Initial Coin Offering or ICO is the term which you are frequently coming across these days. There are plenty of news or links currently running on the internet about ICO’s. Concerning all the matters which are ruminating around you, you must be thinking is it right to invest this time and grasp the opportunity or just stay calm as the decision can later make you regret over the decision.
Keep this thought aside for a while and question yourself do you want to make your year 2020 a profitable opportunity to go for?
If your answer is yes, then you are at the right place to further clear out your doubts in this regard. Just take a chance and join as a small investor to plunge into the opportunity. As you know with the growing world, it is necessary to walk fast not to let others behind but to pace with the modern world like the promising ICO offering.
A professional team can help you guide through the way by making every step simple and understood. But there are various options available in the market. Therefore, it is hard to find the ideal ICO which fulfills your necessity and ability to create a solid flow of income in your way.
It is necessary to choose an ICO published by a reputed firm or business. Else, you might end in the dark and it can further demotivate you to further invest in future.
Don’t worry. Here are some key points to find out if an ICO is worth your MONEY and TIME:
Make a Rough Brain Map of the Business Model
Read the whitepaper thoroughly and once you are done doing it, make a sketch of the companies business model and future goals. The next thing that you should do is answer these questions before you are doped over by the luring figures of the investment return structure on offer:
Does the company launching the ICO has any experience or is it a bunch of people leaving on edge of their reason and just hoping to make it big with a blindfolded shot.?
It’s important to know for sure the nature of the business. Assess properly and evaluate if the company launching the ICO is real or not. Be very careful so that a shell company does not leave you shell-shocked.
The ICO tokens should add value and utility to the business. They should be like the rivet that join the different link pins of the business together. They must be the glue that binds the bigger picture together. You should understand the purpose of the token and its utility for the firm.
Never be lured easily by a well-organized existing business with a solid plan. Remember that the business model should answer these questions for you at the very outset:
1. There should be an existing problem that the business model solves.
2. The Solution should be viable and not hypothetical.
3. The Company must have some tangible experience to show.
4. The ICO tokens if not the core must be an inextricable part of the solution.
The best whitepaper is the one that puts forth a complete roadmap as well as defines all the milestones that the business is willing to achieve in the future.
Let’s face it not all great ideas see the light of the day and not all ideas are feasible. ICO’s are non-regulated. There are no Quality filters for the team’s launching them.
Besides carefully analyzing the business idea alone, try to look behind the curtains. And cast your thoughts on the possible long-term implementation.
Remember if great companies could be made on a piece of white paper, then there is no need of this blog. Great ideas need not always answer or solve great problems. Never be lured by an unrealistic proposition. Make sure the project has a strong and achievable concept behind it.
Qualified and Passionate Team
Great Companies, Ventures, Startups etc have one and only one thing in common. They comprise of people who are passionate about their work. Money is secondary to them, they wake up every day because they love what they do.
Stay away from ICOs that are run anonymously. Without any trace of responsibility, the faceless firms can just vanish out of the blue. Check out the website for team details to get a firm idea about the pillars that support the company. If any google search or equivalent research on your part returns no reliable information, consider it as a red flag and remain averse to the offering.
Remember the infrastructure as well technical prowess required for running a blockchain based business model is intricate and needs to be underpinned by a highly technical group.
Flexibility and Decision Making
Scalability both in terms of technology as well as operations is of primary importance. Perception and goal determine the longevity and growth of a company. A company should very clearly define in its roadmap its future strategy as well as the future growth verticals it plans to scale. Also, the company should be dynamic and ready to take feasible alternative approach.
In case the original one does not pan out as planned. The business environment is quite hard to understand nowadays in all fields of activity.
Be sure to cross-check the previous projects undertaken by the company to analyze the flexibility and scalability of the company during a crisis.
The whitepaper should not vague in nature and should contain enough details for prospective investors. It should very clearly present the following things:
- A Clear Mission Statement.
- A Precise and Practical Roadmap.
- A Detailed Fund Distribution Structure.
- All documents relating to the company’s activity must be available on the company website.
Communication is the key for companies to build networks as well as customer base. Look out for the social media footprints of the ICO offering Company. Visit the facebook page, the twitter account as well as check the linked in profiles of the Founding Team Members of the company.
A transparent company would also share informative blogs about the solutions it is working on as well as the press release would draw parallel with the roadmap shared in the whitepaper. This is the best way to see whether the team is eager to help investors and glad to communicate with them.
NEW vs OLD
Don’t place your hard earned money on inexperienced startups. More than half of the startups close down within months of starting operations. Instead, buy ICO’s of companies which boasts of experienced team members with a proven track record in technical as well as business operations.
Buying ICO tokens of newly mushroomed startups comes attached with a whole set of risks and insecurities. In case the idea of a new startup has completely taken you off your feet, make sure to consult an expert.
THE SOFT & HARD CAP
The one thing you should zero down on while going through the roadmap is the soft and hard caps of the ICO. In some cases, the hard cap projection goes out of the roof. Make sure that the hard cap actually makes sense. You must seriously consider twice before investing in those ICO’s that require only one-tenth of the projected soft cap for procuring the listed items in the roadmap.
A good ICO’s Token distribution plan will encapsulate within it the following features:
- The Token distribution plan would be fair and provide a level field for investors and developers.
- Be very careful to see through the layers used by fishy ICO’s.
- The ICO offering company should allocate the major portion of the token to the prospective investors.
- The Roadmap should include in details the distribution structure as well as a details plan for profit sharing post-ICO launch and project success.
The whitepaper should precisely highlight all important terms and conditions of the ICO. It should very clearly be aimed at serving investors and throw light on the values the project stands for. A reliable and transparent ICO will provide great customer support for investor queries and grievances. In case the ICO’s platform does not do so, make sure to do the necessary research at your end before jumping on the supposed bandwagon.
We hope that the above ten points will enable you to take an analytical approach towards ICO’s and ensure that you stay away from Ponzi schemes and in the process gain a good ROI on your investments.