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Title: How do I avoid losing btc by trusting btc companies ? Post by: merc1969 on March 20, 2020, 09:36:08 AM https://m.timesofindia.com/city/bengaluru/woman-steals-bitcoins-worth-rs-3-7cr-nabbed/amp_articleshow/74719751.cms
Am assuming full trust with the founders when I deposit my btc in startups. Is there a way I can be smarter about this ? Title: Re: How do I avoid losing btc by trusting btc companies ? Post by: amishmanish on April 17, 2020, 09:38:17 AM The article says that some Ayushi Jain stole the BTC from a hard wallet using a passphrase. I don't know why multisig isn't used in such cases by such "partners" who are trying to use BTC for funding their companies.
So coming to your question, do not invest in these startups if they come in the form of ICO's, Airdrops etc etc. That time is long gone and it has always been a risk. Most of the time, there is no guarantee that the founding team members will continue to work or even if they do, whether they will find any takers for their projects. This has happened to a lot of devs/ founders who raised money using BTC. Many people also contrast this situation with the usual VC/ Angel-investor setup where there is a team that monitors/ guides the startup and the money is dependent on delivery. In case of investment with BTC, These startups have no incentive to deliver as they have their millions even before they have started working. In case you feel any of these ICOs to be legitimate enough, make sure you check it with the people here at the forum as there are a lot of people in the reputation section who bust/ identify scams for a living here. Lastly, if you are yourself a founding partner, use multisig and ensure exclusivity of your private key. Title: Re: How do I avoid losing btc by trusting btc companies ? Post by: merc1969 on April 18, 2020, 05:41:13 AM Nicely put. Thanks for the pointers.
Yes, Its good to put some restrain on blind investments The article says that some Ayushi Jain stole the BTC from a hard wallet using a passphrase. I don't know why multisig isn't used in such cases by such "partners" who are trying to use BTC for funding their companies. So coming to your question, do not invest in these startups if they come in the form of ICO's, Airdrops etc etc. That time is long gone and it has always been a risk. Most of the time, there is no guarantee that the founding team members will continue to work or even if they do, whether they will find any takers for their projects. This has happened to a lot of devs/ founders who raised money using BTC. Many people also contrast this situation with the usual VC/ Angel-investor setup where there is a team that monitors/ guides the startup and the money is dependent on delivery. In case of investment with BTC, These startups have no incentive to deliver as they have their millions even before they have started working. In case you feel any of these ICOs to be legitimate enough, make sure you check it with the people here at the forum as there are a lot of people in the reputation section who bust/ identify scams for a living here. Lastly, if you are yourself a founding partner, use multisig and ensure exclusivity of your private key. |