ICO and its risk, research properly

[palle11]

ICO is acronym for Initial Coin Offer, it is also like the public companies call Initial Public Offer (IPO). Just as it is to raise capital for the company for its operations, it is for crypto the same thing alike. The difference however is that you can see the public company, visit them or make enquiry about them from regulatory bodies and most times the government won't allow them to scam the people. It is more secured compared to ICO.

ICO is quite riskier to invest on because it is less regulated and that is why it easily scam you off your money. This is the reason you need to be careful and research more.

While researching on ICO projects, you need to focus on

1. ICO organised by existing company already: This is because that such companies have reputation to protect. A good name always carry customers to your domain so they may not scam.

2. Search for ICO that has the support of reputable company or are in partnership: Just like number above, same thing can apply here, the image is greater than scamming you. Ensure the company has a great history, anticident and performing.

3. If it has the support of a reputable user on the forum: At least the user know that they will be legit before supporting them because of reputation.

Always remember that above all, ICO can scam you so be
sure to research and invest in the tokens of companies with a strong reputation with clear business model.

ICO is such as supporting a vision and you don't need to ride on a car rode by someone with blurred vision because you will be destined for dome even before it started. You have to invest in a token which shows exactly how the project is going to benefit you as an investor.

[LTU_btc]

It would be useful information, but I think you're few years to late. We're living in 2021 and ICO isn't a thing long time ago.
I looked at your trust page, and from feedback left by @actmyname it seems that you're just chasing merits.

[cryptoaddictchie]

What I'm looking into ICO are those who have goals and product. Yes there are lots of fishes new projects there but  let me just remind you that ICOs can also died when the market is bad and hasn't much cash inflow.

I would like to comment on ICOs created with reputated company? You mean some of the team came from a good one and existing already? That's actually right but we can't say because that's a team project if his just an advisor or part timer we still not sure.

[SquirrelJulietGarden]

Crowdfunding is risky and ICO, IDO, IEO are only different types of crowd-funding.

I feel more safely if I wait for projects to list their tokens on exchanges and wait for one month to have price basements for my entry. I would prefer to see resistance and support on charts from which I will consider potential entries for my investments.

Invest in too early phase is more risky and I don't have enough ability to do my good research for crowd-funding so that I can not have protection for my investment decisions.

[pooya87]

The biggest problem with ICO that people ignore (because they all care about gambling) is that there is absolutely no link between the tokens and the creators of the token.
First let me say that there is never a "company" or a "product" behind any ICOs that has ever been created but lets say there is, if the company does well the token can still be dumped hard. And if they do terribly the token can still be pumped.
That means it doesn't even matter if by some chance a real company with a real product or service actually created a token. The token is still not worth buying since you will lose money in it all the same.

[Charles-Tim]

What I'm looking into ICO are those who have goals and product. Yes there are lots of fishes new projects there but  let me just remind you that ICOs can also died when the market is bad and hasn't much cash inflow.

There are over 9000 cryptocurrencies existing today, there were many successful ICOs when there only only few cryptocurrencies, but the more coins are created, the more there will be unsuccessful ICOs, some ICOs are scam which I believe you know about and know how to avoid, but not all, some will only result into pumping the price of a coin and dumping the coin later which will make many people to still lose, there are some with good project but yet failed as a result of bear market. The team behind ICO really matters also, like if a famous person like Bill Gates has an ICO project, it will certainly be successful, but there are good ones but because of the team behind it are not famous result the ICO into failure and deemed scam to people. Some ICO can truly be successful but many more are failed projects nowadays. I couldn't believe StudentCoin would even result to scam until the bounty manager post about it that people should report the project as scam on different platforms.

[hugeblack]

In my opinion, the success of the campaign does not mean that it reaches a certain price, because once it reaches that price, many users are selling.
Success in continuing with the idea and solving a reality problem facing everyone. Otherwise, all that happens is speculation that may not last for long.
As long as you solve a fundamental problem, the value will come sooner or later, so don't worry about profit.

[Luzin]

While researching on ICO projects, you need to focus on

I heard ICO if I'm not mistaken in 2017. It was the easiest place to raise money in projects. After that I heard IDO, STO, and IEO. In their mass they look very successful, but for now I don't think this project is as much as it used to be. Today it has switched to Defi, then Multi chain, etc. Yes all will be great on the mass. But it won't last long if the dev doesn't get serious about developing it.

If you are talking about ICO at this time maybe it is a delay in knowledge even though it is history as you might mean for people to understand.

