{"id":12078,"date":"2018-02-22T11:10:31","date_gmt":"2018-02-22T11:10:31","guid":{"rendered":"https:\/\/www.mobidea.com\/academy\/?p=12078"},"modified":"2018-05-08T10:05:22","modified_gmt":"2018-05-08T10:05:22","slug":"ico-scams","status":"publish","type":"post","link":"https:\/\/www.mobidea.com\/academy\/ico-scams\/","title":{"rendered":"6 Signs of an ICO Scam (And How to Avoid It)"},"content":{"rendered":"<div class=\"mobid-before-content\" style=\"margin-top: 5px;margin-bottom: 5px;margin-left: auto;margin-right: auto;text-align: center;\" id=\"mobid-1240125870\"><div class=\"mobid-adlabel\">Advertisement<\/div><a data-no-instant=\"1\" href=\"https:\/\/www.mobidea.com\/academy\/recommends\/banner-placement-1\/\" rel=\"noopener nofollow\" class=\"a2t-link\" target=\"_blank\" aria-label=\"da\"><img src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2022\/09\/da.gif\" alt=\"\"  class=\"no-lazyload\" width=\"730\" height=\"90\"   \/><\/a><\/div><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#what-is-an-initial-coin-offering-ico\" >What is an Initial Coin Offering (ICO)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#risks-associated-with-icos\" >Risks Associated With ICOs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#6-signs-that-an-ico-may-be-a-scam\" >6 Signs that an ICO May Be a Scam<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#1-weak-website-or-white-paper\" >1. Weak Website or White Paper<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#2-absence-of-named-developers-or-team-members\" >2. Absence of Named Developers or Team Members<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#3-no-clear-roadmap\" >3. No Clear Roadmap<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#4-skewed-mining-structure\" >4. Skewed Mining Structure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#5-uncapped-fundraising-goal\" >5. Uncapped Fundraising Goal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#6-evidence-of-a-pyramid-structure\" >6. Evidence of a Pyramid Structure<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#avoiding-scams-in-ico-affiliate-marketing\" >Avoiding Scams in ICO Affiliate Marketing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/#conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cryptocurrencies have attracted a lot of attention over the last year due to the spectacular <a href=\"https:\/\/www.coindesk.com\/price\/\" target=\"_blank\" rel=\"noopener\">rise in the price of Bitcoin<\/a>.<\/p>\n<p>The price of Bitcoin has increased dramatically, from around $1,000 in January of 2017, to over $17,000 in December of that year.<\/p>\n<p>Alternative cryptocurrencies like Ether, Ripple and Litecoin have followed suit, leading to a surge in interest around <a href=\"https:\/\/www.mobidea.com\/academy\/what-is-ico\/\">Initial Coin Offerings (ICOs)<\/a>.<\/p>\n<p>But wait:<\/p>\n<p>What\u2019s an ICO all about?<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-is-an-initial-coin-offering-ico\"><\/span>What is an Initial Coin Offering (ICO)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>An ICO is an unregulated way to raise capital for a start-up cryptocurrency venture, similar to crowdfunding.<\/p>\n<p>The difference?<\/p>\n<p>The fact that ICO backers do not donate funds and expect a return on their investment.<\/p>\n<p>It is used to bypass the rigorous and regulated fund raising process imposed by banks and venture capitalists.<\/p>\n<p>ICOs are similar to Initial Public Offerings (IPOs) that are issued by new companies to raise capital in return for shares.<\/p><div class=\"mobid-in-content-15-p\" style=\"margin-top: 26px;margin-bottom: 26px;\" id=\"mobid-1123224334\"><div class=\"mobid-adlabel\">Advertisement<\/div><a data-no-instant=\"1\" href=\"https:\/\/www.mobidea.com\/academy\/recommends\/semrush-v2\/\" rel=\"noopener nofollow\" class=\"a2t-link\" target=\"_blank\" aria-label=\"semrushtrialseo\"><img src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2022\/09\/semrushtrialseo.gif\" alt=\"\"  class=\"no-lazyload\" width=\"728\" height=\"90\"  style=\"display: inline-block;\" \/><\/a><\/div>\n<p><a href=\"https:\/\/cdnwp.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/pile-of-money-1.jpg\"><img decoding=\"async\" width=\"700\" height=\"394\" class=\"aligncenter size-large wp-image-8385\" src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/pile-of-money-1-700x394.jpg\" alt=\"pile of money\" srcset=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/pile-of-money-1-700x394.jpg 700w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/pile-of-money-1-250x141.jpg 250w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/pile-of-money-1-768x432.jpg 768w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/pile-of-money-1.jpg 1024w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/pile-of-money-1-760x428.jpg 760w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/pile-of-money-1-623x351.jpg 623w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/pile-of-money-1-316x177.jpg 316w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/pile-of-money-1-150x84.jpg 150w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/pile-of-money-1-120x68.jpg 120w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p>The difference is that an ICO uses tokens, or virtual coins, instead of shares in exchange for capital.