Summary: ICOs can make you a lot of money very quickly, but that doesn’t necessarily mean that they are without flaw. Only two things are certain in life, and ICOs are not one of them. You can make a lot of money with ICOs, but you can also lose them fast if you are not careful. As with any investment, it’s difficult to predict the success of a startup with absolute certainty. Similar to crowdfunding campaigns, companies might not complete the project or trick you into investing in their business without any intention of ever launching it. That is not unusual for an entirely new, mostly unregulated field. However, there are a few measures you can take to assess the credibility of a product and avoid getting scammed. Avoid Anonymous Teams Be wary if the developers of the project are either anonymous or unknown to anyone in the community. Sure, there might be instances when the developers are just new to the concept, but if they are not willing to put their reputation on the line, then it’s best to keep your money in your pocket. Only Invest in ICOs with Escrow Wallets One of the ways legitimate companies have managed to regulate ICOs is through the use of escrow. Therefore, if the developers don’t have an escrow wallet for investments, then nothing can stop them from running away with your money. Be Skeptical of Lofty Goals Another red flag you need to pay attention to is the goal of the project. If the developers have set unrealistic goals, it usually means that they don’t know what they’re doing. Or, worse, they don’t care and are just looking for a way to make a quick buck by scamming people. Don’t Invest in Just White Papers Legitimate businesses often show the status of their project, keeping investors in the loop. If the developers don’t release any proof of progress, such as beta code snippets, behind the scene documents and videos or beta/MVP versions, then most likely they don’t have anything to show. ICOs investments, as with any investment, for what matters, aren’t risk-free. The fact that the government doesn’t regulate ICOs can add to the feeling of uncertainty. However, things have changed dramatically since the inception of ICOs. Nowadays, blockchain startups impose restrictions on themselves and can provide sufficient transparency to earn the trust of investors. As already mentioned, contributions are stored in escrow wallets, and developers need several keys, including some from trusted third parties, to access the money. Moreover, companies need to provide comprehensive documentation to back up their projects, such as defined goals, recommendations from independent experts, and so on, to prove the legitimacy of their campaigns. http://ianbalina.com/hacking-venture-... Website: http://ianbalina.com Instagram: https://www.instagram.com/diaryofamad... Twitter: https://twitter.com/diaryofamademan Snapchat: https://www.snapchat.com/add/diaryofa...
