How do you make sure a projects funds are safe?

[Surmount]

Hey everyone,

How do you verify that a projects funds will not be stolen by the devs? Many projects hold ICO's or some other sort of sale to raise money for development and many have turned out to be scams where the dev steals the money.

What are you looking for to verify that they won't run away with the cash?

Any ideas on how a project can build trust with the community on this topic?

What would you like to see DAO projects do in the future that would help build trust and make sure funds are secure from theft?

[blockman]

You can check their contract address, most of the projects got their contract address so that's part of checking if the funds were there and secured by the development team. But why are you making that sure that it's safe? you should always be active on their telegram or any means of communication with their community because they're the ones that will answer on how you'll check if the funds of the project are there. There would always be a way to contact them and ask your question directly. For example, what's the current project that made you ask this question? you contact them and this question directly to them.

[Surmount]

You can check their contract address, most of the projects got their contract address so that's part of checking if the funds were there and secured by the development team. But why are you making that sure that it's safe? you should always be active on their telegram or any means of communication with their community because they're the ones that will answer on how you'll check if the funds of the project are there. There would always be a way to contact them and ask your question directly. For example, what's the current project that made you ask this question? you contact them and this question directly to them.

I am asking about projects in general.

Many projects will raise money for development by selling tokens. There have been many projects that will sell tokens and run away with the money.

I want to know what the community would like to see changed in this topic to prevent this from happening in the future.

More public development teams for sure but is there anything else a project can do to build trust?

[accounting 181293]

my reference is their community, a project with an active community will give us accurate information about everything we need. whenever something went wrong, there would always be someone who was critical of it and brought it up to the community. so to see if the dev project is good or bad is very easy. just look at their community.

[blockman]

You can check their contract address, most of the projects got their contract address so that's part of checking if the funds were there and secured by the development team. But why are you making that sure that it's safe? you should always be active on their telegram or any means of communication with their community because they're the ones that will answer on how you'll check if the funds of the project are there. There would always be a way to contact them and ask your question directly. For example, what's the current project that made you ask this question? you contact them and this question directly to them.

I am asking about projects in general.

Many projects will raise money for development by selling tokens. There have been many projects that will sell tokens and run away with the money.

I want to know what the community would like to see changed in this topic to prevent this from happening in the future.

More public development teams for sure but is there anything else a project can do to build trust?

Just a continuous development and update to their community. I guess that would suffice to build the public trust that they need to their own community. It's something that other projects don't know how to handle because they're all thinking about building from zero to hero but they are forgetting their very foundation and that is the trust of the people. Without such, they'll never move on and cannot get the success that they need respectively with their roadmap and what's on it with their road maps.

[Skinny48]

I was able to trust few projects that use third-party audit websites to get verified like CertiK for example, it's been a very good idea all this while as I've never seen any audited project getting scammed

[Gozie51]

Hey everyone,

How do you verify that a projects funds will not be stolen by the devs? Many projects hold ICO's or some other sort of sale to raise money for development and many have turned out to be scams where the dev steals the money.

Any ideas on how a project can build trust with the community on this topic?

Your request is difficult because you can't read the minds of people to know what is there but you can try to limit your risk by not giving your money to new project. If a project is already existing or is having partnership with some big conglomerate, then it is possible they might have some limitations of not running away with your money.

[masterrex]

I think thats pretty hard to guarantee! that all results will always good in the end. Because in crypto everything is possible, If the development team has absolute control to all of those funds, I believe that the risk is even higher, But if the token sale was made on a centralized platform like Binance that the arrangement was made in good terms like an extra level of funds security, team KYC and all other kinds of preventions, from unauthorized access of those funds, IMO, I believe It will be much safer if the token sale was made on a centralized platform like Binance compare to DExes. Just my opinion.

[Erdogan]

Hey everyone,

How do you verify that a projects funds will not be stolen by the devs? Many projects hold ICO's or some other sort of sale to raise money for development and many have turned out to be scams where the dev steals the money.

What are you looking for to verify that they won't run away with the cash?

Any ideas on how a project can build trust with the community on this topic?

What would you like to see DAO projects do in the future that would help build trust and make sure funds are secure from theft?

Unfortunately, we can never be sure that the project will not turn into a scam. However, we can reduce this risk by doing good research. For me, the most important information that I verify to check credibility is of course the Whitepaper and the past (career) of dev team members. If the developers are anonymous, I stay away from such a project. Buying project tokens that are anonymous is like giving money to a stranger on the street.

[wxa7115]

Hey everyone,

How do you verify that a projects funds will not be stolen by the devs? Many projects hold ICO's or some other sort of sale to raise money for development and many have turned out to be scams where the dev steals the money.

What are you looking for to verify that they won't run away with the cash?

Any ideas on how a project can build trust with the community on this topic?

What would you like to see DAO projects do in the future that would help build trust and make sure funds are secure from theft?

The only way to be completely sure this is not going to happen is if the developers accept to use an independent escrow that is trusted by the community and they accept that the funds are not going to be released until they reach certain milestones in the development of the project.

Now this is not very common as many developers do not want to be constrained by someone else when it comes to the access of the funds as they do not know exactly how much something could cost or if it is going to take more time to develop a portion of project, but as far as I know this is the only way to be 100% sure this is not going to happen.

[crzy]

there is no guarantee it will be safe. what we can do before investing is, we really know what we invest with. what I mean is, you need to do all the research you need. such as finding the background of the CEO and team, as well as how to develop the project in the future. however, there is no guarantee that your funds are safe.

