Choosing an ICO can be difficult because of the ever-increasing number of people on the market. Not easy to find the right nugget today. There are however some criteria that will help you choose a good ICO.
You know what an ICO is, but among the many scams, you want to know how to spot a good ICO? This article is written for you!
Check members and team
Personally, that’s the first thing I look at. It’s even for me (again!) The trigger before my decision. It makes sense, actually. A scammer will never put his true identity, he will hide. So, he does not put his real name and especially not his real photo. So systematically, I look at the photos and especially I check the name of the members. If there is no link on Linkedin or Github for example, it is sure that it is not reliable.
Besides, be aware that some scammers low floor does not hesitate to fill false profiles. They know that many people rely on the team. But again we can see when it’s fake.
Do not forget to check the status, the CV, the history, the ones they did before elsewhere etc. Remember that if there are no real profiles, it’s clearly a fake.
If they are real profiles, we must also see how involved they are in the project. The more people are known in the community, the more ICO will win.
Understand the role of the token
In my opinion, this is the second most important point. Why this project? Is this a project that interests you? Is it feasible, beautiful, great? We must try to understand the concept of the token. Yes, in general, an ICO responds to an existing problem.
This is what you have to try every time you choose an ICO. Basically, ask yourself if it’s really worth it?
For that, read the white paper which is the written foundation of the project. This remains the direct and crude way of choosing an ICO.
Using the ICO and the token
Here again, it is a capital point. It’s important to understand why the founders are trying to raise money. What is the use behind this lift? What will they do with the raised money? Generally, projects are very transparent. A roadmap is always (if there is not one, leave running) visible on the site or in the white paper.
In the ICO roadmap, everything is written down. You will see the number of tokens to sell, the use at different stages, the different echelons etc.
Try to see the logic behind the roadmap. It must be consistent with the overall project. If a roadmap shows only a few steps before huge returns. So there, it is sure that it is about a scam.
The aim is not to make money at any costs. The goal must remain to solve the problem. It is, therefore, necessary that the news of the project concerns the state of progress of the company. It’s not just about showing the returns on investments.
Moreover, we also recognize a scam project when there are too many numbers of returns. There, they clearly want you to put your money by attracting you unhealthily.
Analyze the source code
Well, it’s true that it’s the heart of an ICO. It must also be admitted that it is a bit technical. Depending on its level, it can be tackled and check the strength of the code. First of all, know that the code is always public. Feel free to see if experts in the field have checked the code. It must also be objective. He did not dare to stupidly follow the advice of a web guru.
By the way, if you do not know how to do it, there is a trick. Look on which trading platforms, we can exchange the token. If crypto is not recognized by strong platforms or don’t have good ICO Ratings, then that’s not a good sign.
Analyze the community and advisors
In general, members of an ICO surround themselves with recognized personalities. This is a very good way to build their credibility. Moreover, often the big ICO was by the fact that personalities were behind. Again, we can cite the case of Brave with advisors well known as the founders of Mozilla. In short, you have understood, the more the ICO is supported by personalities, the more the project would be solid. Besides, it’s also because its personalities invest a lot. This heavy investment can strongly influence the price and value of a token. So it’s a good way to see your token gain value. A single personality with the financial means can in an investment raise the price of a token.
These are the 5 most important points to consider when choosing an ICO. Each criterion is important and an average will make you choose well.