Multiple new cryptocurrencies launch each month, and their preferred method of gathering funds, the Initial Coin Offerings (ICO), end up being a massive opportunity to grow but also to entice scammers. After all, if investors can handle the highly speculative aspect of cryptocurrencies then they seem likely to invest in fraudulent ICOs.

Trying to make the most of these opportunities while remaining safe from fraudulent ICOs and coins/tokens can be a lot more difficult than expected. The technology develops at a rapid pace so even the biggest of enthusiast may find hard to keep up with the technology as it develops. Of course, there are no guarantees that any project on this space will be successful, but you could at least not fall for the usual scamming tactics.

The Whitepaper

The whitepaper is the foundational document for the project. It should have all the background, goals, strategy, concerns, solutions and timeline of the implementation of the project. These documents tend to be largely revealing, as even the flashiest webpage can have a fundamental error on their implementation. Not only a meticulous reading is necessary, but the whitepaper should have the complementary resources necessary to respond any concerns that one could have it. Companies that don’t have whitepapers should be avoided at all costs. Also, remember that a fraudulent company can put a convincing whitepaper, again another Cybertrust could be promising at a glance, that’s why it’s necessary that the whitepaper answer all the question pertaining it.

The Team

What can make or break a project on any ICO is the developers and administrative teams behind it. For better or worse the cryptocurrency space is dominated by major names capable of making or breaking the project simply by having their name on it. For that reason, its normal for the scammers to invent fake founders and bios for their projects. Best way to deal with it is to research thoroughly each member before you invest. For example, in the Cybertrust case you could see signs of not finding developers on social media or having an unusual follower ratio for their activity. After that you just must measure if their qualifications measure up and DYOR.


The crowdfunding process will depend on the token or currency system to facilitate the distribution. Legitimate companies make the process themselves and allows you to view their progress easily. You got to look at the sale figures as its ongoing to see how its progressing. Making it difficult to chart the progress over time is one of the biggest red flags you can have. Some would hide their token sales under the pretense of individual contribution addresses to avoid showing how much has been raised and the time remaining.


Cryptocurrencies with the highest chances of success are those that have the fundamentals to outlast their competitors. Most projects won’t last even with an amazing start as the general interest wanes. Best you can hope for is that the company have a compelling concept and the execution to keep going at it. It comes as an issue of transparency, those that aim to keep interest and report progress across all social media and as a timeline as well end up being your best bets. Careful with the shilling though.

Even the most successful project is in the end speculative investing. Getting rich quick on an investment in tempting and scammers will do all that’s possible to get a slice of the cake. Keep caution toward new investment opportunities, beware things that sound to good to be true, spend some time DYOR, look for outside sources to verify and ask questions in the different venues. We do not want to repeat what happened with the Cybertrust case to repeat itself.

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