Most of the private sector finds itself searching for more and more avenues of making quick cash to sustain their livelihood. In times like this, opportunities like Cryptocurrencies and their ICOs (Initial Coin Offerings) come as a big boon to those in search of filling their pockets. Although governments of several nations have been warning their citizens against ‘falling into the ICO trap’, the medium is still seen by many as an outstanding investment opportunity. Moreover, the decentralization of the cryptocurrency sphere makes it one of the most free-minded industries for money making. Several startup businesses have reported having being able to set up their new ventures by solely depending on crowdfunding and the ICO market.

However, like all good things come with their own set of cons, so is the case with the ICO industry. The fact about the cryptocurrency market being totally unregulated and out of the hands of any governmental organization, makes it one of the most vulnerable markets when it comes to scams and frauds. Over the last few years, there have been numerous accounts of scams escaping with the hard earned money of unsuspecting investors; examples of the same would include LoopX ICO Exit Scam and Onecoin. Thus before jumping into becoming an ICO investor, one must do a thorough due diligence in order to keep all their bases clear. In order to help you spot a genuine ICO, we have compiled a list of a few features that are common to all genuine ICOs.

1. Online Presence

We live in a digital world where all companies are fighting tooth and nail to ensure a strong digital presence. Thus one of the key signs of a genuine ICO would be a strong online presence of the company with specific details such as listing founders, team breakdown, advisors, developers, and security experts.

2. Profit Guarantee

When it comes to a blockchain system, any experienced individual in the field will tell you with certainty that there are no guarantees of assured profits. Thus, a genuine ICO would under no circumstance promise its investors assured profits from investing or staking.

3. Solutionism

A genuine ICO accepts and declares that blockchain technology is not a definite solution to any problem that may arise. For example, there have been reports of many ICOs putting forward the concept of tokenization as a solution in conditions where it really does not work. This clearly, is a sign of a company that may be out to dupe its investors.

4. GitHub Repositories

All genuine ICOs provide their investors a link to their code repositories in order to allow the investor to track and audit his or her development process. Even a lay man can simply access the repository link and check its activities to ascertain whether it is active or not in order to check the genuineness of the ICO.

5. White Paper

A White Paper is a detailed document that provides all information to investors and prospective investors about the achievement plans, platform function’s technical breakdown, and delineation of token distribution model. The rule is simple — no White Paper/Plagiarized White Paper/Shabby White Paper are big signs of scammers.

6. Premining

Although premining is no definite sign of scam, the genuineness of the ICO depends on the proportion of tokens saved back for premining. A genuine ICO would not save tokens disproportionately to finance their personal gains.

7. Roadmaps

A big sign of a genuine ICO is the availability of a detailed roadmap that gives the investors an insight into the company’s journey thus far and where it hopes to reach in the coming times.

Talking about the above article in a nutshell, it is safe to say that a genuine ICO is one that would never keep its investors in the dark. Those joining hands with the ICO would always be kept in the loop with the realities of the ICO industry with no false promises made to lure them. If you’re heading out to make your big investment in your first ICO, don’t forget to conduct a thorough research on the company before you jump in.