Identify A Bad ICO

If you are interested in the crypto market, you should know about ICO (Initial Coin Offering). ICO is an unfettered means of raising funds for new cryptocurrency venture. Startups consider this to bypass the daunting traditional capital-raising process required by most banks or venture capitalists. You have to know that there is a plethora of ICOs for sale right now. Browse through for more information.

Basically, ICO is your first chance to get involved in a virtual currency. Imagine it as the pre-sale period before placing it on the exchange. You are lucky if you find experts who can tell specific ICO that can make good profits. If not, you need to scour the market manually to find the right ICO. It will be daunting especially if you do not know what to look for.

inexperienced crypto team

With this, it is critical that you know how to identify bad ICO. Here are the signs you are investing in bad ICO:

They have an inexperienced crypto team

Although ICOs are for startups, it doesn’t mean that they have an inexperienced crypto team. The team will steer the plan or campaign to the success that is why they should have prior experiences. Check if the team has well-known advisers or famous venture capitalists. To give you more idea, you can watch the team’s key members interviews so you will know how they think.

They have an aggressive marketing

If the ICO campaign is aggressive in marketing, it is a red light. If you often see this ICO campaign in Facebook and Google banners and ads promising nice profits, you should not fall. Read for more information.

The community discussion is low quality

As an investor, you need to be aware. The most prudent thing to do here is to join Telegram and ask questions. You should see how these developers respond to the questions. Remember that strong community will create high-value discussions so you can gain insights at the end of the day.

The market cap is huge already

Check if the market cap is already huge. You have to be suspicious if there is no finite number of tokens or if there is a small percentage distributed to the public. You should also watch out if there is no lock up on the tokens for the team. These things can explode the market cap value before the trading even opened.

There is no real need for the token

To be successful, the ICO should solve a problem. A good ICO will pay attention to the scale of the problem that the coin is hoping to solve. The problem should touch many people otherwise it is just something that you can live without. If there is no real need for the token, it will not win big.

Now that you know the warning signs of a bad ICO, you can make wiser decisions when it comes to investment. It is always good to check the white paper because it will state the plan of the campaign. For more information, you can browse through