The benefit ICO pools and how to select one – Filip Poutintsev – Medium
The benefit ICO pools and how to select one
ICO pools are ingenious inventions and a huge help in in navigating through the swarm of ICOs. However there are lot of risks involved in ICO pools investing as well.
Why one should use ICO pools?
1. Due diligence of ICOs is done for you
It’s very painful to go through thousands of ICO to find most promising as all want to appear as one. ICO pools will search for best ICOs for you and present them to you in easy way.
2. Extra bonus on token sale
Many ICO pools get additional bonus from ICO, because usually make big investment and therefore can negotiate better deals.
What are the risks of ICO pools?
1. Being scammed
Yes scammers again. Professional ICO scammers have moved away from ICOs into ICO pools. They run legit looking ICO pools and present good ICOs for you to invest, but the moment you send your funds to them they are gone.
You should only send money to ICO pools you now and trust. I use Moon Syndicate, because it was recommended to me by the people I trust.
2. Chosing bad ICOs
Many ICO pools will do due diligence poorly and present bad ICOs for you that will fail and you will lose your money.
Best way to avoid such pool is to check their investment history from a Telegram group or a forum, and see what happened to the value of those token after the ICO sale. If the pool does not display publicly it’s previous investments and does not allow open discussion about them, you should avoid it.
3. Loosing your money
ICO pools like anything else can be hacked, therefore you should select pool that takes security seriously. Usually ICO pools uses smart contract to manage investments. PrimaBlock is a popular solution used by many ICO pool, but there are other options. If an ICO pool manages funds manually you should stay away from it, as the risk of human error grows dramatically.
It’s quite often that ICO pays the pool for selling their tokens. Therefore make sure that you are in the pool that puts the interest of investors first.
This can also be checked from previous investments of the pool. If the deal turned out to be bad they were either bribed or are just terrible at what they do.