Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 25, 2021
How to Spot a Fraudulent ICO

How to Spot a Fraudulent ICO

Initial Coin Offerings (ICOs) remain a popular way for blockchain-based startups to raise money, offering tokens to investors in exchange for fiat money or cryptocurrency. Companies have gravitated toward ICOs as a method to crowdfund their businesses without losing control to VC firms over operations and decision-making.

But ICOs have also drawn scrutiny from both federal officials and stakeholders for a lack of regulation that can lead to fraudulent offerings and fleeced investors. The SEC has taken steps to mitigate these threats, but the risk still exists in the absence of comprehensive regulations. What distinguishes a fraudulent ICO from a legitimate one?

Even in crypto’s wild west, the old adage still applies – if the return on investment (ROI) seems too good to be true, it probably is. Bitconnect offered investors a 120% annual ROI before disappearing with their investors’ money, while LoopX stole $4.5 million in a February exit scam. Some companies have even managed the feat more than once: Shenzhen Puyin Blockchain has pulled off successful thefts from three ventures – ACChain, Puyin, and BioLifeChain – to the tune of $60 million.

Legitimate startups will use a trusted escrow service to hold coins until particular conditions for the sale are met. These relationships will be clear and verifiable. If an ICO foregoes escrow or asks investors to send funds to a personal crypto wallet, it is likely that the sale is a scam.

It is important not to take shiny, professional-looking websites at face value in the ICO world. While somewhat counterintuitive on the surface, closer inspection reveals why – it is easy for those with malicious intent to promote trust via a nice website and fleshed-out whitepaper. Would-be investors more interested in massive returns than substance might miss the underlying signs – buzzword-heavy descriptors, a distinct lack of substance – that characterize fraudulent ICOs.

Equally vital is to look for real, substantial evidence of blockchain development to back up any claims made. No sample code on a repository like GitHub is a warning sign; if the code exists, it is important to have someone with technical know-how evaluate it for legitimacy. Message boards are also useful to see what crypto enthusiasts have to say about a project – while not necessarily the final word, it is important to take those opinions into account before investing.

Researching project timelines, patents, and other evidence is imperative for spotting a fraudulent ICO. This does not need to be an investigative reporter-worthy deep dive (though more research never hurt anyone) – a basic online search can reveal along with their resume. Little or no experience with blockchain projects is a red flag; legitimate project associates will also have contact information for potential investors to reach out with questions.

No amount of research can eliminate the risks that come with investing. But potential ICO investors will benefit from taking a good, hard look at what’s on offer. A clear, transparent project backed by technical expertise is a safe bet – a fluffy, codeless, information-deficient ICO is not.

Unsure of What Cryptocurrencies to Buy and Sell, and When to Buy and Sell Them? Ask A.I

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You can learn more and even start a 45-day free trial today. Get started on tickeron.com.  

Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.