Web3 is a new stack for a radically better internet. Right now the pick time in the Crypto Market a lot of cryptocurrencies around 5,392 cryptocurrencies are in the market. While others are releasing soon ICO for new Cryptocurrencies. As a Crypto Investor, you should consider some of the questions while someone reaching to you for the Investment Or might be you have to do research some of the below Questions for the ICO. Here are some of the Questions SEC listed for the Investor to overcome the fraud happen in ICO and Crypto Investments.
- Who exactly am I contracting with?
- Who is issuing and sponsoring the product, what are their backgrounds, and have they provided a full and complete description of the product? Do they have a clear written business plan that I understand?
- Who is promoting or marketing the product, what are their backgrounds, and are they licensed to sell the product? Have they been paid to promote the product?
- Where is the enterprise located?
- Where is my money going and what will it be used for? Is my money going to be used to “cash-out” others?
- What specific rights come with my investment?
- Are there financial statements? If so, are they audited, and by whom?
- Is there trading data? If so, is there some way to verify it?
- How, when, and at what cost can I sell my investment? For example, do I have a right to give the token or coin back to the company or to receive a refund? Can I resell the coin or token, and if so, are there any limitations on my ability to resell?
- If a digital wallet is involved, what happens if I lose the key? Will I still have access to my investment?
- If a blockchain is used, is the blockchain open and public? Has the code been published, and has there been an independent cybersecurity audit?
- Has the offering been structured to comply with the securities laws and, if not, what implications will that have for the stability of the enterprise and the value of my investment?
- What legal protections may or may not be available in the event of fraud, a hack, malware, or a downturn in business prospects? Who will be responsible for refunding my investment if something goes wrong?
- If I do have legal rights, can I effectively enforce them and will there be adequate funds to compensate me if my rights are violated?
The above Questions helps you to understand in terms of the Pre-ICO, ICO, or the Cryptocurrency supported Products, Lead team, Security breaches of the Platforms, and How much your Investment secure in terms of the recovery of your amount.
If you are the Investor | Expert and thinking that other Criteria need to consider for Investment in Cryptocurrency comment below.
** Sources — sec.gov, yahoo finance.
