3 Methods to Identify an ICO Scam

The team members are anonymous

 The first and most obvious sign that ICO is a scam is when the project developers and team members are anonymous. By conducting an ICO, a startup is requesting token buyers to trust that the developers will distribute a working product instead of spending their own money, so the team must be ready to keep its words and promises with confirmable identities.

Unrealistic goals

 A complete and valid ICO will speak for itself. It will demonstrate aims, goals, strategies and timeline for accomplishment for any blockchain connected project full details. A detailed analyze will let you know if the goals set are accurate or not. Examine for details legal terms and conditions, privacy policy, and white paper.

The token does not have a clear use case

 The major sign of an ICO being a scam is that the creators are unable to clearly identify a logical use of their token. The token must operate as a key point in the startup’s platform. If it doesn’t, then token will not maintain its significance over the long-term. Correlated to this problem are tokens that advertise themselves simply as digital currencies without offering any real innovations or upgrades for existing cryptocurrency technology.