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ICO Team and Advisors Background Check: Why Due Diligence is Critical

There must be thorough research before putting money into an ICO. Due diligence includes investigating the ICO’s management and any advisors they may have. Since the ICO team and advisers are responsible for carrying out the project’s vision and strategy, this is a critical stage in evaluating the likelihood of success or failure. In this piece, we’ll discuss why it’s crucial to research the credentials of the people involved in an ICO’s team and advisory board before putting money into the venture.

1. Introduction

The use of initial coin offerings (ICOs) to fund blockchain-based ventures has gained traction recently. Unfortunately, shady practices have increased along with its popularity. Now more than ever, it is essential to do your homework. Before putting their money into an initial coin offering (ICO), investors should be on high alert and do extensive research on the ICO’s management team and advisors. In this piece, we’ll go over the significance of doing your homework before participating in an initial coin offering (ICO) and the measures you may take to protect your money.

1.1. What is ICO?

Initial Coin Offering is an abbreviation for this. It’s a way for companies and entrepreneurs to get funding for their blockchain initiatives. New digital tokens or coins are purchased by investors in exchange for older cryptocurrencies like Bitcoin or Ethereum in an ICO. Initial coin offerings (ICOs) have gained popularity as a tool for entrepreneurs to raise capital bypassing the more conventional methods of fundraising. The lack of regulation and control, however, makes investing in ICOs a dicey proposition. Investors should do their homework on the ICO’s management and board of advisers before putting their money in.

1.2. Importance of background check for ICO team and advisors

Due investigation is essential before putting money into an initial coin offering. Perform a comprehensive background investigation on the ICO team and advisors as part of your due diligence. This is because the skill and honesty of the team behind an ICO can make or break its chances of success. Investors want reassurance that the people at the helm of the project are competent, honest, and have a history of success. Investors might benefit from knowing if there are any warning signs or risks related with the team and advisers by conducting a background check. In this piece, we’ll discuss why it’s crucial to do your homework before investing in an initial coin offering (ICO), including why you should check out the team and any advisors they have.

1.3. Purpose of the article

The goal of this piece is to encourage readers to do their homework before hiring anyone to work on or advise an initial coin offering (ICO). Initial Coin Offerings (ICOs) are a common method of crowdfunding for new businesses in the blockchain and cryptocurrency industries. However, because to the lack of regulation in the business, investors need to do their own due diligence to make sure they are putting their money into a reputable endeavor. This piece will explain why it’s important to check out your ICO’s advisers and team members, and what could go wrong if you don’t.

2. ICO Team Background Check

Do your homework on the ICO’s team and advisors before putting your money in their pockets. This is due to the fact that the knowledge, skill, and honesty of the team working on the ICO directly impacts its ultimate success. Investors can learn more about the team members and advisors’ expertise, experience, reputation, and potential for conflicts of interest by conducting background research. This can lessen the likelihood of fraud, mismanagement, or ineptitude, which is good for investors. When researching the legitimacy of an ICO team, it’s important to look at things like their education, employment history, industry expertise, previous projects, social media presence, and references from previous clients or partners. Their histories should be extensively examined for any red flags or irregularities. Overall, doing your homework before investing in the rapidly expanding and increasingly complex space of initial coin offerings (ICOs) is essential.

2.1. Why is ICO team background check important?

There is a lot riding on the results of a background check on an ICO team. In the first place, it aids in verifying the identities of the team members. This is significant since there have been ICO scams in which team members turned out to be imposters. Potential conflicts of interest or legal difficulties that may surface during the ICO process can also be uncovered by doing a thorough background investigation. Making sure the team members have the right mix of expertise and enthusiasm for the ICO is another benefit. In the end, a thorough background investigation on the ICO team can assist to reduce the possibility of fraud and boost investor confidence in the business.

