Initial coin offerings, or ICOs, are the current talking point of the cryptocurrency world and Blockchain technology. There are a lot of projects out there, each trying to convince you they’re the next big thing.
Finding which ICO is a worthy investment can be very detrimental, especially now that many of them have been proven as frauds. But don’t be disheartened; there is good stuff to find too.
In this article, we’ll talk about what to look for in an ICO and other important things that will help you navigate the world of initial coin offerings. Read on!
Scrutinizing the Team behind the ICO
If you’re interested in an ICO, you should be able to scrutinize the things you see on it. Double check the overall quality of the ICO itself and its white paper. See if it looks professional, if it’s well written, and if the ideas about the ICO are clearly expressed or confusing and unnecessarily complex. If there are statistics and figures shown, see if they’re coming from legitimate sources and they truly make sense.
The next thing to do is to check the team behind the ICO. If the team is missing, drop it like it’s a hot potato. Whatever they say, you must be able to see names, job titles, and backgrounds of all the key team members. You should also search for links that can help you verify their identities. To put it simply, make sure that the team behind the ICO is a real team, and a real team should be composed of real people.
As equally important as the team’s realness, you must see whether this team has the experience and expertise in the project they’re pitching. You want to see proofs that these people can make the project a success. Check their history and see if they have led projects before and if such projects were successful or lackluster.
Scrutinizing the Idea
When reading the white paper, try as much as you can to understand the primary idea making the ICO run. See if there’s a genuine problem being tackled and that needs the Blockchain and a new cryptocurrency. Keep in mind that there are ICOs that tackle old problems and just adds the idea of the Blockchain to it because of all the hype. But if there’s no real need for a new cryptocurrency, it might not be as successful as imagined.
It’s also good if the idea is a new one. If the ICO has an impressively new idea and is tackling a genuine need, you can become a little more at ease with that one. See if the team can provide a proof of concept or case studies.
Lastly, you need to consider the target market. See who the ICO is targeting and gauge if the audience is large enough to make the idea work and succeed. Remember that if there’s no user or customer, even the most excellent idea will rot in oblivion.
