ICO Red Flags explained for investors
You need to do your research when investing into any project! Remember that. No ICO review or report, red flag or hype around the project should make you thoughtlessly send your money.
Red Flag section on tokensrecord.com is here to help you.
Quick tip: never invest into projects that got high or very high severity red flags and not solving the issue. There is a big chance it is a scam. If it is not a scam, there is a high possibility you will be able to buy it under ICO price on an exchange (price in ETH) when the project is listed.
How should you consider medium or low severity level of a red flag? Everybody makes mistakes. It is just not everybody who sees them or get pointed at on time. ICO with Red Flags of medium or low severity level can still be considered. You need to monitor issues connected to aspect mentioned in the red flag.
For instance, the team got several developers and at least one member doing marketing, and they got silly mistakes on their ICO website like buttons not clicking, lorem ipsum text left somewhere by accident, forgot to add LinkedIn profiles (or maybe did not know they should), etc. The team is raising money. And it is not ten bucks to buy some beer. The hard caps start with several million. Spend some time on your website teams. Cmon!
What can you do to check how bad the situation described in the Red Flag is and what can it lead to? Ask somebody from the ICO team to address the issue and see what reaction will you get. If it is a reasonable reaction and you see the readiness to work with the community — good. If it is not, think twice before giving that team money. ICO teams are busy during the token sale. Keep that in mind. Be fair and patient.
This article brought to you by TokensRecord Team.
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