From the Bitmarket cycle advises
Today, we will take a closer look at the phenomenon of ICO, which is currently revolutionizing the financial markets from the bottom up. We will describe this phenomenon more extensively, however, on another occasion, today we want to encourage you to invest more critically in the numerous emerging projects on the blockchain market.
Below we present a few simple rules that should be applied before you decide to buy tokens of a given start-up:
If the creators approach their project in a forward-looking and long-term, they will give expression to this document. It is a report containing a description of the entire undertaking, a presentation of the creators, strategies for their operation, as well as other important information. It is also worth checking exactly the RoadMap, that is the development plan together with the boundary dates for the execution of individual stages.
It is necessary to pay attention to how many tokens will be issued and how the funds will be allocated for their sale. What percentage will go to marketing, how much for activities related to technological development? What will the inflation rate of the new token be?
It is worth paying attention to the technical issue. Is the cryptocurrency or token proposed in ICO decentralized? Will it be possible to dig it? If the answers to these questions were “no”, we may have some doubts about the idea of the project.
The ICO success must be a community that is big enough and believes in the project that the company will be able to collect the required funds for its implementation. How to check? We recommend analyzing the interest of ICO on Internet forums or on groups on the Telegram, which is being used by an increasing number of blockchain start-ups.
A good, proven team is the basis for the success of every start-up.
First of all, a suspect may turn out to be the fact that the project’s creators will not want to reveal themselves. The vast majority of start-ups organizing the ICO fully present the people who stand behind them. Often we get to know not only their names and surnames, but also profiles, for example on Linkedin.
Remember that there are also portals that track and evaluate the latest ICO: https: //icobench.com and https: //icorating.com. Before investing, carefully read the analyzes on these pages.
Why do we constantly remind about it? Therefore, to take care of your finances and security. The more so because the topic of dishonest ICO is becoming more and more common.
The financial regulator of the Canadian province of New Brunswick warned residents against investing in a “cryptocurrency bank” and related token. In a statement from March 5, representatives of the Financial Services and Consumer Commission (FCSC) informed about the Bitcoin-bank.io portal, whose operation raises considerable doubts.
According to FCSC, the offer of the “bank” is illegal:
“The Commission carefully looked at the website after it found out that the crypto-bank was advertising its investment opportunities on the Canadian classified website (…). Because it is not registered as an entity dealing in securities or derivatives in New Brunswick, nor as an advisory company in this area, it is illegal for Bitcoin-bank.io to perform these activities in the province. ”
Also, the alleged address of the project in California is false, and some marketing materials disseminated by the promoters include fictitious information:
“The analysis also showed that many photos attached to the project team profile on the website were downloaded from other websites, and the content was copied from other websites.”
It is not clear whether the Commission will take further action against Bitcoin-bank.io. In his statement, the FCSC recommended that potential investors should be able to do their homework before paying money for anything, including the message in a very apt way:
“Becoming a conscious investor is the best way to protect your money.”