There are often in our ILO channel questions and concerns about upcoming ILOs, or even successful ones which had a rather shady start or end. Our stance remains the same: This is a decentralized platform where any dev can start a fund raiser, hence it is your duty as a buyer to know exactly what are the risks involved, and take the decision to skip some ILOs, or only invest what you can afford to lose.
Even an audited and KYC ILO doesn't protect you from losing your funds, as there are more ways to steal your funds than ways to protect you.
That being said, here are some hints to help you finding a low risk ILO.
The audit by our partners have proven to detect things like errors in code preventing a successful finalization of the ILO, customizable tax amount (which could be set to 90%+ at any time), unlimited minting, and so on.
No auditor will detect and flag everything suspicious: the findings of an audit depends on many factors. Do use those findings, that you can read in the full audit report, and not only the passed/not passed flag, as a part of your DYOR.
Did they lock the minimal 30% of liquidity or the maximum 100%? Locking 30% means that, 70% of the BNB/ETH are sent to the team/dev/project wallet directly after presale's success.
Under the "info" tab of every ILO, you will see, among other pieces of information, the tokenomics.
Do note that this chart is only considering the tokens of that project and not the BNB/ETH raised. The amount of ETH/BNB that the team will receive is:
ETH/BNB raised minus the amount of liquidity locked.
If 100% of 100 BNB is locked in LP, the team receives 0 BNB.
If 30% of 100 BNB is locked in LP, the team will received 70 BNB.
However, in case 100% of the liquidity is locked, this doesn't mean it is safe:
Check the circulating supply in the tokenomics chart: where are those tokens? Are they locked/vested with a competitor? Or are they available and can be market sold, draining the liquidity?
If the contract is unaudited, can new tokens be minted and market sold?
For how long is the liquidity locked? Can the team remove the whole liquidity in 1 month?
Note: If tokens are vested with Unicrypt, you will see all the locks under the tokenomics chart. Otherwise they will appear as "Circulating / Unlocked".
Also ask yourself this question: will the team every own more (unlocked) tokens than the amount sold during presale? If yes, how long until this happens: 1 week? 1 month? 1 year?
The team has the possibility to lock their tokens through Unicrypt: you will see the amount of locked tokens: Are they all locked? For how long? Is it a linear unlock (i.e. release some token at every block)?
Note: some teams/devs use the "Linear Unlock" in their ILO to have their tokens in a smart contract rather than circulating: this looks "good" on the tokenomics, however token can be already "unlocked in the locking contract", which means a large amount can be withdrawn by the team just before the ILO succeeds.
Do you only see moon boys? Can you ask question without being muted or banned? Are there thousands of people (bots?) in the tg already?
Do you see some tweets with thousands of likes and retweets? Are typical answer to those tweets repetitive and pointless (e.g. "Good project")
If they use "Ironman" as their token name and Ironman pictures, do you think they were granted a license by Marvel?
Licenses as such can cost millions: Why are they raising funds then?
If they have a CG trailer which is absolutely breathtaking, and likely costs hundreds of thousands, do they need a fund raising?
Or did you participate based on people shilling it?
If they claim to have a fantastic product, is it a realistic?
If the economic model is based on taxing other investors, isn't it a type of Ponzi scheme? If not, what are the other source of incomes that will benefit all holders and bring this out of the typical Ponzi scheme?
Look for real long term hold with a real product and a sustainable economic model, and with lots of room to grow, especially if you wish to make it through the bear market.
To remain as decentralized as possible, Unicrypt team will not check nor recommend an ILO, unless it was "incubated". Hence a poor DYOR means you accept the risk of loosing your funds. Avoid this by learning how to sense shady projects and discover solid ones.