ICO in Mind? Stand out with CAR Rating!
Crypto Business World
CBW -External Analyst
Nov, 05 2018
Is Investing in an ICO Safe?
ICOs are a billion dollar industry and are the number of ICOs in the market is increasing exponentially. It is estimated that on average 5 new ICOs are created each day. They generate capital through crowdfunding to kick-start the start-up process. Both the investors and the developers of the project are benefited by this process as investors reap huge profits as the project grows, while developers are granted funds to aid in the development of their decentralized platforms. While all this sounds well and good, there is a major problem investors the world over are facing. ICOs are unregulated, as is all blockchain technology. There are several cases of ICO exit scams which have left investors in the cold and penniless. The market is plagued with numerous fraudulent platforms and it is becoming more common by the day. All transactions take place over the internet and the nature of these transactions is virtual. As is the case with transactions signed by a bank, cryptocurrency has no intermediate between buyer and seller. This process itself is bound to its own set of risks.
Untrusted service providers may abscond with your coins and there will be no way to recover them. It is quite difficult for cryptocurrency asset investors to determine which asset they should invest in. The number of ICOs in the market make the process of analysing each and every cryptocurrency asset properly quite tough. Not all ICOs are fraudulent, yet the sheer volume of them in the market makes it difficult for investors to choose an ICO to invest in. There are several investors who have the resources to conduct quality Due Diligence for the ICOs they may consider investing in. They may hire specialists to review these ICOs and prepare extensive, detailed reports. These investors can then choose which ICO/ICOs they wish to invest in. The majority of investors in the market do not have the resources to conduct these research procedures.
According to a report published by CNN, of the 1,450 tokens they analysed, 271 have turned out to be a scam. More than 1 billion USD has been lost to scam ICOs and less than 25% of these funds have been recovered. Investors need to be careful as they are the ones at loss in the end. Some ICO teams have published fake whitepapers which have been copied from other ICOs or are blatantly wrong and improbable. Other ICOs have published fake team lists and have even gone to the extent of copying the names of members from other trusted ICOs! All in all, it is absolutely necessary to gauge all aspects of an ICO before investing in it as the loopholes in a project may be immense, and the possibility of fraud large.
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How do I Determine whether an ICO is Scam?
There are several ways to determine whether an ICO is a scam or not which include reviewing the white paper of the project, reading through the roadmap and searching the internet for information on the founders and developers of the project. The source code of such projects is generally open to the public and investors can take a look through the code as well to determine whether the ICO is a hoax or true to its word. One does not need to be a cryptocurrency expert or a programmer to determine the authenticity of an ICO using these methods.
An ICO listing is a comprehensive list of concluded, ongoing and upcoming initial coin offerings. Although these listing websites provide a lot of information, it is largely unverified. This makes decision making for investors difficult as the information is unverified and may result in them losing money if the ICO turns out to be scam. There are several ICO listing websites available. They merely describe the essence of the project affiliated to an ICO, the duration the initial coin offering will last, the percentage of expected funds raised, the nature of the project and links to the development team and founder profiles. An unbiased rating system could go a long way in solving this problem. Rating a particular project on the basis of the risks involved in investing in it along with extensive research and analysis of all the aspects behind that project could help investors have a clearer picture of the market. Investors could categorize suitable investment options on the basis of this rating and make a choice without the fear of fraud. Although a rating does not guarantee the competence of an investment opportunity, it guarantees its sanctity and helps remove the fraudulent bunch from the market.
While an ICO listing provides investors with the unverified details of past, ongoing and upcoming ICOs, ICO ratings enable an investor to determine whether an ICO is fraudulent or not. ICO listing websites send emails to their subscribers whenever a new ICO project is launched on the website, when an initial coin offering is to commence, and when an initial coin offering is to end. This is pretty useful for investors. Of the many ICO rating organizations, Crypto Asset Rating Inc. is a viable option to choose from. Crypto Asset Rating Inc. is a genuine independent ICO rating website offering two security tokens for US-based (ANSA token) and non-US based (AND token) investors.
Refer to for ANSA token details-
Refer to for AND token details-
What is Crypto Asset Rating Inc.?
There are several people questioning the relevance of ICO rating websites. There are several ICOs being endorsed by celebrities. These celebrities are paid a fee for their endorsement. Hardly any details are provided on the project and investors are drawn into investing in the ICO because of the celebrity associated with the project. ICO rating websites are paid off by these ICOs in turn for a good rating. This is a grave misunderstanding as the quality of an ICO rating website depends on the team of experts delegating a rating to an ICO. There are several rating websites paid off by ICO teams to give them a good rating. Some other ICO rating websites and ICOs pay bounty rewards in the form of tokens for promotion of their website and ICO. Crypto Asset Rating Inc. falls under neither category and is a good option going forward for investors.
Crypto Asset Rating Inc. is an option and employs a set of extremely talented and knowledgeable experts to determine ICO ratings. It is a United States based independent cryptocurrency asset rating agency and they have developed an algorithm to determine the viability and authenticity of the ICOs affiliated with it. This rating removes the set of fraudulent ICOs on the market from the authentic and viable ones. The blockchain based rating engine is based on 150 different rating parameters and is divided into over 15 categories, depending on the business, legal, financial and technical risks involved in investing in a particular cryptocurrency asset.
The team is not limited to just providing ratings for various ICOs and also suggests certain changes ICOs can bring to their structure to get a better rating. This may lead to a fluctuation in rating and is visible to investors looking to invest in a particular coin. All registered subscribers have the option to access detailed reports which are published by the organization. The ratings provided by this company should not be the only factor an investor should consider when investing in an ICO. This should serve as a guide around which an investor may formulate his/her strategy. With the number of cryptocurrency assets on the market on the rise, it is necessary to have a parameter to differentiate between them on the basis of their authenticity. Visit the website for more details on the project!
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Crypto Business World
CBW - External Analyst