Millions of dollars are lost daily due to cryptocurrency scams. Exit scams and thefts have cost investors a lot of money. Here are a few traits of ICO scams that you should know about:
- Guaranteed Profits: ICO managers that guarantee profits are untrustworthy for good reason. In reality, the cryptocurrency market is quite volatile and there’s no way to tell whether the value of tokens will increase when an ICO end. Although many legitimate ICO projects offer token bonuses, you shouldn’t fully trust any promise for guaranteed profit.
- Not Enough Details: Be aware of a project has no or a simplistic whitepaper. It’s not a good sign if the ICO team doesn’t allocate enough effort and time to create detailed whitepaper. There should be clear explanation about the importance of the project and why the solution will solve user problem.
- Unclear Project Roadmap: ICO project team should provide a clear explanation about what they will accomplish within one or two years. Even if the team already has a working prototype, there’s no guarantee that it will be well accepted in the market. A project road map will ensure that not only products and services will work, but they are also relevant to the market.