Crypto Frontline

ICO Scams- A Safety Guide for the Enthusiast Investor

ICO Scams- A Safety Guide for the Enthusiast Investor

ICO Scams- A Safety Guide for the Enthusiast Investor
December 18
16:19 2017

You have surely heard about virtual money or any related term like Bitcoins and cryptocurrencies. One of the fast-moving mediums to raise funds that you can use as a virtual coin miner is ICOs. You can use them to make your earnings grow depending on their protocols

ICOs have opened blockchaininvestment publicly and was able to gather $1.3 billion for cryptocurrency deals in the third-quarter of 2017. There were 200 ICOs that sprouted in 2017. With the positive interest they are getting from the public, no wonder that some of them are financing scams, while some used to swindle on their client’s account.

Are you familiar with Confido? It is a scam issue discussed in the ICO market because of its inefficient regulations that cover the sector. Most ICOs denied having the same issue and defended their system to free it from any responsibility.

Here is a point-to-point safety guide in choosing a reputable and stable ICO to trust your investments with:

No Blockchain Requirement

The blockchain is considered a strong mark when you want to make sure that you are in a trusted ICO. The blockchain is your digital ledger where transactions and saving are recorded publicly. If your ICO doesn’t use or require this system, then there is a big chance that you are in the wrong ICO.

Zero Repository Storage

Repositories serve as the blueprint of the system. You have the access to see how the system is functioning and monitor if the program has a working product. Technical evaluations are given to crypto assets or ICOs with agood entry point. So if your ICO is showing zero repository storage for open-source programs, you can’t expect for a good partnership with them too.

Mining Structure Unfairly Favors Developers

To simplify words, it is when the system is designed to reward the pioneer investors which are obviously using the earnings of the current miners. An example is Paycoin, which is designed to reserve the local virtual coins to the developers. The system aims to provide founders effortless earning from others’ mining.

Unidentified Team

You have the means to research if a network or an ICO is legit or not. You can easily check and assess their performance. However, profiles can be dummified. Another window for you to check if these ICOs are legit is to check if their advisors are also one.

Incomplete Website Information

The Whitepaper of the ICO is your reference. Everything is listed in that printed copy of the system like, protocol, usability, and security parameters. The ICO that has an un-detailed whitepaper is the unaccurate and untrusted network.

Unclear Roadmap

If your ICO can’t show you the long-term plans and projects you are looking for, then please think ten times before joining them. ICO projects have loyal lax or Telegram channels that’s open to the public. Although just like the ICO’s profile, it could also be dummified.

Fraud is everywhere no matter how secure your account is. It would be challenging for you to carefully pick a good network. These six warning signs are your strong guide in selecting a stable and legitimate ICO to trust your crypto-assets with.