There are a ton of ICOs available, and each one of them promises enormous returns and beneficial benefits for potential investors. But before you start giving your hard-earned money to every project you see online, keep in mind that many, if not most, of them will ultimately fail or turn out to be a fraud. This article will enlighten you about how to invest in ICO without getting scanned.
Remember that the Ethereum platform in general and all cryptocurrencies are essentially experimental technologies. The great majority of ICOs depend on Ethereum, and they are a fairly experimental mechanism in and of itself. Overtop of an experiment, it's an experiment.
A typical ICO project will have a website and a white paper with as much information as possible about the project and its objectives. These will give information about the team and their relevant experience, the concept and the execution plan, the rough objectives and methods for achieving them, and so on.
How to invest in ICO? How to avoid an IPO scan?
Make sure the devs are not anonymous, first. If they are, that raises the biggest red flag imaginable. If there are names listed, extensively research each one, paying specific attention to the advisory board and development team. Make cautious to double-check any information you receive from a phony ICO because many of them will indicate that a notable person—often Vitalik Buterin—is involved.
A vast and, most importantly, open supporting community is a must for every ICO. Generally speaking, a public Slack or Telegram discussion for all investors is a really positive sign. When assessing an ICO, additional sources like Facebook, Twitter, or Reddit can be quite helpful.
There is no set standard for what degree of development a project needs to be in order to host an ICO. There will occasionally only be a white paper and a hazy roadmap. There may occasionally be a beta version or even a released product with a few functionalities.
If you don't have the skills required to comprehend a project's technical features, be sure to carefully study the thread devoted to that ICO. In essence, those threads represent a group effort to assess the reliability of an ICO.
Know exactly what you're investing in is the key message of this entire course. And reading the project's white paper is the best method to understand as much as you can about it.
A key warning sign is when a project has no working code at all prior to an ICO or even if it has but it isn't open source.
If you don't have the skills required to comprehend a project's technical features, be sure to carefully study the thread devoted to that ICO. In essence, those threads represent a group effort to assess the reliability of an ICO.
Know exactly what you're investing in is the key message of this entire course. And reading the project's white paper is the best method to understand as much as you can about it.
A key warning sign is when a project has no working code at all prior to an ICO or even if it has but it isn't open source.
Is ICO a fad?
History frequently mimics itself. Dot-com bubbles have been compared to the Gold Rush in the past. Now, the excitement around ICOs is being likened to what was happening around dot-coms, and this comparison is not entirely unreasonable: similar to dot-coms, all investments made through ICOs are made out of a fear of missing out and are based only on conjecture.
It is crucial for you to recognize as a potential investor that the majority of these ventures will fall short of their goals or simply end up being frauds. Others will be a full success, like Stratis, which at its all-time high traded at 140,000% above the ICO price.
