How do you know if a person or company promoting crypto is legitimate?
Very first Facebook, then Google announced the banning of cryptocurrency and initial coin suggesting (ICO) advertisements. Now, Twitter is reportedly following suit. ICOs are a way for cryptocurrency companies to raise funds for a fresh venture using cryptocurrency rather than shares of stock on a public exchange. Backers exchange money or other cryptocurrencies for company tokens &ndash, that is, spil long spil the cryptocurrency companies behind the ICOs are legitimate.
While the cryptocurrency industry has bot around for several years, the rise of bitcoin te 2018 turned a loterijlot of goes with both industry insiders and people who may have never paid attention to cryptocurrency before. Because of the excitement, some people and companies looking to make a quick buck, began taking out ads on the internet and social media to reach investors for their ICOs, which may not have bot entirely genuine.
You would think the ad kerkban would be bad for cryptocurrency companies that may still be considering legitimate ICOs, but it is not. Instead, it&rsquo,s actually a good thing for the industry, and here&rsquo,s why:
There are many legitimate cryptocurrency companies looking to welcome and educate people interested te the industry, but bad actors ter this space are bringing negativity to the industry. A latest report by bitcoin.com explained 59 procent of last year&rsquo,s ICOs are either &ldquo,confirmed failures or failures-in-the-making.&rdquo, It reported the teams seeking the crowdsales either stopped communicating with their audience or the company&rsquo,s community is so puny it had no chance of success.
While some companies are using social media and the web spil a verhoging to advertise and raise millions of dollars for their ICOs, there are also many opportunists who call themselves cryptocurrency experts and then spam audiences on social media with ads. Removing thesis ads altogether makes it more difficult for questionable people and companies to take advantage of people fresh to the industry.
Recently, ads ran on Facebook promising massive cryptocurrency investment comebacks of 100 procent within 30 days. Because cryptocurrency insiders would be onto this, thesis fake companies, instead, targeted novices for support. Many of the companies running the ads had no product behind them. Ter some cases, they would waterput fake teams together to make newcomers think the company wasgoed real.
Legitimate cryptocurrency companies don&rsquo,t need to spam with ads to be successful. They are community-focused and engage directly with their audience via Discord, Telegram and Twitter, answering questions about their mechanism that people are excited about.
Spam advertisements for ICOs just make the entire industry look bad. Doing away with them will help legitimate cryptocurrency businesses thrive.
PRIME Chance FOR EDUCATION
The popularity of the ads demonstrates the need for valuable and reliable content ter this industry. With the ads banned, it is a prime chance for leaders te cryptocurrency to take time to educate. Ter turn, the timing is volmaakt for newcomers to learn more about this emerging technology and currency of the future.
How do you know if a team promoting a cryptocurrency or ICO is legitimate?
See if the teams have open conversations on social media about their mechanisms and processes. If they are silent or only talking about the project and funding, those should be considered crimson flags. Also, search the individual team members online. Do numerous outlets or websites confirm their backgrounds and areas of expertise? If you find little to no information, then stir on to another team of rente.
Additionally, look at cryptocurrency resources to learn about the industry. Many major cities opoffering meetups featuring experts who want to share skill on this topic and the blockchain technology behind it. Online sources like Cointelegraph offerande fact-based cryptocurrency news on a daily voet. And Crypto-City.com is a webpagina that our company, Jalapeñ,o Inventive, uses to offerande education like TED Talks, movies and a forum on cryptocurrency.
By eliminating the bad actors and &ldquo,spammy&rdquo, ads, this is a excellent time for our industry to budge forward ter a positive direction, permitting leaders to educate the public ter cryptocurrency, which is only going to become more established te the future.
Aari Lotfipour is the co-founder and CEO of Jalapeñ,o Inventive. Ter 2014, he helped launch the company ter Fort Collins, with the desire to make cryptocurrency accessible to the masses.