How to spot an untrustworthy cryptocurrency offering – Tech News

ICO is an acronym that’s often seen these days. It stands for “initial coin offering” a type of crowdfunding whereby a company seeks capital from private investors in return for cryptocurrency.

However, potential investors should be aware that such offers can often be dubious, consumer rights experts say.

Investors can be seduced by the offer of being in at the beginning of a new, promising cryptocurrency that could potentially rise hugely in value, but often, all that glitters isn’t gold. Here are some warning signs to look out for:

A request to recruit others

Some ICOs promise investors more rewards if they can recruit other investors. However, offers such as these are often just a disguise for a pyramid scheme.

Sparse information

Information about those behind an ICO can sometimes be lacking. For example, there might be no contact details for specific people on the company’s website, or its headquarters might be listed as being in several different countries.

Also, documents providing…