Around 2016/2017, a lot of projects organized their ICOs. Some were credible or had genuine intentions, while scammers ran the others. The different variants of ICO are Initial DEX Offering, Initial Exchange Offering, and so on. But, how do you know if an ICO or any of its variants are genuine or fake? Read on below.
- Analyze the token sale
When an ICO is unveiled, the team usually makes it transparent for people to see the token sale progress. Credible crypto startups allow the public or potential investors to know the amount raised or the remaining time for the period to end.
- Project potential
Prospective investors must examine the project potential with every ICO announced. What does the project intend to achieve? Before investing in a platform, go through the project roadmap and the use cases. Each crypto startup has its utility, solutions, and much more. A scam project may beat around the bush concerning its potential.
- Scrutinize the whitepaper
Projects communicate their concepts and intentions through their whitepaper, which details the business model, tokenomics, partners, team, and other crucial information about the platform. Usually, scam projects do not pay much attention to crafting a communication tool with potential investors.
The team has a vital role in the success of a project. It can make or mar the project basis its actions, experience, records, and other elements. People with better pedigree have a greater chance of creating innovative projects that stand the test of time. In addition, credible projects tend to be transparent about their team members and founders. On the other hand, dodgy schemes usually hide team information.