Topic: What is the way to understand scam ICO? (Read 388 times)

Initial Coin Offerings, also known as ICOs is the cryptocurrency version of crowdfunding and are a part of the crypto world that is most likely here to stay. It's one of the easiest and most efficient methods for companies and individuals to fund their projects and for regular users to invest in projects they see value in. ICO investors benefit from the opportunity to create significant amounts of profit while supporting the development of disruptive decentralized platforms.

Signs of an ICO Scam

* Poor Presence
   One of the essential elements to consider when assessing a potential ICO scam is the individuals behind it. A robust initial coin offering will present potential investors with a detailed team breakdown, listing founders, developers, advisors, security experts, and anybody else associated with the project.

* Guaranteed Profits
   Of all the red flags that identify a potential fraud ICO, guaranteed profits are the most obvious. There are no certainties in the blockchain ecosystem, and no proven, reliable, or guaranteed methods of generating profits.

* No White Paper, Bad White Papers, or Blatantly Plagiarized White Papers
   A white paper is the most important element of any initial coin offering. In a white paper, an ICO will present an outline of what it plans to achieve, a breakdown of how the technical aspects of the platform function, and delineate its token distribution model.

* Shady Premines
   Premining is a common practice in the initial coin offering ecosystem that refers to tokens that are made available to a small group of individuals before the project or crowdsale goes live.

*  No Roadmap / Unrealistic Roadmaps
   Moreover, if the roadmap includes plans of using ICO capital to develop a prototype or makes any references to future token price, it’s probably a scam.

* Too Good
If an ICO appears to be too good to be true, it probably is. Maintaining a skeptical perspective when assessing initial coin offerings will help you to avoid getting scammed.

Use cases do not require a blockchain
Not all projects need blockchain, and not all things need to be decentralized. This seems obvious, but everyone is talking about blockchain technology and its subversive potential. In this context, when the white paper of the ICO project mentions that the blockchain is being applied to a large industry, this idea is very easy. Get people's attention.
Even if the project requires cryptocurrency as a means of payment (such as Steemit, which is a writing platform, creators can get rewards from Steem's native "Digital Score System"), they can also use existing cryptocurrencies (such as Bitcoin and Ethereum survived very well.
In evaluating the ICO, a good question to ask at the beginning is: “Does this project require blockchains or native tokens?” If the answer is not required, the project is likely to be an example of solutionism. : That is to say that all problems have a technical solution, here means to encrypt the currency for cryptocurrency, or a scam.

I advice you have to first search the project and look out team and read the whitepaper.

You can not be sure that ICO project will be profitable. Putting money in ICO is a risky deal with the potential of getting high income. But often there is a chance to get nothing from this project.

Almost all ICO's are scam. So that I advise playing with them in the short term. Search for a project that will bring around enough participants to raise the price of the token and then sell it

currently in a scam category, ico developers are hard to detect even more if some developers use famous artists to attract investors, like the current news about centra.
it's so hard that we can avoid the scam, especially on ico which gives an unreasonable bonus amount like 100% or 50%. and even if ico is seamless and inserts its tokens on the market, the result is that the token will drop so much because so many gifts from every investor

I agree with the first answer to your question. Indeed, it is extremely difficult to recognize unclean scammers. Even there are projects serious and solid that at the end of the ICO are lying to you.

The most important thing is the team, check all the members of the photo through Google pictures, if there is a mismatch, it means cheating! If everything is fine, look at the site design, if there is a working product is very good, and then you can get acquainted with the ratings. I do like this.

The project is of great importance here. If the project is well studied and confident, the probability of fraud is very low. 

I believe that to determine the scam you need to rely on several factors.
The first is a general view of the product, its purpose.
The second is to analyze the opinions of the experts and look at the ratings.
The third is to look at the opinions of investors. After this, it will be understood whether it is a scam or not, and it will be easier with time.

It is very difficult to understand this. But for me there are several criteria by which I define it for myself:
1. Cloud mining.
2. Bank cards.
3. Russian projects 99% scammers.
4. Ideas that copy from other projects.

It is easiest to identify fraudsters by searching for ICO members for different projects, conferences etc. If by people there is no mention then and most likely it is a scam project

It’s really not easy for one to identify whether Ico a scam, if it’s easy I can say for sure that all of us can get lots of benefits. I think the way to know which ico scams ,it depends much on every people experience. I’ve seen some way to identify, firstly you can know that it’s scam if the developers are unknown, because this network is not basic on trustworthiness, so you’d better get away from them. Secondly,  If the developers have no foundation to clear a use case for the token. That’s all I knew.

At the end of the day, it's just research.

You can even research the million articles and guides on how to avoid scam ICOs.

to know the project failed or always we say scam ICO thats can not predict it early but if want to invest in good ICO  we have to thoroughly examine the ICO program and the product to be generated whether it will be accepted in the global market. research and learn about whitepaper, roadmap, the team work and marketing promotion. and who is the Bounty Manager.

I can tell one think, all ICO which himself find you its scam.
Really good projects dont need ads, hes tokens sold out on presale

You need to look at the very structure of the ICO project, investors and sponsors. If you can not find any mention of these people before, then be wary.

It depends on what you identify as a SCAM.

They take your money and fail, which has 96% probability, is not always a SCAM.

Let us define SCAM as a deliberate act, evil intent. The best way to avoid it is to scan the team. Are they real? Do they have corresponding experience? It's better to gather feedback on them - just write to somebody on Linkedin who knows them. Once I wrote developer of the ICO and he said: "oh, it is a bullshit, they do only marketing and no development at all, thanks for reaching out to me and reminding, I should exclude this from my resume". Check Github as well. Are there any regular essential updates?

However, sometimes I see the level of goodwill incompetence that is worth naming SCAM as well.

with increasing no of icos there are so many scam icos. for differentiating good one and scams you must be a better researcher. don't depend on websites/ico reviews and other posts on the web. based on your research. I will tell you how to identify good ico with an example.my example is cvproof ico.
cvproof is an ico based on job market.it connects job seekers and human resource managers via a website called cvproof.com.first of all you have to study white paper
https://www.cvproof.com/white-paper.html
after studying whitepaper you can realize whether its real project with ground level value or another shit concept.always choose only projects with brand new ideas.next important thing is the team.see the team involved with cvproof..all are well-known experts with talent. another thing if its a real project it must have a website and other social media links. these are only basic study more about this whitepaper and cvproof is a typical example of good ico
happy future

They will get your attention that will said that they will gaurantee bigger return when you invest and also give you false information but if you done your research you can exclude those scam and avoid being a milking cow to them