Topic: How to choose the right ICO? - page 13. (Read 7911 times)
You need to read more about ICO, read their whitepaper, their vision and most importantly, their developers. Study carefully the developers, do they have experience? Are they on social networks? Do they go out to communicate. This is a very important point, scammers will not show themselves everywhere.
In my opinion, the most important criterion when choosing an ICO project is the idea of this project, and only then the team and everything else.
ICO's are high risk, high reward investment. Its important to know how much one is willing to invest and possibly lose before participating in one. Most likely you must know the people behind them and you must understand the target market. And most of all you need to study and know what coins are for.
I prefer the road map, because we will know the project plan. It's useless if the team is good but the road map is unattractive and has no potential in the future.
7For example it could provide platform for developers to develop other blockchain softwares on top of it, which gives it intrensic value of whole ecosystem build on top of it, it could provide capital flight in reppresed countries such as privacy coins allow,
If you are bent on investing in new tokens, do your due diligence. Consider ICOs that have working projects and not just proofs of concept. Check the domain expertise of the executive team. Read the ICOs’ white paper with a critical eye. Stay clear of projects that offer a mere wish list
It is necessary to investigate the project to select the correct iC. The power of the team was checked. If everything looks good, ico is selected by analysis. weak or insecure projects should be avoided. Choose projects that you trust in their ideas.
if ico is good, they will explain about their ico development and tell the news about their ico, we can see ico's background.
I think I will usually look for more information about the team, check all their social network accounts to assess their relevant knowledge and whether they have a large network of related connections. Followed by the presentation of their products on their functional website and not forgetting the white paper should provide detailed details and clear explanation of the whole project.
The choices given by you are all important key factors to watch out for when choosing the right ICO to invest. Most importantly, Do look out for a good strong project team as they will result in a greater success rate in their ICO.
Maybe this is very obvious answer but - TEAM. I agree with most voters here and I can say that without good team any idea, any project won't make any sense. I know a lot of ICO's that was ruined by
unqualified team. Because team is a key to any ICO. I won't invest to ICO even if it has brilliant idea and promising market but don't have qualified team.
For example you can remember Envion. They have good idea and raised more than 100$ but still can't do anything.
unqualified team. Because team is a key to any ICO. I won't invest to ICO even if it has brilliant idea and promising market but don't have qualified team.
For example you can remember Envion. They have good idea and raised more than 100$ but still can't do anything.
I know very many cases when weak and not untwisted projects bring good results to their depositors. You have to choose the project whose idea you like.
Investing in ICOs or fully functional fresh currencies can be very profitable due to the fact that one is able to get in asset quick and often ahead of other market participants. However picking bad coin can easily lead to complete loss of investment if something goes wrong on development or coin has no long term use and the market looses faith and trust in currency which leads to collapse of value.
Shocking statistics that majority of new traders or investors do not realize is that majority of coins are the ones crashing not the ones performing with significant value increase over long period (1-3years). This is important fact to consider that one should be very careful when deciding and judging which coin is worth to invest in and which not if one is looking to make money in this market. If its just a fun or hobby then you might not be interested in this post and feel free to skip it.
Strategic thinking and asset judgment is needed in order to decrease chances of entering in bad asset, no person can decrease risk to 0, but you can decrease risk of failure a lot by strategically picking the asset apart with correct thinking and plan.
I have been part of many IT projects that were based on community collaboration and pinching the ideas on forums and also doing several years of trading in FX and stock markets which helped me alot to see relatively quickly for majority of crypto coins that are screaming scam, a no long term value of use or just simply ill planed ideas. Its something that many participants in crypto community lack but it can be quickly learned and applied as long as one if following correct rules.
With that said following those principles and rules that i will explain will not prevent you 100% to step into bad investing asset, but they will decrease of chances to stepping into one by 10 fold if not more.
checklist-41335_640.png
Here is quick checklist that i go trough always before investing in coin:
1. Check the crypto currencies forum page on bitcointalk forums. Checking for several different things from lower part of checklist.
2. Flashy images and good page setup. Solid structured page is what i look for, anything that is scraped up quickly without images or videos often means that developers put little effort into marketing of coin, which is not a good sign to see for investing. Remember you are not in it alone, you want other market participants to get in too if you want to sell coin for profit.
Generally people think completly wrong on this one, thinking that flashy images mean developers are just looking for profits and coin is more likely a scam, while the reality is if you do deep statistical checking and pattern checking of the coins, it is exactly the opposite. The more work developers put into the coin the better, there can be exceptions but in the end its overall statistical performance that matters not single picked example.
3.Transparent team. Images and names of all developers on project, coins developed and released by hidden developers are way more likely to be scam or eventually loosing overall value. This is a fact. Its logical, if someone has ill intent its more likely that staying in shadows will guarantee better safety or perception of it. A good sign is team with experianced members who produced previously successful projects.
Screenshot_699.jpg
4 Long term use. Coin, token, system no matter what the ICO or release is it needs to have long term useful value. Just releasing currency for the sake of it doesnt cut it. Whatever the asset is, it has to provide some real use in order for market to see long term value in it. This means when one sees coin always make sure to think ahead how could such asset provide value to certain people, organizations, companies etc...
