Topic: What are investors looking for before investing in a crypto project these days? (Read 449 times)

To another of the unreliable points I can attribute KYC. Unfortunately, even scammers can collect this data. And then successfully use them. The company must have a license for financial activities. This is my position. As a minimum control system for startups by the law and to protect investors

Most of the real investors are after is majorly the use and essence of the project, what is the background of the team behind it, the marketing strategy put in place etc

Not a lot of praise is needed to convince an investor if the project has something that can make them believe in it. I think that for the success of any project, the team behind it is responsible at all costs so the transparency and their real identities matter. It would just turn grey for an investor if any of these team investors or devs decide to abandon the project some day for any reason. I had some investments in AMP 'Hyperspace' project which stopped working totally making us lose a lot, and it is not money that we lose alone but trust.

People already learned and fully aware on frauds and scams that been circling this market.Its totally different wayback or in before bull run where people are way too careless

and choosing up projects without even thinking or proper researching and in result on losing millions of usd as tallied.Investors are smart now even though there were still scams
and people got victimized but its more lesser compared to the past.

Due to the experience of promoters and investors, the perception for investment has changed over time. Price swing of the market is not mainly the cause of the drop in response to new project, but the attitudes of majority of previous projects.
At the cause of promotion, and Post IEO/ICO, the project owners should be sincere in all their dealings.
Most of the current investors are research oriented, they go behind to make proper enquiries on a project originality.
Sincerity and originality of purpose is the core principle for success in this dispensation of projects.

If by traditional, you mean ac investors and venture funds, then let me give you an insight as a guy who runs errands for projects both in and out of cryptoverse, to raise funds, I know for a fact the general mood for most traditional self-certified accredited investors. They have an extremely negative outlook towards crypto which is sometimes justified. But 9/10 times those outlooks are the result of "their friends" investing in a scam project where they lost all their money.
I understand their reasons but I don't accept their logic behind it most of the times. Just because "their friends" were duped into a project that was a failure does not mean that; that all crypto related projects - all legit crypto related projects are going to fail just like that.

As a negotiator, it always falls on my shoulders to convince people to either invest in the project or issue a line of credit. And they're not the easiest investor type to 'convert'.

You're assuming I was implying "ICO" I did not. I said "investment into crypto projects." Not all kind of investments are done through ICO or crowdfunding, that's still a relatively new thing that gained momentum with Kickstarter and Indiegogo.

okay, so lets say you are a guy with $100k in your pocket and I come to you after spending 5 months of volunteer dev / self work into a project that's not unique but actually has a working alpha.
Now at that point even if I offered you equity, lets say 10% for your 100k, wouldn't you rather hire top of the line coders and devs and develop 100% of the project on your own and retain 100% equity instead of investing in someone else's project with just 10%?

See, then it becomes a question of the kind of investor you are approaching and mostly, I think, the kind of investors that are best suited for a crypto project is the one who has disposable money that he can invest and let others take care of his investment and grow the project while he does other things. And these kinds of investors have to be brought into the project at the early stages. Not after spending a few months working on the project.

Some time ago, I opened a discussion with statistics on ICO projects and funds raised with this type of crowdsourcing model. ICO is an increasingly abandoned solution over time, from investors but also as a choice for fundraising. Entrepreneurs are turning to the more traditional means.

Starting to raise funds (with the ICO model or whatever) ok, but for what? If you don't have a real project with a real product then what is the use collect money from people. Generally, you think about the project firstly, and then think about how to develop it financially. Not the other way around.

As a former investor in crypto project I would say that it's a bit of all of the above.

First we're not in a bull market. Of course that means price of alts and BTC doesn't really goes up, but it mostly means that adoption isn't on the rise. You have to understand that a year ago, we had first the illusion of security that btc price was always on the rise so investing in a project which repays in cryptos was always profitable.

Second number of users was only increasing! Everyday hundreds of new people started crypto, the forum was being abused on a daily bases by thousands of new cryptos enthousiasts. It means a growing market with a growing economy with a growing currency.

Now crypto is on the down and number of adopters is only decreasing. People have less and less crypto assets and they have too many bags just waiting to be sold. There is les liquidity in the market and much less media attention.


