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Hi all,

I'm working this list of factors to consider when evaluating an ICO for investment. This is a LIVING LIST, and I'm seeking input so that I can create a public checklist of sorts. Share your thoughts! I'll constantly update the questions on this list based on new information. Ultimately, we should be able to evaluate an ICO opportunity by working through the checklist. See the end of the list for sources...there will be many in addition to the feedback I get here.

Need a better understanding of what the heck we are trying to do here??? Check out my YouTube video ==> What is THE LIST? (https://youtu.be/K70E6gL54wc)

What is THE LIST?
An ever-expanding set of criteria and questions assembled by the crypto-community, broken into segments and organized sequentially, to be utilized as a framework for evaluating ICOs.

Some Ground Rules to Consider

• Strong sources lead to strong opinions
• Data is neither “good” nor “bad” - evaluate it with reference to THE LIST and your gut
• Perfection is the enemy of done
• Come to terms with your personal bias, do your best to minimize it
• Judge with reason, not emotion; do not let the latter affect the former

One list to rule them all!!!

First, I defined and arranged the sections. Then I reviewed ICO evaluation articles and added questions to the relevant sections. Now, I am asking your input! What should be added, changed, defined, removed, considered, debated...?

Evaluating ICO Opportunities

1. Token Purpose: what need does the token address?

FUNDAMENTALS

• Is the token a utility token (usage token or work token) a security token, or a combination?
• For utility tokens: is the token an integral component of the application ecosystem? YES is preferred
• For security tokens: is there some underlying technology that represents a competitive advantage? YES is preferred
• Is the token the project's principal payment unit, essentially functioning as an internal currency?
• Does the token provide return to token holders? YES is preferred
• Is the token new and no other token offers the same service? YES is preferred
• Does the token have a clear purpose? YES is preferred

PROOF POINTS

• How broad or narrowly defined are the use cases for this blockchain (https://www.coindesk.com/information/applications-use-cases-blockchains/)?
• Does the token align incentives to simultaneously accelerate growth and token value?
• Who will support the token?
• Is the token structured with centralized control or a decentralized governance?
• Can the resources contributed by users be verified by anyone?
• Does the token reward users for contributing resources towards the creation of a shared service that will benefit all users?
• Does the token grant a governance action, like voting on a consensus related or other decision-making factor?
• For usage tokens: is the digital service useful and does the network underlying the digital service aggregate resources (hashing power, file storage, etc.) that will differentiate the service in the long-term?
• For work tokens: is there a strong network emerging that wants to contribute and is the UX well thought through? And is the service offered useful to people?
• For security tokens: is there some technology underlying the security that gives the token a long-term competitive advantage?

2. Competitive Analysis (SWOT): is this unique in some way?

• Does the project benefit from being on the blockchain? Should it be on the blockchain?
• Can the company successfully dethrone any blockchain-based competitors in their industry?
• What are the possibilities past the first use case?
• Is there a core technical or product advantage that is likely to lead to competitive differentiation?
• Does the company have strategic partnerships with trustworthy sources within the industry?
• Is it impossible to substitute the use of the token for another?
• Are there competitive partnerships/alliances with reputable firms?

3. Technology: what is the tech?

• What type of technology is it? (DApp (https://ethereum.stackexchange.com/questions/383/what-is-a-dapp)? Infrastructure? Currency?)
• What blockchain is it running on?
• Are they developing their own infrastructure instead? If so, why?
• Is the technology proposed by the team making any difference in helping blockchains evolve?
• What problem does this technology solve that is not solved before?
• Does the technology depend on other projects?
• Is the token mineable?

4. Minimum Viable Product: how solid is the product?

• Is there a working prototype?
• Were there any public tests of the product performance? (Number of transactions per second, potential vulnerabilities, etc.)
• Do they have a wallet to store coins/tokens saved offline or is it supported by any working wallets that can be used offline?
• Is there a working prototype code working on a testnet (https://ethereum.stackexchange.com/questions/16587/what-is-the-purpose-of-testnet)?
• Do they have prototype code at all (even if its not currently executed)?
• Is the code a copycat that implemented no new features?
• Does the code have commentary?
• Does the commentary explain clearly the purpose of the function?
• Are the functions a reasonable length? i.e. are they less than 50 lines?
• Does the code allow for rapid expansion of user base and network interactions?
• Are there any external audits of the code?
• Is the product's technical specification thorough and does it demonstrate mastery of the subject matter?
• Are there people out there who want and need this product right now?
• Does the product benefit from network effects?

5. Team: who's running the show?

• Who is the founder, what is his/her background? (Have they built and sold a company before, or a new entrepreneur?)
• Can the team be found on LinkedIn and Github?
• Is the team exceptional technically, inclusive, transparent, objective and capable of fostering a vibrant global community?
• Can this team attract partners and participants?
• Are there people on the team who understand marketing and evangelizing?
• Does the team have a history of success, demonstrated ability to overcome obstacles to success and strong desire beyond money?
• Has the founding team demonstrated the characteristics (inclusive, transparent, objective, etc.) necessary to build a healthy community?
• How will the team continue to communicate their progress?
• Does the company blog regularly about their work?
• Have any members of the founding team participated in blockchain and/or cryptocurrency industry events?
• What is the founding team's expertise with cryptocurrencies and blockchain? Are there any red flags concerning their credibility in these areas?
• Is the team able to explain, in relatively simple terms, the value derived from using the blockchain?
• How many developers are on the team?
• Do the team's developers have active GitHub profiles?
• How are developers compensated? By donation? Or some formal commitment?

6. Advisors: who are the big guns? (mentors and advisors)

• Are there any industry experts backing the project financially or as advisors?
• What tangible benefit (i.e. advice or strategic connections) do advisors provide the company?
• Do advisors include the project on their own public profiles such as LinkedIn?
• Have advisors discussed the project publicly and recently?
• How involved are the advisors in the project's online community?

7. Roadmap: where do they plan to go?

• What is the team's timescale for implementing their proposals?
• How detailed is the plan?
• How realistic is the vision?
• Are the goals achievable based on what the team has accomplished to date?
• Is token distribution linked to the roadmap?
• Does the roadmap include a history of previous deadlines?

8. Token Offering Structure: how likely am I to get burned?

• What is the hard cap?
• What is the soft cap?
• How many tokens are being created?
• What is the circulating supply of tokens?
• What is price per token?
• Is there a pre-sale?
• Who has written up the token issuance contracts and actual token issuance software?
• Which blockchain infrastructure is backing up their sale?
• Will the software platform generate new tokens?
• What is the planned use of funds? (e.g., marketing, legal, development, etc.)
• What share of the token distribution is allocated to bounty program?
• How are tokens put into the hands of investors and interested individuals?
• Are the founders holding onto most tokens?
• How long is the vesting period before investors can diversify?
• Are the funds in a multi-signature wallet?
• How do you buy tokens? Is there Escrow or direct to a company wallet?
• Is the team going to destroy or redistribute a significant part of unsold tokens?
• Are token burn actions and bounties paid according to sold tokens or to the token reserve regardless of how many tokens were sold?
• Is the token distribution coming directly from a smart contract?
• Is there a cap on funds raised per person?
• What rights does the token provide the investor?
• Are there any limitations on the ability to resell the coin or token?
• Is there a lock-out period? If so, for whom?

9. Marketing & PR: how serious are they?

• Is there a professional whitepaper?
• Is the whitepaper free from spelling and grammar errors?
• How in-depth is the whitepaper's description and outline of the technology?
• Is there a professionally developed website?
• Does the website include a comprehensive ICO FAQ?
• Does the website list the company's physical address?
• Is there professional presence on top social media platforms (Twitter, Facebook, LinkedIn)?
• Do team members include the project on their LinkedIn profiles?
• Is there an official presence on Telegram?
• Is the Telegram channel active and growing?
• Do the Telegram admins have regular access to key team members for questions?
• Is there an official presence on Discord, Slack, Rocketchat, Gitter?
• Does the project have an announcement (ANN) thread on BitcoinTalk?
• Is the BitcoinTalk ANN thread overly focused on bounties?
• Do many of the positive BitcoinTalk posts come from new accounts with relatively few posts?
• Is there any evidence of BitcoinTalk posts being deleted? Are the opinions of seasoned members being shouted down?
• Does the company report progress on a regular basis?
• How is customer service and tech support on the project's social media accounts?
• Is the ICO listed on top ICO ratings websites?

10. Hype: what are people saying about the ICO? (ratings + community)

• Is there a Reddit community?
• Are there a significant number of users on the main social media pages for the project? (Bitcointalk, Telegram, Twitter, Medium, and YouTube)
• Is the social community diverse?
• Is there a bounty program?
• Is there an airdrop?
• How often has the project been mentioned in the press?
• Has the project been mentioned in mainstream technology media and in prominent finance publications? (Techcrunch, VentureBeat, Forbes, WSJ, Reuters, etc.)

