Newbie's guide to avoid ICO Scam

[Jeger.Kiting]

It seems that this is not the time for ICOs this year, in fact all projects are no longer using them because the trust from the community has faded, and even if there are projects that still use ICOs, they tend not to be as successful as their era, they are even more likely to avoid these projects, because of that many projects switch to using IEO or DeFi even though it is a trend this year, but everyone is still wary of the existing projects at this time, actually it is very difficult to tell which projects are scams or not, because many smart projects hide their bad intentions , so the good solution is to read a lot and be more careful to choose a good project to invest in.

[ije07]

I appreciate your efforts above but I'm not surprised by the ICO scam project. in general, fraudulent projects are always around us and not even just ICO. like last year IEO & ITO became a tool for fraud. and now the market trend is supporting the DEFI project. and what we need to pay attention to is the current DEFI project. DEFI is still young, and it can be used as a new tool for fraud. stay alert

[Emitdama]

It’s that last point for me: this thing of scammers using the face of famous people and pretending that they are part of the project is a very serious issue in this cryptocurrency space and I don’t know why people keep believing anything they see without going to the right source to verify whether it’s true.

If you see a project after checking their team you need to go to the social media of the people that were mentioned and team and check their posts to see if they have posted anything in relation to the ICO you’re about to invest. If you don’t see any post, you can ask question to know if they are part of the team.

[Aqcizromencez]

sometimes displays can also be deceiving they could just put famous people on their team,most ICO projects are aimed at fraud, and few ico projects are good and successful.I myself find it difficult to judge what is good and which is a fraud.

[Lorokan]

Well, one thing i feel is that there is nothing like unrealistic goals or targets in crypto currency, what we have is dishonest investors and most times those type of investors always have a rekt in the long run.

My keyword is this; as an investor either newbie or expert; your job is to guard your capital investment, and the best way to do that is to set realistic profit targets for your tokens; the best way to do this is to be sincere to yourself and your research results. Always do your own research

[ZEIIMAN]

Now with the popularity of DeFi, much of the above is not relevant. Projects are created that do not disclose their team, their code is not audited, there is no access to github, and the most amazing thing is that such projects collect a huge amount of money and even allow investors to earn))

[Valzador]

Now with the popularity of DeFi, much of the above is not relevant. Projects are created that do not disclose their team, their code is not audited, there is no access to github, and the most amazing thing is that such projects collect a huge amount of money and even allow investors to earn))

To my knowledge, Defi themed projects always keep their code open source. It's too stupid to invest in defi projects when their source code is closed.

[ZEIIMAN]

Now with the popularity of DeFi, much of the above is not relevant. Projects are created that do not disclose their team, their code is not audited, there is no access to github, and the most amazing thing is that such projects collect a huge amount of money and even allow investors to earn))

To my knowledge, Defi themed projects always keep their code open source. It's too stupid to invest in defi projects when their source code is closed.

I don't know, take for example: OIN Finance, Linear Finance, Power Trade - try to find data there on github. This did not prevent them from closing the sale.

[kawetsriyanto]

Commonly what often happens here is that many newbies are so easy to be trapped by the scammers with only a small amount of the rewards that can be got. As newbies, they will commonly love collecting BTC or crypto by doing something so easy and getting high rewards. This condition is utilized by the scammers, moreover for those who are greedy ones.

Commonly they are offered certain activities and also tasks very easy to be done. They will be shown up that there is any other participation. And then, they are trapped to send some mbtc or satoshi into a certain wallet in order to withdraw the amount. ANd the engine styles,

[Twinkledoe]

Commonly what often happens here is that many newbies are so easy to be trapped by the scammers with only a small amount of the rewards that can be got. As newbies, they will commonly love collecting BTC or crypto by doing something so easy and getting high rewards. This condition is utilized by the scammers, moreover for those who are greedy ones.

Commonly they are offered certain activities and also tasks very easy to be done. They will be shown up that there is any other participation. And then, they are trapped to send some mbtc or satoshi into a certain wallet in order to withdraw the amount. ANd the engine styles,

Newbies should consider the potential earnings from those tasks. Because most of them will turn out to be pennies where they can't even pay for the gas fees. But anyway, ICOs are dying because a lot of people already learned their lessons. But there are still few projects trying to run their ICO campaign, so yes, maybe this thread will still be helpful to noobs.

[Shasha80]

What has been explained in the opening post is indeed good for avoiding ICO project scams, But why should we do this if the fact is
that now the ICO project is over. So I think right now we don't need to invest in ICO projects anymore. DeFi projects is a trend now
that is booming, My advice is to focus on investing in DeFi projects if you want to generate large profits.

[erikoy]

Just avoid ICO and that's it you can avoid scam. Most of the ICO are scam and with that avoiding them will help you to avoid the scam.

I am not against the ICO but only to those scam projects. Anyway, not all ICO projects are scam for there are others as well that are doing good and if you are a bounty hunter they will pay good as well. Anyway, what matter here is that one can avoid scam. There are defi projects also that could be doing good but for now I am trying to check if this defi projects are just hype or something.

