Of couse that IEOs could turn out to a scam. There is no warranty that this can´t happen. But you can reduce the risk by choosing only IEOs on reputable exchanges - Bittrex and Binance.
Imagine fraudsters who conspire with a cryptocurrency exchange. And that they will steal $ 100,000,000 and then you yourself will figure out the credibility of authority. No one can give us guarantees of success. Keep this in mind when choosing a project and you should not believe the picture.
Would Binance tarinsh their reputation for just $100 million? Have you seen BNB's marketcap, It's fucking $4.5 Billion.They are making so much more money out of their IEOs pump and dump and so are a lucky few. Small exchanges IEOs are questionable though.
Exactly! Gaining reputation would take years and years to build but it would take only one mistake to ruin it all.
So I believe, BNB is doing their safety precautions with the projects that they are including in their launchpad.
However, it is not a guarantee that a certain token will always rise. But to research that the authenticity of the project is their responsibility.
Yes, I agree with you. Some days ago, Faireum IEO was held in p2pb2b exchange. Within 3 hours the exchange declared the FAIRC IEO is finished! Later then, the Faireum team released an article about the false raise! P2pb2b is the worst exchange I have ever seen! So, it is possible to scam people in IEO! That's why people should be encouraged, strong and faithfully!
No doubt that these small and new exchanges will try their luck in IEOs.
But honestly, their integrity is very questionable.
The possibility of scamming potential investors under substandard exchanges is very high.
So take precautions on investing your money with this kind of exchange.