How to know if an ICO is a scam (3 tips)

Hi Guys!

I'm fairly new to the crypto scene. Like a lot of newcomers, I got my feet wet on Coinbase and I've been diving deeper from there. I think a big part of becoming a successful cryptocurrency investor is education. So I've been reading anything and everything I can get my hands on.

There is a lot that I have come to understand, but I have a LONG way to go. Especially when it comes to understanding the fundamentals of the blockchain in its huge variety of applications. However, one thing I have struggled with is evaluating new coins in there Pre-ICO. Should I invest? Are they are scam? Well, today I've come to give you my tips on evaluating a Pre-ICO coin.

Here are my three main points to consider!

1. What problem are they solving?
I'm a hodler at heart. I invest in the stock market with the view that in 50 years my initial investment will be worth more than it is today. I invest in cryptocurrencies with the same philosophy (maybe slightly shorter term). Will this coin be worth more in 5 years than it is today?

The first thing to consider is, will the coin even be around in five years? A lot of companies talk fancy talk, and get you excited by crazy ideas. When push comes to shove, what problem are they solving and do you believe it is necessary. At the end of the day, will another bitcoin clone really be needed?

TLDR - Evaluate the problem they are solving and make sure it is something you believe in and it makes sense.

2. Do they have the team necessary to succeed?
It's easy to throw together a website and make it look like a legitimate Pre-Sale or ICO. What isn't easy is faking a team of qualified people. So investigate them. It's 2017, you have everything you need at your fingertips.

• Do they have a team page? No? Red flag.
• Does the team page give a good bio and introduction to their qualifications? No? Red flag.
• Do these people exist on social media and does it correlate with their bio? No? Red flag

I don't buy into "I want to keep my anonymity". If you don't want to associate your name with your project, neither do I.

TLDR - Know your team. Do they have what it takes to run a successful project?

3. Read their media.
I came across a new ICO today that sound intriguing, so I started digging around. The idea sounded great, good start. Their people sounded great in their bio but didn't exist anywhere else on the internet (and their photos looked like they were from the 90's) - red flag. Then I started reading their media mentions. Paid article, paid article, paid article (not to mention some of their media links that didn't even lead to articles about the ICO). These people assume that you will see a link to Forbes and you won't take the time to investigate. Don't be that guy.

If everyone has to be paid to write about them, how great can they be?

TLDR - Educate yourself. Read what others are writing about this ICO.

That brings me to the end of my three tips for evaluating the fundamentals of an ICO. Obviously, there is a lot more you can do, starting with the white paper. But, if you are too lazy, at least do these three things.

I hope you all enjoyed my first post. I'm considering doing ICO reviews on here, so if you are interested, comment and let me know!