How To Identify ICO Token Scam Projects Before investing Money?

[Good-Guy]

The creation of cryptocurrency brought a new revolution in the field of internet. Cryptocurrencies is a digital asset that changed the lives of many people and more investors are now investing in cryptocurrencies than ever. The development of cryptocurrencies and digital tokens have also changed the world of online investment and it has changed how people perceive investments. The fact of the matter is that creation of cryptocurrencies have also made it quite easy for scammers to create any kind of online token projects and ICO token projects and invite investors to invest money in their schemes. many people get scammed and lose millions of dollars to these scammers who then vanish away and their tokens's value and market capitalization also sinks away.

In fact, many scam token projects might not even be a token project in the first place. In fact, they might also be a pyramid scheme. I am not saying that almost all projects are scams, but since scammers have been scamming people for a lot of time and using different technique to entice investors, we should be careful when it comes to investing in such kind of projects. So what are some great ways to avoid these scam projects?

 

[Holicent]

ICOs are a great way to invest your money and earn returns on your investment. However, there are many scam ICOs in the market. How do you distinguish between a legitimate ICO token and a scam ICO?

This is how you can go about it;

1) The first thing you need to do is to find out if the company behind the ICO has real people or just a name. You can do this by visiting the website of the company and checking their “about us” page. Also, check out their linkedin pages to see if they have real people behind them. If you fail to find any information about these people, then there is a good chance that they are not real people and therefore could be a scam.

2) Check out the white paper of the company. A legitimate company will have a white paper that explains everything about the project. If there is no white paper, then it means that the developers of the blockchain platform have not done their due diligence which means that they are only interested in getting your hard earned money and nothing more.

3) The third step is to ask yourself whether the project makes sense to you or not. There are certain projects that don’t make much sense when you read through their data.