Initial Coin Offering (ICO) is one of the most popular and fastest ways for blockchain-based projects to raise funds, and it may be an excellent opportunity for potential investors to find a prospective project and to invest in the next cryptocurrency at early stages of a token sale, as these are usually followed by good deals and bonuses.
There are still important questions to ask to ensure that your investment is profitable – How can you find out if an ICO is worth investing in? How can you verify an ICO?
Questions to Ask (Pixabay)
We will move to 20 signs of a good ICO we prepared for you, but let’s mention ICO listing websites and trackers first.
A good ICO listing website or an ICO tracker is usually a service that does some of the homework for you. It finds promising projects for investment and monitors each project to provide up-to-date information, such as presale and public sale start/end dates, keeps an eye on token metrics, any important project changes and updates its database to provide users with quality data so that they can save their time. Finally, a good ICO listing website has to pre-screen and review projects to filter out possible scam. All this data and ICO ratings may help you, as an investor, to get an overview on a project, but a manual analysis before the actual investment is still required.
So, what are the signs of a good ICO, and how can you verify them? Here we go!
- A good idea behind the product. Does it differ in some way from existing products on the market? Is there still space for such products?
- The product has a good logo and website. Does the product have good overall presentation? This includes logo and website, as well as any media present on the project’s website (images, videos, texts). It may be minimalist, but it has to look good and definitely should not contain severe visual bugs. Does it look appealing to you? Good presentation means that an ICO has chances to attract more investors and customers. Well, it may look crappy and succeed still if the idea behind it is as good as a time machine, and both Albert Einstein and Richard Branson are on the team.
- Whitepaper is present and it’s clean, good-structured and easy to understand.
- The product solves a real problem that exists or will exist in the future.
- Product is scalable.
- Minimum Viable Product (MVP) is already online or will be launched soon.
- Objectives are clear, milestones have been set and you can see a logical and consistent development timeline.
- The team has conducted market analysis, understands its capacity and threats, and has a clear vision of how it will overcome obstacles and win its market share.
- Discounts during private sales, presales or crowdsales are not more than 30%.
- Max cap for investors set to avoid accumulation of a big share of tokens in one hands.
- Experienced developers in the team, able to build the described product.
- Team members are disclosed and are listed on website including their social media profiles.
- Team has verified previous experience building and launching successful products.
- Active presence in social networks.
- The project is promoted in the media, present on listing websites and has good overall ratings. People know about its existence.
- Friendly, informative, helpful, responsive and active community management. Go to the project’s telegram channel and observe what is happening and how admins reply – are their responses helpful?
- All contracts have been published on Github.
- A real registered company and no severe legal issues or restrictions in the country of registration that may influence funding.
- Advisors genuinely contribute to the project with their knowledge and know-how, and mention it in social media, blogs, during conferences, etc.
- The token is traded or will be traded on exchanges. A list of exchanges is present.
Considering everything above, would you invest in that product?