How to identify a good ICO?
Importance of due diligence of the team’s background. Especially for the young ones, because usually they don’t have a lot of experience in this field. It is recommended to check every advisor due to the fact they can do a lot of impact during the ICO for the founders. The background of the team/advisors is the most important thing in deciding whether the team is experienced enough or not.
Many times there is a problem and when there’s a problem it needs a solution. A lot of successful coins offer a solution to a proposed problem. You have to get to know the problem better and how much it is relevant for everyone. The solution has to be really innovative and with huge potential for the future, for example, Monetha, Golem or SingularityNet.
Token structure/blockchain use
The team has to bring real value for the token use. ICO contributors have to get benefits from tokens in their daily life using company’s services/products. The importance of blockchain use – a lot of ICOs do regular business and only add decentralisation. Though, it should have real implementation and value of using blockchain.
Professionalism, presentation and activity
Detailed and informative whitepaper where you can find brief introduction of the main aspects for ICO. Nice styled website. Good marketing. Transparency in communication with community. Proactiveness in spreading the word of new ICO – attendance of conferences and etc.
Team has to bring at least a couple partnerships before ICO. Those partnerships need to have value in the future. Partnerships with old and successful companies.
The team has to create a huge hype for their token – everyone has to look forward to getting a chance to buy their tokens. The buzz around the ICO should be huge and with a huge community.
The legal registration and structure in countries like Switzerland gives more trust and confidence in the team than a Legal form in Vanuatu, Gibraltar, etc. It is very important to be registered in the country with better regulations, rules, etc.
Everyone who is investing in ICO have to understand that there is a huge risk because of the lack of regulations in this type of investment; a big percentage of scammy projects; volatility of cryptocurrencies; liquidity of cryptocurrencies. Make sure you know as much as possible about ICO you are planning to invest in. Don’t make decisions influenced by majority of people, make the final decision your own.