If you have just perused the ICO calendar and are not sure what ICO to pick up, here are several aspects to consider before you venture into investing.
On the team behind the project
The question is simple: in whom do you invest? Each ICO usually has its dedicated website. On it, you should transparently find the people who make up the team.
Do a search of their name on Google and look at their Linkedin, Twitter and other profiles… Check if they have experience on the project in question. Do they have any links with the blockchain? Are they just newcomers?
Are there recognized and reputable personalities in the blockchain world? Their presence is a sign of the solidity of the project, even if it is not a decisive criterion.
Finally, are there people specialized in legal matters? A project involving law and legal specialists gains in seriousness and credibility. Or, failing that, can the team count on the support of legal experts?
The role and modality of the project
To start, ask yourself if the project really solves an existing problem:
What does he want to solve? What need does it meet?
Does the issued token have real use? It often happens that a project does not really need a token.
To answer these questions, read the information about the project contained on the ICO overview website. Then look for the famous whitepaper detailing the project. If there is, is it written correctly?
Look for the roadmap of the project there. It provides information on the objectives that the team has set over time. It allows you to have a clear vision of where the team wants to go. It also testifies to the transparency and seriousness of the project. A fuzzy and poorly detailed roadmap can hide a lack of clear vision for the team. It is also important to try to assess the credibility and feasibility of the objectives. An overly promising roadmap should be avoided.
Finally, look at the modality of the ICO:how will the tokens be distributed? Some ICOs release the tokens right after they complete the fundraising. Others wait several months before doing so. Some distribute beta versions before launching the real tokens.
How many numbers of tokens does the company intend to create? And how will they be sold? The more transparent the information, the more trustworthy the project seems.
The whitepaper is the central document of the project. It lets you know what you are putting your money into and should answer the questions posed above.
Opinions on blockchain forums you will look at
Once the team and the project have been reviewed, do not hesitate to take a look at the specialized forums talking about blockchain. We think of Reddit or Bitcointalk. See if people are talking about the ICO. What are their opinions?
Interested investors ask fundamental questions. A serious team will respond by message to questions asked on these forums.
The community around the project you are interested in
A solid ICO should generally have its community of crypto-enthusiasts and investors on its side. They generally communicate through messaging tools such as Slack, Telegram or Discord.
An active community is a sign of significant interest in the project. It will be more likely to attract enthusiasts, which will build a network effect when the product is launched.