2.2. What to look for in ICO team members?

Considering the team behind an ICO is crucial before making any financial commitments. The knowledge and experience of the people working on an ICO are crucial to its success. As a result, before to making any investments, it is essential to do research on the ICO team. But what qualities should an ICO team have? Some crucial factors are as follows:

2.3. How to verify ICO team members’ credentials?

Do your due diligence on the ICO team before putting money into it. This can verify that the project is being managed by people with the necessary skills and experience to see it through to completion. Checking the history of the ICO’s staff for things like fraud or criminal conduct can assist spot potential red flags as well. Verifying the legitimacy of an ICO team entails doing things like looking up their names on LinkedIn, learning about their prior jobs and schooling, and reading any press releases or news articles written about them. If you want to make sure your team has the expertise you need to complete the project, it’s a good idea to look for people who have prior experience working in the sector or field in question.

2.4. What to do if ICO team members have questionable backgrounds?

It’s crucial to address the matter as soon as possible if any members of the ICO team have dubious pasts. Step one is to investigate each team member’s past thoroughly. This may involve looking up their social media profiles, criminal histories, and work history. It is also helpful to conduct interviews with all team members to learn more about their background, expertise, and interest in the ICO. The team member in question may have to be removed from the project if any red flags are found during the background check or interview. This is a tough call, but one must be made to ensure the long-term viability of the ICO.

2.5. Examples of ICOs that failed due to team member issues

Problems with the core team often prove to be the downfall of an initial coin offering. Before putting down any cash, you should look into the people working on the project and their histories. Some ICOs that fell short due to internal strife are as follows:

First, Prodeum’s ICO aimed to build a blockchain-based platform for the agriculture sector. The team, however, disappeared after soliciting $11 million from investors, revealing the scheme to be a fraud.

The idea behind Benebit, an ICO that aimed to build a blockchain-based loyalty program, was intriguing. The team members’ use of stolen identities in creating false LinkedIn accounts ultimately exposed the ICO as a fraud.

BitConnect was the third largest ICO, and it was promoted as a way to make a lot of money through a lending business. There were doubts about the project’s validity, though, and the team members had to remain anonymous. Millions of dollars were lost when BitConnect went bankrupt.

These instances highlight the need for thorough research about an ICO’s staff members. Be sure to check out their credentials and seek for any warning signs that can point to a scam.

3. Advisors Background Check

Due investigation is essential before putting money into an initial coin offering. Not only should the project and its technology be investigated, but so should the team and advisors. Advisors can be important in an ICO’s success by lending advice, contacts, and legitimacy. It’s crucial to do your due diligence on your advisor because not all of them are trustworthy. This may involve researching the candidate’s background, successes, and standing in the field. Investors can lessen their exposure to risk and make better choices if they do so.

3.1. Why is advisors background check important?

Any ICO team worth its salt will do due diligence on its advisors. This is due to the fact that the advisers will be the ones to steer the team while they work on the project. Any red flags, including a history of fraud or unethical activity, that could affect the project’s success can be uncovered through a comprehensive background check. In addition, researching the advisor’s history helps guarantee that their knowledge and experience are a good fit for the project. In a nutshell, it is crucial for the success of any ICO project to conduct thorough due diligence when screening advisors.

3.2. What to look for in ICO advisors?

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3.3. How to verify ICO advisors’ credentials?

It is crucial to check the backgrounds of any consultants involved in an ICO. Given the recent uptick in ICO scams, it’s crucial that investors verify that the projects they back have reputable advisors with the experience to see them through. Some methods for checking the legitimacy of ICO advisors are outlined below.

3.4. What to do if ICO advisors have questionable backgrounds?

Many options exist for dealing with an ICO advisor who turns out to have a shady past. The first step is to learn as much as possible about the suspect in order to assess the gravity of their past conduct. This could require looking through newspapers, court records, or other government materials. You can also contact the ICO team and inquire about how they select advisers. It’s possible that the team is already aware of any potential red flags if they have a rigorous due diligence process in place. The last step is to determine if the advisor’s activities in the past are substantial enough to warrant dismissal. The judgment must be made in light of the advisor’s past acts and the severity of the situation at hand.

