The cryptocurrencies have a side B, the scams. There are so many, and we cannot ignore them. Ponzi schemes, false roadmaps, …

Shit happens, but with a proper due dilligence you can minimize the risks.

Basic due dilligence (basic questions)

The general consensus about due dilligence is: do a standard due diligence as if it is a traditional company, plus check specific questions from the blockchain environment. Things such:

• Exaggerated returns percentages.
• Not clear or very complicated transaction fees.
• Who are the owners? (yes, some of the ICOS I have read they do not add any name, incredible isn’t it?)
• Do they have a clear roadmap?
• Are they achieving the defined roadmap?
• What is the implemented token model?
• What is the value of the cryptoasset in the value chain of economy?
• How the crypto asset is evaluated?
• Is the consensus model a trusted one?

I will list the ones that I know that happened, ordered by scammed amount:

1. Pincoin token: A Vietnamese cryptocurrency company Modern Tech. The team disappeared after scamming around 660m$ (April/2018)
2. …

A complete blacklist of scams and potential scams being evaluated: https://www.scambitcoin.com/blacklist/