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:
- 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.
- 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.
- 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?
- 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.
- 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.
- 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.
- 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?
- 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.
- 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.
- 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.
Comments
Post a Comment