What To Look For In a BAD ICO
There are a ton of ICO’s coming out. Many are legit and more than often they are not. So when we are looking at ICO’s what do we look for to determine it is something we will pass on.
- The team has little to no experience in crypto. Study the team, watch interviews and vent their experience.
- We also look at if they are an existing company. If they are successful what is the need for an ICO?
- Lots of bonuses. If they are giving away a lot of bonus coins, this can be a red flag. You should also look at vesting for the pre-sale investors.
- A huge market cap or unlimited market cap is not good. Nobody will be lined up waiting to buy once it hits the exchange.
- Is there a need for the token? Are their other coins like it?
- Does it sound too good to be true?
- What does their internal community look like? Look at the telegram group, discord group, slack group. Ask the developers questions and vent them. Are they responsive?
- The public sale lasts forever. Is the cap to high? Is the demand to low?
- Do they have major exchanges on the radar?
- How many coins are available? Does the team have a lock on a portion of coins and if so how many?
We hope this helps you in your crypto journey. Remember an ICO does not actually have a physical product nor has hit the market yet so it does come with more risk. We recommend doing your due diligence and vent it every which way. If you have any questions on a specific ICO, we would love to hear from you on your thoughts, concerns, etc.