11. Legal Considerations: is this on the up-and-up?

• Does the company have a physical address listed publicly?
• In what jurisdiction is the company incorporated?
• Do either national or international regulations apply to the project?
• Is the ICO compliant in your country?
• What legal structures are being disclosed?
• If a security token: federal and state securities laws require investment professionals and their firms who offer, transact in, or advise on investments to be licensed or registered. Is this the case?
• Is there a SAFT (http://www.businessinsider.com/bitcoin-price-what-is-a-saft-blockchain-the-crypto-fundraising-craze-shaking-up-venture-capital-2017-11) agreement?
• How is security handled?
• What are the apparent, perceived or real regulatory risks?
• Are there plans for external or internal audits?
• Have they published the terms and conditions of the sale in clear language?
• If there is a DAO (Decentralized Autonomous Organization (https://www.coindesk.com/information/what-is-a-dao-ethereum/)) -like component, is its articulation realistic and well grounded?

Thanks in advance for your input!

Crypto-Kristen   :-*

SOURCES:
1. "Our Process for Evaluating New Tokens" by Nick Tomaino https://thecontrol.co/our-process-for-evaluating-new-tokens-4627ed97f500
2.  "Scrap the White Paper: How to Evaluate Tokens and Blockchains" by Coindesk https://www.coindesk.com/scrap-white-paper-evaluate-tokens-blockchains/
3. "How to Evaluate an Initial Coin Offering" by Strategic Coin http://strategiccoin.com/evaluate-initial-coin-offering/
4. "Due Diligence: How to Evaluate an ICO" by Cryptos R Us https://cryptosrus.com/due-diligence-how-to-evaluate-an-ico-initial-coin-offering/
5. "Due Diligence: How to Evaluate an ICO Investment" by Bitcoin Market Journal https://www.bitcoinmarketjournal.com/ico-due-diligence/
6. "10 Steps for Evaluating Digital Asset Crowdsales" by  Token Market https://tokenmarket.net/blog/how-to-invest-to-ico-and-blockchain-tokens/
7. "10 keys for evaluating Initial Coin Offering (ICO) investments" by CryptoPotato https://cryptopotato.com/10-keys-evaluating-initial-coin-offering-ico-investments/
8. "Methodology" by ICORating https://icorating.com/methodology/
9. "ICO Analysis Framework" by Kasper Rasmussen https://blog.ethfinex.com/analysing-icos-4abe41930f04
10."Evaluating Tokens and ICO" by HackerNoon https://hackernoon.com/evaluating-tokens-and-icos-e6c22c1885bb
11. "ICO Analysis Framework" by MT Kander http://www.mtkander.com/cryptocurrencies/ico-analysis-framework/
12. "How to Value Cryptocurrency" by HackerNoon https://hackernoon.com/the-7-things-you-need-to-know-from-the-valuing-cryptocurrency-conference-call-c238095a03b9
13. "White Papers Versus Other ICO Evaluations" by Financial Advisor Magazine https://www.fa-mag.com/news/white-papers-versus-other-ico-evaluations-36272.html
14. "How to evaluate a Blockchain ICO" Nami Consulting http://consultnami.com/how-to-evaluate-a-blockchain-ico/
15. "How to Evaluate an ICO (a VC Perspective)" by Lauren Stephanian https://medium.com/the-mission/how-to-evaluate-an-ico-a-vc-perspective-65ac781971b6
16. "Investor Bulletin: Initial Coin Offerings" by United Securities & Exchange Commission https://www.investor.gov/additional-resources/news-alerts/alerts-bulletins/investor-bulletin-initial-coin-offerings
17. "How to Evaluate an ICO" by Shermin Voshmgir https://medium.com/blockchain-hub/how-to-evaluate-a-ico-part-1-c6829d4de766
18. "ICO Bounty Programs: Your community should be more than Bounty Hunters" by Brian D Colwell https://briandcolwell.com/2017/12/ico-bounty-programs-your-community-should-be-more-than-bounty-hunters/.html
19. "The ICO crapcoin checklist" by Matthew Roberts http://roberts.pm/ico_crapcoin_checklist
20. "4 Criteria For Evaluating Blockchain ICOs" by CoinDesk https://www.coindesk.com/evaluate-blockchain-initial-cryptocurrency-offering/
21. "Tokenomics — A Business Guide to Token Usage, Utility and Value" by William Mougayar https://medium.com/@wmougayar/tokenomics-a-business-guide-to-token-usage-utility-and-value-b19242053416
22. "Quantitative & Qualitative" by Crypto Bulldog https://twitter.com/CryptoBulld0g/status/956878022421950464
23. "ICO Red Flags" by tokenrecord https://bitcointalk.org/index.php?topic=2916380

thanks op for this topic, i have been looking for how to analyse ICO with potentials because most ICOs now are just meaningless

Yep. And although there are many articles out about evaluating ICOs, I want a comprehensive list.

The below articles are helpful. I'm incorporating info from these and other sources to build the MASTER list. LOL One list to rule them all!!!

"DUE DILIGENCE: HOW TO EVALUATE AN ICO (INITIAL COIN OFFERING)" https://cryptosrus.com/due-diligence-how-to-evaluate-an-ico-initial-coin-offering/

"3 Ways to Evaluate an ICO" http://strategiccoin.com/3-ways-evaluate-ico/

I would add one more step for advisers between 5 and 6. It says a lot if project has real and known advisers who are familiar with the field and who could help the team on a way of their idea implementation. It usually decreases chances of being scammed for investors if there are at least few authoritative people who stand behind the project. Of course that's the case if not just only their photos are placed on the project's website but they really support the project.

Great point. I updated the post accordingly.

You also gave good details for the questions within that section. I'll begin posting those parts of the checklist once we have a better feeling that the sections are comprehensive. Make sense?

One list to rule them all!!!

I think most of the index you picked is what most of these people that rate ICOs use, but I will like to see your methodology you want to adopt, because this is the most important thing for me to see the objectivity of your analysis

Hello thepo1m,

Thank you for joining the conversation! Objectivity is the foundation of this list.

Ultimately, I'd like to be able to enter facts into the checklist to help formulate an opinion based on data (as much as possible, some information is anecdotal). This list would also help isolate areas of strength/weakness to direct further investigation.

Best,

Kristen

Hi all,

Starting to build out the questions now. Please refer to the first entry, I will keep updating it as this list takes shape.

Just added some questions from this Coindesk article: https://www.coindesk.com/scrap-white-paper-evaluate-tokens-blockchains/

Please share your thoughts!

Crypto-Kristen  :-*

Just made another update to the list in the first post.

Added questions from this article (more to come):

"Our Process for Evaluating New Tokens"
https://thecontrol.co/our-process-for-evaluating-new-tokens-4627ed97f500

 :-*
Crypto-Kristen

Hi all,

Just updated THE LIST - see the first entry on this topic.

May I have your input on the questions currently included on the list?

• Are the questions in the correct (most appropriate) sections?
• Are the questions phrased correctly?
• Are the questions arranged in a natural order?

And AS ALWAYS, please share all feedback. :-)

Best,

Crypto-Kristen  :-* :-* :-*

Feel free to suggest a resource!

Here are the sources currently reflected in the list:
1. "Our Process for Evaluating New Tokens" by Nick Tomaino https://thecontrol.co/our-process-for-evaluating-new-tokens-4627ed97f500
2.  "Scrap the White Paper: How to Evaluate Tokens and Blockchains" by Coindesk https://www.coindesk.com/scrap-white-paper-evaluate-tokens-blockchains/
3. "How to Evaluate an Initial Coin Offering" by Strategic Coin http://strategiccoin.com/evaluate-initial-coin-offering/
4. "Due Diligence: How to Evaluate an ICO" by Cryptos R Us https://cryptosrus.com/due-diligence-how-to-evaluate-an-ico-initial-coin-offering/
5. "Due Diligence: How to Evaluate an ICO Investment" by Bitcoin Market Journal https://www.bitcoinmarketjournal.com/ico-due-diligence/
6. "10 Steps for Evaluating Digital Asset Crowdsales" by  Token Market https://tokenmarket.net/blog/how-to-invest-to-ico-and-blockchain-tokens/
7. "10 keys for evaluating Initial Coin Offering (ICO) investments" by CryptoPotato https://cryptopotato.com/10-keys-evaluating-initial-coin-offering-ico-investments/

One list to rule them all!

 :-*
Crypto-Kristen

Help! I like this excerpt from CryptoPotato's "10 keys for evaluating Initial Coin Offering (ICO) investments" but want to turn it into a series of questions. Anyone able to assist?


Source: https://cryptopotato.com/10-keys-evaluating-initial-coin-offering-ico-investments/
9 – Quality of the code – Meet Githhub
If you have a little bit of programming experience, you should be using it here. The quality of a developer can be understood by analyzing some of their code. As a non-techie, it is still possible to evaluate their quality by looking at the consistency of the code. Another good indicator, is the usage of proper commenting. Avoid messy developers. A piece of code reflects the attitude of a developer.

