Here are the few steps you must follow:
1- Read the ICO white paper thoroughly. Does the concept make sense to you?
2- What problem is the product solving? Does it make business sense?
3- Study the team and their experience. Get in contact with representatives and ask difficult
questions. Dig into their history, LinkedIn profiles, and previous jobs. Helpful hint: scammers will
sometimes use fake pictures. Google’s reverse image search will work wonders.
4- Check forums to gain insight into what the cryptocurrency community is saying about the project.
Many people there have been victims of ICO scams, so they will have a sharper eye for red flags.
5- Make sure that the ICO is planning on using a trusted escrow company to handle funds for their
ICO. Escrow gives you an additional layer of protection, ensuring that you will at least receive the
promised tokens from the ICO before parting with your hard-earned capital.
6- Take a look at what rating companies are saying about the ICO. If the new project isn’t rated,
there’s a high chance that it’s a scam. Also be sure to check and compare risk scores.
Happy Investing
