Spotting Scammy ICOs Before Parting With Crypto Coins In Crowdfunding
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Spotting Scammy ICOs Before Parting With Crypto Coins In Crowdfunding

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Crowdfunding

Crowdfunding has become a popular means by which businesses get funds to start a business. However, the rising popularity of bitcoins has led to a new method of crowdfunding called Initial Coin Offering (ICO) that is different to the standard financial system that the market is used to.

What is an ICO?

Before going into the details of how to identify ICO scams, it is first important to understand the concept of an ICO. It is basically the crowdfunding that we all know but the difference is that ICOs are carried out through cryptocurrency. It is currently becoming very popular because it presents a new method for individuals and companies to fund their projects.

ICOs are advantageous because they have an easier and more efficient process compared to the traditional methods of crowdfunding. ICOs last about one or two weeks and sometimes even longer. During that duration, individuals and companies get to purchase tokens issued through the crowdfunding in exchange for cryptocurrencies such as ethereum or bitcoin.

Fake ICOs

ICOs have been growing more popular especially with the surge of major digital currencies such as Bitcoin. This highlights the fact that they are more efficient and easy to use for crowdfunding purposes. Numerous ICOs were launched about a week ago and this demonstrates just how popular ICOs have become. However, this has also led to new threats such as scams despite the allegedly secure nature of blockchain technology.

Generous bonuses

Investors view very new ICO that becomes available as a potential goldmine which means it could be the next big thing. This is because some major firms such as Uber or Airbnb got to where thy currently are through crowdfunding. For this reason, most investors are after the best bonuses that they can get through crowdfunding projects.

Most of the bonuses issued through ICOs are often based on the total investment and so investors sometimes pursue bonuses that are as high as 90 percent. These bonuses are thus an incentive for investors and so some scammers want to take advantage of this by offering generous bonuses. This is one of the tell-tale signs that an ICO could be a scam. Investors should thus avoid deals that seem too good to be true.

Adequate background checks

Scammers are often clever and often times end up being as good as the real deal. This means it is difficult to tell the true ones from the fake ones. It is thus important to employ other security measures. One of those measures should include an elaborate background check of the founders of the ICO to determine whether they have a good track record.

Legitimate founders will most likely have their footprint in other key areas thus meaning they can be trusted. It would not be a good idea to invest in a crowdfunding project whose founders have no prior experience in the field that they are venturing.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Rocio Lara via Flickr

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3 Reasons Why WISE Token Could Be a Massive Winner in 2021

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WISE token

After working in proprietary trading for over a decade, I decided to transition to crypto in early 2017.  Although crypto is significantly different from traditional capital markets, I managed to successfully find a niche for successful and opportunistic trading.  While 2017 was the perfect time to get involved, the past few years have proven to be a bit more challenging as far as generating ROI.

Cryptocurrency traders have spent the past several years searching far and wide for the next big winner.  While the market as a whole hasn’t been very bull friendly, one specific area that appears to be gaining traction is decentralized finance, more commonly known as DeFi.  This area generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum.  The reason why so many crypto entrepreneurs are flocking to this space is that it allows them to create traditional financial vehicles in a decentralized network, outside the meddlesome control of foreign governments.

One extremely popular DeFi project is Chainlink (LINK) which is a decentralized oracle network that provides real-world data to smart contracts on the blockchain.  Chainlink has seen its token price increase by more than 300% year-to-date.    Another impressive project in the space is Kyber Network (KNC) which has seen its token soar from $0.20 at the start of the year to more than $1.60 at present.  Kyber Network’s on-chain liquidity protocol allows decentralized tokens swaps to be…

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The Pros And Cons Of Cryptocurrency

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cryptocurrency

Many facets of our lives are now digitized––money is no exception. 

Have you noticed that paper money is on its way to being obsolete because so many people receive direct deposit and love the simplicity of their debit card? 

Not to mention, cash carries germs, as we’ve heard lots about during the pandemic. Many businesses have turned to card only options in light of this. 

But what about cryptocurrency?

You probably heard everyone raving about it a few years ago, but the excitement’s calmed down quite a bit. That doesn’t mean that it’s not a viable option you should keep in mind. 

What’s Cryptocurrency? 

Let’s start with the basic definition of cryptocurrency so we’re all on the same page. Cryptocurrency utilizes cryptographic methods and complex coding systems to encrypt sensitive information during data transfers. This protects your funds and personal information on a whole different level. 

These transactions are virtually impenetrable due to the combination of mathematical and technological protocols created and put in place. This aspect of cryptocurrency is what makes it safer. Also, the details of transactions are kept private. No one can see who sent what, etc., because those rigorous mathematical and technological protocols protect it.

The Pros: 

Different From Traditional Banking Transactions

One thing people hate about traditional banks is the fact that they can…

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As Global Tensions Grow, Bitcoin Price May Go Higher

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BTC Surged Again as A Safe Haven Asset During Global Tensions

  • India – China Border Conflict

After weeks of squabbling and brawling along their long-disputed border, hundreds of Indian and Chinese soldiers engaged in a deadly clash Monday in a river valley that’s part of the region of Ladakh last week. Troops had massed on both sides of the border in recent months in the northern India region of Ladakh and the southwestern Chinese region of Aksai Chin, causing global concerns of a potential escalation between the two.

  • North and South Korea Clash

Last Tuesday, North Korea destroyed the liaison office it jointly operates with South Korea in the city of Kaesong, just north of the demilitarized zone that separates the two countries. 

North Korea also said it would send troops to now-shuttered joint cooperation sites on its territory, reinstall guard posts and resume military drills at front-line areas in a violation of separate 2018 deals with South Korea. Jeong said South Korea will take “immediate, swift and corresponding” steps to any North Korean provocation.

The tensions grown in Asia and the potential “second wave” of coronavirus in the United States may add more difficulties to the global economic recovery. Thus, Bitcoin, as a safe haven asset, attracts more investors to buy and hold. 

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