Next, the length of a function is another indicator. A function containing more than 50 lines of code should raise a red flag. Modularity is important and makes the code more readable and maintainable.

Crypto projects tend to have open-source code. This creates trust among the project’s community, encouraging devs from the community to make suggestions or improvements. An open-source project provides the opportunity to look at the commit logs. A commit is essentially developer slang for pushing a piece of code to the Github code repository.


Thanks in advance,

Crypto-Kristen  ;)

This is an excellent thread. I've been doing much research into this also. I found this rather obscure review guide by a cryptoentusiast - his criteria is laid out in the ICO review as he doesn't have a ICO guide itself. I'm in no way shilling the ICO he's writing about, just showing the criteria. Google searching for keywords like 'scam' etc that he mentions is a decent idea:

https://angeloncrypto.com/ico-reviews-gatcoin-fe5e55108012

And regarding the questions, how about (in order of importance - 1. most, 4. least):

1. Does the code have commentary?
2. Does the commentary explain clearly the purpose of the function?
3. Are the functions a reasonable length? i.e. are they less than 50 lines?
4. How frequent are commit logs? - I would personally leave this one out however. There's an excellent comment in the article left by someone explaining why commits aren't necessarily all that important (if I recall from memory correctly, don't have it to hand atm).

Awesome, thank you. I updated the list. Put these questions under "Technology"... do you agree? Is that the best section?

Best,

Crypto-Kristen  :-*

Personally, I think technology is too broad a category for this. For me technology would be asking things like 'What blockchain is it running on? Are they developing their own infrastructure instead? If so, why? What is the need of developing their own infrastructure (in other words, why would they not just run off ETH's smart contracts and create and ERC-20 token etc)? Possibly the top most important question is: what type of technology is it? DApp? Infrastructure? Currency?

I would have a sub-section in technology - (Functioning)Prototype -> is there a working prototype code working on a testnet? Do they have prototype code at all (even if its not currently executed)? Then here you code have the questions about the code (in another subsection e.g Technology -> Prototype -> Code)??

In the end its your thread but I'm happy to throw my ideas out. I'll respond back to this tomorrow as I'm off for the day. Good luck!

Thank you MichaelMeu  :)

Something felt a bit off, so thanks for the details. Updating the list now. Greatly appreciate your input.

See you later!

Kristen

This ICO evaluation methodology by ICORating is nicely outlined. 
https://icorating.com/methodology/

I'm especially interested in their hype-score and the description of quantitative vs. qualitative factors.

Any other pieces of this jump out as concepts I need to include in THE LIST?

Thanks!
Crypto-Kristen  8)

Thanks for the list. One of the factors that we have to start to consider within the team and advisers is previous performance, not only of the ICO or the token, but about their honesty towards investors. We need to defend our investments naming when something goes wrong.

Step 10: If it has the name Polymath, stay away!

Thank you so much for doing these list, I hope now newbies stop talking shit about "ICO scams", I got tired listen to them

Are these two sections actually the same thing??? Should I combine them into one section "Minimum Viable Product"?

3b. (Functioning) Prototype: how strong is the prototype?
Is there a working prototype code working on a testnet?
Do they have prototype code at all (even if its not currently executed)?
Does the code have commentary?
Does the commentary explain clearly the purpose of the function?
Are the functions a reasonable length? i.e. are they less than 50 lines?

4. Minimum Viable Product: how solid is the product?
Is there a working prototype?
Is the product's technical specification thorough and does it demonstrate mastery of the subject matter?
Are there people out there who want and need this product right now?
Does the product benefit from network effects?

Do not post spam or announcements here.

Only looking for comments related to THE LIST.

Thanks!

Crypto-Kristen

This updates is really a big help to all and were very lucky that you actually share some sources where we can actually find immediatlely in terms of evaluating the ICO.

Thank you! Chime in if you see something to be added/updated/deleted.

Best,

Crypto-Kristen  ;)

Legality is obviously an important consideration, but how easy/difficult it is for potential investors to figure the details out? It seems like regulations are changing every day across the globe.

Any thoughts on the legality questions we would add to THE LIST?

Check out the "Legality" section in this blog post: https://blog.ethfinex.com/analysing-icos-4abe41930f04 I think it's well done, but don't have concrete questions to add to THE LIST.

 ???
Crypto-Kristen

Just found this gem:

"Cryptoassets: A crowd sourced evaluation & due diligence framework"
By Alexander Lange
https://medium.com/birds-view/cryptoassets-a-crowd-sourced-evaluation-due-diligence-framework-98b921c82731

I'm digging through this now and will add questions to THE LIST of course.

Enjoy,

Crypto-Kristen  ;D

??? ??? ??? SEEKING INPUT  ??? ??? ???

May I have your input on the order of the sections, the titles of the sections, and the brief description next to each section title.

Here are the current sections:

1. Token Purpose: what need does the token address?

2. Competitive Analysis (SWOT): is this unique in some way?

3a. Technology: what is the tech?

3b. (Functioning) Prototype: how strong is the prototype?

4. Minimum Viable Product: how solid is the product?

5. Team: who's running the show?

6. Advisors: who are the big guns? (mentors and advisors)

7. Roadmap: where do they plan to go?

8. Hype: what are people saying about the ICO? (ratings + community + PR)

9. Token Offering Structure: can I make money?


Thank you!

Crypto-Kristen  :-*

Heading to bed for the night! The current list is above. Please check out my last few entries to see some specific questions I have in developing THE LIST.

...And never forget the purpose...

To build...

One list to rule them all!!!!

Per a suggestion from one of my crypto-friends on Telegram, I am adding links to some of the abbreviations on the list (DApp, SAFT, etc.).

May I have input on:
1. Which terms on the list warrant a hyperlink to additional detail?
2. What are the best sources to use as references?

Thanks all!

Crypto-Kristen  :-*

 ??? ??? ??? ??? ??? ??? ??? ???

HELP! The list is light on Roadmap related questions.

How do you analyze Roadmaps? What details do you look for?


Thanks for your input!

Crypto-Kristen  :-*

HELP!
THE LIST is light on questions re: the Roadmap. Any suggestions?


Thank you,

Crypto-Kristen  :-*

Thanks for the list, nowadays we see loads of ICOs and obviously it's important to differentiate the good/bad ones! I'd use your list for my next research! Thanks ;)

Thanks for the list.
Have you ever thought about making a video to put all this information on? It would be pretty helpful.

Great idea. Yes, I'm planning to support this list with blog posts and <maybe> a video or two.

Appreciate your feedback!  :-*

Best,

Crypto-Kristen

Glad to be of assistance. Don't forget to send any suggested edits or additions! I'm sure we'll find questions to add once we all start using this list.

Best,

Crypto-K  :P :-* :D

I want to add about point 5 (team)
It is good team if they participated in many blockchain event or seminar. It is a prove that they are serious team to run ICO and without intention to scam people.

different token might have with same or similar service as developer to works on manage with customs of details with strategy as lying with the whitepaper for investors to sees as decision to put of parts with investment unit with the projects.

That's a nice list, well done.

Just wish more people would actually read it now and do proper research before investing in every other shitty ICO and then make a thread complaining about it.

Put your shilling elsewhere. Please nobody reply to this thread with shilling, only comments about the list and increasing its quality are wanted.

Thank you, that's a very comprehensive list.
For dummies that want a shortcut to that, simply go to the ICO bench and see what reviews does the ICO have, those reviews are from blockchain expert. :)

thank  you very much for such a valuable thread such as this one really sometimes we have doubt to choose an ico to invest in with increasing waves of upcoming icos which makes such threads  really important.

Yeah I would combine these sections personally. Incorporate 4 into 3 imo; I would title 3b 'Minimum Viable Product: how solid is the product', followed by 'Is there a working prototype?', put the current content of 3b after that, then complete the section with 'Is the product's technical specification thorough and does it demonstrate mastery of the subject matter?
Are there people out there who want and need this product right now?
Does the product benefit from network effects?'

for me i have always use to go on hunch and of curse on some researches like the whitepaper and the background of the dev team and olso the traction that ico has made among the crypto community on different channels such as telegram and reddit etc...

I really appreciate your effort on this as this is a wide opener on ICO with basic lesson and knowledge on it.
It is a guide for all new entry and beginners.

Thank you

I think the titles are by and large pretty good. I'd update the numbers to reflect my previous comment. Couple of things I'd change personally.
Roadmap - What is the team's timescale for implementing their proposals? How detailed is it? And how realistic is their vision?
I'd have in the roadmap section at the end - is token distribution linked to roadmap? This can be seen as a good indicator of a solid project. IF it begins with a reasonable low market cap, and the amount of tokens which are tied up in development team whose distribution is linked to the team meeting their roadmap goals, then this can be interpreted as a good sign of a promising ico.

Consequently I'd then put the 'Token Offering Structure' - section after the roadmap section as those two would link in nicely together. I'd change the title of the token offering structure - can I make money? Seems a little bit flippant imo, for me ico investing is medium-long-term investing. Sure you could make profits in the short term but if you've done your research on icos properly, then the medium-long term potential is so much greater than the short-term potential that it'd be silly to sell in the short term.

