How To Avoid Scams In ICOs?

in #cryptocurrency6 years ago

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Before you participate in the Initial Coin Offerings, you have to be careful with each one of those things that prompt scams. The scammers tend to appear as they have an ICO, but actually they don't even have one to offer, so the coins you purchase from them end up worthless. Nonetheless, you do not have to worry now since we will explain how you truly identify and avoid scams.

So, let us begin and find out how to study the ICOs before you actually invest in them.

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First off, look at their online presence and engagement while alongside inquiring about their team and their experience. See to what extent they have been into this Blockchain industry and whether they have any relevant experts, or are they simply the typical developers who play around the codes. This is the fundamental part of distinguishing and staying away from the fraudulent ICOs.

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After you're finished with researching about the project, know that in order to be fully accessible to potential buyers, each authentic ICO puts out their detailed data by either having an appropriate web interface or a white paper (sometimes both). The White Paper includes the roadmap that will help you discover for how long they have been into the project. Search for various media sources on their site. See who has been discussing them and what people are commenting. Discover the proportion of positive and negative remarks and connect with everyone who opposed.

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In addition, the sincere ICOs spread their word on as many platforms as they can. Which essentially includes GitHub; it will enable you to know whether you are investing into a genuine token or a duplicate one. Reddit and Facebook people communities are natural. You should join their network and discover how they have been with different buyers, search for reviews, and everything else that leads to scams. Ask on Quora, Reddit, Twitter, and other social networking platforms. It makes you build up a superior comprehension of the particular ICO you are hoping to purchase tokens of.

Currently, since we know that Blockchain is prospering and is viewed as the future of innovation, many companies have been modifying their plan of action to fit into Blockchain. Given this, if you are interested in a specific ICO, you should search for its core business model that whether they normally align with the Blockchain, or they are simply attempting to go off track. This is critical for the long-term achievement of your investment.

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The other basic findings include whether the token you are acquiring promotes inflation or deflation. Which quickly implies what number of coins there will be altogether, or will there be any hard or a soft cap that will limit the growth... We recommend you to examine the characterestics of token and discover in what cases it may prove profitable.

Additionally, figure out the objective behind the ICO that what actually is the driving force. Since in case it is into illegal affairs, you probably won't succeed at that point. These are the essential signs that the vast majority of the buyers don't consider and inevitably wind up being the victim of ICO failure.

At the last, investigate your chosen ICO and find the amount they are hoping to raise via token sales since many projects stay uncapped, hoping to draw unlimited funds. You should abstain from putting money into ICOs that are either uncapped or capped but with unachievable numbers.

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Tell us in the comment section if you have ever been the scammed. Share with us a few tips you might want everyone to know. You can also tell us what topic you want us to feature next.
Cheers!

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I gained really a lot of knowledge about ICOs during studying your profile @flash07 :)

I have never been scammed in ICO, but I want to say, thay you have to be very careful if it comes to airdrops. I have been recently scammed in a fake MonaCoin airdrop as they wanted to swindle passwords. Remember, always double check source of the information and verify it with official social media.

Greetings, Jan

@neavvy

gained really a lot of knowledge about ICOs during studying your profile @flash07 :)

Thank you for your kind words. It's really matters to me as it encourages me to write more.

I want to say, thay you have to be very careful if it comes to airdrops. I have been recently scammed in a fake MonaCoin airdrop as they wanted to swindle passwords. Remember, always double check source of the information and verify it with official social media.

Yes there are so many scammers who use social media to scam the people. They have started with the name of Airdrops and Using telegram mostly to target the users. Make sure you never share your private wallet key with them. If someone asking for it, then it's scam for sure.

I also had 2 experience recently, one of my friend sent me "Pundi X (NPXS) " airdrop on telegram - steps was simple but I checked on it's official twitter account where they not mentioned it anything. But to check what they are asking to use I entered it in it and at the end they were asking information about your private key and jason file.

