I was recently asked how I select the projects I invest in. I wanted to put this post together to provide some insights into the fundamental analysis I do when evaluating a project so others could benefit from this thinking.
Technical analysis is usually the very last thing I do, the fundamentals are much more important than price action.
Here is my list of 7 things I believe everyone should look into when it comes to ICOs...
1. Working Product / Demo
If the project doesn't have a working product (or at very least a demo), 90% of the time I'm pretty skeptical right out of the gate. This is #1 for a reason. This should always be the first question anyone asks in my opinion.
2. Github Activity / Code Quality
Even if you are not technical enough to dig in the repos and understand what is going on, you can use tools like Cryptomiso to get a better idea of how a project measures up in overall activity / commits. Even if you don't code, you can identify the main programming language being used, you may have a subject matter expert you might know who has deep knowledge of that language and ask them what they think about the code quality.
3. Team / Experience
The number one thing I look for is whether the founders have had an exit and some previous business experience. If they don't have any, then it's not a red flag, it's just a mark against them and I immediately put them in a different bucket.
4. Fraud / Transparency
I scan everything related to the founders and website. Whois information, linkedin, twitter, company histories in their bio information, etc... If they said they worked at X company, then I'll look for proof. I run search operators for any keyword + brand combinations that would bring up wrong doing as well. I've always said there needs to be a service to fact check ICO founders & teams work / experience claims for crypto-centric investment groups. Someone start a company doing that, it's a service that is needed.
Conclusion
A lot of this may seem like common sense, but as they say "common sense isn't all that common" - and that is especially true when it comes to ICOs and crypto.
Disclaimer: This should not be taken as financial advise as I am not a licensed financial advisor. Cryptocurrency is volatile, invest at your own risk.