Great topic!
I've been working with some BitcoinTalk folks on a
master list of ICO evaluation questions and would appreciate your input. We've played with the idea of creating a "Deal-Breakers" list like your Red Flags, but haven't formalized anything. The big question with red flags or deal-breakers is how the individual investor views the information. A red flag in some cases may not be a deal-breaker. And a red flag for one person may not be for another, based on opinion and or access to information.
How do you plan to address the issue of gray areas with respect to red flags?
Best,
Crypto-Kristen
You got an exhaustive list of questions to be asked before investing into an ICO. That is a great job done!
We believe in the technology and think that any team should have a chance if it is openminded and full of enthusiasm. Nobody knows the future and a small team can make a big difference. However we need to take into consideration risks connected to project.
3. Technology: what is the tech?
What type of technology is it? (DApp? Infrastructure? Currency?)
What blockchain is it running on?
Are they developing their own infrastructure instead? If so, why?
Is the token mineable?
Things that could be added here:
- Is the technology proposed by the team making any difference and helps blockchains to evolve? (Close to this question: Are they developing their own infrastructure instead? If so, why?)
- What problem does this technology solve that is not solved before?
- Does the technology depend on other projects?
4. Minimum Viable Product: how solid is the product?
Is there a working prototype?
Is there a working prototype code working on a 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?
Things to add:
- 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?
Another section that is almost every project is weak at is Business Model.
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