As the number of ICOs continues to stay steady, many have expressed worries about the prevalence of scam offerings that are often fuelled by social media marketing and celebrity endorsements. The three founders of Centra Tech were recently indicted after they were found to have made efforts to defraud investors through the company’s ICO, which raised about $32 million dollars.
The company touted fraudulent partnerships with Visa and MasterCard to help sell tokens, and also made the news after receiving endorsements from musician DJ Khaled and boxer Floyd Mayweather, who has deleted an Instagram post supporting the company. Research published last week from the Wall Street Journal found that 271 out of 1,450 ICOs the newspaper looked into had at least one red flag, which could include a fake team, lack of functioning website, and some sort of duplicate language. It’s estimated these alleged scams accrued at least $1 billion in investment.
Government crackdowns and the media have painted a negative picture of the ICO model. Because of this, the cryptocurrency community is turning a much more watchful eye towards ICOs that are not transparent or fully scoped out, with well-written white papers and achievable roadmaps. Rather than wasting time on flimsy ideas, investors are looking into projects that are legitimate and stable. Unfortunately, some social media companies have taken steps to ban or heavily restrict cryptocurrency and ICO related advertisements. As a result, it can be difficult to find new, noteworthy projects.
We’ve been keeping a close eye on a some upcoming ICOs that look interesting and seem to have solid growth prospects and potential. However, it’s important to remember that we are not financial advisors. All we are doing is just presenting information about ICOs that can be found on the internet through a variety of resources. Please talk with an experienced and professional financial advisor if you are interested in investing in cryptocurrency or an ICO.
This week we’re going into depth on TravelerToken (TLT), Treon (TXO), and Xriba (XRA). We looked at several components of each project, like the whitepaper and team member background to understand the growth potential for each project and its underlying value.
TravelerToken is looking to build a payment system for the travel industry that can unify tourism companies, travelers, and other players in the travel sector. Treon is designed to be a utility token that gives consumers across the globe the ability to pay for energy, water, and telecoms usage via a consolidated dashboard. Xriba is a platform that will help users evaluate cryptocurrency companies by introducing transparency to corporate money flows. Keep reading to get the details on each of these projects, so that you can decide for yourself whether they're worthwhile investments.
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