Computers & Electronics

Any experiences and advices with Inital Coin offerings (ICO)?

  • Last Updated:
  • May 4th, 2018 11:32 pm
[OP]
Newbie
Apr 20, 2018
7 posts
1 upvote

Any experiences and advices with Inital Coin offerings (ICO)?

So first of all, I am now getting into this "new" world of cryptocurrencies and blockchain technology and actually I am very interested in this topic. So after studying it a little bit (since some months) and putting all this little complicated puzzles together, I am now thinking of joining an ICO. I have some projects in my mind after some search (especially on the ICO rating sites) and will maybe join one project in its ICO phase which is also related to me because its about cryptocurrencies and culture (and ticketing with blockchain). Anyways....I would like to have some more advices or input about the criteria you guys choose the ICOs? What are the most important things to consider and to watch out? There are surely some "cryptofreaks" in this forum like me and have more experience ;) Thanks for help
7 replies
Deal Expert
User avatar
Aug 18, 2005
18385 posts
3060 upvotes
GTA West
Most ICOs are scams.

If you can see the bandwagon, it's already too late.
Newbie
Jul 6, 2017
83 posts
39 upvotes
If your goal is smart, sustainably profitable investment then your criteria should be "don't do ICOs." I say this as someone who has no objection to cryptocurrencies or new technology in general.

There are a bunch of questions you need to ask yourself before you invest in an ICO and I guarantee whichever one you choose will fail some of these criteria.

First, legal & legitimacy questions. Is the ICO legally incorporated somewhere? If so, where? What evidence do you have that the incorporation is real? What evidence do you have that the people behind the project are even real? What evidence exists of their skills and experience?

Is the ICO compliant with securities laws in its home country? What about Canadian federal & provincial securities laws? Do you know the tax implications of your investment?

Next, questions about the business model. Do you know what a blockchain is? Can you explain why blockchain is compelling enough to gain traction in the chosen industry? Why would businesses spend time & money switching from established non-blockchain solutions? Why would they adopt and stay with *this* blockchain solution and not another one?

Lastly, what stage is the project at? Has any code been written? Is there a detailed whitepaper?

Do your due diligence on all this and every ICO starts looking sketchy.
Jr. Member
Aug 1, 2016
146 posts
189 upvotes
There's a lot of garbage out there, so do your research. I personally don't bother with them because of how much they indulge into PnDs.
Deal Addict
Jan 10, 2017
1075 posts
457 upvotes
GTA
I remember someone posting of a Tor VPN clone that charges for it through an ICO. I explained the costs of running a vpn like Tor and how adding a layer of tracking to pay out people will remove the anonymous layer or reintroduce centralized tracking.

Got flamed by posters who loved to find the ICO they can make money off of. Never gonna bother saving souls again.
Information Security Analyst
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Newbie
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Apr 27, 2018
25 posts
4 upvotes
StefanH18057 wrote:
Apr 25th, 2018 8:11 pm
So first of all, I am now getting into this "new" world of cryptocurrencies and blockchain technology and actually I am very interested in this topic. So after studying it a little bit (since some months) and putting all this little complicated puzzles together, I am now thinking of joining an ICO. I have some projects in my mind after some search (especially on the ICO rating sites) and will maybe join one project in its ICO phase which is also related to me because its about cryptocurrencies and culture (and ticketing with blockchain). Anyways....I would like to have some more advices or input about the criteria you guys choose the ICOs? What are the most important things to consider and to watch out? There are surely some "cryptofreaks" in this forum like me and have more experience ;) Thanks for help
Well, DareTo lists next to all possible risks but if you are really new to the whole concept: Read the whitepaper and roadmap, if you are not totally sure what they mean, ask a friend with more experience. Definitely look at the team involved, if they are real people or just some cut-out faces from the web. Even if they are real, look what they have done before and if there is any sign of visible accountability. ;-) I have invested myself in a handful of projects which i think could be interesting on the long run but i never assume that every new idea is the next BTC. Looking at the rating sites is ofc a good idea too, just be sure to also research how they come to their conclusions. If at the end of this process you still assume, that a project you like could save money for a lot of people or at least make their life easier, you have weeded out about 95 of 100 currencies, at least. ^^ Personally i enjoy crowdfunding ideas.


@MadCanadian: Woah, i assumed the charming idea of the Lambocoin was rock bottom but i am more surprised on a daily basis....peak irrationality.
Last edited by Connington on May 4th, 2018 8:18 pm, edited 1 time in total.
“He'd been wrong, there was a light at the end of the tunnel, and it was a flamethrower.” - Terry Pratchett
Deal Addict
User avatar
Jan 4, 2011
4740 posts
1055 upvotes
ICOs are 99.9% scams. I don't even bother reading a single line of BS about this or that ICO now.

Best thing to do right now: Wait for a slight drop, buy BTC and hodl. If it drops keep your hands strong and that is about it.

(Right now price is on an up trend since two weeks)

Honest opinion from someone playing with BTC since 2011.

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