This article is for information only and doesn't call for any action.
We all remember the day when China officially blocked all the ICO. The price of BTC dramatically decreased those days. The Chinese declared that overall free-to-run ICOs should be immediately taken under control. We recognized it as the exertion of communism, but the truth is the Chinese wanted to defend their people from total ICO scum. Chinese government named today’s ICO practices as “chaos”, and they were right.
More than 90% of all ICO, which are run today, are scum and fraud in its pure form. Blockchain culture allows people receive funds anonymously, without any control. This involves into ICO model hundreds of thousands scammers and cheaters from all over the planet. 9 out of 10 projects, raising funds through their tokens will never be released. The market of tokens should be somehow regulated. Otherwise, it will be the den of fraud.
Nevertheless, the culture itself is the most convenient way to raise funds and to invest for both startups and investors. ICO will never vanish, either blockchain startups will never fade away. The market will cure itself and get rid of all the scum one day, but it needs time. Until it’s fixed, every newbie investor must learn to distinguish an ICO product of high quality in the sea of fraud. You are to reveal the scammer from the first sight.
Thus, I’m going to share my ULTIMATE guide to distinguish the real prospective ICO for newbie investors. If a project complies the checklist stated below – invest without any doubt.
The basic problem of every ICO-start up is that they do not have a complete product to show. Only a few ICOs can demonstrate at least a sore product or Alfa version. In most cases you are to invest into the idea or concept. The only source to estimate the project is an ICO website (created exactly to raise funds from you).
TIP:If you invest in the projects with a real product (ready-made or at least a prototype), you will definitely cut off most of scammers. What is more, ICO with a real product and audience is more likely to be invested to.