We asked two ICO experts for their top tips on how investors can avoid falling foul of scams and fraudsters.
Disclaimer: Following these steps still doesn’t guarantee an ICO isn’t a scam, nor does it guarantee a return from a legitimate ICO. Proceed with caution.
ICOs typically start with a glossy campaign home page that sets out the startup’s plans and promises for what it’s raising money for, what its token does and how much money it’s already raised.
“Ensure the ICO has good escrow-think of it as a form of insurance in your investment. Escrow is essentially a bond which guarantees you won’t have to stump up money if the ICO doesn’t end up going ahead,” says DigitalX’s Travers.
“Investigate who is behind the ICO and their work histories. What companies did they previously work for? What is their experience Do they have a solid tech background? Make sure they are real-life people who exist and not a fake profile,” says Travers.