How Can You Detect Fake Initial Coin Offering?

How Can You Detect Fake Initial Coin Offering?

Jun 6, 2018, 7:47:01 AM Business

With the introduction of cryptocurrency and ICO, the world has taken a huge step in the online field. The high usage of digital currency has not only made it possible for the new ventures to collect crowdfunding and boost their business. There have been some newcomers in this field that have introduced Initial Coin Offerings as a reliable source of payment as well as investment. PinkDate is one such name in the market that has recently introduced its ICO for their clients who face the issue of surfing the most reliable payment option.

But with the increase in the demand for digital currency and ICO, the case of fraud has also increased. For a newcomer, it’s hard to predict whether they are going to invest in a genuine venture or not. And because of that, there come the fraud cases.

So, how can you actually find a fake ICO provider and protect yourself?

No/Incomplete Whitepaper:
 Before you start the negotiation, you should take a look at the whitepaper that clarifies more about eh ICO provider. If you find a doubtful whitepaper, you need to think a lot before investing in digital currency. Some scammers would even counsel you, not to heed on the whitepaper else focus on high returns. You should always be cautious from such traps and ensure proper checkup before investment.

No Appropriate Business Details:
 Once you are all set to invest in cryptocurrency, you would also look for a company that can provide you ICO for investment. But ahead of purchasing, you should take a look at their business and ask for their business details. If the company fails to provide you valid business information, pause your investment idea in that company and look for an alternative.

No Long-Term Goals:
 To take your business on height, you will always have a solid business plan. But for a fraud company, earning money is the sole motto. Hence you should check whether the business has a strong long-term goal that seems genuine. If you find a loophole, pause your investment plan and research well before taking further actions.


Published by Mudassar Ali

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