What Are Common Red Flags to Look for When Reviewing an ICO Whitepaper?
Red flags include vague or overly complex technical descriptions that mask a lack of substance, a heavy reliance on buzzwords without clear implementation, and unrealistic financial projections. Other warnings are an absent or non-transparent team section, poor grammar or unprofessional formatting, and a lack of detail on tokenomics or legal compliance.
Plagiarism or a document that is merely a copy of another project's paper is a severe red flag. Investors should also be wary of documents that focus only on hype and not on the underlying technology.