In the previous months, there has been an upsurge in the number of scam ICOs. People have lost their money in many projects. In some cases, the ICO coins/tokens never got listed on any exchange and in some cases, the developmental team sold all their coins on exchange and ran away.
I have personally witnesses both the cases. There was a coin named IONChain. They distributed almost 0.2 ETH worth of tokens via airdrop and raised a few millions in the ICO. They got listed on exchanges but in next few days, they emptied out their developmental fund coins wallet, dumped the coins in the market and then they were nowhere to be found.
So what can we do to avoid getting trapped in scam ICOs?
First of all, never invest any of your money on the suggestions of anyone. If you want to invest, you are responsible for your funds and you should do due research. Check out the team behind the project, see if their KYC has been approved by some rating agencies or not. Read the whitepaper and see if there is anything of interest there or is it just like thousands of other crap ICOs which claims to do something in future but are not doing presently. A so so good idea with already some work done on the foundation is always better than a great idea with no work done at all. There are few rating agencies like TrackICO, Icobench, foundico and some more. Check out the rating of those projects there before taking the final decision. Last but not the least, do not fall prey to the youtube videos which are telling about the great qualities of those projects, those guys are paid to do that and even they don’t know if the project is good or not.
if any more suggestions, do add them in the replies.