Undoubtedly, ICOs are forming an attractive part of the cryptocurrency and blockchain sectors for any potential investors. Many have been lured by the promise of fast cash or exponential growth in relatively short periods of time.
Whilst the blockchain and crypto definitely represent the future of transactions and ICOs can be a hugely positive element of that future, there are many ICOs in the market which are nothing short of scams to watch out for. What should you look out for though? Here are some of the key signs which may let you know the ICO is a potential fake:
Below Quality Website/Whitepaper
This is a highly logical point. If you have a project which is attempting to raise tens of millions of dollars, as most ICOs do, then it stands to reason you will have invested in a top quality site design and been meticulous in the preparation of your whitepaper. These are the core elements of your project after all.
It is astonishing though, how many projects just pitch up with a truly awful website and error ridden concepts throughout. This is one sure fire sign to stay far far away from any potential investment.
Generally Poor Ratings
Nowadays, there is big business to be had in rating ICOs. There are many major players in this area with some of the best being among ICOBench. It is forgivable not to be listed on-time with this one since they usually have a large backlog, however if you notice a project with general abysmal ratings across a range of these rating sites, or no listings at all, then this is usually reflective of the projects overall value.
No Team Information
This is a final dead giveaway, if there is no team information listed or the information listed is not connected to a valid LinkedIn account. With every project worth its salt, those associated with it should be proud and more than happy to be listed. If this is not the case, then you would certainly have to question the integrity of the project.
This is a question on the lips of many who have watched the last 18 months complete with surging prices and so many new entrants to the sector. So, when can we expect to see crypto taking over from fiat currency and being used for our daily transactions?
The fact of the matter is that this is already happening, depending on who you speak to. There are already many providers such as these who will provide us with many required services through cryptocurrency. They are certainly not limited to some dark underbelly either. Even Expedia offers Bitcoin payments on vacation bookings.
Speed of Payment
Whilst the options above are fantastic, cryptocurrency has far from become a dominant force in our daily lives…yet. One of the issues behind this is certainly the transaction speed. As wonderful and pioneering as Bitcoin has been, many will agree that the transaction speed is much too slow to suffice in daily life. Luckily, there are currencies such as ripple and others which offer wastly improved transaction speeds.
Cost of Payment
Another issue which afflicts this question is the cost of transactions. This has become more and more of a problem with both Bitcoin and Ethereum as network traffic spikes. The cost of these payments at certain times, and combined with the speeds, simply mean they are not viable. There are many options though, and more arriving every day. Again in this category, Ripple and Tron emerge as relatively low cost in comparison.
The fact is that there are still only a very small number of businesses or locations which will accept crypto payments. This is changing though, slowly but surely. We are starting to see the continued emergence of currencies who supply their users with crypto-linked debit cards. This is one of the key elements in encouraging and achieving daily use. If the current trends continue, it’s inevitable, we will eventually reach a point where cryptocurrency is out most widely used payment method.