ICOs are the new craze – providing a new investment opportunity, promising 1000-fold returns and Lamborghinis. However, in reality the minority of these projects proves to be a success.
About 50% of startups fail, while 80% of ICOs are claimed to be scams.
To help you navigate these dangerous waters, we here at Token Investor Online have collected 7 ICOs for you, which we would NOT invest in right now.
The world’s first crypto-politic ICO seems to be too new and too vague. With the Harapan coin the team would like to form an opposition party for the upcoming political elections in Malaysia.
They plan to record all of their transactions on the blockchain and establish HarapanCoin as official currency if they win the election. While the Harapan coin seems to take on a revolutionary role as a political enabler, it does not show any other investor value.
The political party could have used traditional fundraising models, without the necessity of a token.
Enzed share has a noble mission of transforming plastic waste to Green Diesel. Later this Green Diesel can be used for cryptocurrency mining.
The project seems to be put in a very complicated manner on the website, with a lot of unrelated content around it, for example a “what is bitcoin” video.
While the team is certainly experienced, they have limited knowledge in the world of energy, green markets or blockchain.
After Banana and Mangocoin, now we have coconuts! The Coconuts project originates from Vietnam, and it involves a special way to grow “Hybrid Makapuno” coconuts perfect for biomass fuel.
They have created their token for fundraising purposes, and there is no indication to the future value of the token- probably it should rise with the value of the coconuts sold. There is no information about the team on the website. Coconut is another project, where a noble goal does not justify a token economy.
Luxbio is connecting stem-cell research and blockchain technology in a digital bio exchange. Users can register to the Digital Bio Exchange platform, and receive customized healthcare service, advanced stem cell treatments and secure storage of medical information. Payments would be paid with the LBXC token.
Besides the name and position held there is no information about the team members. It uses blockchain technology effectively to store patient data. While the token economy might sound intriguing, there is no reason why this service could not work with a traditional membership model served by fiat currency.
While there are a lot of bizarre ideas pushing coins to naive investors, Buzar and the associated Buzcoin is definitely a winner. Buzcoin is centered around the Russian star Olga Buzova, combining a messenger service, an e-commerce marketplace, and so much more.
It aims to be an “online oasis” for communication and business, combining all popular apps in one place. Let it be Messenger, LinkedIn, Amazon, Uber, Instagram- Buzar will put everything in one place. According to their Roadmap, there is no product yet, and any development will only start after the 5-month long ICO ends.
Besides the popularity of Olga Buzova, and mashing all services in one app, we cannot see an added value to users nor investors.
Ethereum Sweepstakes is yet another gem in the shady ICO universe. Ethereum Sweepstakes is an online lottery gaming platform, where tickets can be purchased with their coin, and give access to win grand Ethereum prizes.
The ESPS token holders receive a share of all blockchain contest and sweepstakes, at an estimated 9.7% share of revenues from all games.
The website features Lambos and yachts, and each 1 out of 36 players as a winner. The token sale is probably record winning as well, lasting from 22nd December 2017 till 31st December 2018.
The OneShare project is platform for decentralized application ICOs. It aims to give access to investors to the business decisions and profits from the company. It serves as decentralized hybrid company, decision-making platform and idea marketplace.
While it seems to speak in the name of decentralization, it raises several questions: are stakeholders qualified enough to make business decisions for the company, and whether the OneShare coin is classified as a utility token. According to its use, OneShare tokens are closer to securities, however there is no required regulation.
According to the few information we can find on LinkedIn about team members, they seem to be lacking experience in blockchain technology and entrepreneurship.
While we could go on with listing the worse part of ICOs, we would like to leave our readers with a small advice! Check always the Token Investor Online ICO analysis and complete the due diligence research for profitable investments.
By Barbora Juhaszova