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5 Things to Look for in a Cryptocurrency ICO

Posted November 14, 2018 by EasyFinance.com to Finance 1 0

When you look for an ICO, you need to consider several other things besides a Good Page with stunning image design. 

Yes, the website represents the company’s face, but Initial Coin Offerings are complex. They are crowdfunding where a company creates tokens for others to buy, and make money for their projects. These are a combination between Kickstarter Projects and Initial Public Offering. 

If you want to invest in an ICO, consider the following 

Search the Team

When you evaluate the ICO, do your research.

 Read about the team, and perform a background check on each member. View the team expertise of every member. See their previous experience and expertise, lack of these things is a major red flag. If you want to raise money from the public, you need to establish trust. 

Some ICOS is a subsidiary of an already established company. These companies want to increase their profits and want a piece of the crypto action. They release new products and services. So, invest time to learn about the company and its other ventures. It will help make a well-informed decision.

Some startups don’t care to list their members, their position and experience. If a company isn’t honest about its team, then you shouldn’t trust them. Anyone hiding this information can be a scam. They hide this information because they don’t want to take responsibility for impending outcomes. 

Consider Long-Term Use 

Tokens are sold to raise money. They don’t have anything else than resale value. Well- Conducted ICOS allow investors to use tokens and purchase services. If an ICO only wants to make money, it doesn’t offer any service at all. 

Consider long-term value and potential use for the tokens. If the price isn’t increasing and you can’t trade for profit, then use the company’s services.

Read Online Reviews

ICO usual market themselves at cryptocurrency forum, but they also use major social media platforms. 

Use this to your advantage, read every ICO presentation, and see what people think. Most commenters or people who provide feedback have some experience with the company. They will give red flags and important advice. Consider them, but don’t base your decision entirely on what they have to say. 

Road Map and Future Plan

Companies with realistic roadmaps share their plans. They have developed a roadmap and aren’t afraid to communicate with their users. If you are curious when the project was started, how the company came into being, and their plans, they will give you an idea. 

But if someone doesn’t offer these details, their success will be shorted lived.

Funds Transparency

The Crypto treasury managment of ICO puts your money to work. So, expect them to be transparent about your money, and how they use it.  

The company should share the total number of tokens released, how many were sold during pre-sale and how many during coin offering. What percentage goes to the team, and ambassadors and how raised funds bring the project to life. 

Ideally, they should also share what percentage of funds go to marketing, workforce, project development, future, and others.

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