Ongoing growth of the cryptocurrency has lead the interest of many investors towards the ICO industry. ICO industry has now become one of the major investment industry for the investors supporting blockchain technology. Where people are investing and earning profits rapidly through ICOs, there many of the investors are unaware of some simple strategies that one could easily use while picking up the right ICO to invest in.
With the rapid growth in the number of ICOs across the globe, there are not many of these that one can line up on the queue of being promising and result orienting. Before investing your hard earned money in random ICO you pick, you should remember that not all the projects are going to be successful in the future and most of these projects will inevitably fail or turn out to be a scam as the technology that they are based upon is experimental and is not fully developed yet.
Most of the ICOs in the market are based on the Ethereum and are completely based on the experimental project concept that makes it an experiment on top of an experiment. All the ICO projects contain a well informed white papers and websites explaining their projects. Included in the website is the full description of the team, roadmap of its execution, goals of the project etc. The only thing that an ICO will not have is the unfinished functional product they propose. So, with all this the simple idea behind the launch of the ICO is that "so, here is an idea and this is roughly how we are going to proceed further inventing the idea for which we need money".
Here, we are not speculating that all the ICO projects are complete failures, in fact there are many ICOs that have become successful like EOS etc. With this now the question comes that how one could pick an ICO to invest while minimizing the risk of losing your investment.
How to Judge if the ICO you are Willing to Invest in is not a Scam?
The first advice that one will always give you in cryptocurrency is that do not commit more money than you can afford to lose. There are many points in an ICO that can actually define the future scope of the ICO. First of all before investing in an ICO check out that the developer team they have is not anonymous and if they are not legitimate take it as a red flag in an ICO and avoid investing in it. The second sign depicting if an ICO is a scam is the low end community and social media. Also check out if the project is really worth investing and it is possible to develop that or not.
These are a few points that one can check if the ICO you plan of investing is worth your money or not.