During the last few years, the ICO market has grown significantly. ICO projects are in many investors interest. How to distinguish a good ICO project from a bad one and not fall into trap and get scammed?
Project owners does not have appriopriate qualifications or have controversial past
Whether, or not ICO survives and keeps the project running depends mainly on how it is managed. People standing behind the project are responsible for its either success or failure. Their decisions are crucial for ICO's life.
Before investing in any ICO project, there are several things that are worth considering, for example, checking if project founders have any experience in this field, or what is their past. Exit scamms often happen. These are ICO projects that are gathering capital and escaping with investors funds. All the data provided by ICO founders are fake. Before placing your capital in such projects, check the person identity, their social medias like Twitter, LinkedIn or Facebook, and do a research if he posted anything about the project he is currently running. The thing what often happens, is that scammers use someone's data and image without their permission.
Project's marketing is too aggressive
There is a proverb that tells: why is the bell so loud? Because it is empty inside. It ideally reffers to some of ICO projects marketing campaign. Many startups focus too much on marketing, neglecting the technical aspects of project they are running.
We should avoid investing in an ICO's that are not focusing on technical issues of the project and doing too much noise in social medias, encouraging people to buy their tokens.
Token does not take any part in project's ecosystem
The token that belongs to a platform should take a part in its ecosystem. This is the main factor, that tells if project will succeed or not. As an example of a native cryptocurrency, Ether, there is a fee charged for so-called gas in Ethereum. In turn, BNB token belonging to Binance cryptocurrency exchange provides many discounts for exchange users. It also allows to proceed a payment on other platforms, sucha as Travala.
If the token does not have any useful properties, it is useless. Survival chances for projects with such tokens are very low.
Token cannot be sold on any cryptocurrency exchange
It gets risky, when pucharsed ICO tokens cannot be sold on any exchange. It should be a red light for investors.
Before an ICO project launches, it is worth to make sure if cryptocurrency exchanges will list the coin on their listings and allow trading them
There is no technical progress in project
If you can't notice any technical progress done by ICO's team, you should probably let it go. The competition in the ICO field is huge. A startup that does not bring anything new to market, or does not develop its project will never be successful.