It is imperative to know the things that make an ICO a good one – acquiring the ability to evaluate an ICO and see if it is legitimate or just another financial fraud. Here are some of the signs to look out for in ascertaining whether an ICO is worth investing in.
Before anything else, the first thing you should look into when an ICO launches are the members of the team of the project. People do not always consider this necessary, but rest assured. It is the critical first step to knowing if the ICO is legitimate or not. Do a thorough background check on all the people on the project’s team to see what have they been up to in the past. Digging into the team members’ history will help a lot in understanding the project’s legitimacy.
Once again, the whitepaper should give a detailed analysis of the ICO and the project it is based on. The whitepaper should also be able to answer all your questions concerning the project. In the instance that the whitepaper fails to do those, do take note that something may not be quite right with the ICO. A good ICO, therefore, should be as analytical and in-depth as possible.
The ICO’s community
A good project will have everybody talking about it in popular forums like Bitcointalk.org and dedicated discussion channels like Telegram. Follow what people are talking about regarding the ICO, primarily how the administrators of the ICO are responding to people’s questions. A good ICO will leave no stones unturned in ensuring all participants’ questions are thoroughly answered.
The token distribution of an ICO is another way to know the viability of the ICO. A good ICO will always ensure that there is a good share of the tokens of the ICO to the public to create transparency and fairness. A situation where administrators hold a significant percentage of the token usually doesn’t end well.
Is sharing caring? What to do if I wrongly shared a scamming ICO?
Sharing opens you to the vast opportunities of what comes back – when knowledge is shared, expect some good karma. However, just like anything that could go wrong, a sharing action could go wrong regardless of the kind intention behind it. Before you share an ICO, always make sure you have taken time to assess the legitimacy of the ICO you want to share. However, should all else fails, then do the following:
- Dutifully inform all your channels and the places you have shared about your discovery and attempt to stop people from investing in the ICO.
- Write an apology statement to ensure the fraudulent ICO has not so marred your integrity.
- Report the fraudulent act of the ICO on various media they may be on. Most ICOs uses places like BountyHive, Twitter, Facebook, BitcoinTalk, and Telegram during their campaigns. Report their accounts on all those media for an immediate ban.