World of ICO’s (Initial Coin Offering) based on digital technology is a wild and insanely creative place. Every single day hundreds of ICOs take birth. But only a few emerge triumphant in making a name for themselves.
As per statistics to date in the current year, initial public coin offering has successfully accumulated more than $8 billion. But at the same time, it is also true that maximum ICOs are like parked vehicles or carts without wheels.
Mind it!
The majority of ICO launched are like shiny new opportunities that you must not get your hands on. Investing with such 9-day wonder ICOs means a complete waste of time, effort and above all hard-earned finances.
Now, the question here is how to figure out such black sheep ICOs from a genuine ones.
In this blog post, we are going to cast the spotlight on top criteria to evaluate ICO crowdfunding.
What is the ICO?
An ICO is an unconventional digital system to collect funds in a more convenient and faster way to spark a start-up. Likewise, traditional companies, in digital world digital or digital tokens are released for investors in exchange for gaining financial investments.
Mind it!
Companies never sell all their tokens in one go. By and large, a company releases a certain percentage of tokens for investors for trading purpose. Remaining tokens it keeps intact for further company usage and to fulfil platform needs.
Now, investors or token holders invest funds as they believe in the idea or concept to pick up and generate profits. ICO is like a symbiotic relationship in which financers and idea generators enter into an inter-reliant relationship.
To put it, in other words, we can say that a “Token” is an analogue of a “Share”. Similarly, an “ICO” is the analogue of “Stock exchange”.
Well before going in much depth it is important to comprehend that ICO success doesn’t depend on successful fund collection. An ICO is considered successful only when it accomplishes pre-set goals and fulfil promises within the stipulated time frame.
Right!
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Recommended Read: How to Launch an /ICO?
Key points to evaluate an ICO:
1. How innovative an idea is?
A new start-up is all about the idea. A new project begins with an idea and its only idea that shapes a project’s further course. All in all, the true value of a start-up lies in the idea it holds.
Therefore, before participating in an ICO first and foremost thing is to thoroughly read and understand the concept. Just don’t try to understand a project’s idea superficially, as in one-go some ideas on paper seem to be thriving.
Hence, make an unbiased evaluation that whether the idea is practically feasible or not? Is there any need to introduce it on blockchain technology? Besides this, also verify whether the fundamental idea behind the project is original or not. Mind it! Only the originals survive on this cut-throat blockchain pitch.
2. Thoroughly inspect about the team and advisors behind ICO
No business becomes a great business if it is not supported by a great team. This stands true in case of ICO’s too. All in all, to accomplish platform goals an ICO requires a good team of people.
Therefore, before investing with an ICO platform it is highly recommended to first investigate thoroughly about the team. History, educational background and social status of team members can play a significant role in getting a fair idea about the team.
Besides this, one can verify the team’s creditability and find relevant stuff on their social media profiles like Facebook, Twitter and LinkedIn.
3. Check roadmap
Roadmap casts the spotlight on the fact where a company wishes to reach as well as the best possible way to reach there. In short, roadmap illustrates how good the planning of a specific ICO is.
Therefore, it is well-thought-out to analyse an ICO’s roadmap to understand how and where the platform is planning to spend its budget. Evaluation of roadmap also gives a fair idea about the usage of collected funds and investments. It also highlights short as well as long term goals of the platform.
4. Authenticity and quality of the whitepaper
The whitepaper is a report that efficiently addresses a platform’s goal, highlights its products and analyzes competitors. Besides this, a whitepaper thoroughly shares and distributes business as well as technical aspects of a platform.
Therefore, to get thorough insights it becomes essentially important to read a platforms whitepaper. Moreover, the neatness with which a whitepaper is designed is directly proportional to an ICO’s future prospects.
In short, a whitepaper is like a communication bridge that decides what an ICO wishes to share with its potential investors.
5. Reputation and reviews by experts
Reputation is the force that drives investors trust and confidence to make a capital investment in an ICO. It is the lifeblood that is of utmost importance for the survival of a platform.
Therefore, before making any sort of investment always give a thought about the reputation of an ICO. Reputation is directly proportional to the numbers of the digital currency exchanges on which it is listed. More is this number, more an ICO is considered as reputed.
Besides this, investors should also consider the reviews given to an ICO by the digital community. Actual investors or users are good sources to ensure the authenticity of ICO.
