PR: How to Know to Differentiate Between Scam ICOs and Real ICO Projects

Just like Initial Public Offers, Initial Coin Offerings have become quite a viable means by which companies raise funds to take businesses to the next level.

The significant difference between an IPO and an ICO is that IPOs offer investors a chance to own part of the company by buying its shares, while ICO projects sell their cryptocurrencies to contributors. Often times, the tokens are used as a medium of exchange on the platform by participants. An increase in demand boosts the price of the given cryptos massively, giving contributors exponential returns on investments.

With the proliferation of cryptocurrencies into the world financial ecosystem, new ICO projects spring up every day.

While many of these projects are real projects with the aim of solving real-life problems with blockchain technology, some are pure scam schemes interested in duping contributors. Here are some things to look out for when investing in an ICO project.

Concept is Vital

Before pumping in your hard earned cryptos into any project, endeavor to evaluate the idea of the project. Cross-examine the real-life problem the project is aimed at solving. ICOs that resolve huge issues will invariably have a significant market size and worth.

Who are the Team Members?

This is another critical aspect of the game. Use social media platforms like Twitter, LinkedIn, and others to view the profiles of all team members of the ICO project. Make sure you carry out an in-depth review of their experience. In most cases, projects with reputable members as well as an advisory board made up of seasoned experts hardly are scam projects.

The Whitepaper Says it all

Although Whitepapers are always very lengthy and sometimes tricky to understands, it is essential you make out time to read them. In the Whitepaper, you will find detailed information about the project overview and Executive Summary, the market research and analysis, Product details, Roadmap and Financial forecast, as well as all information regarding the token. After reading the Whitepaper, peradventure there is any part you don’t understand, make sure you contact the support team of the project.

How Much Capital is Required

All projects do not cost the same amount. However the amount the amount being raised must be reasonable. The ICOt must have a hard cap target; private funding rounds are also a  good sign.

The ImmVRse  ICO project is a perfect example of a healthy platform. ImmVRse, a decentralized hybrid platform for virtual reality content is mentioned here because:

– it’s aimed at solving real-life problems in the VR ecosystem.

-ImmVRse is made up of highly experienced team members in the field of IT, Blockchain Finance, VR and more.

-ImmVRse has an excellently written whitepaper that is easy to understand even by the average joe.

With all that said the fact remains that ICOs and the entire crypto ecosystem are entirely volatile. The ultimate rule is to invest only what you can afford to lose.

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