After China imposed a ban on initial coin offerings (ICOs), the crypto industry struck a big snag. To make matters worse, the Securities and Exchange Commission (SEC) has issued warnings regarding ICOs, urging individuals not to invest in them. Does this imply the Ethereum-based ERC-20 tokens-based phenomena, which began just three years ago, is over? Experts, however, disagree. One of the crypto industry’s gurus, Ben Armstrong, believes that ICOs are here to stay as long as you don’t invest in the bad ones. He identifies five red signals to look out for a while investing in ICOs.
White documents that are unreadable
During its initial public offering, Ethereum set a precedent by publishing long white papers. According to Ben, this is a common practice among ICOs, but it’s not a good indicator. While extensive and detailed white reports are intended to make the project appear believable, reputable, and serious, they don’t always succeed. Ben recommends going with ICOs that don’t mince words. In plain English, he implies that you should avoid an ICO if you can’t grasp the terms and conditions in the white paper.
Teams that are ambiguous
Before investing, Ben advises investors to look at the ICO’s staff members. Blockchain initiatives are challenging to complete, and they need the participation of a group of high-profile individuals. If the ICO doesn’t have any such members, it’s best to avoid it. Advisors do not contribute to the ICO’s reputation; the team members work tirelessly to ensure correct codes. Don’t consider investing if the ICO’s staff members aren’t revealed.
Coins that have never been used
Tokens are used to symbolize a cryptocurrency initiative. And the ICO’s whole ecology depends on the ticket in question. “I find investors working with tokens only because they want to invest in an ICO,” Ben says based on his experience. You could easily substitute Bitcoin or Ethereum for that token, and your technique would still work. As a result, the ticket has no actual value. If you want to be secure, avoid tokens that don’t have much value and don’t have any real-world applications.”
Read More: https://bitcoinnewsandreport.com/how-to-invest-in-elongate-crypto/
Deal words that are difficult to understand
Several ICOs offer significant discounts in their pre-sale offerings to grab investors’ attention. This might be a ruse to get you to commit to a deal that doesn’t pay off well. It’s always a good idea to double-check terms and conditions such as post-ICO trading options, token value, amount of tokens available, & lockup and vesting choices. If the terms appear to be dubious, don’t invest.
Marketing that is aggressive
Several ICOs attempts to generate buzz by placing advertisements on social media and using Google Remarketing banners. Ben feels that most advertisements are not worth your time or money. “I do click on some of these adverts just out of curiosity,” he said. However, none of them have provided me with anything unique. The finest ICOs on the market, in my opinion, are pushed for free. And instead of pursuing these honeytraps, you should concentrate on those ICOs.
It’s best to store your money for a future ICO that will deliver large and consistent profits. Follow Ben’s advice above to avoid dubious ICOs and avoid losing money on BitBoy Crypto ventures that are simply interested in making quick money.