How to understand if the ICO is a scam

ICO or initial coin offering if relatively new model of investment. Yet, it receives plenty of public attention and recognition.  The most successful ICOs have brought their founders billions of dollars. The market is crowded, thus ICO founders have todo their best to attract investors and not to disappear without trace forgotten. The thing is to distinguish a decent project from a scam in this vast variety.

First find out the basic information about the project like trading volume, liquidity, hard cap and soft cap, see how many exchanges list this ICO token. Speaking of exchange platforms, Binapex has all the promising tokens listed and available for trading. This exchange is officially registered in Seychelles and has all the needed document confirming that. It goes without saying that Binapex meets all the Anti Money Laundering and Know Your Clientrequirements. Apart from that, the platform offers token listing at a reasonable pricing. Getting back to the topic, if the numbers seem plausible,it is time to validate other parameters.

Find out what kind of team stands behind the ICO. Are they qualified enough? What is their experience? The team should be big enough to fulfill all the tasks and achieve results. In case if all the team members are hidden or do not have a link to their social media, the chances are that the project is a fraud. Decent projects, on the contrary, strive to demonstrate a big and sophisticated team to ensure investors that they are making a right choice.

Finally, make sure that the whitepaper is flawless. This document should provide detailed explanation of the project’s idea and milestones leading to its fulfillment.

 

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