<\/p>\n<p>In ICO campaigns, a portion of the cryptocurrency is sold to backers of a project in exchange for traditional currency or an established cryptocurrency, usually Bitcoin.<\/p>\n<p>In order to launch a campaign, a company creates a white paper outlining the scope of the project, how much capital is needed for the venture, the type of currency accepted, and the duration of the ICO campaign.<\/p>\n<p>While IPOs deal with investors, ICOs encourage funding from supporters of the start-up\u2019s venture.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"risks-associated-with-icos\"><\/span>Risks Associated With ICOs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>ICOs are inherently risky because they are not regulated, making them vulnerable to fraud.<\/p>\n<p>Scammers offering an ICO will attempt to drive the price of the cryptocurrency up to a particular point, at which they will sell their entire interest.<\/p>\n<p>This will lead to backers who hold coins from ICO seeing a dramatic decrease in value, with a subsequent loss in investment.<\/p>\n<p>The risks associated with ICOs have led to some governments considering <a href=\"https:\/\/www.forbes.com\/sites\/lawrencewintermeyer\/2017\/10\/31\/the-race-to-ban-or-regulate-bitcoin-and-icos\/#231a34bb100d\" target=\"_blank\" rel=\"noopener\">the regulation of this sector<\/a>.<\/p>\n<p>In many countries around the world, ICOs are entirely illegal.<\/p>\n<p><a href=\"https:\/\/www.worldcryptoindex.com\/legal-loopholes-show-promise-chinese-exchanges\/\" target=\"_blank\" rel=\"noopener\">World Crypto Index<\/a> reports that, in September 2017, China banned trade in cryptocurrencies for its residents while making the use of ICOs for fundraising a prosecutable offense.<\/p>\n<p>The volatility in the cryptocurrency market could also see other countries, such as the United States, taking action to regulate cryptocurrency trading and the use of ICOs.<\/p>\n<p>That being said, ICOs are still being used to generate capital for start-ups and hundreds of millions of dollars are being raised through these channels every month.<\/p>\n<p><a href=\"https:\/\/cdnwp.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying.jpg\"><img decoding=\"async\" width=\"700\" height=\"394\" class=\"aligncenter size-large wp-image-9140\" src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying-700x394.jpg\" alt=\"bills flying\" srcset=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying-700x394.jpg 700w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying-250x141.jpg 250w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying-768x432.jpg 768w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying-1024x576.jpg 1024w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying-760x428.jpg 760w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying-623x351.jpg 623w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying-316x177.jpg 316w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying-150x84.jpg 150w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying-120x68.jpg 120w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/bills-flying.jpg 1500w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p>In order to mitigate the risk, investors should learn to recognize the signs of an ICO scam.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"6-signs-that-an-ico-may-be-a-scam\"><\/span>6 Signs that an ICO May Be a Scam<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are several signs that investors should look out for to determine whether an ICO might be a scam.<\/p>\n<p>Check the signs now!<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1-weak-website-or-white-paper\"><\/span>1. Weak Website or White Paper<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When launching an ICO campaign, a company will normally issue a white paper and direct potential investors to a website outlining their project.<\/p>\n<p>Legitimate startups will explain why people should invest in the project and its potential value.<\/p>\n<p>Investors need to do extensive research on the company to avoid scams.<\/p>\n<p>Thoroughly analyze the white paper or website in search of fake information or statements.<\/p>\n<p>Check the credentials of current investors who may be used to encourage further investment.<\/p>\n<p>Scammers may fail to publish a white paper or website to market their ICO.<\/p>\n<p>If a white paper or website is <a href=\"https:\/\/www.worldcryptoindex.com\/how-to-spot-an-ico-scam\/\" target=\"_blank\" rel=\"noopener\">weak and unconvincing<\/a>, or entirely absent, it\u2019s best to steer clear of such an ICO.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-absence-of-named-developers-or-team-members\"><\/span>2. Absence of Named Developers or Team Members<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A valid white paper should give the details of the team behind the venture to help give credibility to the project and develop trust.