The following are a list of questions to ask yourself before you invest your money into and initial coin offering.
Is it a scam?
Although you can never be sure, a simple google search can always help as well as scanning through social media sites on Reddit and Medium. Also be careful when clicking links to ICOs on seach engines and forums, some scammers create similar websites to trick people into giving them money. Always check reputable sources such as Medium for the official link to the website.
Is the idea or concept already out there? If so how is this coin going to do it better?
You can find this by reading through the website and the white paper. Search the internet for similar projects and perhaps draw up a table and find the similarities and differences.
Are they asking for a very large hard cap?
This should ring alarm bells as you must wonder why a project which most likely hasn’t started needs $50 million. Perhaps it can be justified if it is a ground breaking idea, however if it isn’t a game changer then consider again.
Is the team solid?
Always look at the team members and their roles. Go on their social media and look at the job history and always make sure they are suited to the role they are given. For example you wouldn’t want the Chief Financial Officer to have no past experience in banking or the financial sector and you wouldn’t want the lead programmer to be working on five other projects at the same time or worse, to have no programming experience at all.
Is the white paper full of spelling mistakes and vague details?
This should strike your curiosity about the legitimacy of the project. For instance, if you read the white paper and still don’t have an idea on what the crypto is trying to accomplish then perhaps steer clear. In some cases it could be quite technical which is why its hard to understand and in that case, it is important to research and ask questions in forums and Telegram groups.
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