Typically, I will do a lot of research before investing my hard earned funds into a given ICO. There are many fakes and phonies out there that are simply trying to cash-in on the hype surrounding the industry. I will check for the following first:
1) After reading the whitepaper, does the company have a coherent vision/roadmap to be pursued upon completion of the ICO?
2) Do they have a solid team of LEGITIMATE advisers?
3) Are they selling an original concept or are there numerous other companies already established that will generate competition?
4) Is the project back by a legitimate, high-profile corporation/institution/organization? (Examples of such companies include: any of the major banks, government entities, well established industry leaders like Amazon or Overstock.com, or any major financial services firms such as; Deloitte, PwC, Accenture) Chances are, if any of these companies see fit to put their name on the project and/or provide funding, they have probably done far more extensive leg-work and research than you have time for.
“LEGITIMATE advisers” are useless. Augur had Vitalik Buterin as an adviser. Vitalik is the most LEGITIMATE adviser you can get. After raising millions and after two and a half years, all they’ve released is a simple beta that is barely usable. There are a number of ICOs, that haven’t raised anything yet and they already have more software built. Enjin, Funfair and Stockbet already have much more than Augur’s beta.
Even the white paper can be useless. The only thing that matters is whether they can deliver software.
EOS raised $230 million and said that they were going to release something by end of summer. Nothing yet. With $230 million, EOS should have solved world hunger by now.
Gnosis raised $12.5 million and their website says that they are releasing their game by first half of 2017. Nothing yet.
Qtum raised $15.6 million. I don't see anything produced on Qtum's website.
After raising $50 million,
Cosmos's website is still pitching its white paper. Come on. What have they produced with that $50 million?
MobileGo raised $53 million. Here's the roadmap from their white paper:
5) Have they partnered with exchanges and, if so, what s the quality/popularity of such exchanges? I want to make sure that I have the ability to exit an investment before I make the decision to enter in the first place.
These is simply a preliminary checklist I use when evaluating a currency, ICO, or blockchain-based startup. There are plety of other things to be considered before placing an investment in ANY venture, but this is a good place to start. Once I have acquired the coins which I am due, I will typically transfer them from my Ethereum wallet to the exchange on which they will be traded as soon as possible so as to take advantage of potential price movements. As far as determining the best time to sell, I will set a percentage gain that I am hoping to make from the investment. Once I have achieved that gain, I sell and don't look back. It is important to stick to your guns and have conviction in your decisions, else you risk losing money or worse... your sanity.
Essentially, your fifth point negated your first four points. Who cares about those if all you care about is a pump and dump?