If you're looking for a reliable Etherium ICO, you should keep these things in mind. The ICO's time frame is crucial. Many investors are more concerned about having a stake in the project, because they want to influence future decisions and see what the company is doing. Scams also depend on the decentralization of the platform and smart contract code. It's important to check that a project is decentralized.
There's no doubt that the ICO space has become a hotbed for fraudsters. While Ethereium's price soared in 2017 and 2018, scammers jumped on the bandwagon. Fortunately, there are several ways to identify the scammers. The first step is to read the white papers and research platforms. Then, read the reviews. Look for red flags like a warning sign indicating the ICO's legitimacy.
Etherium ico scams
Despite the popularity of ICOs, they can still be extremely lucrative scams. One study conducted by Chainalysis found that nearly 40,000 users had invested in Ethereum scams last year. In the same year, there were more than 2,000 accounts that received funds from investors. This is four times more than the previous year's scams. And if you don't see a red flag, don't invest.
Another way to spot an ETH ICO scam is to read the README part of the ICO project. Those sections are treated as white papers. Once the ICO ends, the authors compare the predicted price change to a gold-standard price change and then use the L2 distance to determine if it was a scam. If the prediction is less than m percent off the ICO price, the ICO is a scam.