If investors had ever been more cautious about investing in ICOs, it is now. The reason is simple. Most ICO scams and frauds are hitting the Internet, making investors wary of the touted money-spinner. While the issuers of ICO scams go on a spending spree, the investors bear the brunt.
The news of a Houston resident, Marjorie Earl Jones, 82, committing suicide upon realizing that some ICO con artist ran away with her hard-earned money, shocked the cryptocurrency industry. Consequently, investors have become wiser.
Inaccurate Information
If you are a prospective ICO issuer or run an ICO-listing website, you must pay attention to the accuracy of this information:
- Cryptocurrency exchange listing: Ensure that the cryptocurrency exchange where the ICO is listing is clearly stated. It will be frustrating to the investors who wish to swap, buy, or sell a token, to realize it is not on the listed exchange.
- Legal jurisdiction: In some countries, such as the US, China and India, many ICOs are considered illegal. Ensure that it is explicitly stated that such countries must not participate. In cases where the issuers want citizens to participate in the ICO, the terms and conditions must be clear. So, as an ICO issuer or listing site, you must taker cognizance of legal exclusion and restrictions
- Funding preferences: Another factor to pay attention to is the funding preferences required to purchase the ICO. While many whales look out for BTC and/or ETH, new ICO investors are likely to pay for the tokens with fiat currency. These options must be specified
- Correct spelling of names: If an ICO issuer or site cannot spell the names of the members of the advisory board or team members, the ICO shouldn’t receive serious consideration. Indeed, that’s the last thing many investors out there consider.
- Updating the ICO: The start and end dates must be accurate on the ICO website and white paper. If the dates are incorrect, it could make potential investors not do proper follow-ups. Consequently, they may miss out on important ICO events.
Final Note
ICO listings must ensure an accurate capture of all factors in them. The reason is ICO investors and enthusiasts are increasingly looking for facts (and excuses) to prove an ICO a scam. Therefore, it’s critical that ICO issuers and listing websites avoid likely errors that may occur on their list as investors may capitalize on it to take to their heels.
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