Hi steemians, how are you? Hope all of you doing well.
In this blog i will tell you about top 5 way to spot ICO scam!?
You know cryptocurrency getting popular, demanding and valuable day by day in the world. That's why lot's of company came on this industry with their own crypto coins. And when an company comes, at first they gave an opportunity to their customers or investors to buy their coins with cheap rate. Which is called ICO (initial coin offering).
But all companies are not trustable for invest your money. Some times they scam with their investors who invest money to buy their coin. For that reason you must understood about which ico is safe for your money invest or not.
Here is top 5 ways to spot an ICO Scam :
#1 No Proof of Concept
Every company must have a Having a whitepaper is the easy part, as teams can buy those on Fiverr for a cheap price. As such, any initial coin offering with no proof of concept should not even attempt to raise money. Unfortunately, that is not how the industry works these days, as most initial coin offerings will not have working code prior to raising millions of dollars. It remains a major gamble to invest in such projects, although there can still be numerous offerings which are perfectly fine without a prototype. Carefully researching projects is always a good idea.
#2 Unsustainable Business Promises
In cryptocurreny world you won't get rich quick. So if any ico give promise for big profit , Especially in this day of security versus utility tokens, any promises which seem too good to be true need to be avoided.
#3 Fake Advisors
Every initial coin offering will come with a list of people advising the team at all times. Adding fake advisors to an ICO tends to happen more often than people assume. Always be prepared to contact these advisors personally, or at least see if their LinkedIn profile mentions the ICO to verify if they are actually associated with the project.
#4 Fake Business Address
A quick Google Maps search can often turn up valuable information regarding the address and whether or not it can effectively be verified. Rented offices are not necessarily a sign of a scam, but an address that doesn’t look like it could house an up-and-coming firm can be a clear indicator something is amiss.
#5 Unprofessional Language
Any website which has blatant spelling mistakes or an obvious case of “English” can hint at a potential scam first and foremost. While spelling mistakes can happen to anyone, an initial coin offering trying to raise millions should never look unprofessional.
So be careful, happy business.
