ICO is attracting the attention of investors hoping to make quick money with few regulations. They invest in the hopes of making big profits and receiving ICO tokens for their monetary contribution. This article will tell you what pitfalls are waiting for investors and what you can do to avoid them.

How does ICO work?

ICO is a form of fundraising based on the blockchain that is not yet regulated by financial institutions. It allows you to quickly raise money for the development of the project, without the bureaucratic hurdles that are often the case with IPOs. Many projects initiated by startups would not be feasible without ICOs and exclusively with traditional financing channels.

In search of quick profits, investors study various ICO token lists to identify promising projects and keep an eye out for the benefits promised by startups. However, it’s not the benefits that they should consider in order to identify the signs of the best ICO to invest in. It is the security and other features of cryptocurrency ICO campaigns that count firsthand.

ICO Scams – Why You Should Check ICO Before Investing?

Despite all the advantages of the ICO fundraising method, the lack of regulation on the part of the state and financial organizations has made ICO a popular tool among scammers and fraudsters. Verification of the ICO is a necessary step for investors who do not want to lose their assets in pursuit of rewards. The cryptocurrency scam report made by Bolster, an agency that uses AI to reduce fraud on the Internet, has shown that less than 3% of blockchain projects are even audited.

While it can be difficult to understand all the details on a coin ICO review, there are some features that help distinguish real projects that don’t use fraudulent schemes to add value to the token.

But honest ICOs are also exposed to security risks. When you consider that the exchanges that offer asset custody services are often hacked, the risks become even higher. According to the expert opinion of the consulting firm Ernst and Young In 2018, 10% of the capital raised in ICOs from 2015 and 2017 was stolen via blockchain hacks. In this way, investors lost $ 400 million to crypto attacks during that period.

Decentralized finance, or DeFi for short, which replaced ICOs in 2020, is also suffering from security breaches. Another report conducted by CypherTrace in May 2021 shows DeFi-related hacks and fraud continue to increase.

CipherTrace: The blockchain industry remains as insecure as ever

What do ICO review websites offer?

There are many ICO review sites on the internet that can be very helpful for investors who need to find a high quality ICO. But is their approach broad enough to determine the fraud ICO?

Having a huge selection of ICO review sites is a bit confusing for both ICO founders and ICO investors. The good thing about these resources is that ICOs that are added on these platforms are reviewed by professionals in the industry and then rated to make it easier for investors to see the top ICO list. Good and trustworthy projects should be visible, while dodgy ICOs should stay in the dark. Therefore, these services do a very good job of examining and evaluating numerous projects that rely on monetary support from inexperienced investors.

Their in-depth reviews are impressive indeed, but one aspect is still left out on the ICO listing sites. Although the most advanced services may even analyze the mechanisms of the value drivers behind the token price, they still do not examine the code of these projects. As such, they can be useful for those who want to know about the upcoming ICO list and other news, but they cannot be used as comprehensive investment advice. Even a small mistake in the code of the blockchain protocol can lead to a loss of money.

What does TokenGuard offer?

Unlike the best ICO websites, it offers a technical analysis of TokenGuard provides you with extensive research to get a complete picture of the ICO campaign and its token. This is the first security tool developed by the experts at. is supported BlockHunters provides an automated technical check of the specified token without any programming knowledge – just enter the token address and wait for a report.

Potential investors have little knowledge of the coding skills to find out if the platform’s code has any bugs. Tokenguard verifies the token’s code looking for known errors, thus saving your money. In addition, the team plans to expand the functionality by adding useful features like team verification and expert commentary to projects reviewed on the platform.