Re: [ANN][MCAFEE][NIMBUS] Selling And Bartering Goods And Services Via Blockchain
Nimbus Token The Ins and Outs of ICOs PT.4
Avoiding scams
ICOs are unregulated, which means they are a target for scammers. Those investors who are easily blinded by the chance to make a quick profit are lured in and then the scammers make off with the money. An ICOs website and white paper can look slick and well-produced, so they will have passed the gut test for many potential investors. However, there may be red flags: for example, no information on the team and no detail on what the ICO is for or what the company would do. Anyone who takes the trouble to examine the pitch carefully would have found enough to make an ICO like this risky.
Other than the above, there are a few other signs that might signify a scam ICO. Look at the distribution scheme for the tokens. Are the founders reserving a lot of pre-mined tokens for themselves? That suggests a short-term outlook that, while not necessarily evidence of a scam, does mean the investment will be less successful for anyone other than early investors. Are there multiple tiers of investment? Is there a reward for bringing in new investors?
Typically, ICOs will hold the money raised in escrow a central, independent service that looks after the money until the transaction is completed. This should ensure that the team behind the ICO cannot access the money until certain goals have been met. Often, this is done by having one team member and two community members hold keys to a digital currency wallet that can be accessed only with two of the three keys. However, there have been instances where the team have ensured that, unknown to the community, they control two keys, such as by setting up a fake neutral third party.
Examining the details of an escrow system might seem like a lot of effort but remember that ICOs are unregulated, which means that you must do the due diligence that would usually be carried out by a regulatory body. If you dont, then you are increasing your risk. Make sure to DYOR (Do Your Own Research) and read up on the whitepaper of all ICOs and make sure you minimize the risk as much as possible before jumping into them.
Be sure to check back for more articles that will help you fully understand the Nimbus Token Platform.
For more information regarding Nimbus Token please visit our website at: https://www.nimbustoken.com
Also, if you have any questions regarding Nimbus Token or would like some extra information check out our social media:
Facebook: https://www.facebook.com/NimbusToken
Twitter: https://twitter.com/NimbusToken
Telegram: https://t.me/NimbusToken
YouTube Interview: https://www.youtube.com/watch?v=sJKgfFYpg4k&t=107
Avoiding scams
ICOs are unregulated, which means they are a target for scammers. Those investors who are easily blinded by the chance to make a quick profit are lured in and then the scammers make off with the money. An ICOs website and white paper can look slick and well-produced, so they will have passed the gut test for many potential investors. However, there may be red flags: for example, no information on the team and no detail on what the ICO is for or what the company would do. Anyone who takes the trouble to examine the pitch carefully would have found enough to make an ICO like this risky.
Other than the above, there are a few other signs that might signify a scam ICO. Look at the distribution scheme for the tokens. Are the founders reserving a lot of pre-mined tokens for themselves? That suggests a short-term outlook that, while not necessarily evidence of a scam, does mean the investment will be less successful for anyone other than early investors. Are there multiple tiers of investment? Is there a reward for bringing in new investors?
Typically, ICOs will hold the money raised in escrow a central, independent service that looks after the money until the transaction is completed. This should ensure that the team behind the ICO cannot access the money until certain goals have been met. Often, this is done by having one team member and two community members hold keys to a digital currency wallet that can be accessed only with two of the three keys. However, there have been instances where the team have ensured that, unknown to the community, they control two keys, such as by setting up a fake neutral third party.
Examining the details of an escrow system might seem like a lot of effort but remember that ICOs are unregulated, which means that you must do the due diligence that would usually be carried out by a regulatory body. If you dont, then you are increasing your risk. Make sure to DYOR (Do Your Own Research) and read up on the whitepaper of all ICOs and make sure you minimize the risk as much as possible before jumping into them.
Be sure to check back for more articles that will help you fully understand the Nimbus Token Platform.
For more information regarding Nimbus Token please visit our website at: https://www.nimbustoken.com
Also, if you have any questions regarding Nimbus Token or would like some extra information check out our social media:
Facebook: https://www.facebook.com/NimbusToken
Twitter: https://twitter.com/NimbusToken
Telegram: https://t.me/NimbusToken
YouTube Interview: https://www.youtube.com/watch?v=sJKgfFYpg4k&t=107