There’s always a risk on every project but we can avoid to landed on a bad one if we this do before investing, having your own research is a must even though there’s no guarantee but at least you do your part. There’s no way to ensure that the project fund is safe, it is under the control of developer and it’s up to them if they’ll scam you or they’ll use their money to improve their project. If you are in doubt with the new project, you can always buy the top choices.

[semobo]

Hey everyone,

How do you verify that a projects funds will not be stolen by the devs? Many projects hold ICO's or some other sort of sale to raise money for development and many have turned out to be scams where the dev steals the money.

What are you looking for to verify that they won't run away with the cash?

Any ideas on how a project can build trust with the community on this topic?

What would you like to see DAO projects do in the future that would help build trust and make sure funds are secure from theft?

You are giving money in their hands and expect them to keep it safe?

It becomes their money once you send it to them so its their decision whether they want to keep it safe for the development program of involving in exit scamming but the project team members revealed their original identity then they have fewer chances to run away so invest in the project only if devs are trustworthy and experienced.

[Semar Mesem]

Hey everyone,

How do you verify that a projects funds will not be stolen by the devs? Many projects hold ICO's or some other sort of sale to raise money for development and many have turned out to be scams where the dev steals the money.

What are you looking for to verify that they won't run away with the cash?

Any ideas on how a project can build trust with the community on this topic?

What would you like to see DAO projects do in the future that would help build trust and make sure funds are secure from theft?

There is no special technique to find out whether our money is safe or not, we are just speculating because whatever they present can be like real, but what I usually do is always monitor the rating ratings from third parties such as ICO ratings.

[crwth]

You cannot completely verify what the developers would do in the long run. Especially if the project is some kind of non-existent and popping up like mushrooms out of nowhere, then you could expect that this is just a scam and could run away with your hard-earned money. It's not going to be always the case but you need to make sure and see if the project that you are investing in is legitimate and has actual plans in the long run.

What would you like to see DAO projects do in the future that would help build trust and make sure funds are secure from theft?

Theft would be another case like stealing your computer or hardware wallet. You cannot control what the developers are going to do with the personal stash that they got from the coin itself. As long as you are listed they can swap the amount and "trade" your asset to the scam coin.

[Dread Pirate Roberts]

I am asking about projects in general.
Many projects will raise money for development by selling tokens. There have been many projects that will sell tokens and run away with the money.

Basically ICOs are like that. based on trust and there are no guarantees, because most of the purchases are directly transferred through the smart contract address. As a potential investor, you must know clearly what you are doing. they can make promises but you have to have a strong analysis before doing investment like ICO. because even if they not run away, you might be only get their token which also may not have value.

[_MrTuyul404]

If you want to invest safely, follow these steps:

1. Take a look at the project team
It takes a team that is experienced enough to be able to carry out this vision. Realizing a vision requires a team that has high credibility and quality so that the idea can be implemented properly.

How do you know if the team is experienced enough and has high credibility and quality? You can view their LinkedIn profile, where all of their employment and education history is listed.

2. Road Map
Consider whether a road map looks realistic or not, is it too ambitious? Is it possible? It would be better if a road map was started several years ago.|

3. Marketing
Hiring a marketing professional can increase the confidence of investors to invest in the company. This is one of the added values ​​that has a big impact. Marketing methods are also not limited by writing articles on famous websites, airdrops, bounties and videos.

4. Use of Coins/Tokens
Each Coin or Token has a different function, having a Coin/Token does not mean you have shares in the Coin/Token company, but there are some ICOs or projects that are already running that have a token function that distributes dividends to their Coin/Token holders. Note that the function of the Coin/Token greatly affects the prospects of the ICO

[Fivestar4everMVP]

Well, I think the best strategy is to try and do your due diligence before investing in any project, it's the investors duty to do some internal and external verification on the team he's going to be handing he's money over to, trusting is not easy and if you are the type that trust people easily, then you are likely to have a lot of disappointments than those who don't trust easily, the investor should do a proper research and make sure the project is genuine at least, to some reasonable extent, if he or she is not sure, then better wait for the coin or token to get listed on an exchange, then he or she can buy from there, and sometimes, it's even better to wait and buy them from exchanges as they tend to go lower in price ones listed as most projects are over priced in ICO or IEO.

[speedy963]

Well, there are actually quite a lot of ways to really be able to verify a project's legitimacy for you to be able to make sure that your funds are completely safe from being robbed by a project's developing team. The only thing that these ways would require are your diligence. If you have the proper diligence, you can easily find out whether a project is bad, good or great. To make things easier, I'll suggest a few ways for you to follow:
1. Check the identities of every significant person in the developing team.
2. Check the community under the project.
3. Check the management capabilities of the developing team:
     - Community management.
     - Marketing management.
4. Project development; punctuality in following the steps written in the roadmap.
5. Lastly, transparency towards the community.

While these steps may seem like a hassle to actually do, I suggest that you really execute these steps because there is no other thing that is more important than protecting your hard earned capital. Do not let others take advantage of you.

Though may not be full proof, I hope it helps.

[abel1337]

Checking the project developers and the person who is in affiliate with the project should be your first move before putting something on a project. A project roadmap is also important.  Given the circumstances that the research you have made satisfied you and you put some money into it, Checking its contract address should do the trick on checking if the project's funds are stolen or scammed.

[Yatsan]

Anything can still be twisted on the process of acquiring funds while the project is still being run. Even we have already verified the developers or the team behind a specified project we are rooting with, we still cannot assure if they will stay into that attitude until the aim of the project have already been satisfied. But qualities that most good projects must do possess includes having a decent developer team behind it, a roadmap to see the progress and plans of the team towards the project and how it will turn out before, during and after the project have been commenced.