With the emergence of new projects and expansion of industry by the businessman or with the growing number of entrepreneurs ICOs (initial coin offerings) has been increased. An initial coin offering is regarded as a fundraising option. It is basically related to the investment or investment related constraints. When a businessman is on the verge of segmenting its products like an application or services the investors who are willing for investment trades with cryptocurrency. As they believe the investment will have paramount returns. On the other hand, the companies use the funds with respect to the growth of the company.
Also read Golden rule to make your ICO Sucessful
No doubt, ICOs has become one of the trends in the blockchain and cryptocurrency industry. But, as the grass is greener on the other side ICOs have a certain regulatory issue and has book scam constraints. There are fake ICOs as well and certain scam projects related to ICOs. The cryptocurrency industry looks very lucrative but there is a lot of investors who fall into the mouse trap (trap of scams etc). Nowadays, ICOs is enhancing towards airdrop.
The scammer showcases the ICOs in such a way, it is not easy to identify whether the constraint is credible or not. There are different types of ICOs or cryptocurrency scam which are mentioned below:
Fake Trading- There is ‘n’ number of websites or platform who indulges themselves for exchange and trading purpose. The fake trading platforms showcase themselves in such a way that when you compare the transaction fees they are comparatively lesser. This attracts the user and they get attracted without knowing that they are Fake.
Wallets Trick- Nowadays people are going cashless and are using various online wallet ’s, They don’t even verify company before using such wallets and they may become victims of scam when wallet company lock all heavy deposit but avoid small deposit
Spam Mails/ Messages- In a day we receive on an average of 20 spam emails, a lot of fake people messages in the telegram. Individual reads out those mail and operating the same in greed of getting a lucrative discount and offers which give rise to frauds and fraudulent.
How to Protect your money from fake ICOs or ICO scams
To take certain steps while Signing –up- While signing up in airdrops, make sure the airdrop has complete information. If the airdrop is real, it will surely contain the threads (Bitcoin) and all social media websites have mapped these threads.
Don’t Disclose your private information- Participating in ICOs or airdrop is not a bad thing, but before having proper information, never disclose your private information like wallet information, number etc.
Check and verify the name of the Founders and Co-Founders- Every Initial Coin the offering has a founder or a co-founder, but when the ICOs which are Fake put the name of founders who do not even exist. Before doing any activities related to ICOs the individual needs to check the names of the concerned person and check the person’s virtual credibility.
Reliability of ESCROW- ESCROW is an online wallet which preserves the coin unless and until the transaction is done. But when we are doing a transaction we rely on any of the wallet platforms and the end result is the money is debited and the deal is unsuccessful: this means the ICOs are fake. So, while involving in certain constraint make sure they use ESCROW for offering ICOs.
Get ahead with an email confirmation- Generally, a real airdrop shares the individual a confirmation mail, if you are not getting a confirmation mail on your registered mail id neither any OTP, you should walk –off from the deal.
Documentation – Make sure when the transaction is being processed you have gone through all the documents and verified it from your legal team. Because now a day’s printing a document on a white paper is not a big thing. It is required to know whether it is authenticated or not.
Rely on known and popular airdrops- Everyone is interested in doubling the money, with the verge of doubling the amount we invest on any of the airdrops without checking the constancy. The fraud constraints use all your information and wind back as a scam.
Make sure the IPs is secured-If you are not a technical person, do consult technical personnel the IPs are secured and done with all support and encryption. Use those IP where data is safe and the password and private keys are protected.
Always focus on plan- Getting money or the value of your return is always exciting, but firstly choose a plan and then focus on the airdrop. Have a certain plan and plotting, so that spammers will have no scope of spamming.
Blogs & Forums- With the world of digitalization, we have evolved with lot and lot of social media platforms. People start exchanging their views and you will get an answer to many of your questions. So before taking any step ahead with regards to airdrop consult an expert. Invest your time reading blogs and forums related to airdrop, Bitcoin exchange to get an idea of whether you are on the right path or not.
Get knowledge on the Anti-Phishing industry- Anti-Phishing industry helps you in identifying which is spam and which are the real airdrops. There are certain airdrops which are free and they don’t demand any transaction fees but if airdrop charges sky- high transaction fees, be clear that they are fake.
Yes, of course investing money on airdrop and ICOs are not bad, but we should restrict ourselves from investing in each and every offering. Once you are spammed, then it is a long process to get your refund. You should have that much knowledge at least you can distinguish or differentiate between a scam airdrop and a real airdrop. First, try to understand what exactly the market is? What are the trends going on the cryptocurrency market? So, that your investment becomes wise and profitable.