[DdmrDdmr]

<…> 3. If it has the support of a reputable user on the forum: At least the user know that they will be legit before supporting them because of reputation. <…>

I thought ICOs weren’t much of a thing now…

Just to point out on the quoted fragment of text, that support from a reputable member of the forum I figure could be read as explicit support (i.e. within the ICO’s forum threads), or by lateral association due to managing the Campaign/Ann or even by bearing its signature. Whilst the reputable member does stake part of his reputation in some of these cases (one could easily argue that Campaign signature bearing will conform a very lateral staking, if any at all), he generally won’t really be tied enough to the project to know its ins and outs.

More often than not, such conceptual associations could create a false sense of trust for the project, that is not really intended nor backed by facts, and placing trust on a project from an investor’s point of view, based on who’s supporting it here, is a risky assumption that should not be made in broad terms.

[lovesmayfamilis]

1. ICO organised by existing company already: This is because that such companies have reputation to protect. A good name always carry customers to your domain so they may not scam.

ICO is such as supporting a vision and you don't need to ride on a car rode by someone with blurred vision because you will be destined for dome even before it started. You have to invest in a token which shows exactly how the project is going to benefit you as an investor.

The last paragraph completely threw me into a stupor. What did you mean? What kind of car are we talking about? Do you believe that if the organizers of the projects come up with a beautiful name, this builds up the trust of investors ? It is strange to hear something like that from a participant with a 4-year presence on the forum.
None of the points you describe are appropriate for judging a good project correctly. Therefore, listen to friendly advice, if you do not understand the correct assessment, then do not mislead people. At least don't do it affirmatively.

[Pmalek]

Whilst the reputable member does stake part of his reputation in some of these cases (one could easily argue that Campaign signature bearing will conform a very lateral staking, if any at all), he generally won’t really be tied enough to the project to know its ins and outs.

I have seen examples were reputable forum members write a disclaimer informing the community that they are not to be held responsible for the success/failure of the campaign. They were only paid to manage the ANN/bounty campaign, etc. That tells you everything you need to know. Do your own research and don't trust me just because I am "reputable".
When we are on the subject of ICOs, can someone name a few successful ones from 2020/2021 that have liquidity on exchanges, haven't lost 50 or more % of its ATH, and have a working product? I am curious if this niche is still alive today...

[Rikafip]

When we are on the subject of ICOs, can someone name a few successful ones from 2020/2021 that have liquidity on exchanges, haven't lost 50 or more % of its ATH, and have a working product? I am curious if this niche is still alive today...

I think that it would be very hard to find altcoin projects that meet all the above criteria, especially the one about not losing 50% or more price since ATH since there is some correction happening at the moment, but there are quite a few that managed to make decent ROI compared to IDO price and i think that's what most of the people care about. IDOs (Initial dex offerings) are slowly taking over ICO model, in which sales are organized on decentralized on platforms Polkastarter and trading starts immediately after tokens are distributed to those who managed to get allocation.

From what I could notice, another big difference between IDO and ICOs is that allocations are much smaller, and projects usually raise from 500k to few million USD, compared to ICOs in 2017 when similar shitcoins were raising tens of millions. So instead IDO investors getting screwed (like in 2017/2018) usually those that buy when trading starts lose the money. Bottom line, its still very risky business.

If interested, here you can find some info about ROI
https://cryptorank.io/ico


@OP above everything, you should check does the projects you are thinking about investing in has any reason to actually use blockchain and does it solve any real issue. In 99% of the cases, you will find that an answer is no, therefore avoid.

[cryptoaddictchie]

I couldn't believe StudentCoin would even result to scam until the bounty manager post about it that people should report the project as scam on different platforms.

Is it? Studentcoin become scam now? I wondered how, cause I see on different social mediums their ads, even on dextool before, and in here and some twitter ads too. As far as I know they completed their ICO, but for me it's kinda weird as they already have trading on exchange and now raising funds.

What did they scam? Hunters? Or investors and traders?

[Taskford]

ICO's are not famous right now so I don't think it will be successful if scammer will do the same scheme since many people are avoiding it now. Maybe you should look on what happening on BSC ecosystem right now there are so many shitcoins conducting a token sale and many innocent victims has been victimized by rug pulling scheme, Maybe newbies should be aware of more scamming happening on that area and never go hold a BSC shitcoins once someone tell us since its totally a scam only few of them can be selected and if I rate them to 100% only 1% of BSC tokens are little good to held for short period of time.

