Re: What Should Investors Know Before Participating in ICOs?
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Having invested in over 20 ICOs since 2017, I've developed a rigorous checklist that aligns with Paybis' guide on initial coin offering https://paybis.com/blog/glossary/initial-coin-offering/. The most critical factors include thoroughly analyzing the project's whitepaper for technical feasibility, examining the team's credentials and previous experience, understanding the tokenomics and distribution model, verifying smart contract audits by reputable firms, and researching the legal structure and jurisdiction.Many newcomers focus solely on the marketing hype without checking fundamental red flags like anonymous teams, unrealistic returns promises, or poorly designed token utility. I always recommend allocating only what you can afford to lose and using separate wallets for ICO participation. The guide's section on identifying scam characteristics saved me from several potential disasters last year.