Why Most ICO's are SCAM ?

[misterbones]

Do you know that most of the ICO's are scam .

Well if you don't here are some reasons behind it :-

1.) Most of these ICO's have no business model  
2.) Most of these ICO's would never be profitable  
3.) High Market cap for a project / ICO with no development , code or any past experiences  
4.) Most of them have a 1 year roadmap which means no vision  
5.) 5 months of hard work and for that they get Millions in funding  
6.) Dumb people running the shitshow  
7.) Behind the scenes it is all about Money


What makes an ICO legit ?
1.) Working product
2.) Practical Use case
3.) Legit Team
4.) Limited Funding ( Based upon Fair Market valuation )


Why are these days ICO raising so much money ?  
Answer :- People are dumb and greedy they want to invest in the next ETH , STRATIS , WINGS , EDG , IOTA , XEL but they do not understand that Stratis had less than 1000 contributors and most of these ICO's happened during bear season when most of the people were not active in the scene .

Should I invest in ICO's ?  
Yes , some ICO's are legit and can be good investments such as MobileGo , Edgeless ,  Civic etc which can yield you good ROI in long term but then always due diligence is important .

Should I invest in ICO's with high marketcap ?  
No , High marketcap means a lot of people have invested in an ICO seeking for quick buck or the ICO team has been dependent on marketing to get more investors which makes a lot of weak hands so when the marketcap is not able to sustain the demand and supply the price will likely go down . When the price goes down is the time to invest but not during the ICO .

I fomo like a noob during ICO as I don't want to miss it .  
Well then you are a fuking sheep who want to buy in today and be a millionaire tomorrow well it does not work that way , you can always buy after it hits the exchange . Always have a good risk management system in place where you are able to manage your risk/reward ratio according to your portfolio .  

Always :- Ask tough questions to the team and you will know the reality  

Best Regards ,
VerthagOG

Everyone is trying to take advantage of the momentum right now. My strategy is the same for all investments whether cryptocurrency, stocks, and startups.

First and foremost:

• Team
• Traction
• Idea / Concept

Team
First and foremost, I invest in people. The questions I ask are:

• Are these individuals I can trust and share the same values with?
• What experience does the team have in this space?

Traction
Traction enables me to understand someone's passion, hustle, and results over a period of time. The question I ask here is:

• What traction has the team achieved over the past quarter, six months, etc?

Idea / Concept
It's never about the idea. It's always about the execution. Hence why this ranks lower than traction. The questions I ask are:

• What problem does this solve?
• Is this an idea that I'm passionate about and care offer value to?
• Is the idea / concept aligned with my values?

The answers to all of these questions give me a good sense on whether or not I should invest.  While it is still possible to make money from momentum investing, I recommend everyone employing due diligence and ask the same questions above prior to making an investment.

[mmo_online_1981]

Because many people buy coin through a beautiful website, create waves in a short time but practically nothing, invest in the crowd.

[Togie]

Because there are succesful ICO's in the past and so scammers sees this field as money opportunity.
simple as that.

[inckorrect]

because it is easy money. where there is easy money there will be scammers.

[CryptoPR]

People are stupid and don't read or understand what they are buying. Some people don't even understand the language and buy or whales that buy any coin in small amounts with no research.

ICO scammers getting more sophisticated creating fake accounts and other means to hype up the ICO on forums like this one. And those who can see the scams are not doing much to expose them or there is no good vehicle that reaches most.

Look at this scam RECoin. Their little post here is filled with fake accounts commenting good things.
https://bitcointalk.org/index.php?topic=2014062

[Morphling]

i agree with you, people are impetuous， they just want to invest 1 dollar today and 10 return tomorrow, then if a project looks good appears, they swarmed, but mostly they can not get the profit they want, they begin to curse, but it has nothing to do, only when they lose lots of money, they begin to close hand and quit from the market  

[CryptoPR]

There are just too many ICOs for a person to focus on thoroughly reviewing the flaws on a part time basis.  The community should organize in groups that focus that focus on a single ICO and review in detail.

[Kisanaq]

Because many people think short, they can not wait to work hard and eventually make a project scam. The best way to avoid scam is to look at the concepts and discussions in this forum especially the advice of trust members.

