Ankur Agarwal has invested and gained profits of millions from cryptocurrency analysis, trading. Ankur is also an ICO Consultant and is considered an expert in email marketing. Today he shares some facts related to ICO frauds and other such insights on the crypto market.
ICO and Scams
This is the most initial stage of a coin’s life where it been offered by a particular company at a meager rate. It is also expected to fold at 5-1-x when it entirely becomes available to the public.
In simple terms, you can also say that it’s a way of crowdfunding a new project that is in the launch stage. This is the part where ICO scams take place, you can say that its the start.
There have been established companies as well who have offered coins through ICO process. There are about thousands of coins that are in the ICO stage, and there’s majorly only one way that you can access or buy them.
And the way is via invitations through fellow investor’s. That’s why people say it, ‘Network Is Your Net worth.’
Investing in ICO and avoiding Scam
We would suggest you look into a couple of things before you invest in an ICO for long-term purpose.
You need to check up on the history of the company offering, their work, goodwill, their plan, and current interest of investor’s in that particular coin.
If you’re looking to do speculative trading, then you can invest in any ICO of your choice and withdraw as soon as it gets public and the price goes anywhere between 5-10x.
There are undoubtedly other advantages as well if you’re looking to invest long-term in an ICO such as Democratization, track record due to blockchain technology, and other things.
There are three steps that you need to perform before investing in an ICO, and they are as follows –
1) Research on the running or upcoming ICO’s through tools like ICO Tracker, ICO reminder, Facebook Events, and much more.
2) The second step would be to perform your research on the product, company, and other things with the help of tools like Crush Crypto, Reddit, Facebook, and others.
3) The third step is the participation process where you create an account on a website offering
ICO, add up and verify your wallet address.
4) Fourth and the final step is to follow the instructions given on the website and purchase then the number of coins accordingly.
Note – It may take some hours/Days for transfer of Bitcoin other from your wallet to another so you may have to wait accordingly to get your coin consequently.
There are special referral bonuses given by individual companies, and you can find bout them through their Referral section on the website.
How Do You Determine If an ICO is Fake/Scam?
First and the foremost thing that you look at is a whitepaper, It is is the record that clarifies the basis behind a blockchain venture.
For the most part, it gives a venture outline and clarifies how the organization will achieve its objectives. This also the most basic step that any expert or publication will recommend.
The best whitepapers get directly to the point. The worst will come in general wax idyllic over blockchain innovation.
1. Inadequately Implemented Website and Whitepaper
A fragmented or ineffectively structured whitepaper and site ought to be an enormous warning. On the off chance that it doesn’t sound genuine, it probably isn’t.
2. Void open-source code
Genuine code, you realize the kind that ought to be on GitHub. On the off chance that an ICO venture is proposing open-source code, an unfilled or nonexistent GitHub isn’t right, and a visible cautioning sign.
This is the easiest and the most used method to get a website and ICO live and then scam people; there have already been hundred’s of such cases in the market,
4. No Token Use Case for Product
If it’s an ICO, it needs a blockchain innovation based token and a reasonable explanation of how this will function. Inability to prove this implies it’s probably not legitimate.
Well, this is the most basic way of finding an ICO is legit or scam.
There is a need for research about the company, product, and a lot more than a trader needs to do or follow before starting to invest in an ICO. We would also recommend you to go through a broker if you’re new to investing in a cryptocurrency.