ICOs are hot. I was already enthusiastic about bitcoin and ethereum , but now I am totally captivated by ICOs. But beware, ICOs are high risk and high reward. No matter how small your investment is. Initial coin offerings are risky because you often invest in start-ups that are often still in the phase of attractive ideas, promises and symbolic marketing. But against the risk of an ICO there is often a nice return-on-investment (ROI) . Do you want to know which 5 points an ICO expert always checks? Do you want to know where to find the best ICOs?

Every ICO takes place. The process for making a new currency is called ICO (Initial Coin Offering). During this process, investors can buy newly made coins. It is a form of financing for new start-ups. Usually the price of new tokens during ICO is low because there is only a prototype or idea behind the token and not many people are aware of the new project. Sometimes there are promising ideas, but they are not known yet or they have bad marketing. There are also ICOs that attract a lot of attention through smart branding, videos and advertisements, raise a lot of money and then go bankrupt or turn out to be a scam. You should stay updated with the latest ICO's that are published for future investments. This video may help you.

The 5 Most Important Points to Rate an ICO

1. Product dimension

See if there is a big problem and whether the product or service is the best solution. Choose disruptive useful ideas. Is it uniquely valuable product that appeals to a particular niche or does it have many other competitors? Is the target audience waiting for this product?

  • Is it an idea or is the product already working? Is there a prototype? or is it in beta / alpha phase?
  • What is the quality of the product? What is the quality of the code in Github?
  • Is there evidence of the development of the upcoming release?
  • Technology, do you think what the ICO is offering as far as technology is feasible?
  • The project developers should be able to clearly define the purpose of their project that laymen can understand.
  • Good white paper also needs market and economic data, so that investors will understand which market is going to be penetrated with the suggested product.

2. Team dimension

  1. Who is behind the company?
  2. Has the team consisting of engineers, marketers, business development achieved previous successes as entrepreneurs?
  3. Are there blockchain developers in the team? Do they have enough experience to get the job done?
  4. Which consultants are there? Do the advisers fit the team?
  5. How hard does the team work? check Github repositories.

Concept

  • Does the idea need blockchain? Or is it possible without it?
  • Is there competition? How does the company differ from the competition?
  • What value does the token have?
  • How big is the target group of the concept?

3. Token dimension

  1. How important is the token part of the product? no part, part.
  2. What is the long-term utility of the tokens?
  3. If more than 50% goes to the owners, I will cancel.
  4. How big is the maximum cap? How much growth is possible in the short term?
  5. Total Supply Ratio (number of tokens in ICO divided by total token number)

4. ICO Market Cap

Every ICO uses a certain model to distribute the tokens. Is the number of tokens issued in advance fixed? Then the value increases if there are more coins in circulation.

What kind of people are investing even more? By joining the Telegram group of an ICO you can see what kind of people are going to invest. Look for long-term ICOs in which long-term investors also participate. If there are too many speculators betting money in the ICO, when the token is traded on exchanges, they will drop and sell in the short term.

The total value is the total stock of tokens x the price of the token. Everything under 100 million is good.

5. Community

  1. How big is the community? how many members does the Telegram of the ICO have?
  2. Is there a lot of hype about the ICO? Have the big experts already said anything about it?
  3. Is the team actively communicating with the community?
  4. The number of community members is important, the more people are interested the better.
  5. How active is the team on forums like Bitcointalk and in their slack?
  6. Read what other people write about the ICO.

Partnerships

  1. Are there any noteworthy partners with whom the company cooperates?
  2. What is the role of the partners? Often you read partnerships with Microsoft or Amazon and it turns out that they only have a contract for a web server of that company.
  3. Is the team actively engaged in new partnerships? Do they find this important?

You can get answers to all your questions at https://icoup.io

Author's Bio: 

Misty Jhones