So I'd actually call it 'Token Offering Structure: How likely am I to get burned?' . Emphasises to everyone that investing in icos is inherently risky, and the best we can do is reduce this risk as much as possible (such as spotting red flags e.g. devs holding too many tokens etc. (=>50%)).

Oh and the hype section, I like it. Although I spotted on one ico site that some of the most successful icos were the ones with the least amount of hype. Just a thought :)

So just looking at the list, where how would you rate a project like Polymath?? Platform for launching security token projects. Recently partnered with Overstock as well. https://polymath.network/

I think people tend to over-think with their gut. This list is , at least from what I've seen on the net, the best way to counter this. Don't become emotionally invested in coins, judge only by reason and the rest will come. Not to say that every ico has all this information available to be evaluated, but this list's more of an 'ideal' scenario list. And if you can't find all the information from the prospective ico's website or whitepaper, communicate with the devs and ask them to find it out (if at all possible and, if it isn't, then that's information in itself) (Y)

This feels like subtle shilling tbh. We're not here to evaluate icos. We've not even finished sorting and organising the list yet so please refrain from posting things like this. Perhaps there is potential in the future for those of us who are keen to invest in icos to create a private group and take a 'divide and conquer' approach to rooting out the chaff from the wheat. I'll communicate with CryptoKirstie with it in the coming days. But this is just an idea I've had there and nothing is in place at the minute so please don't hold your breath. Equally, I (personally) wouldn't want passengers who are wanting to just piggyback off the (many of hours of) work of those who are willing to researching icos to discover the most viable projects.

Please no one else post icos to review, we are creating a guide here, not a research unit.

Unless I'm mistaken, Crypto-Kristen is a woman, considering the effort she's went to for this list you could at least secify her gender right, would be a nice token of appreciation :)

Great suggestion. I added this "Have any members of the founding team participated in blockchain and/or cryptocurrency industry events?" Thoughts on the wording?

Thanks,

Crypto-Kristen  :-*

 ??? ??? ???Please rephrase, I'm confused.

Thank you!

Crypto-Kristen

Glad to hear you find it helpful! IMHO, The cure for scam fears is information from reliable sources.  ;)

Best,

Crypto-Kristen

Ha! I thought the same thing before putting this list together. However, I've seen evidence of ratings manipulation on ICO Bench, so not a fan of relying on it too much. I'm a fan of unbiased data... or at least as unbiased as possible.  :D

Thanks for your support,

Crypto-Kristen  :-*

Yes, totes agree. I'll work on this change. It's not live yet.

Crypto-K

YES! We are on the same page. I don't expect to locate an exact answer to each question for every ICO researched. But I expect to find "blank spots" that warrant more attention based on how easy/difficult it is to find answers and how my gut feels about those answers.

-Crypto-K  ::)

Hey, MichaelMeu...

THANK YOU  ;D

Wow...great feedback from @MichaelMeu, thank you! THE LIST is looking sharp.

Also, re: the hype section. Note that the response to each question is not necessarily positive/negative, just facts... so a lack of hype despite positive factors in other areas would not strike an ICO from consideration. BUT if other factors are also problematic, then non-existant or negative hype can make an impact of the ultimate success of the ICO.

 ;) ;) ;)
Crypto-Kristen

in my opinion, the first is understanding the website. only takes 3 minutes

then discussed in the telegram about 30 minutes to find out the developer more closely

and read whitepapers and other supporting documents for about 30 minutes

and lastly I will visit ICOBENCH.COM to find out the rating of expert blockchain

Thank you! Sounds like an efficient process. I'm guessing you are no new kid on the crypto block.

You watch the martial arts master move effortlessly through complicated, powerful movements without breaking a sweat. You ask the master, "how do you do that?!" Master replies, "I do nothing."

 ;) ;) ;) ;) ;) ;)

Best,

Crypto-Kristen

Holycrap,you just nailed it,you did a very good job in researching all of these i know it takes days before you got all of the information needed,im sure you will be a good investor as you are a newbie you really did what you must do to learn the basics.

Thanks for the comprehensive list of TODO evaluation points for an ICO. Clearly, it is
plenty of hard work and not a trivial task for most common investors.

I think there are problems with this section... some questions shouldn't be here. What do you think?

9. Hype: what are people saying about the ICO? (ratings + community + PR)

• ???====>Is there a well-developed whitepaper?
• ???====>Is there a professional website?
• Does the project have an announcement (ANN) thread on BitcoinTalk?
• Is there a Reddit community?
• Is there an official presence on Slack, Rocketchat, Gitter, Telegram?
• Does the company report progress on a regular basis?
• Are there a significant number of users on the main social media pages for the project? (Bitcointalk, Telegram, Twitter, Medium, and YouTube)
• Is the social community diverse?
• How is customer service and tech support on the project's social media accounts?
• Is there a bounty program?
• Is there an airdrop?
• How often has the project been mentioned in the press?
• Has the project been mentioned in mainstream technology media and in prominent finance publications? (Techcrunch, VentureBeat, Forbes, WSJ, Reuters, etc.)

Thank you!!  ;)

DANG @panghae. Thank you. :-)

I'm just stoked to be here.

Crypto-Kristen  :-*

What about a section for Marketing in addition to a section for Hype. So Hype is how the crypto community and general public respond to marketing and PR initiatives (or lack thereof). Marketing is the go-to-market strategy and related tactics (e.g., website, advertising, bounty programs, etc.).

Make sense??  ::)

Crypto-K

To me one point should be clarified better: what do u mean when u say "well-developed white paper"?
What are the indicators that could lead to a good review?
It may sound obvious but it's not :)

Plus, but that's a personal view, to me, having a high reward program (+ 30/40/50% bonus for example in ICO) gives me the impression that team needs to push the product through marketing because otherwise that wouldn't be too appealing (IF there's a product yet).
Advertising is fundamental but to me, when you have a nice set up, a focused roadmap and most of all a clear vision of your business that is implemented through your product, you don't need to go that far with numbers pre-market.

Jm2c

Good topic, i agree about your point "Is there a working prototype?"
I think that poin is the most crucial. Many ICO, don't have any working product. They only focus on their crowdsales rather than the product.

Really great list, I will share this with all my friends who want to get involved in ICOs but don't have a clue where to start.

I don't see much wrong here, you have covered the main marketing tools when it comes to ICOs, maybe you could look into the number of people who are involved in the bounty program? If it is popular. I think you could also look into their own content creation methods as well, I find that usually when an ICO has been mentioned in the press, it is because they have thrown money at it rather than it actually being a good project.

Maybe also include events? I know it's always refreshing when they are also great online as well as offline.

Other than that it is a great list, I am impressed! Keep up the good work.

Go away! This is not the place for your spam.  >:( >:( >:(

BYE,

Crypto-Kristen

Hi all,

I am working on a video or a series of videos to go with THE LIST. First will be a primer on THE LIST and how it is intended to be built and used. Later, I can focus on specific sections and/or can apply THE LIST to specific ICOs.

Thanks everyone for the collaboration!

Crypto-Kristen  :-*

Great list!

Under marketing, you should prioritize Telegram and add social media presence.

The Telegram should be very active and growing with admins and regular access to key team members for questions.

Social media should include Twitter and Facebook at a minimum, with a LinkedIn Company page as well. Each key team member should be easy to find on LinkedIn, listing the project as well.

Completely agree. Updating the list shortly.

Thanks for the input!  :-*

Crypto-Kristen

Updated!

Thanks @itsonlikedonkeykong

Have you hugged an ICO today?  ::)

Crypto-Kristen

You're welcome :)  :)

I'll get replying to the rest of this in a mo!

THE LIST Fundamentals

• Strong sources lead to strong opinions
  
• Data is neither “good” nor “bad”
• Perfection is the enemy of done
• Come to terms with your personal bias

Anything you would add?

 ???
Crypto-Kristen

Defining THE LIST

A growing list of questions assembled by the crypto community, broken into segments, organized sequentially, and used as a framework for analyzing ICO opportunities.

Do you agree?

 :D Crypto-Kristen

We are offering investors and traders from all over the world a chance to participate in any current or upcoming ICO.
We also pool together investments to acquire pre-sale bonuses, and have a proven record of trust and completed investments.
If you wish to participate in any upcoming ICO's, please visit us at http://icobroker.trade for more information,
or email us at info<AT>icobroker.trade
Our ANN thread can be found here: https://bitcointalk.org/index.php?topic=2144224.0 

There's a few things I'd alter here with regards to Telegram/BitcoinTalk etc.

