The SEC's Howey coin failed 10 out of 10 of BlockWolf's tips on how to avoid ICO/Crypto fraud:
- Does their project require a decentralized blockchain or a cryptocurrency?
- Who is their team? Is there a way to verify their team leaders?
- Are they promising something that sounds possible?
- Are they guaranteeing results or profits?
- Do they have anything that proves their technical progress?
- Do they have a whitepaper? Do you understand it?
- If they have partnerships, do their partners publicize their agreements?
- Are their team leaders vocal in the community or on Youtube? Do they sound like they know what they are talking about?
- What is the community (Youtube, Reddit, Medium, Steemit, Facebook, Telegram, Slack) saying about that cryptocurrency or ICO? Have any other industry leaders commented on the project?
- Not sure? Ask a friend or somebody who you trust in the crypto community to review the project for you.