Bitcoin Forum

Hi there!

Please read the ways to verify whether an ICO is scam or not. In future, this may applicable to bitcoin as well.
 
https://shuftipro.com/blogs/identity-verification-service-ico-scams/ (https://shuftipro.com/blogs/identity-verification-service-ico-scams/)

Have your say.

Yes, I think it will be beneficial for investors who want to participate in the ICO.
I think that an article can be a very useful reference.

No, the article talks about "Warning Signs of ICO Scams" NOT  " the ways to verify whether an ICO is a scam or not."
S/he talked about it at the end of the article where s/he said:


Even the points referred to in the article "No Team or None Mentioned, No Whitepaper, No Plan, ...etc", and even availability does not mean that the project is real and advised to invest in it.

also, The lack of some of these points does not mean that the ICO is a scam.

promising big profits, If it sounds too good to be true, you should think again. There is no investment with big and consistent profits without a big risk too.

"Although fraud protection in this case is not fool proof there are always signs that tell something is not right".

Excerpt from the link, which to me only signifies that your are already being burnt because you can't be outside the pitch to and be the referee of a match  ::)

Also from the link :
"a digital KYC service have a lesser chance of  being a scam as compared to those without any such service".

This could lead an investor to be gullible to have all the trust in a company because it is sounding more reasonable but I don't just believe all the verification stuff, I just go on to take a shot at my risk


Quite true, I think OP should make an adjustment to this not to mislead new investors to believe all the stories. For me, I understand that there are no exact way to know a scam ico because they also come up with whitepapers etc.

It will be very beneficial but its not 100% guarantee. As mentioned in the article, the Centra ICO project, those scammers behind are willing to spend hundreds of thousands of dollars and investors never thought that those people will eventually exit scams. Whitepapers are not a good indicators as well, again, they can hire someone to write a very good article for them. They can also steal someone's identify and post it on their website. It's really hard to spot a Scam ICO as scammers are one step of the game. I'm still looking at "Identity Verification System", perhaps scammers already find exploit on this system so it might not be a good indicator as well.

A really good group of scammers will spend all of their time reading articles like this to know exactly how to trick people. Then they will carefully follow all steps mentioned to ensure that a very solid front appears. They'll also spend a lot of time on marketing and building relationships with those that matter: endorsers, clients, press, etc. to ensure they have a very positive image being portrayed.

They won't make any false promises or engage in any trickery. Until one day, they flick the switch and no one is to be seen. Poof, gone.

Thats a very good point scammers are smart but please keep in mind we always have some chance against scammers if we are able to see some warning signs. Thats my point. Even some knowledge can really help you a lot.

Its really hard to choose a real ICO and avoid scam but yes we need to search in best ways before making any investment decision.This article is beneficial and shed light on scams and best possible ways to understand ICO investment.

nice

I believe greed is one issue investors which is capable of leading us into some of these icos that will later leave us better than we were before.

Meanwhile, it is left for investors to wonder whether the coin is worth it or not.

This post should address to all of the investors and future investors to do their own research before leaving their money to someone over the internet. I would like them to look at the team if they were all legitimate people with a clean background. It all just matter to the result of your research when you really want to choose the right project.

Yes, I agree. It's impossible to maintain an illusion forever, and even the best scammers will show cracks in their image. If we as buyers pay close attention to the signals that are coming from these people, we should be able to recognize if they are trying to scam us. It's almost like an intuitive feel that something is going wrong.

If you have that feeling, it's probably time to exit. Exiting at a loss is better than losing the entire initial investment. We naturally try to resist losses, but sometimes they are necessary.

Nice read, I decided some time ago not to invest in ICO's anymore because they are too risky. More risky than investing in projects that already exist and are being worked on.

This is a good idea, I also want to learn more ways to recognize fraudulent users and I think it is important to understand this before the bitcoin market imbalances.

