How to identify an ICO scam?

1. Examine the ICO team: Open the project’s website and check the profiles of the people behind the project. Do they have a history in the cryptocurrency industry, or are they anonymous? If the team is anonymous, be wary.

2. Look for red flags: Read the whitepaper and take note of any content that looks suspicious or uses inflated language to overexaggerate the potential of the project.

3. Check social media: Review the activity across their social presence. Is there engagement from the community, or is it limited to the founders?

4. Research the token: Understand what the token is used for. Does it have an actual use, or is it just a way for investors to make money?

5. Be wary of guaranteed returns: No legitimate ICO will guarantee a return on investment. If the project promises high returns, it is likely a scam.