Scam and ICOs

[Gloverwrt]

In this stage of digital currency growth, a lot of attention is on ICOs, as it presents an opportunity to join a project from scratch and grow with it. This is obvious from the amount of funds raised from ICOs according to https://www.icodata.io/stats/2018 ICOs has raised a total of $6.9billion in 2018. This is higher than the amount raised in the entirety of 2017, after carefully studying the chart, you'd also notice a drop over the year, with September being the lowest month so far. This could largely be attributed to the bearish market. And also the increase in scam projects.

A scam project is one in which the developers source for funds without any intention of developing the product or fulfilling any of their promises, i.e they make an exit scam.
I've realized that projects can not be simply divided into scam and legit, there are also poorly organized projects. This would have every similarity with a scam, nothing would ever be done on time and some not done at all. The roadmap would only be reflected on paper. Such projects might somehow get listed, but would probably fizzle out. This gives a little insight in the different types of ICOs https://news.bitcoin.com/80-of-icos-are-scams-only-8-reach-an-exchange/

Let's never be too quick to tag a project scam or legit.
Some projects can have a successful ICO and even get listed but still turn out to be a scam as in the case of bitfinex.

While some could have a below par TGE and struggle to get listed, but do well on exchange and could possibly ride the waves to new heights, especially if it is backed by a dedicated team

Investing in ICO is a dicey venture and should only be done if you have enough experience in cryptocurrency. And always with capital you can afford to lose.
Established currencies is a safer option.
Always remember your primary priority is protecting your capital.

[Marcel666]

That's quite true, there are a lot of dynamics to an ICO. It's investment, and individuals contribute financial resources for the success of a project. And demand maximum contribution from the team.

A perfect project for me is one which sticks to the road map and achieves all it has planned at the time scheduled.

And I think you meant bitconnect, and not bitfinex.

[toheed2x]

There should be accountability about the ICOs as they ask for investors to do KYC now a days there is a organization and a system which can protect the investors from scam and fake ICOs which they doing without an MVP.
I see there is some new projects and ICOs coming with the solution but still they're unknown team to the industry so we can't trust them either. If a legit or popular named company or Crypto exchange like binance or crypto experts build a security system where every new ICOs to verify there accountability its very good for the investors and also for the blockchain industry because I believe recent year ICOs gives very negative point of views to the crypto world and blockchain technology.     
Have to take a serious action and its necessary for now!

[btyco]

The best project for me is when the ICO team does a KYC on one of those ICO verification sites. Youtube videos of the team promoting the ICO is the icing on the cake. Few people will be brazen enough to scam people in plain sight - although it does happen sometimes!

[reddeworld]

I completely agree with you, never call a project a scam before verifying. There are many people arriving with an idea and some good will and just don't put it in the right way to make things properly. But I just would like to add that many projects are coming from people who do not have competences and structured idea and think that raising money looks like easy so let's try it! The problem is that people are becoming reluctant to invest consequently. At the end the risk is probably that ICO are going to become professional and loose its libertarian spirit....
 

In this stage of digital currency growth, a lot of attention is on ICOs, as it presents an opportunity to join a project from scratch and grow with it. This is obvious from the amount of funds raised from ICOs according to https://www.icodata.io/stats/2018 ICOs has raised a total of $6.9billion in 2018. This is higher than the amount raised in the entirety of 2017, after carefully studying the chart, you'd also notice a drop over the year, with September being the lowest month so far. This could largely be attributed to the bearish market. And also the increase in scam projects.

A scam project is one in which the developers source for funds without any intention of developing the product or fulfilling any of their promises, i.e they make an exit scam.
I've realized that projects can not be simply divided into scam and legit, there are also poorly organized projects. This would have every similarity with a scam, nothing would ever be done on time and some not done at all. The roadmap would only be reflected on paper. Such projects might somehow get listed, but would probably fizzle out. This gives a little insight in the different types of ICOs https://news.bitcoin.com/80-of-icos-are-scams-only-8-reach-an-exchange/

Let's never be too quick to tag a project scam or legit.
Some projects can have a successful ICO and even get listed but still turn out to be a scam as in the case of bitfinex.

While some could have a below par TGE and struggle to get listed, but do well on exchange and could possibly ride the waves to new heights, especially if it is backed by a dedicated team

Investing in ICO is a dicey venture and should only be done if you have enough experience in cryptocurrency. And always with capital you can afford to lose.
Established currencies is a safer option.
Always remember your primary priority is protecting your capital.

[Master of Shitcoins]

Let's never be too quick to tag a project scam or legit.

That's a very good point. Recently there are masses of people calling everything a scam without a sufficient proof and I think this is also very shady, not like to run the scam for themselves, but it's shady. Calling something a scam need to be sure that it is a scam and if someone has not done this it's better to be quiet.

I hope peole will be doing more research before judging of an project and calling less scam, but those ones who are it. And bring a proof.