5 Simple Rules to Invest on ICO in 2018
With the current vast oversupply of ICOs in late 2017, and the legal collapse of projects like Tezos, the ICO market is extremely dynamic, complex and needs more than ever, careful analysis before making any decisions.
Rules to Invest on ICO
This is why, If you are looking into buying into an ICO, make sure you follow this rules.
#1 Choose the Right Sized Projects
Focus on value and avoid projects with too much hype.
Don’t forget that this is the initial funding that the company needs to deliver their project. Once they do, they should scale up their operating revenue according to the size of their business.
Eliminating hyped/over sized projects you eliminate a big amount of the “pump and dump” risk factors
#2 Analyze the team
Make sure they are already successful.
Make sure the founders are business oriented.
They must have proven already with other projects in order to be eligible for your money.
By choosing a successful, experienced and business oriented founders team, you greatly increase your chance of success and reduce the risk of your investment
#3 Make sure there is a reasonable Hardcap
Any unsold tokens – destroyed and that there won’t be any future offerings
With abundance of ICOs becoming much more often is normal that projects don’t meet their hardcap.
This is not a bad signal as long as the raised amount is over $2M, just think, a group of smart people will perform better in the long term with $2M than a bunch of idiots with $232M.
#4 Make sure the project needs to be on the blockchain
An enormous amount of projects are doing ICOs simply because they want to get a piece of the pie without actually needing to utilize blockchain technology.
Also make sure the project has a disruptive idea in his core.
#5 Avoid projects with big “Dark periods”
The concept of ICO is to launch a cryptocurrency that would be useful and widely adopted. This is possible only through a service which should be innovative, disruptive and with high and immediate value to the retail users. Waiting 1 year to get an alpha version is not acceptable.
Please check our other article on Investing in ICO -5 risks you must bare in mind.
Did you learned about ICO investing? Blockchain Projects and risks
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