1) Do the admins respond to users concerns (on Telegram, for instance)?
2) Do they have a Discord community? (I find Discord, personally, to be a better and more thorough platform for team members communicating what's going on. Everyone just talks past one another on Telegram I find, and people focus far too much on the 'pinned' posts - people basically reading what the admns want them to).
3) Check the ANN thread on BitcoinTalk. Look for the following signs which raise suspicion:
Do a lot of the positive posts come from new accounts with relatively few posts? This is common on spam projects. Often reputable members post saying if something's dubious and could be a scam. Members with 400,500,600+ posts should be regarded in higher esteem with respect to what they are saying about a project.
Are posts being deleted? Sure sign of a scam (people will often quote their own posts with a copy of their deleted post - before it gets deleted - as they are probably mentioning that it is a scam)
Is the thread overly focused on bounties? Again, likely sign of a scam.

Just a small thing I'd add here. If any bounty program is distributing more than 2% of its token sale to a bounty program, probably want to avoid these icos. No ico should need 2% of all tokens for a bounty program. I'm really not a fan of bounty programs at all, but 0.5% being committed to bounty programs seems reasonable to me.

I really like this ICO evaluation list, just bookmarked it. Thanks for your work! I got a lot of valueable input from it.

I doubt any of us will spend this much time checking an ICO with all the points specified. Imagine how many scam icos are out there, you would waste a lot of time.

Kirsten, any chance you could just go about deleting this nonsense. Starting to irritate me a little.

If they distribute more than 2% this is not a bad thing, but the critical point is that token burn action and bounties should be paid according to sold tokens, not to the token reserve. If they pay according to the total reserve, this is bad.

Pay attention to this finding, very important.

I agree,. I'm just speaking anecdotally - many many scam icos I've seen have high bounty programs. In no way saying it's a be all and end all.

We're not saying that you have to. We're (basically just Kirsten tbf) simply providing people with all the resources if they wish to. And I disagree, it is feasible to evaluate icos on these criteria. If you don't want to then that's your decision, and if you've not got anything constructive to add then there's no need to post. Thanks.

An ever-expanding set of criteria and questions assembled by the crypto-community, broken into segments and organized sequentially, to be utilised as a framework for evaluating ICOs.

That's what I'd go with personally but it's up to you :)

THE LIST: Fundamentals

• Strong sources lead to strong opinions
  
• Data is neither “good” nor “bad” - evaluate it with reference to THE LIST
• Perfection is the enemy of done
• Come to terms with your personal bias, do your best to minimise it
• Judge with reason, not emotion; do not let the latter affect the former

That's everything I've got at the minute. Excellent effort Kristen, superb :D

So far I only analyze ico well by looking at the team and its advisors, in what areas of the project and looking at the roadmap. with the information you share is very useful to me. thanks.

I reported this entry to the moderator, but I'm not sure how to (or whether I can) delete it....

 ??? ??? ???

Crypto-Kristen

 ???

Riddle me this....

What is your BIGGEST ICO investment DEAL-BREAKER?

Interested!

Crypto-Kristen

with customs of work with the service on deliverance, investors gains of trust for developer as might to follows to put with displacement of balance to exchange and collects as the return showing with good number to close as completion.

 ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ???

Please rephrase?

Best,

Crypto-Kristen

Great points. I worked them into the Marketing & PR section. Thoughts?

9. Marketing & PR: how serious are they?

• Is there a professional whitepaper?
• Is the whitepaper free from spelling and grammar errors?
• How in-depth is the whitepaper's description and outline of the technology?
• Is there a professionally developed website?
• Does the website include a comprehensive ICO FAQ?
• Does the website list the company's physical address?
• Is there professional presence on top social media platforms (Twitter, Facebook, LinkedIn)?
• Do team members include the project on their LinkedIn profiles?
• Is there an official presence on Telegram?
• Is the Telegram channel active and growing?
• Do the Telegram admins have regular access to key team members for questions?
• Is there an official presence on Discord, Slack, Rocketchat, Gitter?
• Does the project have an announcement (ANN) thread on BitcoinTalk?
• Is the BitcoinTalk ANN thread overly focused on bounties?
• Do many of the positive Bitcointalk posts come from new accounts with relatively few posts?

Thank you so much for your collaboration. This is FUN!

Crypto-Kristen  ;D[/list]

This is a great point. Can you help me phrase and place the question? I'm thinking this goes in the Token Offering Structure section...? Something like "Are token burn actions and bounties paid according to sold tokens or to the token reserve?"

Thanks for your help,

Crypto-Krsten
 :D

Here's a list of interesting ICOs for early 2018:
https://coincodex.com/article/1198/top-5-icos-of-early-2018/

Check this out!

Different types of ICO investors use THE LIST differently....

If you are looking for a long-term investment in the next big blockchain project, you may find TOKEN PURPOSE and TECHNOLOGY extremely important... On the other hand, a crypto-trader may take a completely different approach to evaluating ICO opportunities. This type of investor may jump straight to TOKEN OFFERING STRUCTURE.

Make sense? THE LIST, just like the One Ring from Lord of the Rings adapts to the finger of the wearer. :-)

Crypto-Kristen
 ::)

This thread is for discussing concepts.

Do you have any thoughts you can add to our convo on evaluating ICO opportunities?

Thanks,

Crypto-Kristen

Can you share some detail on how you analyze the advisors? THE LIST is a little light on questions in that area. Would like to dig deeper...

Thank you,

Crypto-Kristen  :-*

This analysis is really helpful and educative,it is really a guide to good ICO,s.I also take time to study and find out all these factors  before investing into any ICO,s.

Need a better understanding of what the heck we are trying to do here???

Check out my YouTube video ==> What is THE LIST?

https://youtu.be/K70E6gL54wc


Best,

Crypto-Kristen  ::)

 I only analyze ico well by looking at the team and its advisors, in what areas of the project and looking at the roadmap. with the information you share is very useful to me

Thank you for the information, I think that it will do good for me, as there is a lot of fraud and what to expect from them is unknown, so that wherever you need to climb it is necessary to thoroughly study everything and send out information

You can refer to special sites that give an analysis of the possible implementation of the project and even an analysis of the potential price of the token. But everything costs money ...

I'm a fan of self discovery. The process of seeking answers and assimilating data helps you form opinions and level-up your ICO savvy. BUT, if I had a HUGE investment on the line, I'd happily pay for in-depth analysis to confirm or deny my informed opinion. Does that make sense?

 :-*

Crypto-Kristen

Everyone on this topic should evaluate Orbis project .

www.orbistransfer.com (http://www.orbistransfer.com)

Orbis money transfer and investment PRE-ICO
Min. Investment 0.50€ with 30% bonus

This is a spam-free zone, thank you.

BYE BYE,

Crypto-Kristen

I really couldn't settle on on so I thought I'd go for this.

The thing I'm most excited about for an ICO - if it's an infrastructure project. Look at NEO, look at QTUM, look at IOTA (not shilling, I have 0 bags in any of those).

Deal breakers - in order of importance:
#1 Is the team anonymous (the irony as we still don't know who satoshi is...) ? If so, no go
#2 Is there a whitepaper? If not, you know the answer.
#3 Does the project have a functional use with little/no competition?
#4 Does that project have a functioning prototype? No proto, no invest.
#5 Is their roadmap detailed and, just as important, realistic?
#6 Does it have a reasonable hardcap (<$50m)? Tick
#7 Is there an individual limit on how many tokens people can buy? Massive tick, (minimises the likelihood of whales forming, and if they do, they can only form post-ICO after you've invested and the coin is listed on exchanges which means you are in the money.
#8 Are bonus token offerings to the likes of pre-sale investors and even public sale ones capped at 25% of their total buy? Huge tick (Stops whales dumping short term but if there's enough longevity in project (12 months + hold) then this can be handled with bonus sales of up to 40%).

Totally not the answer you were looking for but just my thoughts.

Just add regarding Bitcointalk: Is there any evidence of posts being deleted? Investigate if anyone is claiming so? Are the opinions of seasoned members being shouted down? E.g If there is 4 members with 200+ posts calling the ico suspicious and 20 members with between 1-28 posts calling the project legit, I'd be valuing the opinions of the former, not the latter.

V. close:

"Are token burn actions and bounties paid according to sold tokens or according to the token reserve regardless of how many tokens were sold?"

Sending so many virtual hugs your way for that post, particularly the last sentence :)

"How many tokens are being created?
What is price per token?"

Add maybe: what is the marketcap of the ICO at the moment. + How big could it rise?

That is a good one. I would also say "stay away if the name of the coin is Bitcoin + a colour, Ethereum + a colour, Bitcoin + anything in general, etc... " I am sure you get the idea.

Yes. Those flags would pop up with the criteria certainly but a shortcut is just looking for those combinations. I thought it'd be obvious to most but for some it may not be so thanks.

Also, see if the website is mining from your browser. I've noted this on a few icos recently.

Let's take an example.

Open your task manager on your computer.

Click the Processes tab and monitor the % of CPU being used for a second or so. What percentage is it hovering around?
Mines typically between 14-17% (can spike to 30%, rarely 40-50% but it is possible, would only happen for a moment however).

