Three tips to keep you safe this ICO season
Hey everyone,
Today I am hoping to pass off a few good tips on how to spot an ICO scam. There is nothing more important then common sense.
#1 The Party Bowl- Your Private Keys
Company is requesting information like your private keys, yeah that's no big deal right? Private keys are meant only for you to unlock your wallet, giving it to anyone else would be like... opening your wallet to a stranger?
#2 The White Paper
Before giving anyone any amount of bitcoin or ethereum one should carefully, I mean carefully read the whitepaper. Does everything sound agreeable to you? Do you agree with the ethics, products and services the company provides? Does the whitepaper outline a functioning product?
I am going to walk through an example of what I mean below:
Example 1:
In this we see the following line "In comparison Company X is a multi-dimensional token that can be used to reward viewers (reward w Company X token) for their attention, to pay producers for premium content, and for content distributors to monetize the data they collect by selling it to other providers of adult-related products and services.
Ok, so let me break that down for you, person watches adult services through company A, Company A then captures a host of data of you during your most intimate private time and sells it to Company B. In the legal world this is called "in nature of contract." (See a "Treatise of Laws of Contracts" pg 549-550). Anyway, the implications for this to investors is huge because as time goes on people will figure out that it is THEM that is being bought and sold not a token, then lawsuits will arise. :/
Another example from same company:
Step back and research:
What is Proof of Brain?
Where did Proof of Brain originate?
How Does it Work?
Scientifically how does it work?
Is there any repositories anywhere for this?
Googling Proof of Brain what is found?
If you can safely answer 4/6 I would perhaps think about investing. If there is no clear answers, and no scientific proof of work, then obviously don't open your pocketbook to them.
#3 Meet the Team
I have seen quite a few ICO websites now, some look so legitimate the initial reaction is "HERE TAKE MY MONEY!" Really, slowdown though, just because they're smiling and wearing suits does not mean you should trust them. Try to research their names or institutions they came from.
Did they have any special projects?
Any thesis papers?
Anyway,
Stay safe during ICO season...wolves out in full play. Hopefully this will help someone out there.
Till next time
B