5 Keys for Evaluating ICO Investments

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Are you looking for the quickest way to earn money from cryptocurrency investing? If you have already done your research, then you have probably heard of initial coin offerings. An ICO is the most popular fundraising method for new cryptocurrency projects. It bears many similarities to initial public offerings in the stock market. In the previous year, countless coins have benefited from successful ICOs, but governments across the globe have started to regulate this practice. Still, you can reap higher returns if you follow these 5 Keys for evaluating the best ICOs to invest in.

1) Team Members

Just like you would evaluate the founders and team composition of companies you want to invest in, you should take the time to find out everything you can about the members of the cryptocurrency project. In particular, you should look at their development team and advisory board. Make sure that each member boasts the right credibility and experience. It’s a bonus if you find names that are known in the cryptocurrency industry. Other investors are doing this exact same thing as it is one of the easiest ways to determine whether an ICO is legitimate or not.

2) Online Community and Media Presence

It also pays to examine the community supporting the ICO. In the world of cryptocurrencies, a public platform such as slack should be your go-to option. Visit the official website of the company and check whether they have an online forum. Similarly, look up their name on social media platforms. Doing so will give you an idea of what the community has to say about the project and get the prevailing sentiment about it.

3) Bitcointalk.org Thread

After the two steps above, many investors are quick to shell out money and use trading platforms like Bitcoin Profit to get into the action right away. However, you should do a little more digging in order to formulate an informed decision. Bitcoin talk is the most popular forum for Bitcoin and another cryptocurrency related news. Most coins have their own thread in this forum where both interested and existing investors exchange ideas about where the project is headed in the future. You’ll also find useful links which will point you to useful information such as the project’s white paper, roadmap, and team composition.

4) Stage of the Project

If you’re evaluating several ICOs, you may find that some only have a White Paper while others already have a working product with limited functionality. Interestingly, many venture capitalists like to invest in projects that are in their early stages. The simple reason for this is that these coins, with a higher earning potential. Be sure to check the project’s website and figure out what development stage it is currently at.

5) Token Distribution

Another important factor you should look at is how the tokens are distributed among the team members and investors. In the past year, many ICOs allotted more than 50% of the total tokens to the founders and members, leaving very little for the investors. While you’re at it, determine whether the project will release their tokens right after the ICO has ended. Some may need to launch a better the version of the product first before sending out the tokens.


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