The entrance of cryptocurrencies has impacted the business world in a massive way. Established businesses have started to accept bitcoin for payment and even more close to the topic at hand, these businesses and startups have started to enter into the decentralized world by offering to the public an opportunity to share a stake in the profitability of their future projects. By this we now have a non-centralized way of collecting capital known as Initial Coin Offerings (ICOs).
This space has grown by leaps and bounds and has benefited many nascent and seasoned businesses to get immense amount of capital; some taken up within a very short period. Good coins that are now in the top 100 have started by launching ICOs e.g. Cardano raising a capital of $ 62,993,614 and now doing so well on CoinMarketCap. Though with every good there is the bad; the bad is scam ICOs. Outfits that only launch ICOs because it is easy money and finally dump their proposals and projects to rinse and repeat only to the detriment of the investor.
I intend to invest in ICOs and so I sought the characteristics of a good ICO to invest in. These characteristics are not conclusive as I keep learning new things every day. So feel free to comment on how you choose the best ICO to invest in. Upvote and let us engage here on forth to get the best advice and make some money investing.
A good ICO
- …has a purpose and ambition.
- ……has a team that is not after money, rather working hard to maintain back end.
- …...has a strong development team, who knows what they are doing.
- ……keeps in touch with social media, updating every move and letting investors know, they are in good hand.
5…has a trust factor. - ……regularly has conference, at least twice a year and update investors, what's going on.
- …has a clear road map that they actually follow.
8…thinks long term. - …hires actual marketing people rather than depends on bitcointalk forum only.
- …. possess strong communities, exhibits high liquidity, and has developers who proactively improve the coin’s source code (GitHub activity)
- …...reveals the true identities of the developers and the other team members. They have blockchain expertise. Their past achievements on an individual level are open for checking.
- …connects coin with any company, or organization, no matter how small it is.
- …...has a good working product (at least beta version) with product market fit. The amount of time product has been in development is vital.
- …has an application of the project; has impact enough to solve a problem and has an edge over other similar projects.
- …has an idea that needs blockchain technology or has a blockchain technology advantage.
- …has a concept from the whitepaper that is unique and different.
- …...has a good rating on sites like ICO DROPS, ICO BENCH, ICO RATING, and ICO TRACKER & ICO ALERT.
