ICO Fraud Examiner : Today, even organized businesses sometimes use this platform to attract more capital. So far, so good. But there is a fundamental problem. ICO and IEO scams in this space are more straightforward than in real space.
Therefore, we suggest that you read the ICO Fraud Examiner article today to increase your knowledge about the risks of investing in Crypto projects 2021 , as well as ways to identify reputable ICOs.
This article was prepared and edited by Antidolos. The media has long fought digital currency fraudsters. Therefore, it is its mission to produce helpful content to prevent further scams.
What is the main problem of Crypto projects 2021 ?
There is a problem. Despite the advantages, ICOs have their challenges. We have already written about some scammer checker websites. But in this section, we will examine separately.
The main challenge in this area is legislation and its lack of transparency. ICOs are based on Blockchain technology. Because of the particular circumstances of Crypto projects 2021 , the ruling seems complicated for them. Wherever there is no clear law, profiteers and fraudsters often enter. They try to take advantage of the law’s incoherence in these areas and steal a lot of money from the victims.
This profiteering and fraud in Cryptocurrency are done by launching fake ICOs done solely to steal investors’ money.
Famous fraudulent ICOs
- Confido, who stole $375K from investors
- The $2.7 million Benebit disappeared
Apart from these two cases, there were many other cases where they swindled with large and small sums and escaped with investors’ money. These two were just examples of the biggest scams in ICO Fraud Examiner . Unfortunately, many people who the fake Coindash ICO deceived have been rubbed.
The story was that when Coindash launched its site. It was hacked, and the Ethereum address, which was placed on the site to raise capital, was changed to another address by hackers. However, the hackers later returned the stolen Ethereum to the ICO, which raised many questions about its legitimacy.
So you see, there are such risks in Crypto projects 2021 . And also in the world of digital currencies and Blockchain, the existence of fake ICO is not uncommon. This is why investors need to be very careful in choosing ICO Fraud Examiner .
How to detect ICO Fraud
Here are seven tips to help you better identify ICOs and identify fraudsters. Before taking any action on investing in ICO or IEO. We recommend that you read these important points and many more. These 7 are the experiences of Antidolos experts and can help users a lot in preventing fraud.
1. Questionable White paper
If Crypto projects 2021 don’t have a proper white paper with project details. It is often not worth the investment. Many fake ICOs copy the white paper of other projects and make only minor changes to make them look original.
If you are an amateur, we should say that the White Paper is a detailed report and detailed document that explains the nature of the ICO, the purpose, the market, and the full details of the project for novice users.
The best solution is to look closely at the ICO concepts and compare the project white paper with other similar projects. This is necessary to be able to identify potential ICO copies of similar projects. If we find any others’ replica, give it a chance that the project could be a scam like Weblock (WON) ICO. So it does not make sense to invest our money in that project.
2. Inaccurate and questionable details about the team
Not knowing the details, records, and team details of a project is often an alarm. Some ICO IEO ratings and reviews do not introduce the developer or other team members and say, “This project has a motivated and enthusiastic team.” But this is not enough. Why trust Crypto projects 2021 that are not even willing to introduce their team members properly? This is one of the most important things to consider when considering ICOs. Examining the project management team is one of the essential parts of the ICO Fraud Examiner .
Of course, we should note that many fake ICOs also falsify the team’s identity and even seem to provide accurate details of the group. But all this information is phony. So we also have to pay attention to this case as well.
Checking the account of team members, researching the accuracy of work records, etc., on social networks can help you in this regard. A Google search for a person’s name along with words like ICO Fraud Examiner and Fraud may also give you a clue (although most scammers fake their identities, this is practically useless).
3. Lack of MVP ( ICO Fraud Examiner )
MVP means Minimum viable product. It is a product created with basic facilities for its first customers to allow developers to receive feedback. Many professional investors find the MVP very important in choosing the right ICO to invest in. So check the ICOs to see if the initial product (beta) is under the white paper or not. Sometimes it is not possible to have an MVP for all projects. For example, a good and reputable project like Filecoin has never had an MVP in its ICO, but it has achieved great success and still has great potential.
4. Lack of proper roadmap
Even ordinary people have a roadmap and goals for themselves, let alone the company that plans to launch and carry out a project. The lack of a proper, wise, and accurate roadmap should also be considered an alarm. Lack of an appropriate roadmap is an early sign of a lack of interest and enthusiasm to get the job done and suggests that ICO executors are probably just looking for easy money. However, creating a fake roadmap is also on the agenda of most fake ICOs. Also, note that making a phony roadmap is not that difficult. The best solution is to compare the roadmap with the details of the White paper and see if the promises made are possible. Finding a startup or Crypto projects 2021 and reviewing their timeline can help you analyze the ICO roadmap.
5. Unprofessional behaviors
As you probably know, with the launch of the ICO, groups are formed on Telegram and other social networks to discuss the project and connect with the project team. This is an excellent opportunity to do more research and get to know the team. Join these groups and talk, ask intelligent and accurate questions and see how the team responds. Suppose your question has been ridiculed or expelled from the group or has seen unprofessional behavior on the part of the ICO team. In that case, you are most likely facing an invalid ICO. Also, chat privately with team members and see what their reaction is and what approach they take. All of this and your creativity can help you make better decisions.
6. Ponzi or pyramidal structure
ICO or IEO with a Ponzi or pyramid structure is not challenging to identify and can be placed in a small amount of time. Yet ignorant people still fell into their trap.
Usually, in a Ponzi scheme, people are asked to introduce new investors to the project on several levels, and the profit is made only through the introduction.
The purpose of Ponzi schemes is to expand the scheme to benefit specific individuals. Such Bitcoin scammers are often unstable and should be avoided. Note that any site that asks people to introduce people should not be considered a pyramid scheme. This is perhaps one of the most straightforward features that can make a project a scam. Therefore, this feature can be regarded as very important in ICO Fraud Examiner .
7. Assign questionable token
If the distribution of tokens among investors and team members, and project consultants does not seem logical, it is best to ask the project team members about this first. If you receive an irrational and ambiguous answer, it is better to avoid that ICO.
It is not wise to invest in projects where the project team owns 60% of the total tokens. Avoid ICOs where large quantities of tokens belonging to the project team are lock for a long time. And the future use of those tokens is unknown.
Because from the very beginning, the purpose of this work must be specified and clearly stated. You should also see if the total amount of tokens available fix. It is also essential to know the proportion of capital accumulated and who controls the rest of the money. It would be best to ask questions such as those deposits’ status or how project owners maintain them.
Conclusion ( ICO Fraud Examiner )
Investing in ICOs is not a difficult task in itself. You need to send some ETH or digital currency to the relevant ICO wallet’s address to get the project tokens and evaluate an ICO carefully and the ones that have a high-profit potential. Find out requires careful experience and study of previous white papers and projects.
In addition to the above. Some fraudulent sites sometimes disguise themselves as well-known ICOs to take advantage of the company’s reputation for profiteering. In ICOs. Some novice investors enter the field with the temptation to make short-term profits of 5,000% or more in ICOs, but this mindset is completely wrong.
The truth is that many ICOs and projects fail. Ethereum network founder Vatalik Buterin even believes that 90% of ICOs will eventually fail. For this reason. Investors should abandon the mindset of getting rich quickly and put caution and careful consideration of ICOs on the agenda. Antidolos Thank you very much for reading the ICO Fraud Examiner article to the end.