Ensure that a Startup Seeks to Solve a Significant Business Problem
Obviously, to be paid back, money must be invested in a business that makes a difference. Therefore, in the case of TGEs, with their multimillion crowdsales, the executive team must address a prominent problem. As without this foundation, there isn’t any credibility. Is it?
The reason is that to provide investors with “dividends” — returns caused by an increasing price of a token — a company is to be profitable, and only addressing a vexed problem enables the management return millions of dollars. So, we recommend crypto-investors spend some time examining a whitepaper, blog, social networks, interviews with founders and team members to determine whether an idea represented by a startup is relevant, feasible and needed.
As you can see in our WP, Hacken is going to resolve one of the main problems of the digital era — a lack of cybersecurity. We intend to resolve it by implementing the blockchain to exclude human factor from the relationships between white hat hackers and their clients. To convey our idea, we’re always analyzing the industry and updating our social media in order to inform our community on how we will be making a difference.
So, you should spend enough time on analyzing the documents of a startup and its media presence. It’ll help you differentiate a really good project with strong idea from a straight up scam.
Step 2: Is it clear how a startup’s proposition works and why would customers buy into it?
In general, during the development of their fundamental business strategy, the majority of ICO sturtups focus on attracting investments. Originally, they may not even care about the future elaboration or even operational processes of their products. They simply endeavor to encourage crypto-investors to buy their tokens actively within a certain period. Without a doubt, it’s the wrong approach. The reason being that all of this is extremely important for the future operations of a