The phenomenon of multiple ICOs is no longer shocking, so it is only natural that investors start differentiating a bad ICO from the good ones faster.
The investment on Initial Coin Offerings (ICOs) is an excellent method to make money, and even become rich. While there are plenty of successful reports, there have also been some huge failures. Understanding how to identify investment mistakes can mean the difference between earning money or losing your savings.
What are the main warning signs that indicate a poor ICO investment? Three significant red flags to look for:
- Its team members are not well-known or has no prior experience. A lot of scammers make money off of investors who aren’t experienced by promoting projects without a solid team behind them, or teams with no experience and do not have credentials or verification within the field they’re trying to get into.
- Many reviews posted on third party review sites caution against investing in ICO. If many users have posted negative reviews of an ICO generally, it’s a sign that something isn’t right with it. Make sure to conduct your own research well prior to deciding whether you want to invest in or not.
- The token sale process is not sufficiently rushed or saturated with token offerings from other projects that share similar concepts or goals. Although speed is often a sign of an incredible level of enthusiasm for an idea, it is important not to fall prey to advertising hype. Too numerous ‘hot offers’ could simply be a sign not everything glitters is gold!
