How to spot ICO scam. ICO stands for Initial Coin Offering. It’s an event, sometimes referred to as ‘crowdsale’, when a company releases its own cryptocurrency with a purpose of funding. It usually releases a certain number of crypto-tokens and then sells those tokens to its intended audience, most commonly in exchange for Bitcoins, but it can be fiat money as well. As a result, the company gets the capital to fund the product development and the audience members get their crypto tokens’ shares. Plus, they have complete ownership of these shares. The key goal for every ICO participant is to help fund a project that they personally consider interesting and appealing. However, there is an additional opportunity to make a profit in the process. In most cases, the crypto-tokens released during an ICO are sold at a fixed price denominated in Bitcoins or US dollars. That price isn’t backed by anything but the community’s faith in the development team to release a fi...
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