How can I be sure that the ICO project is real?

There are numbers of key indicators that gives potential clues to figure out whether that particular ICO is real or just big bummer scam. In the present situation of ICO alert, governments are taking actions regarding ICO regulation under ICO data protection acts but still there are exceptions where regulatory the boards failed to approve the legality of ICOs. Unlike IPOs, an ICOs are not regulated by any central entity and that makes it more vulnerable to scammers.

ICOs are also considered as ‘get rich faster’ scheme or bitcoin alternative but it’s just one side of the unpredictable digital dosh coin. To know whether ICOs are real or mere scams one can rely on the combination of these key factors mentioned below.

• No or obsolete info on owners
• Not enough information regarding their approach to receiving coins, vesting and lockup
• The roadmap or problem-solving approach doesn’t make sense
• Not an erudite developer team
• Too much hype but not enough substance
• Too glossy (ridiculous claims, promises, job postings etc.)
• No information on capitalization and codebase
• Vague white paper

These are the basic key indicators or parameters one should look for before investing in it. Let me explain each of them briefly.

When an ICO is launched, there is certain information one shall look for to cross-check whether an ICO legal or not. Look for the information regarding the people who are launching the ICO and collect as much information as you can. Ask community such as Reddit or Bitcointalk, get help from companies like ICOreviews, observe their LinkedIn profile etc. This information may help you to unearth certain facts regarding ICO.

Read the white paper. The whitepaper is the most powerful tool a blockchain company can have. It represents each and every aspects of the company that investors and other contributors required before putting money in it. Reading white paper clear major key indications and help you to come to conclusion that whether ICO is real or just mere scam.

Study their roadmap and future planning, observe their approach to solve the problem with their in-house developed novel technology and examine their developer team and their potential. Deliberating whitepaper will most probably help you to reach the conclusion that whether the company will survive in future or not and the most important aspect if the ICO Company is real or not.

Normally ICOs proudly boast market valuation and name of the investors it is backed by. If you would not find the list of such investors, venture capitalist and the information regarding their market capitalization it’s time to inquire further. Don’t get attracted to supercilious schemes and claims they have proudly exposed on their website.

Check whether the ICO is authoritative and approved by the central authority such as FINMA or other financial authority of nations. And finally study the process of registering for ICO (ICO KYC and AML), their closing and ending date and their way to send and receive coins. These key factors will probably help you to clear your head whether an ICO is real or not.

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