An Initial Coin Offering (ICO) is a crowd funding campaign by the developers to raise funds for their project development, marketing and growth.
Before investing your money to any available ICO you see, what are the things you need to check?
Here is my list:
1. Check, read, and analyze the Whitepaper. It can be one pager or light paper but both explain the details of the project.
2. Look for the Roadmap.
Is it a long term goal? Future development? When it will be list to external exchange, developing another application, and so on.
3. Active community. A good project has a very active community to support each other.They should have at least the three primary social media platforms such as Facebook, Twitter, and Telegram.
4. Active and updated at Ann Thread.
5. Benefits and Use. The most common uses in general are currency, platforms, payments, and utilities. Bitcoin is the most famous cryptocurrency. Ethereum is the most widespread used platform because of its smart contracts. Every ICO you will see has a purpose but look for a project that you believe will get a mass adoption or will make you feel that it will grow and you want to be part of the growth of that company.
6. Usable Application or Product.
Most ICO's were merely plans and papers where they would just start developing their application or product after raising funds. So, it is a positive sign for me if a company has an available app already that is tested in handling large volume of transactions.
7. Transparency.
Always check the token distribution or allocation.
8. Maximum Supply.
I really am not fan of tokens with billion of token otal supply, especially the hundred billion. The lesser, the better.
9. The team.
The team is behind it all. You should verify their names and affiliations especially in LinkedIn.
Some people do legit checking by confirming the amount of Ethereum that ICO already collected. They do it through verifying the ICO contract address if the amount of Ethereum that the ICO already collected that usually showed in the website is correct and same on what you can see on Ethereum blockchain. It can be verify tru Etherscan for ERC20 tokens. (For ERC20 based token)
What's your list in choosing ICO? and how can you know if it's a SCAM?
Before investing your money to any available ICO you see, what are the things you need to check?
Here is my list:
1. Check, read, and analyze the Whitepaper. It can be one pager or light paper but both explain the details of the project.
2. Look for the Roadmap.
Is it a long term goal? Future development? When it will be list to external exchange, developing another application, and so on.
3. Active community. A good project has a very active community to support each other.They should have at least the three primary social media platforms such as Facebook, Twitter, and Telegram.
4. Active and updated at Ann Thread.
5. Benefits and Use. The most common uses in general are currency, platforms, payments, and utilities. Bitcoin is the most famous cryptocurrency. Ethereum is the most widespread used platform because of its smart contracts. Every ICO you will see has a purpose but look for a project that you believe will get a mass adoption or will make you feel that it will grow and you want to be part of the growth of that company.
6. Usable Application or Product.
Most ICO's were merely plans and papers where they would just start developing their application or product after raising funds. So, it is a positive sign for me if a company has an available app already that is tested in handling large volume of transactions.
7. Transparency.
Always check the token distribution or allocation.
8. Maximum Supply.
I really am not fan of tokens with billion of token otal supply, especially the hundred billion. The lesser, the better.
9. The team.
The team is behind it all. You should verify their names and affiliations especially in LinkedIn.
Some people do legit checking by confirming the amount of Ethereum that ICO already collected. They do it through verifying the ICO contract address if the amount of Ethereum that the ICO already collected that usually showed in the website is correct and same on what you can see on Ethereum blockchain. It can be verify tru Etherscan for ERC20 tokens. (For ERC20 based token)
What's your list in choosing ICO? and how can you know if it's a SCAM?
All ICOs could be scammed. Everything you need to do is diversify risks.
The next promising ICO is lccx.io. It is crypto exchange based in London.
