How to spot a successful ICO? With the abundance of the initial coin offering projects appearing everyday, it might be a challenging task to find a reliable ICO. However, it should not all be that difficult. Take a look at these ICO evaluation tips that can lead you to the right project.
CryptoToday – ICO evalutation is a crucial step in spotting the right project for your next investment. This process can be advantageous to the investors as well as to the ICO teams themselves. The act of comparing and drawing conclusions about ICOs not only will lead to a decision of whether to invest or not, but it will also expand your ICO-radar capabilities.
These days, new ICO projects are being brought to life very frequently – there are thousands of ICO ideas ready to gather funds every year. Some of the projects appear very similar to each other and sometimes it is hard to draw the line between them. However, comparing ICOs is not all that difficult.
Yet, it is very important to watch out for the fraudulent ICO projects. We have discussed 4 signs of a potential ICO scam in a different article. It is recommended you educate yourself on this matter, as well.
One of the most effective ways to ICO evaluation is to follow a rating system that assigns points based on various ICO success factors. This is exactly what we will be discussing in this educational article.
3 Key ICO Evaluation Tips
The key ICO success factors that will help you evaluate an ICO are the team behind the project, the presentation of the product, and the information about the ICO project.
Out first and, probably, one of the most important ICO evaluation tips is to pay close attention to the team behind the project. It is crucial that profiles of the ICO team members are public and easily accessible. Moreover, it is important that the members provide sufficient and clear information about themselves. The links to the external professional websites and pictures of the members also add to the reliability score of the project.
Following on this, the number of team members can also play a vital role. In case the project only features two individuals, the chances it is going to succeed are very low. Nevertheless, the big number of ICO team members will not guarantee a 100% success.
Additionally, pay attention to the activity of the team members – how often do they post on the social media? The ICO team that keeps the contributors posted about the development of a project or at least is being active and responsive is a good sign.
The information about the project is one of the critical decisive factors when it comes to the evaluation of ICO project. The information should be clearly accessible and visible. The dates of the pre-sale and the official ICO sale should be clearly stated. Potential contributors should also be able to understand the method of investing in the project.
The team also should mention the currencies they accept. The countdown towards the start or end of the sale is usually a part of a reliable and professional ICO project. In addition, watch out for the information about the price of each token – it should be available as well.
Aside from the above-mentioned factors, the information about the project should clearly define long-term goals of the product. The plan on how to achieve these goals and the necessary amount of investment will most likely point to a successful ICO.
The ICO project should have a degree of flexibility to it, as well. The global cryptocurrency and ICO markets are evolving along with the regulations around them. The information about an ICO project that explains how the product would adapt to changing market conditions adds to a higher comparative rating of an ICO.
Presentation of ICO project
The presentation of a product usually depends on the information that is available about the ICO in the whitepaper. The ICO whitepaper is a must-have document that includes the description of a product itself and project’s milestones. The whitepaper usually provides more details about the team members. It also normally explains the actual use of the digital currency.
The professional and clear presentation of a product normally signals a reliable ICO. The extra effort put into the whitepaper provides an impression of a committed team behind the project.
Do you know any other ICO evaluation tips? Do not hesitate to ask us in the comments section below!