[Johnyz]

Just avoid ICO and that's it you can avoid scam. Most of the ICO are scam and with that avoiding them will help you to avoid the scam.

I am not against the ICO but only to those scam projects. Anyway, not all ICO projects are scam for there are others as well that are doing good and if you are a bounty hunter they will pay good as well. Anyway, what matter here is that one can avoid scam. There are defi projects also that could be doing good but for now I am trying to check if this defi projects are just hype or something.

Not all ICO but most of them and we heard so many advices now on how to trace scam project so don’t get any excuses if you get scam by any project. ICO and DeFi project are both risky, almost every investment are so DYOR always and never depend to any investment signal or advice. If in doubt, don’t invest or go all in and you can also wait for the exchange listing of that project since it will always go up and down, an opportunity to make profit.

[hwtee]

It depends on reliability and practical value of each concrete solution or token. What makes sense - some aspects that stay for new trends. For example, I am pretty disappointed by more bots attacks on website and low level of security, only captcha helps a bit on the field

[hwtee]

You are right. But are there any alternatives right now? I mean is there any particular strategy you are switching to?

From my point of view, the alternative is usage of technically advanced solutions. But in here, of course, you should be choosing the most advanced solutions only

[hwtee]

Yes. At least I cannot think of something more rational. But you know, I tried to find unique solutions several times and what I have noticed - it is not very simple to find exciting ones. They are all more or less similar

Yes. hCaptcha is coming with real solution. hCaptcha is designed to solve the most labor intensive problem in machine learning: labeling massive amounts of data in a timely, affordable, and reliable way. More data generally produces better results in training machine learning models. The recent success of deep models has led to increasingly large datasets, almost always with some human review. However, creating large human-reviewed datasets via Mechanical Turk, Figure Eight, etc. is both slow and expensive. hCaptcha allows websites to make money serving this demand while blocking bots and other forms of abuse

[sourish]

Though you state valid points, This topic has been discussed, dealt with and created awareness to help many during the days of icos. Market awareness and focus has shifted to defi projects, and awareness or discussion about that would really be helpful and more topical.

[Restmand]

Initial Coin Offering SCAMS
HOW TO AVOID?

Let's define first what is Initial Coin Offering or ICO? 

ICO is an unregulated means by which funds are raised for a new cryptocurrency venture.
My idea on ICO is CROWD FUNDING .

Now let's move on how can we avoid ICO SCAM

      Crowdfunding is shaping the future of finance. No longer does investment belong to the few and no longer does launching a project mean having to go through all the required conditions of Venture Capital investment. There are now multiple platforms where users can crowdfund their dreams and projects into reality.

Observe this things to avoid it.
Unrealistic goals
Buzzword salad
Whitepaper
No Code Repository
Team



Unrealistic goals
     
       If the project does have that potential, professional developers will never make such promises. They will let you know about the potential of their project and that’s it. No serious team will ever make a price prediction about their token or claim it can fix the world.

Buzzword salad

      “Our decentralized blockchain-based platform will disrupt the landscape of cryptocurrency investment while building a trustless network of pseudonymous users that leverage swarm intelligence technology to provide real world financial services in a tokenized ecosystem.”

       Some people may have a tendency to use buzzwords as a means to turn a boring text or announcement into something exciting. However, these will have a certain amount of information on it, even if you have to filter out some of the nonsense. Still, if a project needs to do this, then the project is likely to be as boring as watching paint dry.

Whitepaper
   
         Whitepapers usually explain how the platform works both on the high-level and specifically. This often includes charts, calculations, simulations, specifications and so forth. If your project claims that it is building some sort of decentralized service or token with new features and actually provides no explanation of how it works specifically, then just close the document and walk away.

No Code Repository

      This is what matters. Like someone said before “Code is law”. Even if the project announcement and whitepaper are complete trash, you can always count on Github or Sourceforge to put an end to all doubts. If the project provides no link to the code at all or if the project is nothing more than a clone with a few changed lines of code, then it’s not worth your time nor money.

Team

      This is very important. Who is behind the project? Is the team made up of well-known members of the cryptocurrency community? Are they known in other areas? Have they been involved in previous projects? If the answer is yes, then this may be an interesting opportunity. Just remember to check if the person is actually aware of the project as scammers may use famous names just to get people interested even though these are not part of the team.

Source: https://www.cryptocompare.com/coins/guides/how-to-avoid-scam-icos/

The above you stated gives good realization to those who wasted their time and effort and most of all money in investing for a scam project. We need to be careful when engaging to an investment. No matter how the team supported the project it is not only the basis of a good project there are lots of things that we need to put into consideration before we can say that the project is highly recommended.

[terizla]

I think you forgot 2 point in your post.
Checking the website and how active their project is social media is important.
- Check the website how long the project run. Most of new project is give high potential scam.
- Project Social Media, social media is also important, a good project is always active on social media so that other people know that the project is really active.

[vermigerous]

Good advise and pointers for newbie inventors. It is said that to identify simple unrealistic project is to check the team. Because scam ICO projects has their team as fake. They hire some people to be part of their staffs or team with same person to other unique projects yet using different names. Also the scam ICO projects may copy some unique project's whitepaper.