Ultimate Cryptocurrency Guide - Know What Are Buying! - Beware The Future Of Vaporware

So far in our Ultimate Guide we have looked at ICOs and different categorisations of coins, which if you have read through you will have a fairly good knowledge of what type of coin to look out for when about to make an investment.

In this article I want to highlight two types of absolutely-must-avoid cryptocurrencies, the reason we are focusing on these types is they are both very seductive in their nature, and they tend to raise millions or even tens of millions in their ICOs, so there is evidence of a lot of people falling for the allure of their siren call.

So without further ado let's take a look at the first of our culprits:

Vaporware

Vaporware is like software in every single aspect except one, it doesn't exist and likely never will. This sounds like a very easy thing to avoid, after all if a company doesn't have a product or at least proof that they're capable of producing one, then that should be easy to spot right?

Well you'd think so, but apparently for a lot of investors it isn't that easy at all.

I've spoken previously about startup companies who have a great product and then release a coin that has no functional use for their product, and is only connected to it by name.

Vaporware is similar in that using the proposed product will have no bearing on the value of the token attached to it, however the product doesn't even exist.

Case Study - AB-Company release ReCyclone

In this mythical case study we take a pretend company with a fake product and look at how Vaporware is often sold to the public.

• Press release telling everyone about ReCyclone - An app that can track and aggregate recycling needs on a citywide basis.

• Release figures showing how amazing the app is, using metrics that only employees of AB-Company can understand.

• Release whitepaper on the ReCyc token about how it is poised to takeover in the world of recycling. Include impressive paid-for financial forecasts, charts, tables and more confusing computer data.

• Get expert to agree that if ReCyclone app does in fact work the way it says it works, then it's the best invention ever.

• Release 5 year investment plan/roadmap

• Trigger ICO

• Ride off into the sunset.

The above scenario happens again and again, sometimes they are companies that actually have product in other areas, most of the time they do not.

When it comes to the crunch, they can always say they failed to get it out of the prototype stage, which makes vaporware a very close cousin of our next culprit. . .

Futureware

A futureware coin is easier to spot than vaporware, this is because it doesn't pretend to already exist, hence it is fast becoming a popular way to raise millions of dollars without having to have a product. You can spot these coins by reading the whitepaper, they will usually start with the words;

"One day there will be . . . "

Or

"One day we will all . . ."

Or maybe even;

"In the future . . ."

You get the picture.

The nature of futureware is always the same, technology that doesn't exist yet, how it is presented is where you will get the variation.

Some coins will tell you that they are best-poised to take advantage of the coming [Insert exciting futuretech concept here]. As if merely being aware of the fact that one day there will be thinking machines or robot fish or whatever will be enough to put their coin at the forefront of the technology.

Other coins will be attached to companies that are real organisations but have no connection to the futureware industry they are touting.

The last of these types are the ones you have to watch out for the most.

These companies do have links to the industry, and may even have links to robot fish or whatever tech they are saying will revolutionise the world. However they are no closer to the discovery than anyone else, which whilst they don't directly lie about, they are definitely economical with the truth.

Top Tip: If any whitepaper or coin website talks about what will happen when [future exciting concept happens] it is a futureware coin, avoid at all costs!

Top Tip 2: If after reading a whitepaper and visiting a website you still can't clearly define what product the coin is supporting, it is probably vaporware, and you should avoid.

Even if it isn't vaporware, you shouldn't invest in anything you don't understand.

Ultimate Cryptocurrency Guide Articles

Ultimate Cryptocurrency Guide - Know What You Are Buying! - Pay Coins Ripple On The Pond - Part 2

Ultimate Cryptocurrency Guide - Know What You Are Buying! - Pay Coins Ripple On The Pond - Part 1

[Ultimate Cryptocurrency Guide - Know What You Are Buying! - The Rise And Rise Of BaaS Tokens](Ultimate Cryptocurrency Guide - Know What Are Buying! - The Rise And Rise Of BaaS Tokens)

Ultimate Cryptocurrency Guide - Know What You Are Buying! - Utility Coins

Related Posts

How To Avoid Becoming An ICO Idiot - The Ultimate ICO Investment Advice! - Part 1

How To Avoid Becoming An ICO Idiot - The Ultimate ICO Investment Advice! - Part 2

DISCLAIMER: I am giving you investment advice, however seeing as I'm not soliciting you into my office, I am in no way responsible if you lose every penny because of my advice. So bear the following three points in mind as you're complaining:

- I follow my own advice so I too will have lost all my money.

- I don't live in the United States, so your chances of suing me are less than minimal!

- I don't actually care.

Image Credit:

Title Image by Rist Art on Unsplash