Wrong directions in ICO industry
I have noticed recently that some ICOs do things the most hard way, making it difficult for themselves, for investors and in addition to that behaving like a scam ICO (when they are not), which makes it more difficult for people to identify scam.
1. Demanding KYC procedure and declining investment based on investors location.
This has become so popular that it’s current very hard to find a normal ICO to invest it. Demanding KYC and prohibiting USA or Chinese investors to participate will just lower the amount of total investment the ICO will get. ICOs who look after KYC and AML the hardest loose up to 50% of their potential investments. This just stupid.
2. Hiding their ICO sale details.
For some bizzare reasons, some of Top ICOs have started to hide information about their ICO sale. On their website they tell nothing about their ICO, but secretly behind everyone's back try to raise money. What’s the point? Some even go so far that they hide their smart contract and token name, so that people can’t find them. Really? Why?
3. Not showing investments on Etherscan.
Many ICOs have decided not to use smart contract to gather investments so that they will not appear on Etherscan. Before this was done only by scammy ICOs that lied about how much they have raised, but today real ICOs that raise millions still do that. I see no other point in that but to confuse ICO investors and make it harder to spot scam ICOs.
As an expert, I advice to avoid ICOs like that.
Investing is not only about return, it’s about giving money to people you trust and like what they are doing. If most of the ICO investor will not invest in ICOs mentioned about, it would force ICOs to change and take investors into account.
The whole idea of crypto currencies and ICOs is that it’s:
- Publicly available
When I see an ICO wrongdoing all of those points, I cannot say anything else, but advise to to leave blockchain industry and go back to traditional financial world, full of corruption and secrecy, where they belong. Don’t ruin crypto and ICO industry, it’s supposed to be pure!