Top 10 ICO Ranking Factors & Initial Coin Offering Rating System

Knowing which ICO investments to choose can be an overwhelming experience particularly for someone new to the market. Not only is the industry still relatively "fresh", but also, unlike traditional stocks and shares, investment values are dependent on visibility and perceived value within the ICO community as opposed to the actual value of any single corporate entity. Here are the top 10 ICO ranking factors to consider when evaluating an ICO:

  1. The Leadership

Examine the work history, the length, and breadth of their experience and levels of expertise. The team should have an even representation of technical, financial and commercial know-how and have a proven track record of profitability.

  1. Partners and Advisors

Research partners and advisors to understand their value in terms of the experience, knowledge, and ability they are able to bring into the company.

  1. Commercial Viability and Marketing Potential

Does the concept solve a problem or have a strong utilitarian purpose? In other words, does the ICO address a need? Are there better or cheaper alternatives out there and how does the ICO stack up against them? In other words, does the ICO have irrefutable marketable value?

  1. The White Paper

Ensure that the White Paper has transparent and comprehensive information on what the business is hoping to achieve, how the investors' funds will be used and an actual timeline and roadmap to get there. Also examine budgets, capital allocation, and operational expenses.

  1. Coin Supply Assessment

Understand the structure of the coin offering and how it will be implemented and deployed. Is there a hard cap which limits the number of coins and therefore increases its' value, given the scarcity, over the long term? The allocation of coins should not be limited to the founders or a comparatively low number of owners which can cause a manipulation in price.

  1. Legality

Ensure the company is legally sound and has all the right boxes checked in terms of compliance. A presence of legal advisors on the team is a definite plus.

  1. Quality Online Presence

Look for a fully functional, well maintained and regularly updated website presence together with an official "slack" channel. Is the development team easily reachable via their social media channels and how open are they to answering any questions or concerns you may have? Also, do they provide regular updates in terms of the progress of the ICO?

  1. What Others Are Saying

View peer discussions on forums available on Reddit, steamit or bitcointalk to get a better understanding of how a potential ICO investment is viewed by others and if there's sufficient "buzz" around it.

  1. Sustainability and Future Potential

Also, check to see whether the ICO is based on a future-proof model and demonstrates the ability for long-term sustainability.

  1. Red Flags

The ICO should not be based on MLM or Ponzi schemes, should not offer guaranteed returns for high investments and most important of all, should not sound too good to be true.

Initial Coin Offering Rating Systems   


Whilst one cannot emphasize enough the value of independent ICO analysis, ICO rating systems can take much of the guesswork out of zoning in on worthwhile investments. Some of the more popular initial coin offering lists include listico.io, coinschedule.com, bestcoins.co as well as ICO-check.com amongst many others. Individual sites can have their own specific rating system, hence it's worthwhile to explore the ones that best suit your needs.

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