How To Avoid ICO Scams - Jury.Online Answers 12-01-2018
Let’s look at the stats: just about 2 weeks ago, 400 ICOs were announced according to one of the many ICO newsletters that have gained traction. Last quarter of 2017, over $ 1,5 bln were raised by projects accepting primarily or exclusively cryptocurrencies and handing out a token in return. It’s approximately five times more than funding raised through venture capital in the blockchain space.
During 2017 ICOs have boosted more than 3,6 billion $ and this number keeps growing.
Meanwhile, more and more ICOs are missing their funding goals. And some of the most successful ICOs of the past months are unstable, too. One of them is already fighting over money. A second one is having trouble delivering the promised tokens to investors, leading some to speculate on its impending implosion. Compared to startups, most crypto ICOs have failed to deliver on a minimum viable product and real adoption, even with millions of funding in the vaults. And of those startups that successfully raise funds, only 1 in 10 actually use the token in their network. Moreover, many projects leave their investors with nothing, taking all raised money and disappearing
All these deficiencies lead to ambiguous future of ICO industry.
Because of the decentralized and open nature of the cryptocurrency world, protection is not freely offered. Users are rather expected to be savvy enough to not fall for scams and traps, but that takes some work. There are just some examples of projects which left their community and investors, took all money and then disappeared.
The ICO, called Confido, sold tokens called CFD and claimed to offer ‘safe and trustless cryptocurrency payments.’
The ICO apparently was a scam, and while tokens were issued, no actual work ever took place on the platform. Rather, due to legal issues, the company simply disappeared and all trace of its founders has vanished after raising $347,000
As a result of the disappearance, the price of the Confido token has lost over 90 percent of its value.
Karbon - decentralized Social eCommerce project, Karbon was being pumped by thousands of fake Reddit accounts, but had no real company registered, had no public team, had no real platform.
The latest ICO scam revealed just few days ago - an infamous start-up Fantasy Market. It was claimed as a marketplace for live, user directed performances, where the intimate level of user interaction would revolutionize the adult entertainment industry.
At first, Fantasy Market seemed like a dream come true for cryptocurrency investors. Now, the digital money that consumers could use to pay to stream pornography has turned into a nightmare.
According to the New York Post, Fantasy Market CEO Jonathan Lucas has "disappeared" with the investors' money and ignored their repeated requests for refunds. Lucas planned to raise as much as $25 million through an "initial coin offering" (ICO) that had been planned for December but was scrapped after the Post raised questions about the deal, the paper said.
Jury.Online is developed to provide an ecosystem for conducting deals and ICOs on blockchain empowered by smart-contract and third-party arbitration option, making a crypto-crowdfunding a clear, simple and transparent process.
Jury.Online takes 1% fee from invested ETH which does not affect the number of tokens received by investor. Investor can also pay 0.5% fee in JOTs and invest less in ETH preserving the same amount. ~33% of the fee will be distributed between 5 arbiters which are linked to the project or contract.