Monday June 11th, 2018

ICO. 5 steps to run of scam!

By Ramiro Silva Jr – 11/06/2018

One subject that is dominating the investment news is the crypto-coins. New crypto-coins are launched every day in initial coin offerings (ICO’s). Despite this disappointing first half, there are many investors ready to dive into this segment, which draws attention to the bad intentions who see an opportunity there to apply their blows. Investing in crypto-coins keeping yourself out of scams and scams is a daunting challenge. The blockchain is developing very fast and even the most experienced investors have difficulty separating the wheat from the chaff. There are no guarantees in this process, however the steps below can help you not to fall into a scam or at least greatly reduce this possibility.


One of the most important requirements for an ICO’s success is the team behind the project. The ecosystem of cryptos is populated by big names like Justin Sun, founder of TRON, able to turn any small project into a great opportunity just by adding his name. With that in mind, the coup-makers started to create founders and biographies fakes to base their fraudulent projects. The solution in this case is to thoroughly research the entire project team, individually, one by one. If you do not find any information about the developers and founders in Linkedin or similar, a red flag should be triggered and still if you find, you should watch for the number of followers. Real successful people have many followers and relate to them, stay tuned to fake profiles. Once you find out if the development team is real, it is important to make an effort to measure your qualifications. Do the founders have the experience they claim to have? Will these skills make a difference in this project?


This is the main project document. It’s the starting foot tip. Where the background, goals, strategies, concerns and timelines for implementation of any project related to blockchain should be defined. The document is incredibly revealing: companies that have a flashy website, for example, can reveal a solidity and a carefully designed design. Already a misspelled WhitePaper can be a hint of a blow and a red flag should be raised. White Paper is a document and as such requires a thorough reading and interpretation in the same direction. Make sure the White Paper has complementary features too, including financial models, legal concerns, SWOT analysis, and a roadmap for implementation. Even by doing this filtering, it is possible for a fraudulent company to present a convincing document, as was the case with PlexCoin. This company managed to raise more than $ 15,000,000 before the American securities commission discovered the fraud. A White Paper should answer all the questions a potential investor might have about the specific project, its competitors, how it intends to be successful, and the steps it will take to achieve its goals.


All ICO will have a token or currency system in order to enable the bulk sale process. Legitimate ICOs bring transparency to prospective investors to see the progress of the sale. Look for ICO sales token sales data in progress. Better yet, monitor the token sale over time to see how it’s progressing. If a company makes it difficult for anyone to map the tempo of their ICO, we should stay alert and raise one more red flag. Some scammers will hide their token sale progress using individual contribution addresses, this prevents investors from verifying exactly how much was raised and how much time remains in the sale. In some cases, this may be an effort to generate a sense of urgency among potential investors, even if there is no evidence of a successful sale.

Feasibility of the project

The best chance to succeed in an ICO depends on a feasible and feasible project. The company should have a convincing concept, but should also be able to run this project in the short and long term. It seems obvious, but ICO’s with the greatest chances of success are those that have this fundamental structure. Many have choked after launch because of the project’s lack of viability, which initially proved to be a good idea. Look for ICO’s that keep prospective investors up to date with regular and detailed progress reports on a company website or social media. It is also useful to look at whether the company has a timeline for what happened in the development process as well.


ICOs offer a tremendous opportunity for investors who do their homework. Studying thoroughly every detail will be able to make investment decisions based on actual technical data. Look for external sources to check the legitimacy of any project before making an investment, and always ask questions that can be answered by any serious entity. Beware of pitfalls that can lead to large losses of money due to fraud or even to legitimate businesses that are simply poorly designed and managed. Even the best ICO projects are fueled by speculative investments. The idea of ​​getting rich quick on a new investment is tempting enough to attract savvy investors and beginners. Keep one eye on the cat and another on the fish. While tracking the good results of an ICO, check out what’s behind this success. Spend time examining every detail, and keep in mind that missing a piece of crucial information may be an attempt to hide a blow. Be aware that projects that sound too good to be true probably are!