Another one happned here on steem, someone came on steem.chat, they asked for some steem and they said they will promot my post for 1 month & will vote daily on my post with the payout of $15. I knew they were scamming people so report to original bot owner that some one is scamming with his name.

Once again thank you for your kind support and amazing comment.

Thank you for your amazing reply @flash07

Passwords always should be unique for each website. Some scammers they check if the same username have the same password on another website.

This issue is a critical one... We need to be conscious of where we invest our digital assets. I think CASPIAN network is a good platform to separate the wheat from the shaft! View my review on CASPIAN https://steemit.com/crypto/@focygray/caspian-your-digital-assets-manager

This issue is a critical one... We need to be conscious of where we invest our digital assets.

Yes it's very critical one as because of this scams millions of people loosing their hard money.

I think CASPIAN network is a good platform to separate the wheat from the shaft! View my review on CASPIAN https://steemit.com/crypto/@focygray/caspian-your-digital-assets-manager

Thank you for sharing this. I think I missed that article of yours, will read it for sure. I took part in same contest too. As at the last moment I took part in it & wrote a small article. Wishing you good luck for the contest.

Also thank you for your kind support and such a nice comment.

You are welcome..

This is a lovely article
It's an eye opener to help prevent scam
Thanks @flash07

@uraniumdavid Thank You for your kind support

@flash07 Thank you for such a great article. This kind of post required now a days as we are hearing about scams everyday. This post is eye opener for the beginners and who invest in crypto without second thought.

I read each sentence very carefully and will make sure that I follow your article when I check any ICO.

Thanks again for such a great article.

Posted using Partiko Android

Wow 😮, I will say, this is a very enlighten writeup and, you may just have saved so many people of falling into the wrong ICO.

Thanks @flash07 cheer @ogt
Obviously resteemted and upVOted

@ogt

Wow 😮, I will say, this is a very enlighten writeup and, you may just have saved so many people of falling into the wrong ICO.

Motive behind writing this post was only that it may save some people from the SCAM. I hope this will reach to many people but I hope at least it will success to save 1 person (at least) then I will think that I wrote good post & it will value more than thousand votes.

Obviously resteemted and upVOted

Thank You for your kind support & nice comment..

Wonderful article... The team and review thing you added are the most important factor in analyzing any ICO.

The scams in ICOs are truly spreading rapidly. Thank you for sharing few tips regarding how we can be on a safer side.

In addition, @flash could you please enlighten everyone about ICOs that are safe to invest? I think everyone will appreciate that since you are a consistent Crypto blogger and have a thorough understanding of Blockchain.

Thank you once again

Wonderful article... The team and review thing you added are the most important factor in analyzing any ICO.

Thank you for reading my article and sharing your views.

In addition, @flash could you please enlighten everyone about ICOs that are safe to invest? I think everyone will appreciate that since you are a consistent Crypto blogger and have a thorough understanding of Blockchain.

Sure my friend I will try my best to come up with such ICO. There are many projects running to avoid this scams. I will write on those for sure.

Once again thank you for your kind support and such a nice comment..

Thanks for sharing this @flash07 this post looks much like what I am currently working one but from the perspective of psychology. This would indeed safe many from making one of the biggest mistakes of their economic lives.

@jodekss

this post looks much like what I am currently working one but from the perspective of psychology.

Great. Don't forget to share it with me. I love to read it.

Thank You for your kind support & Comment.

Hi @flash07

The White Paper includes the roadmap that will help you discover for how long they have been into the project.
Yes I greatly think the white paper should be a massive tool for assessment of any new blockchain project if you ask
Discover the proportion of positive and negative remarks and connect with everyone who opposed.
This is another valuable asset when running an assessment. The feedback from the public is something I beleve should be properly looked at.

Furthermore, how this companies handle negative feedback should be a pointer to a great piece of knowledge,
........................if you are making an assessment

@maxiemoses-eu Thank you very much for sharing your views with us.

I hope my view expresses the correct thing in this line of direction

@amzar123 Thank You for your kind support

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