Dark Side Of ICOs As We Have Seen!

[BitDrawOfficial]

This blog is not about SCAM ICOs. This is about real ICOs and they do offer product or service end of the ICO. But !

Wiki Says " An ICO can be a source of capital for startup companies.[6] In an ICO, a quantity of the crowdfunded cryptocurrency is sold to speculators or investors in the form of "tokens", in exchange for legal tender or other cryptocurrencies such as bitcoin or ethereum. These tokens are promoted as future functional units of currency if or when the ICO's funding goal is met and the project launches.

Rephrasing back in 2013 "Source of capital for startup companies and project launches"

So what is like to have ICO today (2018) to bring investors!

Heavy PR & media campaigns including YouTube and other channels
20+ Employees from solid backgrounds hired and already listed on ICO site
5 - 10 Top notch crypto advisers hired and listed
State of the art office & Gala nights !
50K+ followers in Telegram, Instagram, Facebook & others
6000 replies on Bitcointalk ANN thread
100+ pages fancy whitepaper
Listed on TOP ICO site as Premium , Gold and 10/10 starts!
Listed on TOP crypto magazines

so are these real startup companies need contribution?

Ever wonder, How they spent millions of investors money for marketing & PR campaigns just to reach hardcap which is 70% of extra comparing to what they need to launch the actual product they advertise? Ever Wonder How Much Money they need to pay for 24+ employees and 10 top crypto advisors before starting the ICO?


The Irony , if they have millions of dollars , In first place do they need to have an ICO ?

Unfortunately, this is where investors ended up losing 90% of their invested value as the token hits the exchange, the token value is 90% less than the ICO price. Reason, These companies are not startup and they don't really care about the actual product or service. All they need is to reach hard cap. All they wanted is the hardcap value .

We are BitDraw.online and we are a startup with good vision and project on hand. We want to make our inventors happy and give them better returns than white elephant ICOs. We don't false advertise and don't pay to praise our own product. How we know this ?
When we launch the ICO, we got approached by different entities.

1. Bitcointalk pump group -Guaranteed 40–60 discussions in a day praising the project with Jr to hello members no newbies for 30 days. Amount 5–10 BTC
2. YouTube Channels -500K followers, Crypto influencer -1-5 BTC upfront and guaranteed investors from his channel. They have packages ..10 min, 20 min and 60 min
    etc.. starting the video with "why i invest on this ICO"
3. Telegram pump-50k subscribers no bots - 1000$ onwards - actual discussion on telegram praising the project
4. ICO listing -1–2 BTC to make the project 10 out of 10 and listed as premium, bold and flashing!.
5. Top Advisors - 5 - 10 BTC Monthly payments just to show on the website. Actual use — no use towards to the project but just to attract investors

So offers go on and on including instergram, facebook , twitter , 100 + Offers in 48 hours!

90% white elephant ICO's spent investors money on these fake groups to create a hype to bring more investors and bring more until they reach hardcap.
What they do next, after fake slogging for 6–12 months, a poor product or service released to market with 2% marketing & PR campaign. After continues pressure from investors, they list the coin in one of the smallest exchange which charges 0.5 BTC to list ETH pair . Why not even BTC pair cause exchange charges 1BTC but they spent 5–10 BTCs in fake pump groups to hype the product.

We think they will start the business after the ICO but the dark side of it is that ICO is the business for many. So if you see a fancy advertisement on YouTube of taking you to moon , rocket or listed as top 10 ICO's.. think twice before investing.

 

Bringing back the real ICOs, real products or service and real people!

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[rayk]

There is no side of ICOs that is logical to me, but I've also invested in ICOs in the past because I wanted to make profit, while most are scam, only 1% of the rest is logical in such senses.

[BitDrawOfficial]

There is no side of ICOs that is logical to me, but I've also invested in ICOs in the past because I wanted to make profit, while most are scam, only 1% of the rest is logical in such senses.

So to make it 1% logical , do ICOs have to spent millions to create a false hype to grab investors' attention... how successful it would be if same effort goes to the actual product or service ...rather entertaining such entities.

[dizzy1996]

This can be when we invest in a project that seems promising to us and which has collected a hard cap and it turned out to be a scam. Either when the rate of the token was at cost and when it fell sharply

[3x1t]

ICOs have so much dark sides in their work so I am not surprised with this news. Of course in the real time the possibility of scam is very high so I do not trust to ICOs at all. In China ICOs have been banned and we have to do it too to avoid these problems.

[iconoclast]

I can empathise with your criticism of ICO's. There are lots of extremely dishonest practices such as paying for favourable reviews on ICO rating sites. However a lot of the things you are claiming such as that large sums of money were spent on the project is just not always the case. Often the people on the team don't get paid cash but get tokens to reflect the work they put into the project. Don't you think it is important that the people behind the project make some sort of investment of time or money in the project that they are asking other people to fund?

[Rollkal]

Behind the ICO is probably a dark side that no one can know, but joining the ICO it is important that you have a good knowledge of security, do not be too careful to lose tokens by hackers.

[jfederkins]

It was quite clear for people who have learnt just a little bit about crypto. These facts are actual about ICOs for so long and that's why I don't trust ICOs at all.

[Zdraste16]

ICO companies are represented at a time when the cryptocurrency market is in decline.  They are experiencing severe difficulties with the development of the project.  There is not any confidence in the future.  Investors do not want to make investments even in promising projects.  Everyone is waiting for a reversal of the market.