[shams]

Because most of the ICO just came here to collect money nothing else and people here are to much greedy and have lack of knowledge so because of that people invest money into their scam and the ICO take the money and gone. That is why I always recommend to everyone that if you really want to invest in any ICO first research about them that do they really have good development team, do they have future plan, do they have proper road map and all the required important thing and if you really think and are confident that this ICO will really work then only invest in that no need to invest without research because most of the time you will loose money like that.

[Grant Hero]

Everyone is trying to take advantage of the momentum right now. My strategy is the same for all investments whether cryptocurrency, stocks, and startups.

First and foremost:

• Team
• Traction
• Idea / Concept

Team
First and foremost, I invest in people. The questions I ask are:

• Are these individuals I can trust and share the same values with?
• What experience does the team have in this space?

Traction
Traction enables me to understand someone's passion, hustle, and results over a period of time. The question I ask here is:

• What traction has the team achieved over the past quarter, six months, etc?

Idea / Concept
It's never about the idea. It's always about the execution. Hence why this ranks lower than traction. The questions I ask are:

• What problem does this solve?
• Is this an idea that I'm passionate about and care offer value to?
• Is the idea / concept aligned with my values?

The answers to all of these questions give me a good sense on whether or not I should invest.  While it is still possible to make money from momentum investing, I recommend everyone employing due diligence and ask the same questions above prior to making an investment.

[KesoNie]

They are turning into scam because they don't have a good team behind that coin and if they have a good team then it will serve as a great foundation for the project and a lot of people will trust their project and they will attract or get a lot of investor so i think the team of the project is one of the most important piece of different ICOs so they will not turn into a scam.

[Jamacn]

yeah, but to identify the point you mentioned, it's not easy for common people.

[Hoganye]

Are you know a type make money very easy as ICOs? Just need invest and waiting, you will have profit x2 in short time. Sometime, not stop with x2 profit, it will x10 as PTOY. But not have type make money easy can still alive in long time, HYIP and Ponzi project are type make money from invest and are good place for scammer.

[elite3000]

You gave the answer in your topic.

No regulation at all in the crypto markets, so it is a heaven for scammers, as long there are people that are scammable, if I can say.

[misterbones]

Everyone is trying to take advantage of the momentum right now. My strategy is the same for all investments whether cryptocurrency, stocks, and startups.

First and foremost:

• Team
• Traction
• Idea / Concept

Team
First and foremost, I invest in people. The questions I ask are:

• Are these individuals I can trust and share the same values with?
• What experience does the team have in this space?

Traction
Traction enables me to understand someone's passion, hustle, and results over a period of time. The question I ask here is:

• What traction has the team achieved over the past quarter, six months, etc?

Idea / Concept
It's never about the idea. It's always about the execution. Hence why this ranks lower than traction. The questions I ask are:

• What problem does this solve?
• Is this an idea that I'm passionate about and care offer value to?
• Is the idea / concept aligned with my values?

The answers to all of these questions give me a good sense on whether or not I should invest.  While it is still possible to make money from momentum investing, I recommend everyone employing due diligence and ask the same questions above prior to making an investment.

Added it to the Post

[Alternative]

I absolutely do not share your opinion. In fact most of the recent ICOs, if not all of them, have been profitable for the investors, and I do not even talk about those you got bonuses.

[affandi]

Today there are a lot of ICO organized by the developers ,, but surely there are parties who take advantage at times like this. Holding ICOs with promising programs, but once the investors are interested and start putting funds into them then they just disappear
You should first carefully developer policies and programs before making a decision to include funds

[MWesterweele]

Because there are succesful ICO's in the past and so scammers sees this field as money opportunity.
simple as that.

not all ico are scam, sometimes those who are have a small supporters has higher value in the market when ico is over. we need to be careful on what we are joining so that we cannot be fooled by other and we cannot waste our time on them.

[TeaPanda]

Simple and clear post, great stuff Verthag

[TeaPanda]

I absolutely do not share your opinion. In fact most of the recent ICOs, if not all of them, have been profitable for the investors, and I do not even talk about those you got bonuses.

Short term profitability does not indicate legitimacy and long term results