ICOs are all the craze right now and there are quite a few scammers out there selling snake oil. Unless you are both street smart and tech smart you may loose all the money you put in.
Here are the basic precautions you need to take before considering investing.
- Do your background research on the ICO.
- Read and understand the white paper
- What problem are they solving ? Is it unique ? Does blockchain or token technology bring any special benefits to the table ?
- What is the project road map ? What do they need an ICO ? Where are they in their product roadmap ? are they requesting funding after shipping anything ?
- Who are the founders ? check their background , check their twitter, github and linkedin profiles, what have they shipped in the past ?
- Has this team worked together and accomplished anything in the past ?
- Who are the main backers ?
- How is the ICO itself structured ? what portion is reserved for each category ?
If something sounds too good to be true, then most probably it is.