Top 10 Ways For Spotting an Initial Coin Offering (ICO) Scam In 2018

Every single investment that someone makes should be well-researched. Since there are so many ICOs being published and made available to consumers, it is important to properly prepare for investments in a way that is safe. One of the biggest threats to an investment is to contribute funds to an ICO that is a scam.

Top 10 Ways For Spotting an Initial Coin Offering (ICO) Scam In 2018

Take heed of the following ways to watch out for investments that may go awry.

1. Understand the Difference Between an Open Cap and a Hard Cap

When ICOs first began, there was not really a difference between these two concepts. However, as cryptocurrency evolved, open caps were made available for wallets without limits, which hard caps are confined by the amount of funds that can be raised. Consumers should shy away from ICOs with unlimited caps.

2. Avoid Empty Repositories

The majority of blockchain projects are open-sourced, if they are public. However, consumers that have experience in the crypto world understand how to look for the code. If a novice finds the code without GitHub wallets, then they know that the ICO is a scam.

3. Research the Development Team

Any good ICO team is filled with professionals that understand their way around cryptocurrency and blockchain. A major red flag for consumers is the presence of a team that has minimal experience with crypto.

4. Avoid Incomplete Whitepaper

Every legitimate website for crypto has a full whitepaper, which describes the in’s and out’s of the platform. The absence of a whitepaper is a big sign that the consumer is involved with a scam. However, some companies try to dupe consumers even worse by partially filling in the whitepaper, looking legitimate enough to pass for authentic.

5. Look For a Clear Roadmap

The roadmap for any ICO will show an outline of what has happened with the campaign before, and what is coming soon. However, scam ICOs tend to have an incomplete roadmap, demonstrating steps that are far beyond what any ICO normally does. Furthermore, lack of documentation for where the financial contributions go should deter consumers from continuing with their investment.

6. Look For Unbalanced Token Structures

When an ICO offers tokens to investors, the supply schedule indicates how many tokens are to be released. The earliest release of tokens to private investors is usually minimal, demonstrating how exclusive this part of the sale is. However, if this stage of the sale is usually high, it probably means that the ICO is a hoax.

7. Check for Non-blockchain Uses

There are some companies that do not want to work with blockchain alone, and that never fully decentralize. If the company avoids the use of blockchain entirely, consumers should look somewhere else.

8. Look For Involvement From the Rest of the Community

It is important for companies to have a way to communicate with and between investors. Transparency is crucial, and the lack of transparency is usually an indicator that the ICO has something to hide.

9. Find Out What is Being Said About the ICO

There are websites like and are helpful forums that discuss the popular ICOs that are out there right now. However, investors can also find information about ICOs that are completely falsified. Check these websites regularly with any new ICO to ensure that the investment can be trusted.

10. The Biggest Red Flag – Plagiarism

Every ICO opportunity is different, and no two investments will do the exact same thing for a consumer. If everything else checks out, investors should search online to ensure that the information available has not been captured from another website.

Enjoy investing safely in the cryptocurrency world to see a true difference in the way that the economy may eventually shift.

[FREE] Get Our Best Crypto Trading, Mining & Investing Hacks:

*Action Required* Enter Your Email To Get Insight For Trending Coin News & Reviews

I will never give away, trade or sell your email address. You can unsubscribe at any time.


  1. I am looking to invest in a good ICo, thank you for sharing such tips to make my invest safe and profitable as now i can scan if an ICO is fraud.


Please enter your comment!
Please enter your name here

five × 3 =