Bitcointalk.org is a place where each of the token that are introduced are being posted here. This forum is the most important platform in stepping to the world of Cryptocurrency. As we moved further, and being a silentreader here in forum, I've seen a lot of ICO's that out being scam. And many of the investors emotions are being played by the scammer/ Developers.
Here are the things to consider when investing in an ICO. Please bear with my language since English is just my secondary Language.
Unrealistic Goals-Many of the ICO's nowadays are have Unrealistic goals, they always make bold claims without an economic plan or any roadmap to support their project. Additionally if their project has roadmap, you might better make some extra effort in researching about the feasibility of the project. Every project can do a wonderful and very promising whitepaper that will make the hype of the investors, but also look for a variety of complementary resources such as SWOT analysis, financial model, wallet design, competitor analysis, institutional studies, etc. Before investing try think intelligently, many investors fails because they always see the front of the project such as the strong business fundamentals and the positive sales pitch.
Missing InformationIf the company is unwilling to release its code to public repositories such as Github and any other social media sites then it has a chance of being a scam.
Anonymous TeamThis is a very common to each and everyone of us here in the community but it is also one of the important things to consider when imvesting in an ICO. The one thing people have to loose when scamming other people through ICOs is their reputation. We should also look out for who the representatives are, their qualifications, their experiences – especially previously success in the same field, what social presence they have, and if the team comprises of any advisor and well-renowned expert in the field they have chosen to implement the blockchain concept. This will increase the credibility of the project. We should who people ate behind the team. It is our rights to know who they are or who's people we are dealing with.
Economic StructureYou can go through their targeted financial scope; you can tell if the team wants to put themselves before the blockchain. How they intend to distribute their tokens, what percentage of stakes the developers or presumed advisors have in the entire budget are all markers to look out for.
Moreover, how will investors contribute their funds? Is there an escrow system set or will they be using a smart contract with multiple signature wallets? Who will the escrow be, and what are the conditions for fund transfer between escrows and developers.
Remember that tokenization of digital assets, coin offering, and cryptocurrency so far do not have legal backing and money could be lost through wrong investment choice. While the developer’s aim is to raise money to facilitate the undertaken, the objectives should be clearly understood by the investor, and their roles in bringing about the success of the project should not be ignored.
The problem being that the great majority of projects behind ICOs can not present a functioning product or service. This is actually important to present the planned output of given project.
Their output or productDont just settle for things like the total supply of the token, if the token supply will decrease, of course its price will also go up. The team wants this actually to dump their tokens ang get more investors, thus making the community hype and increase FOMO (Fear Of Missing Out).
DEVELOPERS can't explain the valid use of tokenLol this is a self explanatory. Of course the real use of token should serve a key purpose in the startup’s platform. If it does not, the token will not sustain its value over the long-term. The team must also have a clear profile of people who are behind the team. It is very scary to invest if we do know the people who we are investing with. Shady profile of team is also one of the important things when investing in an ICO's.
Look also for having a top escrow service or a third party who holds the funds to secure yourself from being scammed.
This is one the most important things to remember before entering a project. You do not want to be like a crybaby you know.
Reference link:
https://thehackingteam.com/helbiz-hbz-ico-review/
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