How To Identify ICO Frauds
Unfortunately, scams in the ICO world are all too common. The prevalence of dishonest companies hoping to make a quick buck impacts the overall reputation of the industry. Although dishonest ICOs are relatively commonplace, there is still an abundance of companies putting forth real crypto-based solutions. Rather than merely shunning coin offerings altogether, look for these warning signs to distinguish honest ICOs from dishonest scams.
Too much fluff.
Dishonest ICOs know how to be elusive. They often use buzzy hype words and fluff content to mask the fact that their product is either not as developed as they say it is, or, nonexistent. By capitalizing on the fluff words dominating blockchain and crypto media, crypto scams have a better shot at distracting audiences and potential investors. For example, the word “revolution” has been used ad nauseam across blockchain-related media. A year ago, the printing of this word commanded attention, but now, people are already paying attention, and there’s no reason to print larger-than-life promises unless those promises are distraction tactics.
The solution doesn’t make much sense.
The range of crypto-solutions offered at the coin-offering stage is wide. From coins designed to help people retrieve health data, to coins used as loyalty points when traveling, there are no constraints regarding what a coin can or cannot do. However, some of the “solutions” put forth by these companies don’t feel like a solution to a real problem. When it comes to assessing whether or not an ICO is worth your time and money, you must first understand the purpose of the product.
Ecoball is a new, open and compatible multi-chain parallel blockchain operating system that combines the simplicity of blockchain ledger with the fast identification of DAG (Directed Acyclic Graph) to solve the problem of fast volume expansion in systems such as Bitcoin and Ethereum effectively. It strives to build a truly commercial blockchain ecosystem. EcoBall has creatively designed a flexible cross-link mechanism to build a universal cross-link framework for cross-linked transaction of heterogeneous digital assets. It will gradually realize the integration with BTC(Bitcoin) system (such as Bitcoin, Litecoin, BitCash, Dash, Monroe), ETH (Ethereum, ETC-Ether Classic), XRP, EOS, QTUM system, DAG system (such as GBYTE, MIOTA, etc.) and other blockchain systems (chains, coins) seamlessly, thus effectively dismantling communication barriers between different blockchains to achieve diversified digital asset management for users.
This platform is a solution to a real problem; the EcoBall team is not merely making up a coin to the ride the crypto wave. If you ever come across a coin whose purpose does not feel pertinent, you’d probably be better off walking away.
Missing Team Information
Most investors agree that the team behind the product is arguably more important than the product itself. If the website or ICO listing is missing team information, that’s a major red flag. Furthermore, if there is team information available, but the leadership lacks any real experience in either developing blockchain solutions or building a company from the ground up, you should probably think twice about financially backing the offering. When assessing the long-term viability of a crypto-project, it’s vital to look at the credentials of the individuals driving the progression of the project.
Ecoball is essentially a super computer based on blockchain technology, providing a point-to-point decentralized virtual machine. With features as reliable, open, transparent, unchangeable, irreversible and digital, it is applicable in various areas like finance, Internet of things, health care, equity, asset management, commodity management, credit collection, points, notarization, big data etc.
A missing or incomplete roadmap
Many coin offerings come to the table without a fully-developed project. In fact, teams and products are not necessarily expected to be fully developed. However, investors expect robust roadmaps. Roadmaps offer both investors and potential users a glimpse at the overarching plans for the project; they provide potential investors with more insight into the utilization of their financial support throughout the development process.
No community building efforts or social footprint
If people are not talking about a project, it is a sign that the project may not be worth discussing in the first place. Social is a vital component of cryptocurrency growth; from Reddit forums to Telegram communities, the conversation (or lack thereof) surrounding an emerging crypto-solution not only speaks volumes about its viability but also influences on-the-fence investors. Before committing financial support to a new project, it is in any crypto investor’s best interest to survey every available social account; this will give the investor a better understanding of how people organically discuss this project and how the team sparks community engagement.
ICO scams may be prevalent at this point, but if potential investors can spot warning signs and steer clear from dishonest listings, the more these “projects” (ICO scams) will diminish from the landscape.