Search
  • Videos
  • Windows 10
  • 5G
  • Best VPNs
  • Cloud
  • Security
  • AI
  • more
    • TR Premium
    • Working from Home
    • Innovation
    • Best Web Hosting
    • ZDNet Recommends
    • Tonya Hall Show
    • Executive Guides
    • ZDNet Academy
    • See All Topics
    • White Papers
    • Downloads
    • Reviews
    • Galleries
    • Videos
    • TechRepublic Forums
  • Newsletters
  • All Writers
    • Preferences
    • Community
    • Newsletters
    • Log Out
  • Menu
    • Videos
    • Windows 10
    • 5G
    • Best VPNs
    • Cloud
    • Security
    • AI
    • TR Premium
    • Working from Home
    • Innovation
    • Best Web Hosting
    • ZDNet Recommends
    • Tonya Hall Show
    • Executive Guides
    • ZDNet Academy
    • See All Topics
    • White Papers
    • Downloads
    • Reviews
    • Galleries
    • Videos
    • TechRepublic Forums
      • Preferences
      • Community
      • Newsletters
      • Log Out
  • us
    • Asia
    • Australia
    • Europe
    • India
    • United Kingdom
    • United States
    • ZDNet around the globe:
    • ZDNet France
    • ZDNet Germany
    • ZDNet Korea
    • ZDNet Japan

How to spot a fake ICO (in pictures)

4 of 9 NEXT PREV
  • What is an ICO?

    What is an ICO?

    An Initial Coin Offering (ICO), in simple terms, is a way for blockchain-related startups to raise funds. Akin to crowdfunding, the projects generally offer their own brand of 'tokens' in exchange for popular cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH).

    Published: September 10, 2018 -- 10:44 GMT (03:44 PDT)

    Caption by: Charlie Osborne

  • ICO, or IPO?

    ICO, or IPO?

    The differences between an ICO and a traditional Initial Public Offering (IPO), in which company shares can be purchased in a traditional manner, are not only related to the purchase of tokens instead of shares.

    IPOs worldwide are protected by financial authorities which ensure conditions and particular standards are met, however, ICOs are not protected by the same rules, which may place investor funds at risk with no hope of recovery when they are scams.

    Published: September 10, 2018 -- 10:44 GMT (03:44 PDT)

    Caption by: Charlie Osborne

  • Why would you invest in an ICO?

    Why would you invest in an ICO?

    Like many angel investments in startups, it is a risk which may later offer good returns. Many ICO tokens promise high returns, which leads many to invest in the blockchain space.

    Published: September 10, 2018 -- 10:44 GMT (03:44 PDT)

    Caption by: Charlie Osborne

  • What a beautiful website

    What a beautiful website

    If an ICO website looks professional, this may indicate a scam. Fraudsters will often spend a small fortune on a spotless website and marketing materials but this money is spent purely to promote trust in potential victims.

    Published: September 10, 2018 -- 10:44 GMT (03:44 PDT)

    Caption by: Charlie Osborne

  • Too high a return?

    Too high a return?

    A return on investment (ROI) which seems too good to be true often is. In the case of Bitconnect, in which investors were offered a 120 percent return on their investment annually, the company performed an exit scam and rendered its tokens useless, leaving investors heavily out of pocket.

    Published: September 10, 2018 -- 10:44 GMT (03:44 PDT)

    Caption by: Charlie Osborne

  • What does the project actually do?

    What does the project actually do?

    Blockchain-related startups appear, offer an ICO, and investors bite -- all without offering one whit of evidence to back up their claims.

    If you cannot find project timelines, legitimate whitepapers, patents, or evidence to back up projects, steer clear or risk losing your funds.

    Published: September 10, 2018 -- 10:44 GMT (03:44 PDT)

    Caption by: Charlie Osborne

  • Fluff and buzzwords

    Fluff and buzzwords

    If company websites, whitepapers, and project descriptions are full of fluff, buzzwords, and lack real substance, this is a clear warning sign that all may not be as it seems.

    Published: September 10, 2018 -- 10:44 GMT (03:44 PDT)

    Caption by: Charlie Osborne

  • Who is running the ICO, anyway?

    Who is running the ICO, anyway?