[boyptc]

It has become a den of scammers during 2018 and that's why the fall of it has been known and there are only a few investors left that are interested in it. If there are still investors interested in it, probably they're really newbies and thinking that it's still the same as before but in reality, it's not.

You have to invest in a token which shows exactly how the project is going to benefit you as an investor.

And that's why scammers have taken advantage of the scheme, they will give the token that has no value in return of their investment.

[Fortify]

ICO is acronym for Initial Coin Offer, it is also like the public companies call Initial Public Offer (IPO). Just as it is to raise capital for the company for its operations, it is for crypto the same thing alike. The difference however is that you can see the public company, visit them or make enquiry about them from regulatory bodies and most times the government won't allow them to scam the people. It is more secured compared to ICO.

ICO is quite riskier to invest on because it is less regulated and that is why it easily scam you off your money. This is the reason you need to be careful and research more.

While researching on ICO projects, you need to focus on

1. ICO organised by existing company already: This is because that such companies have reputation to protect. A good name always carry customers to your domain so they may not scam.

2. Search for ICO that has the support of reputable company or are in partnership: Just like number above, same thing can apply here, the image is greater than scamming you. Ensure the company has a great history, anticident and performing.

3. If it has the support of a reputable user on the forum: At least the user know that they will be legit before supporting them because of reputation.

Always remember that above all, ICO can scam you so be
sure to research and invest in the tokens of companies with a strong reputation with clear business model.

ICO is such as supporting a vision and you don't need to ride on a car rode by someone with blurred vision because you will be destined for dome even before it started. You have to invest in a token which shows exactly how the project is going to benefit you as an investor.

If we are to make analogies with the stock market then we need to consider Initial Public Offerings (IPOs) of shares, which is what these ICOs are based on. Any seasoned investor will tell you that IPOs are very dangerous and a large portion of them will lose money. They are definitely not advised for anyone new and should only be bought by experienced investors. There is a lot of money flooding into cryptocurrency at present and it can be extremely hard to distinguish a unique original idea from an over-hyped project. It may be beneficial to beginners to stay away from ICOs entirely for the first year of buying cryptocurrencies and only start to buy after they have spent a long time monitoring how they work - if you must get involved then come up with a "fantasy" game where you pick 5 coins you think will win and track how they do over the next 6 months.

[isaac_clarke22]

~

It still lived up to its memory.
I can still recall that there were a lot of threads back in Alts Board about if ICOs are scam. Seems like those good ol investors are smelling something fishy to many ICOs that year already til they just kept their money for hodling til IEOs started to replace them.

[$crypto$]

The worst ICO reputation was when in 2018 there were many scamers who ran away from investors' money so that this trust was difficult to return to even someone who considered the ICO to be illegal fundraising because what they feared was held by them without a third party that was always used. real product ingredients when their intentions are bad.

But for me now it is different, there are many changes happening. To be honest, I am also a whitelist IDO hunter because all this I do is of course research first, therefore the risk must be prepared when you want to enter the initial phase of investors where the main sale begins.
I only see now that IDO / ICO has a high ROI, it is my interest with all the risks.

What did they scam? Hunters? Or investors and traders?

Hunters because they are not paid as expected, this project is said to be a scam by the manager who manages the bounty.

[palle11]

What did they scam? Hunters? Or investors and traders?

This was a major set back of ICO in retrospect. Many scam was associated with this it and almost made ethereum like getting less hype because most of the projects of ICO where under the Ethereum blockchain. The investors too who bought where either having their coins locked up and not release while some outrightly didn't fulfill white paper promise to investors. It was really a time to learn about investment in tokens not in exchange and it's risk.

[AmoreJaz]

It has become a den of scammers during 2018 and that's why the fall of it has been known and there are only a few investors left that are interested in it. If there are still investors interested in it, probably they're really newbies and thinking that it's still the same as before but in reality, it's not.

You have to invest in a token which shows exactly how the project is going to benefit you as an investor.

And that's why scammers have taken advantage of the scheme, they will give the token that has no value in return of their investment.

i remember that golden period of ICO days. i even invested in several ICO projects before but ended up screwed. to think that i did my job of researching the platform itself, even investing with published team members with their profile links posted, as i thought they will not screw people. but unfortunately, they never developed their platform and their site just disappeared without any notification to their investors. you can never tell what these people are thinking. but most of them just wanted to pocket the money.
this is why researching properly will not assure you that you will not get rekt. but it will trim down your chance of being screwed.