Now, when you go to ICO site that is using in-broswer mining (likely Monero) that CPU % will spike up in seconds. No way am I investing in an ICO that's slyly stealing my CPU resources. Why would I trust them? Just completely dodgy.

Here's an example which I took from: https://coincodex.com/article/1198/top-5-icos-of-early-2018/ - the spam link someone just posted.

I googled the 'Scorum' ICO (last on the top 5 list) and went to their site for their token sale.

Here's the url:

https://scorumcoins.com/

Have to wait for a few seconds for the webpage to load and then, BOOM! CPU spike + fan will probably start going like crazy also. Yup. Mining from your browser. Want to make sure there's not an error with your browser? Close the tab, watch the spike disappear. Double-check with different browser just to be sure (Chrome + IE I checked with) and voila. Pure scam Scorumcoins is - might as well be called Scrotumcoins, about as attractive as one. Stay away (but quickly do the demonstration for yourself to spot this red flag in the future) :)

HI?
Of cource evaluating ICO You need to look at the code, but if that’s not you, you can start with the white paper.
But that’s a lot of reading, start with typos.
Here is the article about it https://zengineeringpodcast.com/ruling-out-the-scams-smart-contracts-whitepapers-and-evaluating-an-ico-43821502a9ae

We're more here trying to provide criteria with which to evaluate ICOs rather than being solely focused on spotting scam ICOs. Scam ICOs should be relatively easy to spot - should be, not necessarily always however. Many ICOs will fail though - not because they're scams but simply because they don't have enough of a USP or enough technical expertise or good enough advisers. Hence the importance of DYOR!

Project and team is very important. ICO with realistic project and trusted team. Bobrepair is one of the great ICO. It is supported by John Mc Cafee and the project is skill market. it is very rasional to be applied.

We've said what feels like a 1000x now, this is no thread for shilling. take your unwanted shilling elsewhere

Hi all,

I'll be working on THE LIST again later tonight. Lots of great feedback to incorporate from this thread! Super stoked.

Also, @Cryptobulld0g shared this list on Twitter: https://twitter.com/CryptoBulld0g/status/956878022421950464
I'm planning to integrate the concepts here as well.

Lots of work to do...

 :-* :-* :-*

Crypto-Kristen

Identifying scams is a low bar. Legitimacy is always a factor, but we'd like to dive deeper.

Thanks @MichaelMeu!

What a woman. Thanks Kristen!

Can you share any details about how you assess the advisors? THE LIST is still pretty surface-level in this area.  :'(

Thank you!

Crypto-Kristen

Love the detail! Thank you.

I imagine there is some variety in what ICO investors would say is the biggest deal-breaker, but bet most or all responses would fall into your responses above... SO, is it possible to develop a sub-LIST of DEAL-BREAKERS? Or would this be taking things a bit too far?

Curious... ::)

Crypto-Kristen

BAM! Added to Marketing & PR section. Great feedback, thank you.

 ;D
Crypto-Kristen

@MichaelMeu,

I added this, but am intrigued... my newbie-ness is showing.  :P

Can you explain the impact to the investor if burn action and bounties are not paid according to sold tokens? If burned/bounty paid according to token reserve regardless of tokens sold, does that mean that a disproportionate share of funds are going to non-investors? Did I get that right?

Thank you!

Crypto-Kristen

Thank you for the input! Can you expand on the "marketcap of the ICO at the moment + How big could it rise?" Newbie here, so excuse a potentially goofy question....

How do you define marketcap? Especially for ICOs in which the token has not even been created yet as of the Pre-Sale. Really want to understand this point. Your help is appreciated!

 ??? ??? ???
Crypto-Kristen

LOL-ing so hard right now.  ;D At first I thought @whofeelsitknowsit was messing with us with that Polymath comment. Now, I'm thinking we might be on to something tangible.

Does the branding/messaging fall in the "sounds too good to be true" category?

Curious to hear other thoughts on this... not adding anything to THE LIST yet, but we might actually have something here...

Thank you!

Crypto-Kristen

 :o :oWOW!!!!!! :o :o

Still digesting this piece of info. I knew there were malware and CPU-jacking issues in the cryptosphere, but had not connected the dots between that behavior and ICO investing. With more newbies like myself stepping into the arena, scammers are banking on the fact that most are completely unaware of the risks.

So, @MichaelMeu, is there a question or series of questions I can add to get this point across? I hate to keep talking about identifying scams.... BUT wonder if there is a new section dedicated to "Is this a Scam" and points such as this would go there...

Thoughts?

 ???
Crypto-Kristen

WARNING

This is a NO-SHILL zone. We are not talking about individual ICOs, we are talking about concepts and analytical strategies for evaluating ICOs.

Please keep your spam to yourself. :-)

Thank you!

Crypto-Kristen

Beside of qulitative factors i usually talk with team members. If the team does not believe the project and cannot understand the cons and problems i stay away from them.
you will spot the Well driven ponzi schemes like bitconnect with talking to the team.

@coinlawyer, can you give us detail? What exactly do you look for in the code?

Thanks :-)

Best,

Crypto-Kristen

Intriguing!!! You talk with the team member. I love it.  ;D

Can you give us a little detail about your process? Do you reach out to team members via LinkedIn? Do you find that team members are generally responsive? If not responsive, is that a sign?

Looking forward to your response,

Crypto-Kristen

Shout out to crypto-aficionado CryptoBulldog. I hope you'll join us on this BitcoinTalk thread!

I've been chatting with CryptoBulldog on Twitter this morning. Lots of great info. Check out the Bulldog's list and our convo here: https://twitter.com/CryptoBulld0g/status/956878022421950464

As always, I will bring any new info back to THE LIST. :-)

REVISED! Check it out. Share your thoughts.  ;)

Crypto-Kristen

FYI, just fired up this new topic: https://bitcointalk.org/index.php?topic=2833296.new#new

I'll develop a list of definitions in tandem with this list of evaluation poits. Does that make sense to everyone? :-)

 ;D ;D ;D

Crypto-Kristen

Let me shake your hand, you're awesome! Let's call it "Colwell test" 8)

Great job mate, very helpful list. I really don't know what to add, but I have many questions.

Please explain, what do you mean by questions:

• Who will support the token?
• What are the possibilities past the first use case?
• Is it impossible to substitute the use of the token for another? It's always possible to switch the project to another blockchain by issuing the same amount of tokens.
• How will the team continue to communicate their progress?
• What is the team's timescale for implementing their proposals? I understand the question, but I don't see how to interpret the answer. Let's say, it's around 7 years. Is it good or bad? What if it's about 1 year?
• What rights does the token provide the investor? — which options are available on the market today?
• Is there a Reddit community? — why it's crucial? what if it's Telegram public chat and a blog on Medium only?
• How often has the project been mentioned in the press? — any numbers to compare?
• In what jurisdiction is the company incorporated? — what if Estonia? What if Singapore? What if Russia? What if some offshore islands? What if Switzerland or Luxembourg?
• What legal structures are being disclosed? — which should be disclosed in case of a perfectly organised ICO?

Also I think it would be better to use "Yes, No, Not Available format". For example, the question "Does the project benefit from being on the blockchain? Should it be on the blockchain?" can be modified in a more specific and simple way "Blockchain is necessary to run the project or not?".

The answer to the question "What blockchain is it running on?" is often will be "Ethereum". How should we consider it? As good, bad, or just normal? I think this question also needs to be improved. How about "Is it running on the fastest of existing blockchains?"

The question "Can the team be found on LinkedIn and Github?" represents 2 questions actually.

The question "Has the founding team demonstrated the characteristics (inclusive, transparent, objective, etc.) necessary to build a healthy community?" is actually at least 3 questions according to "inclusive, transparent, objective". What other characteristics are necessary to build a healthy community?

The same about "How are developers compensated? By donation? Or some formal commitment?". Any other ways of compensation are being used during tokensales?

What should I do with the numbers of tokens are being created and circulating supply? are there any guidelines for these numbers?

What is price per token? — the same. What if it's below 10 US cents? what if it's around $1? what if $10?

Many thanks again!

Thanks SO much! I am looking at your post now and wishing I could work on THE LIST this very moment. I'll be back... hopefully later today. Lots to think about here.  THE LIST is ready for it's next big level-up.

Many gratitudes flying your way...

Crypto-Kristen

LOL... the Colwell Test... my husband Brian will be interested in this concept.  ;D ;D ;D

"Is the token distribution coming directly from a smart contract?" Is it possible to do another way?
Is there a cap on funds raised per person? — just don't understand the question

Hi all,

I'm making some big changes to the list per @DarkSi's suggestion:

Also I think it would be better to use "Yes, No, Not Available format". For example, the question "Does the project benefit from being on the blockchain? Should it be on the blockchain?" can be modified in a more specific and simple way "Blockchain is necessary to run the project or not?".

This will take some time and I'll definitely need help along the way to properly rephrase.

@DarkSi shared other insights to help us tighten up the purpose of each question. I'll begin integrating these thoughts after putting some time into the "Yes, No, Not Available" format for existing questions.

