can someone explain why so many ICO's are scams?

[Avalonist]

Cause you can raise millions without investing much. It doesnt concern all of the ICO,
but most of them wont even launch. Even if theyre not scammers, hard to find your investor
when hundreds of other ICOs appear every day, you might not get noticed even with a good idea

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[tenu]

It's simple. If the IPO is regulated by law, then the legislation on ICO is only being developed (an excellent example is Belarus, where it has recently become effective). And some people have a great temptation to do nothing, not developing useful models, not doing difficult research just take your money and go very far

[DancoinsBTC]

Because this is a good way to make money.   Scam is really a lot, the only way to protect yourself is to choose carefully. 'm  working with the German project Vreo.io, maybe someone heard. They are doing dynamic in-game advertising and going to create marketplace for developers and advertisers. There is enough information on the Internet about the criteria for choosing ICO. The main ones
1. Uniqueness, necessity of idea
2.Clear target
3.Scalability
4.Transparency, properly allocated budget
5.Concept
6.Team
7.Distribution of tokens

[mtonev]

Because this is a good way to make money.   Scam is really a lot, the only way to protect yourself is to choose carefully. 'm  working with the German project Vreo.io, maybe someone heard. They are doing dynamic in-game advertising and going to create marketplace for developers and advertisers. There is enough information on the Internet about the criteria for choosing ICO. The main ones
1. Uniqueness, necessity of idea
2.Clear target
3.Scalability
4.Transparency, properly allocated budget
5.Concept
6.Team
7.Distribution of tokens

Also, maybe a good WhitePaper in order investors to understand this is not only a fancy designed website but also this people know what they do. And not just like most of the white papers with 10 pages in explanations how crypto and blockchain works (info from Wikipedia).

[dexone]

People judge the legitmacy of an ICO mainly by ppt. That's why.

[p4npos]

I think this is a very stupid question. The world is a bad place and it is full of bad people. They want to rob the people of money. They offer Initial Coin Offering and most people invest in them without doing any research.

[CryptoDave72]

Very informative thread guys, thanks!

[CarolineCSY]

Exactly! So I think it's indispensable to learning enough information about ICO or blockchain rather than investing in them.

[0Shendy0]

I can advise you one good ICO which 100% is not a scam. Check up Cryptics. This is the forecasting platform which does use 100% self-learning AI. Now they have already had a cool MVP, where you can see daily, hourly and 4-hourly forecasts for the different crypto currencie, exchanges and for the market. In September they are going to introduce a trading bot on the platform and in the future there are will be available to tade, make investments and get profits on it on their platform.

[geterod]

Many ico are scams becouse they are out off reregulation  and a lot of investors don't make any reserchers, they go with the crowd. By the way, the cryptomarket have a new trend - investing cryptofund platforms, becouse of that

[Woterry]

All I hear about is that ICOs are scams and you need to watch out... Can someone explain why so many of these things are scams? What percentage do you think are legit businesses?

Our world, the world of crypto, has a lot to offer. When I say offer, that can be good or evil. And just like life, there are people who just wants to cheat to be multiple steps ahead from others. Those are the scammers here in iur community. They sees to get an opportunity to cheat so they grab it right away.

[andohyeb]

There is no much regulations and supervision in the cryptocurrency market. Every bad guys can organize a project and then appeal for funds in cryptocurrency and just run away with it. That is the reason so many scams are in the ICO fields.

[Korkorjkk]

There are a lot of scam ICO's that people do to get money from other people and also there are no regulations that monitor development of projects.

[nngella]

You will find out at the end of the day that only very few of the numerous ICOs announced are real. Some came with good intentions but their project failed because they have no well throughout plan and did not put their idea to test. Some are outright scam. They just come to deceive and take your money, shutdown and disappear afterwards, knowing fully well that you can't trace them because there is no regulation.

I do agree on this one.  We can say that most ICOs are not scam, they are just failed projects.  We must know that these ICOs are just start up companies taking the high risk of marketing their innovations/ideas to gather investors.  If they do not reach the required investors (or the soft cap) then they can be considered as a failure and the bounty campaign will not produce any payment to those who are involved in it.

In relation to this, aside from researching if the the ICO is a scam or not, one should also research the idea and vision of this company if it is feasible and will attract sufficient investors for it to become successful.

[electronicash]

You will find out at the end of the day that only very few of the numerous ICOs announced are real. Some came with good intentions but their project failed because they have no well throughout plan and did not put their idea to test. Some are outright scam. They just come to deceive and take your money, shutdown and disappear afterwards, knowing fully well that you can't trace them because there is no regulation.

I do agree on this one.  We can say that most ICOs are not scam, they are just failed projects.  We must know that these ICOs are just start up companies taking the high risk of marketing their innovations/ideas to gather investors.  If they do not reach the required investors (or the soft cap) then they can be considered as a failure and the bounty campaign will not produce any payment to those who are involved in it.

In relation to this, aside from researching if the the ICO is a scam or not, one should also research the idea and vision of this company if it is feasible and will attract sufficient investors for it to become successful.

there are certainly scams but sure there are  very legit ones that is even useful now. some of them may not have a good price that you can think its a scam but their product was released and users find it useful. there are some ICOs that i thought scam actually but i must admit i took a quick unfair judgement regarding it.

[embarrasstor]

You just have to be careful before you invest into any new ICOs. To be honest it is risky to invest ICOs as we do not have enough information to know or foresee how the crowd sale will go which is a very essential area that affect their development.

[arhemel5033]

It is viable for years to preserve the direction of a coin, absolutely giving out occasional news. They will write that things are going well, they all work and that it takes many more years because the crypto currency is such a complex thing. Same and from the street map will lag at the back of and write that there were difficulties but the entirety will be achieved........

[itsik78]

All I hear about is that ICOs are scams and you need to watch out... Can someone explain why so many of these things are scams? What percentage do you think are legit businesses?

Often scammers do not write about themselves, but about frontmen who will help to maintain anonymity to the founders. The key to a successful ICO is experienced professionals who can be easily found on facebook or Linkedin. And best of all, when the team is made up of famous people who were previously involved in some steep projects.

What percentage do you think are legit businesses?

Every day, it is announced up to 20 projects that plan the initial placement of coins. But only 3% of start-ups realize the project according to the promises voiced during the ICO.

[Kay28]

The ICO is just the first sale of tokens in order to raise funds to build the product..some of the ICO are just good at startup..and in the long run ..in any reason they fail..so they end up as scam..
There advantages and disadvantages of building an ICO, so don’t forget that now there’s a lot of scam in the field of ICO, so do your homework and do your own research.

[Diane757Clarke]

That is hard to explain when the economic market is very volatile. To avoid fraud, I think you should carefully study the project before investing to avoid risks.