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But cryptocurrency fraud is one of the looming dangers of this new digital opportunity. The concept was sound and the idea of getting rid of traditional money appealed to the general public. And in , a group called Satoshi Nakamoto launched Bitcoin, which was unanimously considered the first and true decentralized digital currency. With the advent of a new era of non-bank-dependent digital currency, numerous Bitcoin alternatives were seeded on the market. Living the dream, right?



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Global Cryptocurrency Market (2020 to 2025) - Growth, Trends, and Forecasts


Dozens of new cryptocurrencies launch each month, and alongside these new tokens and coins comes a series of initial coin offerings ICOs. The appetite among a broad pool of investors for these opportunities has grown, even in spite of the fact that cryptocurrencies were battered in All of these factors combine to entice scammers. After all, if investors have proven that they are willing to throw money toward a highly speculative cryptocurrency, they seem to be equally likely to invest in fraudulent tokens or ICOs.

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 and tokens, the prospect can be daunting.

Blockchain and cryptocurrency technology is developing at a rapid pace, and even experienced investors may find it hard to keep up with the terminology. While there's no guarantee that any cryptocurrency or blockchain-related startup will be legitimate or successful, the steps outlined below can help you to be as sure as possible that you're not falling for a scam.

Perhaps the single most important success factor for any ICO or cryptocurrency is the developers and administrative team behind the project. The cryptocurrency space is dominated by major names, with superstar developers like Ethereum founder Vitalik Buterin capable of making or breaking new projects simply by having their names listed on a development team.

For that reason, it's increasingly common for scammers to invent fake founders and biographies for their projects. The best protection against this fraudulent tactic is to thoroughly research the individual team members of a project before you invest.

It's a bad sign, for example, if you're unable to find any information about a particular developer or founder on LinkedIn or other social media outlets. Even if profiles do exist, check to see if their activity seems to match up with the number of followers and likes they accrue. Individuals who rarely engage with their followers and yet have thousands of fans may not be real.

Beyond determining whether the development team is real, it's important to make an effort to see if their qualifications measure up. Do the founders have the experience they claim to have? Is it relevant to the current project at hand? A cryptocurrency or ICO whitepaper is the foundational document for that project. The whitepaper should lay out the background, goals, strategy, concerns, and timeline for implementation for any blockchain-related project.

Whitepapers can be incredibly revealing: companies that have a flashy website may reveal they lack a fundamentally sound concept. On the other hand, a company with a website containing spelling errors may have a whitepaper that indicates a rock-solid concept and a carefully conceived implementation plan.

The first step toward analyzing a whitepaper is to read it very thoroughly. Check to see if the whitepaper has complimentary resources as well, including financial models, legal concerns, SWOT analysis, and a roadmap for implementation. Companies that don't offer whitepapers should be avoided at all costs. A whitepaper should answer all of the questions a potential investor might have about what sets this particular project apart from its competitors, how it aims to be successful, and the measures it will take to achieve its goals.

Any ICO will depend upon a token or currency system in order to facilitate the crowdfunding process. Legitimate companies and endeavors make the system itself and the progress of the token sale easy for potential investors to view.

Look for the token sale figures as the ICO is ongoing. Better yet, watch the token sale over time to see how it is progressing. If a company makes it difficult for anyone to chart the progress of its ICO, this is a major red flag. Some scam ICOs will hide their token sale progress under the pretense of individual contribution addresses; this prevents potential investors from seeing exactly how much has been raised and how much time remains in the sale. In some cases, this might be an effort to generate a sense of urgency among potential investors, even if there isn't evidence of a successful sale going on at the same time.

While it may seem obvious, ICOs, and cryptocurrencies with the greatest chances for success are those that have the fundamental structure to outlast their competitors. Many launches, even highly-publicized ones, have sputtered after initial interest faded.

Your best chance of a successful investment relies on a company having an achievable, feasible set of aims. The company should have a compelling concept for the time being, but it also must be able to carry that concept over into execution over the short and long terms alike.

