What to Look For in an ICO, and How to Avoid Scams
September 21, 2017
If you’re thinking about investing in an ICO, there are a few simple things to consider before putting money down.
The idea. If you’re excited about the ICO, there’s likely something about the startup or project’s idea that struck you. Maybe it fills a gap in the industry, or perhaps it could change the way an industry operates. There are two questions to ask yourself before getting caught up in the hype: 1. Is the idea redundant? Do some research to see if this idea is already being attempted by someone else, and what this ICO offers that’s actually novel. 2. Is the idea feasible? Find out whether the team has a possible, clear, and detailed plan for how to implement the idea.
The team. An idea is nothing without a talented and driven team. Look at the ICO’s website. If the design is professional and aesthetically appealing, that tells you about the marketing ability of the team. If the content is clear and engaging, that tells you they have communication skill. If the site is intuitive and well organized, you know their web design ability. Along with this indirect information, an investor should also look into the people directly. Browse their LinkedIn profiles. Google their names. If someone doesn’t have an online presence, be wary. Remember that you’re investing in the people as much as in the idea itself.
When investing, be sure to ask yourself the hard questions. If you don’t have clear and detailed answers, move on. There are plenty of other ICOs to choose from.