Every month, dozens of new cryptocurrencies are introduced, and a series of initial coin

offerings ( ICOs) arrive with these new tokens and coins. The demand for these
opportunities has risen among a large pool of buyers, considering the fact that
cryptocurrencies were battered in 2018. These aspects all interact to draw scammers.
Overall, they appear to be as inclined to invest in fake tokens or ICOs if buyers have shown
that they are able to throw money at a highly volatile cryptocurrency. The prospect can be
overwhelming for the crypto-currency trader trying to make the most of the host of new
investment prospects while keeping away from fake ICOs and sketchy coins and tokens.
Blockchain and cryptocurrency technology is increasingly evolving, and even experienced
investors can find it difficult to keep up with the terminology. While there is no assurance
that every startup connected to cryptocurrency or blockchain would be legal or effective, the
measures listed below will help you be as confident as possible that you are not falling for a
scam. So, let 's dig into what are the signs of an ICO scam and what you can do if you
become a victim of it in the future.

6 Signs of an ICO Scam (Factors to Consider)

1. Weak Website or White Paper

An organization will usually release a white paper before starting an ICO initiative which will
guide prospective investors to a website that details their project. A comprehensive
whitepaper is essential to the ICO, since it is the concept and its feasibility that can
determine whether or not the company will address a real-world solution. To prevent scams,
investors must do thorough research on the firm. In pursuit of false facts or claims examine
the white paper or website extensively. Check existing investors' certificates which can be
used to promote more investment. Scammers can fail to make a white paper or website
available to sell their ICO. If a white paper or webpage is shaky and unconvincing, or totally
missing, it is better to steer clear of an ICO like that. Only providing the shallowest of facts
and calling for a lot of cash can already ring alarm bells.

2. Named Developers or Team Members are Missing

The specifics of the team behind the initiative should be given in a valid white paper to help
give the project legitimacy and build confidence. Specific staff members and developers
should be checked to decide whether they're legitimate or not. Are there actual individuals
on the team, too? Or are they counterfeit profiles? Spend time on various platforms to
verify the veracity of each of the team members to see if they are currently involved with
the project. On their blogs, many bogus teams use the identities of reputed ICO advisors.
Check out these advisors' pages and figure out if they actually counsel these ICOs. Note
that legitimate ICOs also provide investors with a platform to connect directly with a
member of the team to learn more about the bid. Scammers would prefer to avoid being
held liable and avoid mentioning someone affiliated with their ICO.

3. No Clear Roadmap

Legitimate ICOs should include a comprehensive chronological overview of growth priorities

and funding objectives for prospective investors. They should also provide a hint of how the
business sees potential development changing. If the ICO doesn't specify the amount they
intend to collect mentioning some tech nonsense, then look out. They should have a good
estimate of how much money they will need to create it, if they really know what they are
making. Often, if you think they are looking for even more for what they're trying to create,
it's probably a warning that the ICO is most likely to be a scam. Scammers behind the ICO
are clearly trying to make a fast buck before the company collapses.

4. Skewed Mining system

Another alert sign is whether a large number of pre-mined tokens are reserved by the ICO
team for themselves. That may be a sure indication that short-term financial benefit pushes
the project. The delivery plan of tokens for a project may be an indicator of the purpose of
the team. Pre-mining yields tokens for a select number of people before the selling of
tokens becomes public. Sometimes, this is intended to encourage creators and early buyers,
so if the number of pre-mined tokens is too high, later buyers may be worried. This may
mean that short-term financial benefit for the team members is the impetus for the ICO.

5. Hype Breathless on Social Networks

ICOs who are sure in their product, especially their Telegram groups, do not resort to a lot
of buzzwords and unnecessary advertising on social media. If you tend to find this annoying
hype, this is a symptom of a bad ICO.

6. Promises That Are Too Good to be Real

Well, I believe that the crypto industry is capable of producing incredible returns, but
fundamentally, both firms are subject to the same market forces. If an ICO offers
unreasonable investment returns, like "Our coin gives you a return of 1000 percent in x
months!", then you better be warned!

What Damages Could you Get From Crypto-Currency Theft?

  Losses in Finance. This covers the lost cryptocurrencies and all other financial
damages the fraud has forced you to endure.
 Distress, Fear and Restlessness.Being the victim of a crime may have a huge
emotional and physical effect on you and it could be something you can sue for.
Popular symptoms include sleeping problems, and feeling sick, unsettled, or
disturbed. Your friends, your family and your work will all be influenced by stress.
 Privacy loss. You may bring a lawsuit if a corporation has neglected to protect
your details in the manner it is lawfully obligated to do and you have experienced a
breach of privacy. Popular examples of where you might have had a privacy breach
include where your email address has been compromised or otherwise put at risk.

What Would You Do if you Become a Victim of ICO Scam?

If you have lost money due to crypto-currency scams, you must report it as a felony to the
police as soon as possible. If you become the victim of an apparent crypto-currency scam,
please notify Action Scam. Action Scam is the national fraud monitoring service which
includes a range of services to help cybercrime victims handle the effects. If you suspect
you are the victim of a data leak, please contact the ICO to let them know. The ICO handles
privacy abuse and has the right to levy massive penalties on businesses that fall short in
their data security obligations.

Summary

Like conventional currency, ICO's allow you to purchase, or sell, products and services for
benefit. And, like hard cash, criminals are attacking the crypto-currency market. In fact, the
equivalent of millions of pounds is looted from cryptocurrency reserves every year. ICO
theft is a serious criminal offence. There will also be a lot of personal pain and lack of
privacy to remember, as well as the financial damages people suffer. These forms of
offenses arise in many situations because of incompetence on the part of corporations and
other organizations that keep personal data of victims. This can make the effect especially
stressful and unsettling to deal with. If you have become the target of an ICO theft owing to
an entity that kept your personal info, you are entitled to claim compensation.

Finally, this is where our discussion about the 6 signs of an ICO scam ends. I hope today
you've learnt something interesting about our subject. If you want to know more about ICO
scams, you can get it here: 5 Factors to Look for Before Investing in ICO to Avoid Scams,
and if you want to add more, please comment in the comment section below. Thank you!