ICO scams: how to spot fraudulent initial coin offerings

The crypto market has seen a rise in the launch of new currencies. Along with these comes an increase in the need for Initial Coin Offerings (ICO). Investors have proven to be willing to throw money toward a highly speculative cryptocurrency, leading several scammers to believe they will likely invest in fraudulent tokens or ICOs. There are, however, certain ways to identify cryptocurrency and ICO scams that could come in handy for potential investors and those who currently trade in cryptocurrency. This article will discuss the best ways to detect cryptocurrency and ICO scams.

Sketchy product portfolio

Stay away if you need help understanding how a company operates and its speciality. Although this might not be a scam, it does most likely mean one of the following four things:

  • The company can’t figure out how to explain it clearly.
  • There is no clear, unique value to this project.
  • If expertise is required to be a part of this project that you don’t have, you will need to either dedicate yourself to learning it or walk away. Don’t invest in something you don’t understand.
  • It’s a scam.

Little to No Team Information

No idea or project will rise above a bad team, so naturally, we should look very carefully at a team before getting involved in any ICO or cryptocurrency.

If the team members aren’t listed on their website, or there is just a first name and an avatar that isn’t of an actual person, like a cartoon, alarm bells should go off in your head. This likely means that the people working on it don’t want you to know who they are or aren’t confident about how you will perceive their team. If you can’t find information about the team and their key employees, close your browser and look at other ICOs.

Incomplete Whitepaper 

A cryptocurrency or ICO whitepaper is the foundational document for that project. It should clearly lay out the background, goals, strategy, concerns, and timeline for implementation for a blockchain-related project.

The whitepaper reveals a lot; you must read carefully to check if it has complimentary resources. Companies that do not offer whitepapers should be avoided at all costs.

A fraudulent company can put forward a convincing whitepaper, which is why before you invest, you must see to it that the whitepaper clears all your doubts about how it aims to be successful, stand out, and the measures it hopes to apply to achieve its goals.

Guaranteed Return

Scams need a way to hook you to make you overlook common sense. One way they do this is by guaranteeing ridiculous returns in exchange for your investment. No company can guarantee returns on an investment in their coin or stock. If you see guarantees tied to a cryptocurrency project in any form, it’s likely a scam.

Unclear or Unrealistic Roadmap

Starting and building a successful business or project takes a lot of careful planning. With cryptocurrencies, we can see the plans of a project and its roadmap, which details the company’s activities for the next several years. A strong roadmap has clearly defined goals and accomplishments spread out over a realistic amount of time; if a roadmap includes price targets for a coin or is unrealistic with goals that even more experienced and developed companies couldn’t accomplish quickly, move along without adding this crypto to your portfolio.

How to exchange your crypto for cash

You can trade your crypto on exchange platforms, and the best platform to use is Astro Africa. Astro Africa is straightforward to use. Navigating the pages is quick as long as you have a solid internet connection. Although the crypto market is volatile, Astro Africa allows traders to sell Crypto fat at the best rates. Astro Africa also offers a currency converter that updates you on the latest exchange rates for Bitcoin and other cryptocurrencies.

Astro Africa has a website and an app available on Google Play and the App Store. The web and apps offer specific features and can be navigated using the same methods. What are you waiting for? Hurry and get started on the platform to enjoy quick and good transactions. 

How to trade Bitcoin for cash on Astro Africa iOS app

As mentioned earlier, trading on Astro Africa is easy as you will find in these steps below.

  • Open the App Store on your iOS device.
  • Search for Astro Africa, download and install the app.
  • After installation, sign up if you’re an existing user or create an account if you’re new.
  • Account creation only requires your email and phone number with other details about yourself. 
  • Set up your transaction pin and add a bank account.
  • Click sell cryptocurrency.
  • Follow the prompt of each step by filling in the necessary details.
  • Once Astro Africa confirms your transaction, you’ll get paid.