3.5. Examples of ICOs that failed due to advisor issues

Many unsuccessful initial coin offerings can be traced back to problems with its consultants. Floyd Mayweather and DJ Khaled, for instance, were accused of illegally promoting the Centra Tech ICO after they helped spread the word about the cryptocurrency. The SEC also placed a fraud asset freeze on the project’s originators. Another ICO that was exposed as a fraud was the Prodeum ICO, which had advisors whose LinkedIn profiles turned out to be phony. These incidents stress the need for careful due diligence when selecting an ICO advisor.

4. Best Practices for ICO Background Check

Background research on the ICO team and advisors is essential before to making any investments. The importance of doing one’s due diligence cannot be overstated when it comes to ensuring that the people working on a project are equipped to do so. Best practices for ICO background checks include confirming the legitimacy of the team members, looking into their educational and employment backgrounds, scouring their online profiles for evidence of criminal activity, and so on. The ICO team’s reputation and the reasons behind their debut into the market should also be considered. Investors can reduce their losses and make better choices when they have all the information they need.

4.1. Start early

Vetting the team and advisers engaged in an initial coin offering is one of the most crucial steps. This entails conducting extensive research on each candidate’s credentials to guarantee they have the knowledge and experience to carry out the job as planned. It’s important to get started on this right away so that problems can be avoided later. Some suggestions for how to do a complete background check on an ICO:

4.2. Use multiple sources

It is vital to employ a variety of resources when doing due diligence on an ICO’s management team and advisers. Examining the individual’s work history, academic background, and disciplinary record are all fair game. Reference checks and interviews are other ways to learn about an individual’s reliability and professionalism. The ICO team and advisors can be made more reliable and trustworthy if they are thoroughly vetted using different sources to uncover any red flags or irregularities.

4.3. Verify everything

You should research the ICO’s team and advisors thoroughly before putting money into it. The legitimacy and future success of the project can be improved with the help of this due diligence procedure.

Verifying all information is a must while doing an ICO background check. Verifying the identities and backgrounds of team members and advisors is a crucial part of this process.

When conducting a background check on an ICO, it is important to look into the team’s employment history, education, and any applicable certifications or licenses. You may learn a lot about someone’s reputation and how they engage with the local community by checking out their online accounts and activity.

Checking for potential conflicts of interest and red flags that may suggest a higher risk of fraud or misbehavior is just as critical as confirming the team’s qualifications. Team members and outside advisors’ legal and regulatory histories, as well as their associations with fraudulent schemes, may need to be investigated.

Researching an ICO’s history is essential before putting money into it. Investors can reduce their chance of falling victim to fraud or other forms of wrongdoing by conducting thorough due diligence and watching out for warning signs.

4.4. Keep track of findings

It is crucial to maintain a record of your findings after completing a background check on the ICO team and advisors. It’s important to keep track of where you found things, as well as any questions or worries that arose while you investigated. Keeping a full record of your due diligence approach will allow you to make educated judgments about the team and advisers you bring on board for your ICO. Keeping note of your results can also help you spot patterns or inconsistencies in the data you collect, which can be an early warning indication of problems with the team or advisors.

4.5. Be transparent with investors

The success of every initial coin offering depends on how openly it is run. This holds true not only for the project, but also for the group working on it. Investors are understandably curious about the experience and track records of the people they’ll be putting their money with. This is where caution and investigation come in. It is crucial to verify the ICO team and advisers’ credentials by digging into their past work and experience. Here, we’ll look into what you should look for and how you should look for it while researching an ICO’s advisory board and team.


To sum up, in order for investors to make educated judgments and prevent any scams or fraudulent actions, it is crucial for them to undertake a complete due diligence on the ICO team and advisers.