3 Red Signs that Might Indicate You Are Investing in a Bad Crypto Project

According to a post by Cointelegraph “In 2018, investors were able to choose (on an average) from 482 token sales opening every day of the year and about 2,284 initial coin offerings (ICOs) reached their conclusion. While in 2017, the respective values were just 91 ICOs and 966 tokens”.

The given data shows that the world has started showing its interest in cryptocurrency and this affinity towards crypto coins will continue to increase in 2019. However, that being said, there are some cryptocurrency projects out there that might not be a good option to invest your hard earned money in. So, how to distinguish the good projects from the bad ones?

In this blog, we will be discussing the 3 Red Signs that Might Indicate You Are Investing in a Bad Crypto Project.

> The Team — Members, Size, & Background

The core of a project is the team working hard to make that project a success. Usually, the team working on an authentic project has a career background in their respective fields. Although these might not be the celebrity faces, they always have some experience and recognition in their previous role that make them eligible to take up their role in the current project.

Another sign for a good cryptocurrency project is the size of the team. Well, the number of team members doesn’t always mean a quality product, but the number of professionals working on a single project does matter. Further, more experienced professionals increase the chances of a project being a success.

So, whenever you are going to invest in the next cryptocurrency project, do check their team, do a background check on their team members, and look at the size of their team. If something doesn’t add up, then it might not be a good idea to invest in that project.

> Recognition’s and Awards

It is more of a universal fact that if anything that has some recognition or any award under its name is usually considered as trustworthy. The same point applies to crypto projects. If the project is innovative and brings something new to the market, then the chances are it might have some award or any recognition.

If the project you are going to invest in doesn’t have these traits, then you should do a double check before putting your money in it.

> Marketing Efforts/Partnership

One can figure out whether investing in a project might be a good idea or not, from the list of its partners. Partnerships increase the adoption of the project, and the marketing efforts increase the awareness about the project. Announcing the latest efforts of the team to fix some issues on the project, information about the milestone they have achieved as well as future goals, and about their partnership with some recognized organization are some of the positive signs.

On the other hand, projects that are just there to attract people and scam them won’t bother partnering with the big names and won’t share any facts regarding their current efforts. Projects like these will only talk about the potential growth they hold in the future with no relevant data to back their statement.

Conclusion

We don’t want you to miss out any good project. However, you may use these three signs to be assured that you are going to invest in the right project.

Platon Finance has come up with a crypto education platform — Platon Club. It gives club members access to a wide range and reliable crypto information to help them make an informed decision while investing in cryptos.

Platon Finance believes that comprehensive knowledge about cryptocurrencies can boost the adoption of crypto around the globe. It has been recently awarded as the ‘The Best Fintech Product’ at Zug Summit 2019. For more information on the project, visit https://platonfinance.com or to join Platon Club click here.