Cointelegraph published an article detailing five notable cryptocurrency scams.
“The crypto community needs to promote financial education and ethical investment practices, otherwise governments will over-regulate and stifle real innovation. The most effective way to protect investors is through education. Investors need to learn how to evaluate investment opportunities, quickly spot scams, and know how to manage risk.”
The crypto market has immense potential, but is still immature; should its reputation continue to be tarnished by shady companies and schemes, governments will not have a choice but impose regulations at a stage when over-regulation can be lethal to the market as a whole. The sooner the market learns to self-regulate, the better; hence, pointing out scams is one of the objectives of this blog. We do not give investment advice, however we do encourage the readers to use common sense and critical thinking.
When looking at an ICO…
- Read the Whitepaper. Is it up to industry standards?
- Have a look at the Roadmap. Has it been followed up until now?
- Have a look at the Team. Is it composed of Tech guys, or Salespeople?
- Is the project unique?
- Are there valuable partnerships? Are the partnerships real?
- How approachable is the team?
- Is the strategy clear and concise?
- Are the objectives attainable and realistic?
If you have already invested in coins/tokens/ICOs…
- Have a look at your portfolio. Critically examine the progress of every item.
- Has the company made any progress since your first look?
- Does the project show real signs of life, or is starting to seem abandoned? (beware, – after recent price falls, many companies are thinking of exit strategies)
- Is the team expanding or contracting?
- How has the market reacted to any news regarding the project?
P .S. DO NOT FALL PREY TO FOMO. Many “investors” felt FOMO when looking at Bitcoin price in December.