For example it could provide platform for developers to develop other blockchain softwares on top of it, which gives it intrensic value of whole ecosystem build on top of it, it could provide capital flight in reppresed countries such as privacy coins allow, it could be distributed power sharing and use such as certain coins that distribute computer power might allow in future, it needs to give value to certain market.
5.Mining should be low on list of forum page. When you see coin page that has mining explained and front pushed right bellow the tittle or near it, its usually red flag. It means that developers did not develop any other significant feature to represent it in coins description that could drag in the :oinvestors. Mining is only process that helps functionality of currency, it is not the actual use of currency and its only sole feature.
6.Market capitalization. Very important and often overlooked. When investing in any asset it is important to recognize what current market capitalization of it is, if you are value investing and looking for asset that will produce long term increase of use for certain market, it needs to be as under priced and under capitalized as possible, this means that you as investor are entering at best possible price. If market capitalization is way above the actual real use of market it very often leads to strong price drop in order for price to stabilize around intrensic value.
Let me give simple example on this one:
Imagine company X that sells product with limited production of assets of 100 per year and has limited number of companies to sell to. Maximum profits that this company could get is 1 million USD if all products are sold (and lets say that company can only extend production and market by 10% per year).
If such company forms IPO and there is 50 million USD entering in first day, then no matter how good the production and products of company are, the asset (stock) is heavily overpriced. In majority of cases this leads to strong price correction.
Market cap can be seen on website like : https://coinmarketcap.com/
For ICOs market cap after finished ICO can be seen on coins website.
Screenshot_699.jpg
Now the key is to assume as good as possible what is decent market cap for certain crypto currency that one wants to invest in, its not very easy. Best way is to focus on obvious extremes. Often if investing in ICO one does not know ahead what value will be collected, which means that investor has to asses sitatuation and actions later on once the coins ICO is finished. Often there is still enough time to get out of position without any major loss if its done quickly.
By following the above 6 rules one can decrease chance of bad investment a lot.
Shocking statistics that majority of new traders or investors do not realize is that majority of coins are the ones crashing not the ones performing with significant value increase over long period (1-3years). This is important fact to consider that one should be very careful when deciding and judging which coin is worth to invest in and which not if one is looking to make money in this market. If its just a fun or hobby then you might not be interested in this post and feel free to skip it.
Strategic thinking and asset judgment is needed in order to decrease chances of entering in bad asset, no person can decrease risk to 0, but you can decrease risk of failure a lot by strategically picking the asset apart with correct thinking and plan.
I have been part of many IT projects that were based on community collaboration and pinching the ideas on forums and also doing several years of trading in FX and stock markets which helped me alot to see relatively quickly for majority of crypto coins that are screaming scam, a no long term value of use or just simply ill planed ideas. Its something that many participants in crypto community lack but it can be quickly learned and applied as long as one if following correct rules.
With that said following those principles and rules that i will explain will not prevent you 100% to step into bad investing asset, but they will decrease of chances to stepping into one by 10 fold if not more.
checklist-41335_640.png
Here is quick checklist that i go trough always before investing in coin:
1. Check the crypto currencies forum page on bitcointalk forums. Checking for several different things from lower part of checklist.
2. Flashy images and good page setup. Solid structured page is what i look for, anything that is scraped up quickly without images or videos often means that developers put little effort into marketing of coin, which is not a good sign to see for investing. Remember you are not in it alone, you want other market participants to get in too if you want to sell coin for profit.
Generally people think completly wrong on this one, thinking that flashy images mean developers are just looking for profits and coin is more likely a scam, while the reality is if you do deep statistical checking and pattern checking of the coins, it is exactly the opposite. The more work developers put into the coin the better, there can be exceptions but in the end its overall statistical performance that matters not single picked example.
3.Transparent team. Images and names of all developers on project, coins developed and released by hidden developers are way more likely to be scam or eventually loosing overall value. This is a fact. Its logical, if someone has ill intent its more likely that staying in shadows will guarantee better safety or perception of it. A good sign is team with experianced members who produced previously successful projects.
Screenshot_699.jpg
4 Long term use. Coin, token, system no matter what the ICO or release is it needs to have long term useful value. Just releasing currency for the sake of it doesnt cut it. Whatever the asset is, it has to provide some real use in order for market to see long term value in it. This means when one sees coin always make sure to think ahead how could such asset provide value to certain people, organizations, companies etc...
For example it could provide platform for developers to develop other blockchain softwares on top of it, which gives it intrensic value of whole ecosystem build on top of it, it could provide capital flight in reppresed countries such as privacy coins allow, it could be distributed power sharing and use such as certain coins that distribute computer power might allow in future, it needs to give value to certain market.
5.Mining should be low on list of forum page. When you see coin page that has mining explained and front pushed right bellow the tittle or near it, its usually red flag. It means that developers did not develop any other significant feature to represent it in coins description that could drag in the :oinvestors. Mining is only process that helps functionality of currency, it is not the actual use of currency and its only sole feature.
