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Nowadays a growing number of scam ICOs have sprung up, ranging from being easily detected to very difficult to detect. For investors who have often followed various ICOs, to detect whether a SCAM or a real project may not be difficult because their experience will help to strengthen the fundamentals analysis. But for those who are a newbie in Cryptoworld, sometimes analyzing scam ICO or not is easy, so I start to post this thread to give some information and tips on detecting ICO before deciding to invest in it to avoid ICO scam
Here are some things to consider before investing in an ICO
1. ProductsIt can not be denied that one that supports the success of an ICO is the Product. The terms of good products and very supportive features are
- Unique
- Needed and favored / often used both as a basic necessity and a secondary need as a modern lifestyle (eg tokenization, AI, gambling, platform, etc.)
- Has a competitor in the market. This is because usually, products that have competitors in the market is a product that has been accepted in the community
- Innovative, meaning that the product always do some innovation, so that can survive in the long term
2. TeamThe team here is divided into several areas that each should be handled by someone who is really professional. The team here includes
* Product TeamThey must be experts in product development because later this product will back up the value of crypto assets to be issued
* Project TeamThe Project Team does not have to be an expert in the product knowledge but they must an expert in handling The ICO, because those people will face the strategic technical challenges of the product project later. The project team is like CEO, co-founder, CMO, etc.
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But there is a unique thing, sometimes a Team project or product team that had experienced the failure of ICO before, so later can be very expert and bags once in handling the next project, due to learning from mistakes that have been
* Developer TeamThis includes the current marketing team of ICO, the team that will handle the assets when hit market, as well as the community and communications team manager. Team Developer here must be people who very experts in the blockchain technology
* Advisory TeamAdvisory team is equally important in a project. We should know the tracks of these advisers, among whom are never exposed in any of the ICO SCAMs, even if they are often seen in less useful sites, better avoiding the project. They should also be the people who are ready to defend and support the project as well as they can
To know the team more clearly, each person from the Team must have active social media accounts like Linkedin, Facebook, and Twitter. Better yet if their account is a verified account
3. Source Code Products or ProjectIt is expected that the project is strictly structurally bound to the detachment and bring value to the community.
Usually, they will publish their product source code on GitHub profile.
Although this development value or has nothing to do with BlockChain.
4. Website ViewsThe website has a professional display containing various information about ICO required such as product description, token economy, partners, advantages, roadmap, team, technology type, community and so on.
5. Have an Exchange Guarantee that will be ready to receive their Token / Coins listing as soon as the ICO expires.Nowadays, This thing is very rare to meet in various projects, even after the ICO ended in a few weeks or even months, when investors ask about exchangers, the team did not want to discuss it. So it would be nice if an ICO has a trade agreement/exchange agreement when they launch their ICO project.
6. Show ROI (Return on Investment) to investors or asset holdersCheck carefully whether they show ROI to investors, such as securing a buyback periodically at a later date or giving another profit to asset holders.
7. Have an obvious addressThe address and contact of the company must be clear and traceable
8. Does the project really need ICO or Not?We need to take into account how much money their project or product needs, such as the cash budget and estimate the amount of money to be earned on their ICO. It is also the idea of a Token or Coin in which it will be applied, how it will enter into the economy of the project and how it will grow in the future.
We also need to know whether their product or project really needs BlockChain technology or not, and why they are raising funds from the ICO.
9. Project Reputation of the target marketWe have to trace how well their project presentations in various big forums, such as in many crypto Forum, Reddit, Medium, YouTube and similar forums. We must feel how friendly the admin in answering all the complaints of investors, users and others.
10. Project LegalityIn this section have they completed the legality of their ICO sales. We know from countries like the United States, Canada, China, South Korea that is the most influential investor in every ICO.
11. Information presented in the WhitepaperNowadays, too much ICOs which just copy the whitepaper from some projects that have been successful before, but we must really consider and believe if it suits the needs of people today and in the future. You have to make sure they have a clear financial model and so on.
12. Have a real Product (prototype)Here a project must really be able to prove the success of the product and its idea, the product must be really real whether it is an active product or just a demo.
13. Shows the transparency Sales AchievementThe team should be able to show their ICO sales achievements on their site in a transparent manner, so we will know their ICO Soft Cap Or Hard Cap Project.
14. The existence of EscrowEscrow as a way to ensure the implementation of obligations before Token Holder (Token / Coin Holders) can have a good reason why this project is not a scam. An escrow can be a technical solution, but it's better than people can enjoy this function, enjoying the trust in the community.
15. Verification of smart contractCheck if the team can actually publish their smart contract so investors can see the information in the blockchain
16. How to purchase Token/coinProjects that accept token purchases with fiat usually have a good value.
17. Discount / bonus givenAvoid bonuses or discounts with the use of pyramid schemes
18. Famous media publicationt if indeed they include some of the affected media that have covered, then make sure the news is indeed valid and verified
19. Check Rating on some ICO review sitesSome ICO rating sites among others
https://icorating.comhttps://icobench.comhttps://icochamps.comhttps://crushcrypto.com20. Token price and total supplyPlease make a Note, whether the token price at ICO launch is relevant with total supply later because the cheap token price is much easier to achieve profit than the more expensive token with the equivalent total supply.
So these are some tips from me which are summarized and mixed from various sources. If anyone would add me please post some comments below
I'm So Sorry for my Bad English
Best Regards Thanks for your useful information. I recognize that many investors when invest on ICO project, they are more or less ignore some things that you gave above and they have the FOMO mentality. I used to be like this, so now, I need to consider carefully before investing on any which one
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