ICO Scam

What is an ICO Crypto ?

Investing in Crypto – There are a lot of ways to create Wealth with Crypto. You can HODL crypto, you can trade it, but do you know about ICO’s?

ICO stands for Initial Coin Offering. There are many scams out there related to ICO’s, but you can make some really good coin from them as well, so let’s have a look at what is an ICO Crypto and see what we can find.

What is an ICO

An Initial Coin Offering is a means or way that a project can raise money. The idea is you invest in the ICO by providing cryptocurrency to a blockchain project. Now that project can use your crypto for whatever they want, but the idea is that you are funding the startup of the project, and in return, you are being offered the project coin as compensation for your investment.

ICO scams are part of the reason why the crypto-asset industry has a bad reputation. In 2018, it was estimated that around 80% of all ICOs were scams. The ICO market lacks regulation, so scams are common. The idea is similar to an – IPO initial public offering, but with an IPO, you are investing in an established company rather than a project.

Early Stages

ICO’s are at the very early stage of project development and are often experimental and not proven. For these reasons, they are highly speculative and considered a risky investment. Sometimes the project may not have even started, and they are looking to raise capital to start. Some projects can take years to make a profit or might even fail.
The idea is sound, but the risk can be high. However, if you get it right, you can make a lot of money. Let’s have a look at some ways you can tell the scams from the ones that might be worth your while.

What Should I Look For?

You could lose a lot of money if you buy into an ICO without doing your research first.

There are a few keys things to look for if you are considering investing in an ICO, they are…

  • The White Paper
  • The Website
  • A Roadmap
  • Names of Developers
  • What is the Fundraising Goal
  • False Promises of Very High Returns

Key Factors

I will go into detail about each one of these key factors.

The White Paper – There should be a White Paper that contains information all about the ICO. These can be very long, very technical and misleading, so you should read all of it and see if it makes sense to you. The white paper should include the names and contacts of the people behind the project and what they are planning to do with your investment. They are usually very long and should be very comprehensive. If there is no white paper or it is very vague, be very wary and keep in mind they can say whatever they want in these articles.

The Website – There should also be a good quality website with all the info available to you. You should find the white paper on there and info about the developers and contact details. If they are hiding any of this info, be very cautious.

A Roadmap – You should have access to a clear roadmap, this should be in the white paper or on the website, but the more detailed they have outlined their intentions, the better. It needs to make sense to you. There should be dates set out with the project’s intentions.


More Key Factors…

Names of the Developers – The projects developers should be transparent if you can not find their details anywhere run from that ICO as fast as you can because that screams a scam. If you can find who they are, I would also do some research on them, use Google, Linkedin etc… Once again, if you can not find anything, be wary.

Fundraising Goals – The project should have a clear idea of what they are trying to achieve, so they should have some targets in mind that they would like to reach. This info should be on the website and in the white paper. If they have no targets set, I would consider that a red flag.

False Promises of Very High Returns – You know the old saying, “If it sounds too good to be true, it probably is” you keep that in mind. Have a look at the screenshot below. Do you really think you could earn interest like that? It screams a SCAM.

Big Promises

The screenshot above is from an investment of around $20 which I personally made. I knew it was a scam but wanted to get real live data before I wrote this article. It was quite simple to find. I did a quick google search and found it, then I linked my MetaMask wallet and deposited a small amount of ETH. It was locked for a 14-day period, and at the end, you could supposedly reap your rewards. I could not find a lot of the necessary info on this one, so I knew it was definitely a scam.

I watched it live, and the money was there right up until 3 minutes before it unlocked, and then it dumped the classic Rug Pull. All the money disappeared. I tried to take my money out, but the site would not let me, scammed as I knew I would be. So from my 20 dollar investment, I was going to make $11000 in a week. Yes, it was a scam; unfortunately, people still fall for these.

Some Past Scams

Scam Alert AheadIfan and Pincoin – $660 Million lost 32,000 people invested in this one. This was one of the largest scams and was purely a marketing scam.

Onecoin – The scam investigation into onecoin took 18 months and covered several countries. Chinese authorities seized over $30 million from this company.