6.Market capitalization. Very important and often overlooked. When investing in any asset it is important to recognize what current market capitalization of it is, if you are value investing and looking for asset that will produce long term increase of use for certain market, it needs to be as under priced and under capitalized as possible, this means that you as investor are entering at best possible price. If market capitalization is way above the actual real use of market it very often leads to strong price drop in order for price to stabilize around intrensic value.
Let me give simple example on this one:
Imagine company X that sells product with limited production of assets of 100 per year and has limited number of companies to sell to. Maximum profits that this company could get is 1 million USD if all products are sold (and lets say that company can only extend production and market by 10% per year).
If such company forms IPO and there is 50 million USD entering in first day, then no matter how good the production and products of company are, the asset (stock) is heavily overpriced. In majority of cases this leads to strong price correction.
Market cap can be seen on website like : https://coinmarketcap.com/
For ICOs market cap after finished ICO can be seen on coins website.
Screenshot_699.jpg
Now the key is to assume as good as possible what is decent market cap for certain crypto currency that one wants to invest in, its not very easy. Best way is to focus on obvious extremes. Often if investing in ICO one does not know ahead what value will be collected, which means that investor has to asses sitatuation and actions later on once the coins ICO is finished. Often there is still enough time to get out of position without any major loss if its done quickly.
By following the above 6 rules one can decrease chance of bad investment a lot.
For my personal experience here are mine in terms of importance:
1. Video about project (promo)
2. Team/advisor, has to be experienced and there should be at least one "superstar"
3. Product/alpha/beta
4. market cap, it has to be less than 30M
5. roadmap/whitepaper
6. Hype/marketing
All these quality I saw in Ambit Mining ICO https://ambitmining.io/
1. Video about project (promo)
2. Team/advisor, has to be experienced and there should be at least one "superstar"
3. Product/alpha/beta
4. market cap, it has to be less than 30M
5. roadmap/whitepaper
6. Hype/marketing
All these quality I saw in Ambit Mining ICO https://ambitmining.io/
Choose ico by 3 easy steps :
1. good team
2. whitepaper .
3. support from team.
I saw all these three best quality in Ambit Mining https://ambitmining.io.
It would be nice if the project team personally went through the procedure KYC with advisors also =). It can be seen on special web-sources. 1. good team
2. whitepaper .
3. support from team.
I saw all these three best quality in Ambit Mining https://ambitmining.io.
Choose ico by 3 easy steps :
1. good team
2. whitepaper .
3. support from team.
I saw all these three best quality in Ambit Mining https://ambitmining.io.
1. good team
2. whitepaper .
3. support from team.
I saw all these three best quality in Ambit Mining https://ambitmining.io.
For me, I love ICOs with workable projects, and better still, ones with a working product. A utility token has to be worth its name, not just an abstract project. Well, I may be wrong but, its been working for me so far. No complaints. Checking and thoroughly reading the whitepaper for the project should not be overlooked.
I see more and more people talking about Paytomat. And at first I thought that it was a bad spam, but I decided to take a chance and, at the beginning, I did a little bit of risk, and then it all turned out to be surprisingly good, I wondered where it was, and it was not there, it was strange because it got used to everyone who wants to swear. But the company is really cool and sincere. Therefore, do not think that the spam, was simply surprised by this discovery
I always look for some good new companies for investment, I select them according to several criteria, publicity, openness, perspective, need personally to me. And then I consider them a good investment not important for a month or a year. Well, for example, I can mention Paytomat from the last, I know that their idea will be relevant to me. Because the problem of transferring real money to Coins is now very topical4
Many people in my environment ask me where I invest. But I think this question is not correct, because each individual chooses investment individually, in addition to the aspects of profit, it is necessary to oversee the value component as well. So it is desirable to define at least between bitcoinom and ICO, but in these spheres already to choose more personally. For example, I chose Paymot. because my selection criteria are trust in the company, publicity, openness, stability and a couple more. But the main premise of this comment is that everyone chooses himself
Generally in my opinion ICO is always a good option. In particular, it is very profitable to look for companies that are only gaining momentum and investing in them, because after a rapid growth on this you can raise the money. Of these, companies have recently found Paytomat for themselves. As if the company is not very popular, it already cooperates with NEM and Hacken, which I trust. Details can be read on them on the telegram channel, called Paytomat Announcements. But in general, I do not want to impose my point of view, so think for yourself
I think you nailed all the popular points of note.
If you look at most ICOs, the concepts are really shit...so be careful.
- Do your research on the technology's viability in the market
- Make sure the funding is relative to the amount of funds necessary to make the project work
- Look for projects that really have something unique and necessary for the current space (HINT: if you're paying attention, there are a lot of problems to solve)
And there should be one great idea in ICO which is different from other ICOs, coins or tokens
I agree with ceferov, but add the caveat there are projects coming with more than (1) great idea, have an adoption strategy, and a great business model (very important).
Look for the projects that can revolutionize cryptocurrencies adoption and market acceptance.
Jump to: