projects, you must be a real idiot to give money to scammers.
Uncapped ICO is the first sign of a (potential) scam project. 
I don't think so ? I mean no one knows Satoshi/creator of bitcoin ? Doesn't make him a shitty developer right ?
I added "and" between the words, not "is".
As stated in the topic, what is the first thing that makes you raise the alarm?
Actually it's hard to identify if the project is scam. They can pretend to have a very strong, responsive and friendly support. Has a transparency, white papers and road maps are realistic. But there is still only one thing left in this type of projects, it should be backed up by anyone who has a positive and big trust rating in the market that will serve as guarantor and escrow.
First check their escrow system. without escrow any project can easily scam a ICO. i never join any ICO that has no escrow.its the best way for detect a ICO that its real or fake. than the team member, future plan etc is the most important things that i followed. also their working progress is also a best source of know that its scam or real.
check the progress
if the dev give no info or update in long time
than its sigh that the project is scam
if the dev give no info or update in long time
than its sigh that the project is scam
No escrow,
Very few people involved with photos that look like they're taken while on vacation,
Team that says they are from around the world ~
Very few people involved with photos that look like they're taken while on vacation,
Team that says they are from around the world ~
first:idea.i saw realy meaningless projects like dating.cryptocurrency and dating? why ?
second: is their roadmap realistic?
third:team and transparancy
second: is their roadmap realistic?
third:team and transparancy
Ask your self this...
1) Is there product realistic?
2) Do the Devs have a face?
3) Does the team check out? ( Linkden,Facebook,Twitter)
4) Do they have a road map?
5) Is the project active? Are they active on social media?
1) Is there product realistic?
2) Do the Devs have a face?
3) Does the team check out? ( Linkden,Facebook,Twitter)
4) Do they have a road map?
5) Is the project active? Are they active on social media?
The first sign for me is its appearance on this forum by a Newbie. The second is somebody comes on here touting the wonderfulness of their particular project it's probably because they want and need money. If they didn't want need money than they would come out make an announcement close the thread immediately and leave it there like that but they don't do that they leave it open because they want people to beg for information they want people to ask questions and that creates new activity which then creates new money for them if they play their cards right.
First sign ?
..it's an ICO
..it's an ICO
Being an ICO does not mean that it is a scam. I think the main thing to look at is if the project has attainable goals, and if they have competent developers to achieve those goals.
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