<\/p>\n<p>Individual team members and developers should be researched to determine whether or not they are legitimate.<\/p>\n<p>Valid ICOs often provide a channel for investors to communicate directly with a team member to learn more about the offering.<\/p>\n<p>Scammers will want to avoid being held accountable and will avoid naming anyone associated with their ICO.<\/p>\n<p><a href=\"https:\/\/cdnwp.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman.jpg\"><img decoding=\"async\" width=\"700\" height=\"394\" class=\"aligncenter size-large wp-image-10039\" src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman-700x394.jpg\" alt=\"fearful woman\" srcset=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman-700x394.jpg 700w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman-250x141.jpg 250w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman-768x432.jpg 768w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman-1024x576.jpg 1024w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman-760x428.jpg 760w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman-623x351.jpg 623w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman-316x177.jpg 316w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman-150x84.jpg 150w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman-120x68.jpg 120w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/fearful-woman.jpg 1500w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p>If a white paper or website does not include the names of developers or team members, it\u2019s likely to be a scam.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-no-clear-roadmap\"><\/span>3. No Clear Roadmap<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Legitimate ICOs should provide potential investors with a detailed chronological outline of development and funding goals.<\/p>\n<p>They should also give some indication of how the company sees the development of future growth.<\/p>\n<p>If this is lacking, that\u2019s a sign that the people behind the ICO are just planning to make a quick profit before folding the venture.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-skewed-mining-structure\"><\/span>4. Skewed Mining Structure<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Another warning sign is if the ICO team reserves a significant amount of pre-mined tokens for themselves.<\/p>\n<p>This could be a sure sign that the project is driven by short-term financial gain.<\/p>\n<p>A project\u2019s distribution schedule of tokens can be an indication of the team\u2019s intent.<\/p>\n<p>Pre-mining generates tokens for a small group of individuals before the sale of tokens goes public.<\/p>\n<p>This is often done to reward developers and early investors, but later investors should be concerned if the number of pre-mined tokens is disproportionately high.<\/p>\n<p>This <a href=\"https:\/\/bitcoinexchangeguide.com\/ico-red-flags\/\" target=\"_blank\" rel=\"noopener\">could indicate<\/a> that the motivation for the ICO is short-term financial gain for the team members.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-uncapped-fundraising-goal\"><\/span>5. Uncapped Fundraising Goal<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>ICOs are usually created with the goal of raising a set amount of capital to fund a project and launch its growth.<\/p>\n<p>A legitimate company will state this goal in their white paper or on their website.<\/p>\n<p>If an ICO is launched with no specific funding goal, it could be a sign that the aim of the ICO is not legitimate and may be used to scam investors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6-evidence-of-a-pyramid-structure\"><\/span>6. Evidence of a Pyramid Structure<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If an ICO has a structure with multiple tiers that encourages people to bring in new investors for reward, it\u2019s likely that this is a pyramid or Ponzi scheme.<\/p>\n<p>Evidence of such a structure should be a clear warning not to invest.<\/p>\n<p><a href=\"https:\/\/cdnwp.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman.jpg\"><img decoding=\"async\" width=\"700\" height=\"394\" class=\"aligncenter size-large wp-image-10358\" src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman-700x394.jpg\" alt=\"red headed woman\" srcset=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman-700x394.jpg 700w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman-250x141.jpg 250w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman-768x432.jpg 768w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman-1024x576.jpg 1024w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman-760x428.jpg 760w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman-623x351.jpg 623w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman-316x177.jpg 316w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman-150x84.jpg 150w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman-120x68.jpg 120w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2017\/12\/read-headed-woman.jpg 1500w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p>These types of schemes usually collapse when the number of new investors drops off substantially and current investors stop getting paid.