Everything you need to know about choosing an ICO and spotting Scam
ICO is the trending term of the current generation and relevant source to increase funds for the startups. In a new cryptocurrency venture, a portion of the cryptocurrency in terms of percentage is shared with the supporters of the projects and in return, they get other cryptocurrencies or legal tender. They are slightly different from an Initial Public Coin Offering (IPCO).
Choosing an ICO for investment is a confusing task as you have to consider certain points as it also invites risk with it.
Understand The Purpose
To understand the purpose of the ICO, you need to read the white paper deeply. Try to find out the reason is genuine to initiate ICO and raise fund for it or not. Many ICOs just come in the market with the copied idea from the other competitor and add blockchain with it in order to pace with the technology advancement. But, with the irrelevant base, the idea cannot be fruitful and become successful.
So, choosing the ICO with a new idea for the genuine requirement is relevant for success.
Escape From Scam
ICOs are uncontrolled that allows an easy way to scammers as well. The investors who blindly trust those ICOs and invest the money for quick gain, get fooled at the end when scammers flew away with the money. Any ICO with the problem in examining the pitch has a sign of clear suspicion.
Coins/Tokens
Digital currency always creates transparency and can be used for exchange medium. The tokens just have similarities with a share in a company which is known as an initial public offering (IPO) and they provide security. The token is also generated on utility basis such as a subscription to an app, company’s service and play a game. Similarly, a token can be for a digital reputation of a physical asset and giving status in a community as a reward.
ICO Overview
When you are going to purchase an ICO, you pay attention to certain things such as first, you check the website quality of the ICO and white paper. These deep research develop the gut feeling about the project success.
Second, you check the team of the ICOs. If there is no information about the team, it is certainly something to notice. If the detail is available, you just search name, job profile, job titles of the members to verify their identities. Photos are also important in revealing the true identity of the members.
Country Provisions
ICOs are banned in many countries such as South Korea, China, and Russia. It is also speculated that the ICOs can be regulated by many government, if not all, in the near future. Although, it has issued a warning to consumers about fraud and lack of protection under the laws.
Medipedia is coming up with a new idea to generate ICOs for healthcare services. It is an ecosystem for the patients and healthcare organizations in order to exchange medical services by using the blockchain technology. The Medipedia ICO sale will begin in August 2018. So, be updated with the Medipedia news, and grab the chance to support the new idea with your investment.
