How to Analyze an ICO?

The way to make a proper research of an ICO which is based on three key points such as team, product ,and ICO information. The article presents a detailed overview of these criteria.

As token sales remain to be a grey area for most legislatures, investor protection is severely lacking. This is why you should be most careful when choosing to fund an ICO. Much like in any other field, the quality of investor diligence turns out to be the make-it-or-break-it factor, and without proper research your investment is nothing more than a bet.

So, the world of ICOs is an uncharted territory for you but you are nevertheless eager to have skin in the game. Deciding whether a project deserves your hard-earned money — which you should, of course, be ready to lose —  is usually done against three criteria: the team, the product, and the ICO information.

Team

An ICO is only as good as its team. You should be able to easily find the team profiles with sufficient information, photos, and links to their social media accounts. Look up the team members and see whether they were involved in similar projects and have appropriate experience and expertise. The number of developers is also a good indicator. The more people are working on the project, the bigger the chances of success are. Having an advisory board is also a good sign indicating a serious commitment to the project.

Project

Before you invest in an ICO, you should be aware of what the project is all about. A whitepaper is a document, which gives essential information about the startup. A whitepaper should include such points as the value proposition, business model, use case scenarios, financial data, and specifics about the token sale.

A roadmap is another source of useful information. A roadmap describes what the company will be working on a year, three years and five years from now. It should specify important milestones and intermediary objectives. You should also be presented with information on how the project is planning to use the funds from the ICO.

ICO

All relevant information about the ICO needs to be easily accessible on the startup’s official website. You should have no problem finding when the ICO starts and ends, how you can participate, what currencies are accepted, and how much the token costs. Usually, websites have a countdown towards the start (if it has not yet started) or the end of the ICO.

A properly-functioning website with good UI indicates that the creators are passionate about the project and want everything about it to be as good as possible. The website may show a video presentation, by which you can evaluate the care and attention that has been put into the project. If the video features the team members talking about and explaining their idea, it is always a plus. Pay close attention to how the company markets itself on social media: read their twitter feed and articles on Medium. Do not shy away from going on forums such as Reddit and Bitcointalk and asking the community about how they feel about the project.

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