It is quite not that hard to know that a particular ICO is a scam. As you mentioned, the poor website can be a good detail to point out scammers as well as fake promising and false hopes. Scammers tend to say you can win 1 btc easily and without any effort. It is not only about ICOs, but also there are many scammers in gambling sites. They tell you that you have a big chance to win if you just give us 0.02 btc. I, honestly, do not trust these kind of people.

You have some points that I agree with but some too that I don't think make the list, for me though.

For instance, The quoted line does not really mean that a good website is a good sign for an ico that won't scam people. They would have nice website so that people won't suspect until they have collected your money, then you would see the real skeleton behind the flesh.


Truely, you are quite correct. This is a no trying test because once you make a try and succeed, the second time, you might sell your house and lose everything. Don't try it at all, is all scamming idea.

there are many ways to find out a fraud in an ICO on a bitcointalk forum, usually fraudsters will carry out their actions by using several new accounts, which are still low ranks, ico fraud is usually done in the form of a signature or bounty campaign which if we see the first week of payment it will be safe and in the next few weeks there will be no renewal of payments, but it can happen because everything is not real.

Well, Nice article! I also read several related articles to verify whether ICO is a scam or not. the following is the only one. check here: https://www.cryptocompare.com/coins/guides/how-to-avoid-scam-icos/

Fraudsters always use many methods including offering fake ICOs. Scams in any industry is not a new thing and crypto being a decentralized and open source concept is one of the easiest to replicate.

The only way to not get scammed is to trust legit sources of information, as well as self-education of investors through trusted sources. that’s why all you need to do is to spend some time teaching yourself so that you don’t get scammed.

These are basic steps but the common thing where most people do neglect about because of their greediness they do forget these basic things to consider first when it comes to investment.This is really a big mistake which would normally causes for a certain loss of investment.We do know how rampant these frauds and scam exist into this market not only on crypto but into other traditional businesses as well as long it do involves money then expect frauds would always tied into it.

80% of fraud rates are only a few% and in this case the ICO has arrested interested people.
People invest in the ICO to get profits, because companies grow and increase, the value of coins rises and can be traded on various exchanges. Some companies even offer dividends to coin holders, similar to what is expected from the shares they have bought. Others offer discounts and other benefits to coin holders.

the point is maybe bitcoin will be the same for the future, especially in terms of depletion prevention to increase security so investors feel safe. so far bitcoin has also spent quite a lot of money in this case and in handling bitcoin has also used third party digital KYT and identity verification is usually a good indicator that the company is serious about its future and investors' money.

If you ask me, the simple way to stay away from scam ICOs is not be greedy. I can't imagine an ICO raising fund and claiming to give as much as 100% as bonus for early bird investors, that one is no longer asking for funding, its enticing you to part away with your money or the one that is only asking your to put in your details to be on the "whitelist" or another one that cannot manage to hire a good, competent and efficient community manager.

Also @Op if you really want to create awareness for people to not fall in scam activities as it relates to ICOs, then you could have copy and posted from the website here (of course acknowledging the source) with that everyone can get the full gist rather than referring people to your site in which you might not even be adding anything new that we have not been aware of before and at the same time, riding on the ignorance of people to increase the traffic to such site.

Ponzi like forms of fraud can be recognized by the lure of big profits in a short time, where the only way to get it is by depositing your money into a scam perpetrator. If you already recognize the signs, avoid all those who offer investment with Ponzi characteristics.

As i read up in the article.

"No Digital KYC Solution or Identity Verification Service"

On having these kind of procedures it doesnt mean that all projects that do impose KYC is legit one.There are still who do take advantage just to get necessary documentations to its investors for those fraud projects.

..this will be very informative and beneficial for us here on bitcointalk especially for those new comers and first timers in involving in crypto market..but as always says,,but i may say that this is not a 100% useful for everyone..before investing on some ICO make sure that you have conducted your own background investigations,,if you have doubt,,then don't invest on it.