We are making progress folks!

Best,

Crypto-Kristen

Nothing is possible if you do not look through the ICO’s whitepaper. Spend MUCH time to learn it, try to understand if the project can interest really many people. Here there is also a video about how to find the good ICO and evaluate it: https://www.youtube.com/watch?v=PLoDoZI6wcQ

Imho, I'd have two lists. A 'Yes/no/not available list' to introduce people to the concepts behind evaluating an ico, and then a more advanced list similar to what is already there once people are a little more comfortable with evaluating the criteria from a so-called 'noob' perspective. I personally feel that most of what is already present in the list is too complex to be condensed into simple 'Yes/no' questions.

I'll get round to responding to your other replies tomorrow as I don't have enough time at the minute. Just got one extra criteria you could add to the current list before I forget. Do private pre-sale investors receive a bonus % of tokens? Most do, and anything > 10% concerns me for private sale bonus as the potential for whales to dump their bonus tokens post-ico is very real. This is really just an arbitrary number however, I could invest in a public ico with a private bonus of say 30% (Eth founder Vitalik recommends >20% is worrying). I draw the line at 40% ico bonus, anything hitting that threshold  a gets a pass from me. No private sale bonus gets me excited as it means everyone's on a level playing field.

If crypto's taught us anything, it's that nothing is 'too far' :) I personally don't think a sub-list of deal breakers is viable however for two reasons. 1) Deal-breakers all depend on the individual's investment goals - short, medium, or long term - and will vary according to such goals. 2) We(you)'re providing a list that people can utilise to evaluate icos. IT advises people of what to look for with regards to evaluating an icos potential but the list is not providing a set of right or wrong answers from which one can deduce - 'oh , okay then, I have w, x and y ticked, and a cross for z so I guess that means i'm good to go to invest in icos'. The list provides a valuable resource upon which the individual evaluates how they rate certain criteria for an ico offering, it doesn't spoon-feed them and give them the answer as to whether or not to invest

Ahaaa, newbieness is not a problem, acting irresponsibly is (hence why I love your list!). I'm a relative newbie myself to the crypto world - a few months - but I have a v. strong computer science background so I get that not everything might be clear to new members immediately. What helps me sometimes when I'm confused about something in crypto is that I try and use a real world analogy to help me understand it at a basic level first (like I will do in my next post).

But yes, you've got that right. We'll do this from a theoretical standpoint just so we're clear:

Imagine all tokens for sale = 100% of all tokens that can possibly be generated and say the bounty is set at 10% of all tokens.
Now, if only 40% of all those tokens are sold, and 10% remain for bounty, then bounty tokens = 1/5 of all tokens,
So if all bounty tokens are dumped (which are presumably held by non-investors), that drives down the price dramatically.

But

If the same scenario occurred but 100% of all tokens were sold, then bounty tokens = 1/10 of all tokens,
So if all bounty tokens are dumped that drives down the price less dramatically as the extent of the bounty dump is 50% less when 100% of tokens are sold; alternatively put, the impact on token price when the bounty dump occurs when only 50% of all tokens are sold is a 2x (200%) increase in magnitude - as 1x increase = 1 (1x1=1) when contrasted with the same situation if 100% of all tokens were sold.

Hope that makes sense. It's not a practical ex. as most icos sell out - the legit ones anyway - and I'd personally avoid any ico with bounty > 10%.

I'm not personally aware of many outright methods to avoid scams besides what we've already mentioned. Not all are going to mine from your CPU but it's the #1 most obvious indicator that it's a scam if they do. Perhaps this is not what you meant but just in case it was, your CPU usage in this instance is not being hijacked, it's resources are being siphoned off.

What's the difference you ask? (here's how using real-world examples can make things clearer in computer science.

Well, if someone hijacks your car, you are no longer in control of said car. They've stolen it, it's gone, and you (presumably) cannot get it back.
This is not what is happening with your CPU when someone mines from it.
Your CPU is not hijacked, they are merely siphoning off it's extra resources.
Hijack = no control over circumstance; siphon = full control over circumstance but you may or may not be aware that it's occurring - obviously once you realise that it is you take steps to rectify it.

So when you go to that site (I hope you did the test so you know what to look out for) they siphon resources off of your CPU, they do not hijack it because you remain in full control - once you leave the site, the siphoning stops; if you left the site and the 'siphoning' didn't stop, then this would be hijacking your CPU (as you are no longer n control of it).
But rather than hijacking, in computer science we have our own word for this: hacking.

Make sense? :)

I do this too, although I don't think you're going to get much contact on LinkedIn as it's more a networking platform than somewhere one can chat and have conversations

Best way is to join the telegram/discord chat if available and ask questions there - I really prefer Discord as telegram is far too difficult to keep track of everything and I find Discord chat just much more manageable (just my personal opinion) but not everyone has a Discord chat. Obviously find out whom the devs are for a project and direct your questions to them/forum moderators rather than randomers who are shilling or whom are being paid bounties. You can also post questions for the devs on the bitcointalk ANN threads as well as privately message devs about issues that are of specific interest.

Oh, and here's a Github ico checker to use. Here's the link: https://github.com/ico-check/ico-check/issues

They are a due diligence checker. And they're pretty good at it too. They don't have a huge list of icos at the minute but the one's they do have are analysed thoroughly. Be aware though, there's no central github authority so a new ico topic can be started and analysed by anyone (if you register with a new username you could even do it) so make sure to double-check the information you see but it's a pretty swell resource I think.

Mind and click the 'open' and 'closed' tabs at the top for past and current/upcoming icos.

Sorry for the looooong delay in getting back to everyone! I'm working on the list now. Missed y'all! Let's do this.

 :-* :-* :-*
Crypto-Kristen

So, here's how I'm going about it... open to suggestions as always!

I'll separate each section into two sub-sections, one for fundamental questions (y/n/na answer), the other for proof points (deeper, sometimes philosophical, questions lol).

Edits in process now.

 ::)

Crypto-Kristen

Revision in progress... here is the first section so far. PLEASE SHARE your input on this section now if possible. I can integrate your thoughts in real-time. LOL  ;D I am also reviewing this thread to make sure I've captured all the existing comments on this section.

Thanks,

Crypto-Kristen  :-*

1. Token Purpose: what need does the token address?

FUNDAMENTALS

• Is the token tied to a product usage, i.e. does it give the user exclusive access to it, or provide interaction rights to the product?
• Does the token grant a governance action, like voting on a consensus related or other decision-making factor?
• Is the token the project's principal payment unit, essentially functioning as an internal currency?
• Does the token provide return to token holders?
• Does the token reward users for contributing resources towards the creation of a shared service that will benefit all users?
• Can the resources contributed by users be verified by anyone?

PROOF POINTS

• Is the token new and no other token offers the same service?
• Does the token have a clear purpose?
• How broad or narrowly defined are the use cases for this blockchain (https://www.coindesk.com/information/applications-use-cases-blockchains/)?
• Does the token align incentives to simultaneously accelerate growth and token value?
• Who will support the token?
• Is the token structured with centralized control or a decentralized governance?
• Is the token a utility token (usage token or work token) a security token, or a combination?
• For usage tokens: is the digital service being offered useful and does the network underlying the digital service aggregate resources (hashing power, file storage, etc.) that will differentiate the service in the long-term?
• For work tokens: is there a strong network emerging that wants to contribute and is the UX well thought through? And is the service offered useful to people?
• For security tokens: is there some technology underlying the security that gives the token a long-term competitive advantage?

Help! Let's provide some direction on the Yes/No/Not Applicable questions. For example, if the answer is YES, then what is the conclusion?


1. Token Purpose: what need does the token address?

FUNDAMENTALS

• Is the token tied to a product usage, i.e. does it give the user exclusive access to it, or provide interaction rights to the product? If YES, then ___
• Does the token grant a governance action, like voting on a consensus related or other decision-making factor? If YES, then ___
• Is the token the project's principal payment unit, essentially functioning as an internal currency? If YES, then ___
• Does the token provide return to token holders? If YES, then ___
• Does the token reward users for contributing resources towards the creation of a shared service that will benefit all users? If YES, then ___
• Can the resources contributed by users be verified by anyone? If YES, then ___

Thanks in advance,

Crypto-Kristen .  ??? ??? ???

Thanks for this detail! Yes, make sense to me. Scary AF. LOL

I sort of messed up the order of questions earlier. Here is the new grouping:

1. Token Purpose: what need does the token address?

FUNDAMENTALS

• Is the token a utility token (usage token or work token) a security token, or a combination?
• For usage tokens: is the digital service being offered useful and does the network underlying the digital service aggregate resources (hashing power, file storage, etc.) that will differentiate the service in the long-term?
• For work tokens: is there a strong network emerging that wants to contribute and is the UX well thought through? And is the service offered useful to people?
• For security tokens: is there some technology underlying the security that gives the token a long-term competitive advantage?
• Does the token grant a governance action, like voting on a consensus related or other decision-making factor?
• Is the token the project's principal payment unit, essentially functioning as an internal currency?
• Does the token provide return to token holders?
• Does the token reward users for contributing resources towards the creation of a shared service that will benefit all users?
• Can the resources contributed by users be verified by anyone?

