Initial Coin Offerings is one of the legitimate fundraising strategies right from 2017. Hence it is always difficult to cherry-pick to properly pick an ICO for investing. As hundreds of ICOs have emerged already, it is a painstaking task to choose one. This blog discusses the guidelines you should remember to pick the best ICO and top ICOs which you start investing in!
Why it is important to go with an Authentic ICOs?
It is a well-known strategy that investing in a cryptocurrency is going to be a daunting task. In particular, when it comes to Initial Coin Offerings, people need to check for the risk factors before they start investing in.
Investing in a legitimate ICO can bring you a huge set of benefits than the scammy ones. There are tons of Initial Coins existing in the market with each one having its own cons and pros for investors out there.
One thing should always be remembered. Cryptocurrencies and Ethereum platforms are built on experimental technology. As most of the ICOs are built on Ethereum, this is purely considered to be an experimental strategy.
Hence the main question here is, how to evaluate and determine the best Initial Coin Offerings for investing and evaluate its success rate. To put it in simple words, you just need to make a deep research on the same.
Let me explain to you some of the important things which you should take into consideration during evaluation!
How to determine whether the ICO is reliable?
Check for the Reviews
The initial thing which you should compute is the reviews in it. You can read for expertise people’s reviews and their individual opinion on the Initial Coin Offering. You should know what is the perception of the particular ICO from the end of experts.
This can give you a good view of them. In this case, you can visit ICO listing websites such as ICOBench, Cryptoslate, ICO rating, etc. You can find the views of the legal experts on Initial Coin Offerings.
On the other hand, there are websites which auto-generates the reviews and ratings of ICOs by taking expert views, community, and other scores into consideration.
Whitepaper plays an important role in every crypto project. Make sure you read the Whitepaper completely. This document describes the complete solution and needs for the particular ICO and its reason.
Here are the major categories included in the White paper:
1. The Essence & Need of the project.
3. The Problem & Solution.
4. Industry Overview.
5. The Business Model.
6. The Timeline.
7. The Team Involved.
8. Description of the product.
9. Legal Aspects.
10. Terms and Conditions.
Check whether the idea is reliable and provides real-world solutions for the existing problem in the industry. If the ICO has a good answer for this, you can invest in the desired coin blindly.
Social Media & Community
Ensure the Initial Coin Offering which you have decided to invest has popularity and known worldwide. You can check for Social Media platforms such as Slack, Telegram, Bitcointalk, Facebook groups for the discussion on the same.
Look for Bounty posts and threads in the communities and check whether the ICO is reliable to invest in. You can also start a thread by requestion an expert’s view on the same. A promising project will receive a huge response.
You can check social media profiles of the respective Initial Coin Offerings and check for the followers, and how active they are.
Structure & Token Utility
Find how the desired tokens are going to be beneficial and applicable to the industry. As most of the tokens aren’t meant for any share or stake in the company, it is important to look for this factor.
If the token is just meant for launching an ICO, the price of a token won’t increase at all. You can also check for the hard cap they have put on the tokens. The hard cap is the number of tokens that can be issued. The hard cap shouldn’t be either too low or high since it loses the essence of the product.
Research everything about the development team
The initial thing you should figure out if the developers of your ICOs aren’t anonymous. If they are so, there are possibilities that they can be scams. If you find the names of the team, you can Google them and find more information.
You can also check the following strategies before you invest in:
- Educational background
- Previous experience
- Their complete expertise on ICOs
- How successful are their former ICOs?
- What was their role with them?
And much more! It will be highly beneficial if the team members provide information on their personal Linkedin, GitHub, Twitter, etc. You can also check the legitimacy of the profile and find they are active or fake.
Analyze the quality of the code
If your project doesn’t have a working code or an open-source, we can term them to be scammy ICOs. If in case you have the technical knowledge or programming ability, you can analyze and verify the quality of the code.
You can read the code and make sure they are bug-free and feature-integrated. You can know more about them by just determining the code.
Initial Coin Offerings are going to be the gold rush in the following days. As a potential investor, it is important to check for the above factors before you start investing in Initial Coin Offerings ICO.
Robert Kroos: Crypto Writer at a leading blockchain development company. I love to share my ideas & thoughts on Blockchain & Cryptocurrency in a simple & readable manner.