Real or Fake? A Key Concern About the Cryptocurrency Market
Fake or Scam ICOs have become a serious cause of concern for the crypto market.
ICOs have attracted a lot of investors as they get listed at few cents and can be procured even with less investment.
SEC has been vocal about ICO scams has come up with a figure of 8 out of 10 not being successful or being a scam.
Coin market Cap the platform that has a list of each ICO, its prices, and website details has lots of ICOs listed that might disappear in some time as a scam.
So, do your homework before you buying an ICOs
The Big Q: How tojudge whether an ICO is a real of fake?
The Big A: It is not easy to find out what an ICO is about, but being careful and making an in-depth analysis of few things may save you from venturing into scam tokens.
Here is what to do, as follows:
- Check out the background: It is essential to check out the website and ascertain the team members and project advisors. A LinkedIn profile check of the team members and advisors may help you build confidence in the company backups. Note: some ICO website adds fake profiles of famous experts being their advisors so keep a close vigil on the sites before you invest into the ICO.
- Check out the competitors: If the project is disruptive and has some missing links, it is a Red alert. A genuine ICO will always list credible sources and competitors to make sure the investors have a bright idea of what is new in this ICO.
- Look out for the Whitepapers: White papers are descriptive ideology behind the ICO and its blockchain technology. Go through the whitepaper thoroughly and try to understand whether it is clear and does it adequately explain the innovative the ICO is about to bring?
- Referral Programs: If an ICO company is using a referral program to bring in more users, pay a little more attention. With the desire to earn more many investors start referring the ICO brand to other investors and this is how the fake list of crypto coins enter the mainstream. If someone refers an ICO to you, take some time and review before you make investments.
A lot of potential investors have made vast sums of money by investing in ICOs, and that is why a frenzy has been experienced.
With simple Crowdfunding exercises, ICO companies are rolling millions of dollars roll in just a few mins of launch, ans so fake ICOs have become a matter of concern with investors and the regulators.