Avoiding scams

ICOs offer a chance for serious rewards, and as with any industry with money-making potential, they can attract scammers. It is important to look out for some key elements that should make us suspicious.

Lack of transparency

If any necessary information to make a smart decision is withheld it should be a red flag. Most important, is the team behind the project. Do not ever invest your money with a project whose team is anonymous. The only reason to do this is if you are pulling a scam.

Double check

Even if the website shows you names and pictures of the team, look into them in other mediums. Be sure that they are truly involved in the project and are freely associating with it in places like LinkedIn or Facebook.

Company information

Look into the legality of the project- where they are registered, who registered it, who registered the domain, is there a viable white paper, and do you have access to source codes or at least smart contracts. These are all things that are publicly available and can save you a lot of heartache.

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