The topic today is perhaps the most relevant. Currently, ICO projects are attracted by the opportunity to get "easy money". The only difficulty is to choose a promising ICO project. In addition, there is always a danger to run into scam projects and lose the money invested. What criteria do I use to assess the ICO's prospects?
1. Site
If you open the site, you can not immediately understand the meaning of the project, feel free to close this site. Most likely, the creators of the project reacted to the case carelessly, decided to save on the services of a copywriter who would write the texts "for people". If the creators of the project do not spend resources to create a decent site, even on the Tilda designer, then this is an indicator of the hack.
2. Узнaйтe, нa cкoлькo языкoв пepeвeдeн caйт
The main markets are China, South Korea, Japan, Spain, USA, Russia. If the site is only in one language, it is very revealing. The creators of these projects are very sensitive to their globalization, so always try to speak the native language of a potential investor.
3. Look at the domain
Of course, you can register a domain in the IO zone, but there is a high probability that the ICO is only for the ICO. From my point of view, the domain in more classical zones is closer to the real business.
4. Analyze the distribution of money
If this distribution is painted in a nutshell, and it is not clear how much will be spent on the product itself, how much on operating costs, how much on marketing, etc., then this is an obvious scam. I consider it normal when:
- up to 10% take their funders in order to cover primary costs;
- up to 15% goes to the development of the platform;
- up to 30% is spent on project marketing;
- approximately 5% is spent on the legal component and operating costs.
In addition, there should be some inviolable Fund left, it is the "capital" that will provide the value of the token in the future.
5. Social network
Be sure to see if there are links to social networks, evaluate the activity of people in the network. Of course, a lot of paid posts and mentions, so take a little time to get to the heart of the comments and understand their meaning. Be sure to go to the branch in BitcoinTalk and read the opinion of the people who write about the project there.
6. Rate the BOUNTY company
Go to the branch of the BOUNTY, see how many people decided to participate. This is an indicator of community trust. On the one hand, everything looks simple, people do work for future tokens themselves. On the other hand, I know from my own experience that it is a great job to develop and maintain a normal BOUNTY campaign, especially when you work with the whole world. It's really a 24/7 job, you have to check and monitor everything around the clock.
7. Look at the team
Evaluate the project team, their business experience. If they do not have a successful experience in running their business, then most likely, they will not be able to grow a real business from the ICO project that brings money. Be sure to go through the profiles in the social networks of the team, I would recommend even write them personal messages to make sure that they are real people and they are ready to answer your questions.
8. The essence of the token
What gives the token that you are offered to buy. If dividends are paid, then there is a possibility of falling under the regulation of securities in the future. Already in the US there is regulation, and the SEC considers tokens within the ICO as securities if they give passive income. The same situation is in China. If the token does not assume a special value, it can be easily replaced with the same Etherium, then this is a bell of senselessness of the project as a whole.
9. White paper
Why did I leave this main document in the end? Because if the first 7 items are bad, I do not even open the White paper. I won't see anything new there. The document should be written in clear language. All aspects of the project should be described in detail:
— tasks that are solved by the project;
- expediency of using blockchain technology in the project;
- description of markets;
- Road map of the project with clear deadlines and steps for the development of the project;
- scheme of the project and possible partner integrations;
- description of the business model;
- options for the exit of the investor from the project.
How long? Yes, but reliably! And finally. Do not invest money you are not prepared to lose. To date, any investment in cryptocurrency and cryptocurrency is a high-risk investment, as it can be banned everywhere.