Risks of ICO: how to save itself from swindlers
For prevention of risks, study technology of a blockchain, study documentation of the project, pay attention to terms of sale of tokens
The group of authors of Publishare.info advertizing agency often faces recently subject of ICO. And, on observations, one of the main fears of players of the market – fraud.
To prevent possible risks thoroughly study that the technology represents a blockchain, study documentation of the project and pay attention to terms of sale of tokens.
Risks of ICO for the investor
ICO in Ukraine and the world isn't studied is comprehensive yet and the legal base only begins to be formed. Therefore this form of attraction of investments can be failure.
The Provalnost of ICO means a situation when the investor makes investments in a startup, buying her tokens, but doesn't gain income. At the same time the company startup doesn't keep promises – intentionally or because of unsuccessful combination of circumstances. By different estimates, in the market is from 70% to 98% of weak or roguish projects.
Facing potentially weak project the investor risks at startup assessment. The idea of business can be impractical, and terms of implementation of the plan not to coincide with "real" expectations.
In ICO there are also such roguish schemes:
Hacker attacks. For example, malefactors can crack the website of a startup and change payment requisites. Or to distribute data for sending means on behalf of reputable companies. Besides, hackers can use vulnerabilities in smart contracts of a blockchain.
Skam ICO – the roguish projects created for the purpose of deception of investors. It is possible to buy all: both fake names of team, and the wound rating in social networks, and advertizing which inspires trust, and even the ready company with reputation.
How to be saved from risks
In work with ICO also experience is necessary. Learn to distinguish skam-projects of the presents.
To check the project, apply such methods:
To prevent a possibility of a failure it is necessary to get acquainted with subject of cryptocurrencies well. The Internet and in particular, the BITSIDE magazine will help with it.
It is worth investing to unaware beginners for the account of the risk capital, that is for that sum which isn't terrible for losing. Usually it is 5-10% of all temporarily available funds of the investor.
It is possible to check creators of the project with the service help the Kiev lie detector in the Central bureau of investigations and safety.
If tokens sell only for cryptocurrency, such project can be a forgery. Readiness to accept payment in dollars says that founders of the project aren't afraid of verification through a banking system.