Bitconnect – The company had a website with a landing page that had offers too good to be true and turned out to be a Ponzi scheme. Investors lost over $700,000

Plexcoin – promised 1300% return monthly. This should have been a huge red flag, but many still invested in the ICO. The US Securities and Exchange Commission stepped in and froze the company’s accounts, and stopped operations.scam

CentraTech – Was endorsed by Floyd Mayweather and DJ Khaled. The founders of Centra tech ended up being arrested on fraud charges. The charges were pressed by their own ICO, which raised $32 million.

These are just a few of the scams that are out there, so be careful.

Fewer Safeguards

You are very unlikely to get any of your money back if you fall for one of these scams. Cryptocurrencies are not recognized as legal tender in many countries, so they do not fit within existing laws, especially if the ICO is overseas. The platforms that you transact on are likely not regulated and can be hacked or even fail.

A hacker can also steal the contents of your digital wallet. If hackers steal your digital currency or ICO tokens, you have little hope of getting it back. You also have no protection against unauthorized or incorrect debits from your digital wallet.

Best Hard Wallets!

Ledger Live Coinify

My Thoughts

As you are now aware, if you weren’t already, ICO are high risk but having said that, there are some good ones out there. I have recently found one that looks good and guarantees your initial investment. I will let you all know how it goes. So if you are game to invest in ICO’s make sure you check it all out before investing your coin. I would never put anything in an ICO that I couldn’t afford to lose.

I hope you have found this article useful and if you find any good ICO’s let me know or have any questions; leave them in the box below. For me personally, trading is still the best way to create Wealth with Crypto, but we should be open to having a look at other options.

Remember, There are No Limits.

Crypto Dave

❗ DISCLAIMER: I am not a financial advisor. This is not financial advice. The content and material I provide on 2dsirecrypto.com is my opinion only and general in nature. Always do your own research before investing any money. You should always understand the risks involved in trading and investing and seek advice from licensed professionals before undertaking any investments of your own.

8 thoughts on “What is an ICO Crypto ?”

  1. Yes, scams are everywhere. It is so sad to know that they even exist! Thank you for your wonderful and informative article. I will definitely follow these tips before I put my nose into something! I agree with you, it is obvious, if the returns are too high, it is too good to be true! Will these scams ever stop?


    1. Hi Edith. 

      No I don’t think the scams will ever stop, you need to DYOR and be careful when investing. The crypto industry is becoming more widely accepted and regulated, this can only be a good thing for crypto and should help with some of the scammers and remember…….

      Be the Best you can Be

      Crypto Dave

  2. I have never heard of this that you have pointed out here before but it seems to me to be a very good one that I would be able to try. I like the way you are able to tell me more about it and how everything seems to work out fine too. I would be looking to give it a swipe.

    1. Hi Jamie

      Yes, there is definitely big potential with ICO’s but also a lot of scams so just make sure to do your research first.

      I just use some profits from trading for investing in stuff like ICO’s and remember……..

      There are NO Limits

      Crypto Dave

  3. Hey Dave,

    One of the reasons I have not invested in an ICO is because, as you have said, there is a lot of room for scams. I was, for example, aware of Bitconnect (and other ICOs), but I did;t invest. It sounded too good to be true. And you know what they say, right? If it looks too good to be true, then it probably is.

    I believe that the market is still immature for ICOs, and the blockchain technology’s adoption is still in its infancy. I would suggest everyone wait a little bit, before investing and/or engaging in ICOs.

    Nevertheless, your post is valuable and full of important insights and tips. I will save it for reference.



    1. Yes I think there are better ways to create Wealth with Crypto but just wanted to make people aware, on the other hand, I have made some good money on some and I have just written a post about VectraCoin ICO you can read about it here ===>> https://2dsirecrypto.com/vectr

      Crypto Dave

        1. Have a read but I would be careful if you are thinking about investing. I have contacted support several times now and asked for a white paper, I have not heard back from them, still waiting…
          There are better options this one is a lot better and I have been getting paid interest for months now and they are 100% transparent Pool by CAKE

          Crypto Dave

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