Going along with the question of feasibility is the issue of transparency. Companies that have outstanding concepts and models are more likely than others to want to be as transparent as possible with the broader community. Look for companies that aim to keep potential investors up to date with regular, detailed progress reports on a company website or on social media. It's also useful to look if a company has a timeline for what has taken place in the development process, as well.

Even the most successful ICOs and cryptocurrencies are slammed for being fueled by speculative investing. The idea of getting rich quick on an investment in a hot new project is tempting enough to draw seasoned investors and beginners into risky areas.

Keep an eye toward caution as you look for new investment opportunities in the ICO and cryptocurrency spaces. Be aware that projects sounding too good to be true likely are. Spend time scrutinizing every detail, and assume that the absence of a piece of crucial information may be an attempt to hide an unsound model or concept.

Look for outside sources to verify the legitimacy of any project before making an investment, and always ask questions that you can't already find the answers to. The cryptocurrency and ICO spaces offer tremendous opportunities for investors who have done their homework and are able to make sound investment decisions.

They also feature pitfalls, which can lead to large amounts of money being lost due to scams, frauds, or even legitimate businesses that are simply poorly designed and unlikely to succeed. Initial Coin Offerings. Your Money. Personal Finance. Your Practice. Popular Courses. Cryptocurrency Initial Coin Offerings. Key Takeaways Fraudulent ICOs and sketchy coins and tokens abound, but there are many ways to help ensure that you avoid these potential scams.

One of the best ways to protect yourself is to thoroughly research the individual team members of a project before you invest. Make sure you read and analyze the whitepaper carefully. Watch token sale figures for the ICO over time. Overall, be extremely cautious as you look for new investment opportunities in the ICO and cryptocurrency spaces.

Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles.

Partner Links. Acorn Collective Acorn Collective was a project that aimed to be the first blockchain crowdfunding platform. What is Birake? Birake bills itself as the first 'white label' cryptocurrency exchange. Bounty programs are rewards, usually in the form of tokens, to promote an initial coin offering ICO. Solana SOL Solana is a blockchain platform designed to host decentralized applications.

Based on Proof of History, it processes transactions quickly at low cost. What Is a Crypto Airdrop? A cryptocurrency airdrop is a marketing stunt that involves sending free coins or tokens to wallet addresses to promote awareness of a new currency. Investopedia is part of the Dotdash publishing family.



ICO Scams – Fake Initial Coin Offering Tokens List

A traditional stable coin does not increase in asset value, while a standard cryptocurrency has no value backing it. Neither offers a continuous return for holding ever. GSX combines the best aspects of all crypto by providing an absolute backing to help stabilize price, like a stable coin, while facilitating a growth in value like a traditional cryptocurrency. At the same time offering perpetual bonuses to incentivize the holder long term.

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For now, you can't withdraw the coin because it hasn't been released on the market yet, wait for further information from us. I filed globalcrypto. Sorry we can't help you, we don't have support access to the site, and we're not a part of it. How do I contact support for this site I sent the bitcoin and did not receive my coins now there is no way to contact them. Home Airdrop.

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Unlike other messaging app, using Telegram for crypto businesses is simple. The telegram has become the best place to work in Crypto businesses. Your Customer who wants to know about the company behind learn Cryptocurrency won't learn much from the company's website or from its Facebook page, but Telegram Channel and Telegram group will provide access to the team behind the offer and a place to ask questions about the product and the Crypto information. If you plan to build a crypto telegram group or ico telegram group for your business, join us for training. Telegram channel : only creator and admins with the "can send post" permissions can send posts and members are only viewers of the messages.

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Ethereum is an open-source blockchain with its own cryptocurrency, ether ETH. While the two names are often used interchangeably, technically Ether ETH is the actual token, and Ethereum is the blockchain technology behind the cryptocurrency. It's not possible to invest directly in Ethereum, but you can buy Ether. Ethereum was founded by programmer Vitalik Buterin in It is a decentralized public ledger that validates and records transactions. It also enables developers to build, publish, and utilize smart contracts and decentralized applications DApps without the need for third-party services. Ethereum has powered new cryptocurrencies, products, and services, including the trending non-fungible tokens NFT.

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