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Thereu2019s an ongoing explosion of interest in Bitcoin, and thatu2019s not going away anytime soon. Cryptocurrency projects raise money through ICOs. While two-thirds of all ICOs are genuine, itu2019s the reminder that worries the everyday investor per a credible estimate. One-third of all ICOs being fraudulent is a massive strain on the investor pool. Furthermore, the insidious ways fake crypto projects infiltrate even genuine websites, leaving positive reviews and creating a following, gives u2018fake newsu2019 a whole new meaning.
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BITCOIN REVOLUTION: SIDE- STEPPING POTENTIALSCAMS There’s an ongoing explosion of interest in Bitcoin, and that’s not going away anytime soon. Cryptocurrency projects raise money through ICOs. While two-thirds of all ICOs are genuine, it’s the reminderthatworriestheeverydayinvestorperacredibleestimate. One-third of all ICOs being fraudulent is a massive strain on the investor pool. Furthermore, the insidious ways fake crypto projects infiltrate even genuine websites, leaving positive reviews and creating a following, gives ‘fake news’ a whole new meaning. Fake cryptocurrenciesdorealwashoutgenuineones.Thefairestcourseof action would be to be aware of measures that ensure the crypto underexaminationisreal.ArethereBitcoinRevolutionscams?These days there’s no detailed set of guidelines or policy statements regardingcryptosandderivativesfrompublicagencies.Theinvestor mustfollowhercommonsense.Trailbyeliminationistheonlyway
toknowiftheirburgeoningcryptoiosisascam.Andonemustnot get too excited over cryptos. Income possibilities are not unrealisticallyfantastic,evenwithcryptos.Yououghttofightshyof the urge to have very high passive income, mainly courtesy of cryptocurrenciesandtheirderivatives. Sketchy coins, dubious tokens, and fraudulentICOs A plethora of new cryptocurrencies launch each month, and alongsidethesenewtokensandcoinscomesaseriesofinitialcoin offerings, or ICOs. The hunger among a broad pool of investors for theseopportunitieshasgrown,eventhoughcryptocurrencieswere drubbed in 2018. All of these factors join together to entice scammers.Afterall,ifinvestorshaveplainlyevidencedthattheyare willingtothrowmoneytowardahighlyspeculativecryptocurrency, theyseemtobeequallylikelytoinvestinfraudulenttokensorICOs. The prospect can be daunting for the cryptocurrency investor looking to make the most of the host of new investment opportunities while remaining safe from fraudulent ICOs and sketchy coins andtokens. Get to Know theTeam Perhaps the most important success factor for any ICO or cryptocurrencyisthedevelopersandadministrativeteambehind theproject.Thecryptocurrencyspaceisdominatedbyprominent names, with superstar developers like Ethereum founder Vitalik Buterin capable of making or breaking new projects simply by havingtheirnameslistedonadevelopment team. Unfortunately, therefore, it’s increasingly the norm for scammerstodreamupfakefoundersandbiographiesfortheir projects.
Thebestprotectionagainstthisdishonesttacticistothoroughly researchtheindividualteammembersbeforeyouinvest. • Beyond resolving whether the development team is real, it’s importanttomakeanefforttoseeiftheirqualificationsmeasureup. For example, do the founders have the experience they claim to possess?Isitrelevanttothecurrentproject? • Peruse theWhitepaper • AcryptocurrencyorICOwhitepaperisthebasicdocumentfor thatproject.Thewhitepaperoughttolayout • strategy, • the background,goals, • concerns,and • timelineforanyblockchain-relatedprojectimplementation • . Whitepapers can divulge a great deal – companies that have a flashy website may reveal they are going without a fundamentally soundconcept.Conversely,awebsitecontainingspellingerrorsmay have a whitepaper indicating a rock-solid concept and a well- conceived implementationplan. • The first step toward a whitepaper analysis is to read it very thoroughly.Then,checktoseeifthewhitepaperhascomplementary resources,includingfinancialmodels,legalconcerns,SWOTanalysis, andaroadmapforimplementation. • A whitepaper ought to reply to all of the questions a potential investor might have about what sets this particular project apart fromitscompetitors,howitaimstobesuccessful,andthemeasures itwilltaketogainitsgoals.
Scrutinise the TokenSale AnyICOwillbecontingentuponatokenorcurrencysysteminorder to facilitate the crowdfunding process. Legitimate companies and endeavoursmakethesystemitselfandtokensale’sprogresseasyfor potentialinvestorstoview.Carefullyobservethetokensalefiguresas theICOisongoing.Betterstill,watchthetokensaleovertimetojot down how it is progressing. If a company makes it impossible for anyonetocharttheprogressofitsICO,thisisamajorredflag. How transparent Is theProject? Companiesthathaveoutstandingconceptsandmodelswillbemore likely than others to seek to be as transparent as possible with the broader community. Watch out for companies that intend to keep potentialinvestorsuptodatewiththorough,fairlyfrequentprogress reports on a company website or on social media. It’s instructive to look if a company is motivated enough to have a timeline for what hastakenplaceinthedevelopmentprocess. Becautious Even the most successful ICOs and cryptocurrencies are severely criticisedforbeingpropelledbyspeculativeinvesting.Thethoughtof getting rich quick on investment is tempting enough to attract seasoned investors and beginners into risky areas. Keep an eye for caution as you examine new investment opportunities in the ICO and cryptocurrency spaces. Be aware that projects sounding too goodtobetruemostlikelyare.Spendtimescrutinisingeverydetail, and assume that the absence of a piece of crucial information may beanattempttoobfuscate–hideanunsoundmodelorconcept. Lookupoutsidesourcestoverifyanyproject’slegitimacybefore investing. ContinueReading…………