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"avoiding-scams-in-ico-affiliate-marketing\"><\/span>Avoiding Scams in ICO Affiliate Marketing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For many startups, affiliate marketing is a viable way of generating revenue faster.<\/p>\n<p>It has a number of benefits:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>Affiliate marketing helps a company reach new customer bases<\/li>\n<li>It brings in a larger volume of web traffic<\/li>\n<li>It builds beneficial relationships with <a href=\"https:\/\/www.mobidea.com\/academy\/super-affiliate\/\">high-volume<\/a> affiliates for future business development<\/li>\n<\/ul>\n<p>However, affiliate marketers need to be aware of ICO scams that could destroy their credibility and cause immeasurable damage to their affiliate network.<\/p><div class=\"mobid-in-content-15-p_2-2\" style=\"margin-top: 26px;margin-bottom: 26px;\" id=\"mobid-2368747581\"><div class=\"mobid-adlabel\">Advertisement<\/div><a data-no-instant=\"1\" href=\"https:\/\/www.mobidea.com\/academy\/recommends\/semrush-v1\/\" rel=\"noopener nofollow\" class=\"a2t-link\" target=\"_blank\" aria-label=\"backlinks\"><img src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1.png\" alt=\"\"  srcset=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1.png 970w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1-250x52.png 250w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1-700x144.png 700w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1-768x158.png 768w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1-120x25.png 120w\" sizes=\"(max-width: 970px) 100vw, 970px\" class=\"no-lazyload\" width=\"970\" height=\"200\"  style=\"display: inline-block;\" \/><\/a><\/div>\n<p>They need to conduct due diligence on ICO startups.<\/p>\n<p>Why?<\/p>\n<p>Because, unlike single investors, affiliate marketers have a responsibility to minimize the risk of investment for every investor within their network.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If used legitimately, ICOs can be a quick and cost-effective way of generating startup capital.<\/p>\n<p>This could help companies to grow faster and generate significant returns for investors.<\/p>\n<p>Investors and affiliate marketers need to weigh up the risk associated with ICOs against the prospect of making returns faster than with stocks.<\/p>\n<p>The associated risks with investing in ICOs may exclude investors who can\u2019t afford to sustain losses.<\/p>\n<p>However, ICOs can be highly profitable investments if investors and affiliate marketers do their homework and heed these signs of scams.<\/p>\n<p><span style=\"font-size: 14pt;\"><strong>See Also:<\/strong><\/span><\/p>\n<ul style=\"list-style-type: disc;\">\n<li><a href=\"https:\/\/www.mobidea.com\/academy\/blockchain-technology\/\">Blockchain Technology: Is It Changing Affiliate Marketing?<\/a><\/li>\n<li><a href=\"https:\/\/www.mobidea.com\/academy\/blockchain-trends-hot-topics\/\">Blockchain Trends for 2018: The Hot Topics from Experts<\/a><\/li>\n<li><a href=\"https:\/\/www.mobidea.com\/academy\/what-is-ico\/\">What is an ICO and How Does it Work?<\/a><\/li>\n<\/ul>\n<div class=\"mobid-after-content\" style=\"margin-top: 5px;margin-bottom: 5px;margin-left: auto;margin-right: auto;text-align: center;\" id=\"mobid-871565838\"><div class=\"mobid-adlabel\">Advertisement<\/div><a data-no-instant=\"1\" href=\"https:\/\/www.mobidea.com\/academy\/recommends\/banner-placement-2\/\" rel=\"noopener nofollow\" class=\"a2t-link\" target=\"_blank\" aria-label=\"da\"><img src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2022\/09\/da.gif\" alt=\"\"  class=\"no-lazyload\" width=\"730\" height=\"90\"   \/><\/a><\/div>","protected":false},"excerpt":{"rendered":"Introduction Cryptocurrencies have attracted a lot of attention over the last year due to the spectacular rise in the price of Bitcoin. The price of Bitcoin has increased dramatically, from around $1,000 in January of 2017, to over $17,000 in December of that year. Alternative cryptocurrencies like Ether, Ripple and Litecoin have followed suit, leading&#8230; <a class=\"view-article\" href=\"https:\/\/www.mobidea.com\/academy\/ico-scams\/\">View Article<\/a>","protected":false},"author":32,"featured_media":12209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8970],"tags":[3862,3863,171,172,183],"learning_paths":[3878],"class_list":["post-12078","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-ico","tag-crypto","tag-affiliate-industry","tag-affiliate-marketing","tag-concepts","learning_paths-crypto"],"translation":{"provider":"WPGlobus","version":"3.0.0","language":"en","enabled_languages":["en","ru"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"ru":{"title":false,"content":false,"excerpt":false}}},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast 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