If you want to get investors for a crypto project right now you better provide:
-An excellent security, I'd say meeting in real life to make a formal contract is a must above 50k$
-A good reason to go crypto (because it's no longer the trend)
-Of course a solid concept but that's always true.

From a personal experience, investors are the ones trying to centralize their investments around the crypto projects. The look for ICO's which have KYC policies, verified teams and proper legal permissions to run the business.

You can't call it gambling really. You have 1000 things to consider before investing into a business. There are strategies and techniques to come up with the right decision.

It certainly has. They have moved on from the potential of the project to the type of people working in the team. All these ICO's take famous people on board as advisors just so they can impress the investors. The project could be a total shite but raises money anyway.

They weren't adventurous. They were/are greedy.

this may be the main reason, we can not forget that the price of bitcoin fell from $ 20,000 to $ 4300 and the altcoins have a much bigger fall, see ETH fell from $1300 to $125. But there is another problem that is making investors are afraid to invest in new projects, this problem are the cases of scam that in recent months have increased a lot.

example:

🔴[ANN][POS|MN][2 EXCHANGES +CMC +CB PAID] Delizia - restaurant business system

the guy left the project and ran away.

This is causing people to be very disappointed, People create projects and do not comply with their road map, when Dev do not have money they are very active in the forums and social networks, but when Dev already have money for the project they are constantly traveling, they take photos in the hotels, But they do not show that they are working and do not deliver anything concrete. This make investors disappointed.

In the coming months it will be increasingly difficult for the ICOs to raise enough funds for their projects and this is because of the scammers and the false promises.

Now why would I do that? I like the way the conversation has opened up with so many people responding. 


From my personal experience, this is the most inaccurate thing said so far.

You should have made this a self-moderated thread. I would recommend you to lock this one and start a new one.

With such large amounts of investment is on a completely different terms. First, they have a significant discount when investing, respectively, the attitude to them is completely different. Secondly, such large investors participate in closed pre-sales. Third, their assistants stay in touch with the development team. This gives them the opportunity to learn about all the news within the project. Plus, they can go to breakeven at the next stages of token sales. Since they have a significant amount of tokens, by agreement with the developers they sell part of their tokens on pre-sales at a higher price. As a result, they return their money, and the rest is left for a long time. Big money always gives you a good position. I believe that it is worth doing trading. It will allow you to accumulate such amounts that in the future you will be taken to a more serious level of investment.

That's what the stupid investors do, but not all investor do the same thing. Some of them even do some thorough research before deciding to invest in a project. After all, they don't want to lose a big chunk of money just because of their ignorance.

Are you investing in the US$10K or $100K region? 

Of course return of investment is major thing when we talk about commercial business but it's not like "lend" money and wait for interest, it's more like gambling. You may have times when project only loses and loses but if you stand hard, your lose will turn into huge profit. Sometimes you may have to add even more capital.
Creativity plays important role, there are many things, can we offer something new? Because people like and wish to test everything new.

Agree completely, and wanted to ad that the projects being analyzed are being scrutinized much closer than they were a year ago.  I haven't heard of an ICO selling out in minutes or hours or even days.  Investors know this and as such are taking there time and shopping what projects earn their support. 

they dont look for anything anymore they just gamble, like the banksters that have lost all their trust

It is really a case to case basis since different projects have different terms in mind. But I mostly look at if I will also have a piece or share of the profits after the project is completed, this will assure me that even I got my money back (+interest) there still will be money flowing in my back account. Other than that is the security of my money, as an investor you just don't lend your money on some kind of project, you need to have some kind of assurance that they have the ability to pay back what they owe, because some of the projects here do runaway when the moment they are satisfied with the money they received.

Perhaps more accurately, larger investors don't give that much personal attention to projects. They've got analysts, underwriters, researchers, a whole set up to do that for them. They might register initial interest, and the final decision probably still rests with the investor, but the build up towards that decision, the shortlisting and the checks, due diligence etc. all's done by people they pay to do so.

Very few investors of that kind of size will take many risks though. They'll probably want the project to join up with their network of incubators, marketers, compliance, etc. Basically, you have a model that's good at making businesses run well, so you take on new streams to adopt your existing model.