    Research who is running the project to avoid failing for a fake ICO. A quick search can sometimes reveal who actually has experience in the field and who does not.

    There are many ICOs out there which are legitimate and have been launched by people who truly believe in their projects.

    Those that do will have legitimate social media accounts and email addresses -- and will be available to answer questions relating to their ICOs and blockchain development.

    Some scam artists, however, may go so far as to create fake social media accounts to back up their claims, so take nothing at face value.

    Published: September 10, 2018 -- 10:44 GMT (03:44 PDT)

    Caption by: Charlie Osborne

  • Show me the code and the escrow

    Show me the code and the escrow

    If the blockchain startup has no links to samples or code uploaded to repositories such as GitHub, this may be an indicator that there is no blockchain development to start with.

    Suspicious ICOs will also ask investors to send their funds to a personal cryptocurrency wallet rather than a legitimate escrow service, and both practices may indicate a fraudulent token sale.

    Published: September 10, 2018 -- 10:44 GMT (03:44 PDT)

    Caption by: Charlie Osborne

4 of 9 NEXT PREV
Charlie Osborne

By Charlie Osborne | September 10, 2018 -- 10:44 GMT (03:44 PDT) | Topic: Security

  • What is an ICO?
  • ICO, or IPO?
  • Why would you invest in an ICO?
  • What a beautiful website
  • Too high a return?
  • What does the project actually do?
  • Fluff and buzzwords
  • Who is running the ICO, anyway?
  • Show me the code and the escrow

Initial Coin Offerings (ICOs) are part of the cryptocurrency Wild West, but how do you know what is fraudulent and what is legitimate?

Read More Read Less

What a beautiful website

If an ICO website looks professional, this may indicate a scam. Fraudsters will often spend a small fortune on a spotless website and marketing materials but this money is spent purely to promote trust in potential victims.

Published: September 10, 2018 -- 10:44 GMT (03:44 PDT)

Caption by: Charlie Osborne

4 of 9 NEXT PREV

Related Topics:

Security TV Data Management CXO Data Centers
Charlie Osborne

By Charlie Osborne | September 10, 2018 -- 10:44 GMT (03:44 PDT) | Topic: Security

Show Comments
LOG IN TO COMMENT
  • My Profile
  • Log Out
| Community Guidelines

Join Discussion

Add Your Comment
Add Your Comment

Related Galleries

  • 1 of 3
  • OnlyKey hardware security key

    This is the ultimate security key for professionals.

  • SoloKeys Solo V2

    Durable, fully reversible connectors, encapsulated in epoxy resin, and with updatable firmware.

  • iVerify: Added security for iPhone and iPad users

    I'm usually wary of security apps, but iVerify by Trail of Bits is different. It comes highly recommended and offers a lot of features in a small download. ...

  • iStorage datAshur BT hardware encrypted flash drive

    FIPS 140-2 Level 3 compliant storage drive with wireless unlock feature and remote management. IP57 rated for dust and water resistance.

  • Netgear BR200 small-business router

    The Netgear BR200 Insight Managed Business Router has been designed to be easy to set up, and features a built-in firewall, VLAN management, and remote cloud monitoring, and can be ...

  • YubiKey 5C NFC: The world’s first security key to feature dual USB-C and NFC connections

    The YubiKey 5C NFC can be used across a broad range of platforms -- iOS, Android, Windows, macOS and Linux -- and on any mobile device, laptop, or desktop computer that supports USB-C ...

  • Apricorn Aegis Secure Key 3NXC

    The new Aegis Secure Key 3NXC builds on Apricorn's Secure Key 3z and Aegis Secure Key 3NX, taking the same proven form-factor and physical keypad, and adding something that users have ...

ZDNet
Connect with us

© 2021 ZDNET, A RED VENTURES COMPANY. ALL RIGHTS RESERVED. Privacy Policy | Cookie Settings | Advertise | Terms of Use

  • Topics
  • Galleries
  • Videos
  • Sponsored Narratives
  • Do Not Sell My Information
  • About ZDNet
  • Meet The Team
  • All Authors
  • RSS Feeds
  • Site Map
  • Reprint Policy
  • Manage | Log Out
  • Join | Log In
  • Membership
  • Newsletters
  • Site Assistance
  • ZDNet Academy
  • TechRepublic Forums