Initial Coin Offerings: Red Flags and Warning Signs

Initial Coin Offerings

Red Flags

-- Core questions from their projects' whitepaper cannot be succinctly answered

-- Inability from project developers to respond to legitimate questions about core business or infrastructure, allotment of ICO proceeds/funds toward the underlying product, or the availability of underlying assets

-- Often cannot clearly articulate and explain how the product works

-- Often cannot explain use case for product, what problem it solves, or "why anyone should care"

-- Underlying team behind ICO lacks sufficient experience in starting and running a business

-- ICOs that propose an uncapped fundraise without an underlying product

-- ICO landing pages that focus exclusively on ICO project timeline, and not product, technology or team

-- ICOs that lack disclosures on vesting and lock-up periods

-- ICOs where the fund raising rules have changed mid-course of the raise period

-- Lack of information concerning the cryptocurrency conversion plans into actual company reserves

-- ICOs where tokens are traded before underlying network or product is live

Citation

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Author does not own the any crypto currency discussed. The information and content are subject to change without notice. CryptoDataDownload and its affiliates do not provide investment, tax, legal or accounting advice.