Are you planning to invest in an ICO? If so, how can you know whether the ICO is
honest or not? Are all the coins and tokens sold at an ICO real? Many fake
cryptocurrencies do exist. How are investors supposed to identify them?

How can you identify if a cryptocurrency is real or fake?

Many people think that cryptocurrency is just like other currencies like dollars and
euros, but they’re wrong because they don’t have any value unless someone trades
something. So if some stranger offered you a coin worth $1 but didn’t give anything in
return, he’s probably trying to scam you! If anyone tries this on me, I will tell them
where they can put their coins (not literally).

The Popularity of Cryptocurrency Markets Have Given Rise to Scams

Cryptocurrency has become particularly susceptible to scams as a new and growing
market. In addition, because of its unregulated nature, it’s difficult for investors to
know whether or not they’re investing in something legitimate.
It can be especially frustrating when you consider that many people are unfamiliar
with how cryptocurrencies work and how they should be used. Unfortunately, due to
this lack of knowledge, many investors have been led into making bad decisions—like
investing in fake ICOs and cryptocurrencies—and losing their hard-earned money as
a result.

Cryptocurrency Prices are Volatile, Which Lure Scammers

Cryptocurrency prices are highly volatile, which means it can be easy to make money
and easy to lose money. This volatility is what makes cryptocurrency a prime target
for scammers and fraudsters. In addition, the high levels of liquidity in the market
mean that people are more likely to want to cash out their cryptocurrency quickly
without thinking through the process properly.

To make matters worse, there are currently no regulations in place regarding ICOs
(Initial Coin Offerings), cryptocurrencies, or exchanges. As a result, it leaves investors
vulnerable to fraudsters setting up fake ICOs with similar names and logos and fake
crypto coins with similar names and logos as well-known coins such as Bitcoin or
Ethereum.

The best way for investors who want to avoid being scammed by fraudulent ICOs or
crypto coins is by doing thorough research before investing any money into them!

Many ICOs are Fake.

There are many fake Initial Coin Offerings (ICOs) in the ICO environment. These fake
ICOs are scams to make money and not fulfill their promises. So even though there are
some legitimate ICOs, it’s best to be careful when investing your money in them.

Many Cryptocurrencies Aren’t Real.

You may have heard about the cryptocurrency craze and how it’s captivated the
imagination of so many people worldwide. But, as with all things that seem too good
to be true, they probably are.
Many cryptocurrencies are fake. Cryptocurrencies don’t exist physically, and they
aren’t backed by anything other than their cryptocurrency value on exchanges. But
even that isn’t guaranteed because there is no authority behind them to enforce those
values or guarantee their worthiness as a currency—only market demand can do that!
In addition, crypto exchanges aren’t regulated like banks or stock markets, so you’ll
want to keep your eye out for signs of fraud before investing in an ICO or
cryptocurrency exchange platform.

Many ICOs are Scams.

It’s important to note that not all ICOs are scams. Many of them are legitimate and
highly effective ways to raise funds for a startup project or new cryptocurrency.
However, it’s also true that many ICOs are scams. And investors need to know how to
identify which ones are fake to avoid getting scammed out of their money.
Here are some tips on how you can tell if an ICO is a scam:
● Look at the company behind it: Does this company have any experience in
blockchain technology? Do they have any previous experience raising money?
Have they created any successful products before? Is there any proof they exist

beyond an empty website and sparse LinkedIn profiles? If the answer is no on
any of these questions, steer clear!
● Be skeptical about their claims: The main thing you should be wary of when
trying to identify fake cryptocurrencies is hype. The more hype surrounding an
ICO/cryptocurrency/blockchain project, the more likely it will be fake (so make
sure not to fall prey!). It doesn’t mean every single claim made by someone
with knowledge about this space must be false. Rather, just keep your wits
about yourself during research, so nothing goes unnoticed because someone
told us something made sense without looking into things ourselves.

Many Tokens Aren’t Securities.

You should also be aware that many tokens aren’t securities, and thus the SEC doesn’t
regulate them. Therefore, you should take the time to learn the difference between a
security token and an asset token.
Token sales are not regulated by the SEC, but they can be regulated by state securities
regulators. If you’re selling your company’s shares on some kind of blockchain
platform, you might still need to get approval from state regulators before you issue
any new shares or sell existing ones to investors.

Many ICOs are Ponzi or Pyramid Schemes.

Ponzi schemes are scams. They rely on new investors to pay off older investors. This
scheme is illegal in most countries, including the United States and China.
They’re often organized by fraudsters who are experts at convincing people that they
can make a lot of money in a short amount of time with little risk involved—a classic
example of the “easy money” scam. Unfortunately, the leaders of these Ponzi schemes
often have no qualifications or relevant experience for running them. Instead, they
simply take advantage of their victims’ greed and naivety to make money for
themselves without real intention or ability to deliver returns on investment (ROIs).

Many ICOs Rely on a Lack of Security to Make Them Work.

A lack of security is a major problem. It means that hackers can easily steal your
money, and even worse, they can use it to steal personal information from you!
You might think that the ICO will be able to prevent this kind of thing from happening
because they’ll have lots of money to hire hackers and make their website secure. But

many ICOs rely on a lack of security because it allows them to scam people out of their
money faster.
Investigate the Claims of an ICO Before Supporting It With
Your Money.
Before you invest in an ICO, investigate the company’s claims behind it. If you’re
considering contributing to a new cryptocurrency or ICO, take some time to
investigate the people behind it and whether they are trustworthy.
Investigate the Company
You want to know if this is just another scammy operation that offers nothing more
than a whitepaper and a website before throwing your hard-earned money into it. You
can do this by checking out their official website for information about their team
members and advisors and their LinkedIn profiles. If there are no LinkedIn profiles
available, that should raise red flags right away!
Investigate the Technology Behind Them
Another important thing to look at when investigating an ICO is how legitimate their
technology is—do they have anything interesting here? Are there any developers who
have worked on projects like this before? Are there any partnerships with big
companies like Microsoft or Google? These things will tell you whether there’s
something worthwhile going on here or not.