PROOF POINTS

• Is the token new and no other token offers the same service?
• Does the token have a clear purpose?
• How broad or narrowly defined are the use cases for this blockchain (https://www.coindesk.com/information/applications-use-cases-blockchains/)?
• Does the token align incentives to simultaneously accelerate growth and token value?
• Who will support the token?
• Is the token structured with centralized control or a decentralized governance?

 :P :P :P :P :P :P
Crypto-Kristen

Another version is live now.

Now adding some qualifiers, such as "YES is preferred" to help with the fundamental analysis. I really need help on these. Please share your opinions.

Thanks,

Crypto-Kristen
 :o :o :o


FUNDAMENTALS

• Is the token a utility token (usage token or work token) a security token, or a combination?
• For utility tokens: is the token an integral component of the application ecosystem? YES is preferred
• For security tokens: is there some underlying technology that represents a competitive advantage? YES is preferred
• Is the token the project's principal payment unit, essentially functioning as an internal currency?
• Does the token provide return to token holders? YES is preferred
• Is the token new and no other token offers the same service? YES is preferred
• Does the token have a clear purpose? YES is preferred

PROOF POINTS

• How broad or narrowly defined are the use cases for this blockchain (https://www.coindesk.com/information/applications-use-cases-blockchains/)?
• Does the token align incentives to simultaneously accelerate growth and token value?
• Who will support the token?
• Is the token structured with centralized control or a decentralized governance?
• Can the resources contributed by users be verified by anyone?
• Does the token reward users for contributing resources towards the creation of a shared service that will benefit all users?
• Does the token grant a governance action, like voting on a consensus related or other decision-making factor?
• For usage tokens: is the digital service useful and does the network underlying the digital service aggregate resources (hashing power, file storage, etc.) that will differentiate the service in the long-term?
• For work tokens: is there a strong network emerging that wants to contribute and is the UX well thought through? And is the service offered useful to people?
• For security tokens: is there some technology underlying the security that gives the token a long-term competitive advantage?

Came across this post and had to share:

Just added to The List with some help from the author of a different, but similar topic ==>

This is probably the most informative thread on the whole issue of ICOs, thank you very much for having taken the time to render such a good service to the community. This actually should be a pinned thread which people could be able to access any time.

Dang, thanks for the support! I see this as a topic that I'll be updating indefinitely... things will constantly change. It'll be interesting to see how our opinions shift over time and as more ICO regulation comes into play.

 :) :) :)

Thanks,

Crypto-Kristen

Good information!

Great job done. We mentioned your topic in our article about Identifying ICO Red Flags (https://medium.com/@tokenrecord/red-flag-identification-during-ico-research-8b88561db5b2).

https://medium.com/@tokenrecord/red-flag-identification-during-ico-research-8b88561db5b2 (https://medium.com/@tokenrecord/red-flag-identification-during-ico-research-8b88561db5b2)

Sorry for the late response(s)! I'm personally really struggling to see what I can add here. You've pretty much covered it, if there's anything I think of I'll let you know :)

Oh, and I'd meant to say, here's another ICO framework that I came across online.

https://docs.google.com/spreadsheets/d/1zz49JU69XNJTXE7I1CAGEjjK0L9zLn60CRDvi-70qeA/edit#gid=0

Some interesting tidbits there. One for instance: Signaling by corporate customers / partners - have they got any partnerships lined up (inherently therefore assumes a MVP of some sort)? Would go nicely under competitive analysis I feel.

Speaking of competitive analysis. I'm not sure what (SWAT) means.....

Oh, and a couple of other ideas:

Regarding the 'Is the token mineable' bit. There's also staking. As I'm sure your aware, except in the very early stages of a project mining typically requires computationally intensive hardware to work. Staking on the other hand does not and people are also rewarded for it although to a much lesser extent in terms of the reward. But it's basically something that anyone with a laptop can do. So 'Is the token mineable/stakable)?

And a rather advanced technological aspect is - what type of algorithm does the block chain use? There's loads out there and some algorithms, SHA-1, SHA-2 SHA-256 hash algorithms etc., and some algorithms are more efficient and therefore 'better' than others for the tokens purpose. As I said, it's rather an advanced technological aspect and will largely be determined by the type of token and its utility but it is something that can offer a technological advantage. I'd just put under the tech. section 'What algorithm is the token/block chain built upon? Does it offer any advantages when contrasted with its competitors?'; that should suffice

Making a list is not a bad idea to put everything together but the bottom line of all this is people that cannot even read a WP are trying to be smart by investing on gut feeling.

[/list]

Thanks for compiled such big and organized evaluation worksheet. Reading and analysing whitepaper is getting harder now as more and more ICO coming out with technical specifications that confusing now.

But this thread should be the first everyone should read before diving into investing in ICO

I know that many people actively use mathematical analysis on the basis of wave effects. It is an old theory and it can estimate the prospects of the price growth for coins.            

Many things can be noticed only with experience. Factors on which the ICO analysis can be built a lot, from intuition and ending with insider information.

The most important thing is to understand the development plan of this ICO. Do they wish to go 2-3 years in one direction or they want to simply lure the initial money into the project.

I'm surprised Kristen has been away for so long. Even if she has and this thread''s been abandoned, it's still immensely valuable for people out there hence why I'm giving it a big bump!

Yes it is! This is very useful for both side!

 ::) ::) ::)Hi everyone! :) :) :)

Sorry I have been away. My journey in crypto has been evolving and some crazy opportunities came my way. I have been able to apply my marketing skills to ICOs and crypto-related projects. It's been amazing and I've learned so much.

I think about this list regularly, and often laugh to myself about how much things have changed in the world of ICOs in just 6 months.

I have not abandoned this list. In fact, my skills and knowledge are improving for the better of us all on this thread... LOL I want to share my learnings.

More to come. All the best and let's keep digging.

 :-* :-* :-*CryptoKristen

Was just about to bump this thread again, glad to know you're still alive and active : )

Yes! Very much alive...

And it's funny how quickly things change in crypto. The biggest shift in my view of ICOs and whether or not to invest has been around two points: does the token have a purpose, and does the team know what's needed to bring an ICO successfully to market.

2017 was a drastically different time for ICOs compared to today. An idea and an interesting name could net an ICO millions, but not the same now. However, there is still a huge demand for ICO speculation... ahem, investing. But people seem to be gravitating to projects that have at their core a significant blockchain innovation. Not just another token.

Plus, with the recent bans by Facebook, Google, and MailChimp (to name a few), the real projects have to put more money to get visibility now. This may mean that the overall quality of all ICO offers will come up. The scams won't be as willing to shell out the ad dollars. And if an ICO project is at all serious about getting into top exchanges, they need $$$$$$. SO, I'm now left wondering about the presence of high-quality marketing strategy in ICO projects.... does well-planned and executed marketing indicate that this is a solid team fully invested in achieving the directive?

Just some thoughts.... would love to hear yours!

CryptoKristen  :-* :-* :-*

Sorry for the late reply! Yeah the landscape's changed dramatically since 2017 where participating in an ICO was simple as pie and it'd likely guarantee you t least 2 returns just by participating. Now, you nred to whitelist, do lotteries, and answer questions to prove 'you care' about a project before you can beg good ICOs to take your money. Basically the little guy's getting muscled out of crypto now due to private and pre-sales which makes ICO allocation v. small and often a lottery. ICOs turning into IPOs really. Which means that companies are, as you rightly said, more professional as they need to spend money on rising awareness. But then that makes participation more difficult so it's paradoxical in a way, and you can't simply stumble upon a 100x ICO like one was able to in the past. 

 On the other hand, a crypto-trader may take a completely different approach to evaluating ICO opportunities. This type of investor may jump straight to TOKEN OFFERING STRUCTURE.

Thank you for the information, I think that it will do good for me, as there is a lot of fraud and what to expect from them is unknown, so that wherever you need to climb it is necessary to thoroughly study everything and send out information

It is very important to understand whether the project has a development plan after the end of the ICO. Whether or not the project team will work further or just want to get money from investors.

Having studied and analyzed all the information, it is very important to understand the development plans of the project after the end of the ICO. Will the project develop further or all in order to simply get the investors' money.

Wow. It feels like it's been a century since I first started this post.

One thing that's become clear to me over the past year is that investing in ICOs requires more than a cursory review of whitepapers and websites if you intend to make strategic decisions.

With that said, the details on this list helped to create a framework for discussing project details with core team members and crypto community members (whom I trust).

In the end, the best way to evaluate an ICO opportunity is not simple... it requires an active, working knowledge of the crypto landscape. This only seems to be gained by actually contributing to the crypto convo.

Thoughts?

All the best my crypto friends!

Crypto Kristen (AKA Kristen_Colwell on Twitter)