How do you know that new/existing ICO is not a scam?

There are three ways we can identify whether new/existing ICO is a scam or the real one.

1. If the developers of the ICO are anonymous or unknown and do not want to reveal their identity, it could be a scam. The case of Bitcoin creator is different because he created a network that did not depend on the trustworthiness of a central authority. So, be cautious.

2. Another sign of an ICO scam is that the developers are unable to clearly articulate a valid use case for the token. The 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. Related to this problem are tokens that advertise themselves merely as digital currencies without offering any real innovations or improvements upon existing cryptocurrency technology.

3. Even if the token does have a clear use case, token buyers should be wary of startups that advertise overly-optimistic roadmaps. If the whitepaper sets an unrealistic development schedule, it either means the developers are using deceptive tactics to attract token buyers or they lack the necessary experience to give a sensible scope to the project. Either way, this does not bode well for the success of the project and its corresponding token.