I understand why people are concerned because they are a new type of finance raising, and there are a lot of poor ICO's and scams (but a lot of great ones as well) . They are still new and rather unregulated. But the best thing you can do is do your homework into the company and make your own judgement as with any investment.
For me here are a few signs to look for in a ICO:-
- Strong team - Both in development team and also the CEO's / marketing (no point having a great team to create something, if nobody can advertsie it and push the startup in the right direction.
- Realistic vision - not aiming too high or if they do not reach their target everyone who invested will be disappointed
- Solid whitepaper - Well thought out, shows realistic goals, a strong good vision and a plan of action
- Strong social media presence - A social media that shows they are connected with everyone
- Good customer support - Shows they care, and they have invested time and money into making sure the average investor can ask questions
- Good website - A business who is willing to throw time and effort into a good website are less likely to be a scam
- finite supply - ICO's with no cap can be dangerous and can simply just damage their own coin by releasing more for more investment.
-Market they are getting involved with - Is this a new market? or a dying one? who controls the market?
Finally
- Good concept and catchy name - A good ethos and a name that makes them stand out. Personally i would avoid anything that is something "coin".
If these are in place, then it's a good sign. I am looking at Crowdholding at the minute, seems like a good upcoming ICO (They are in their pre-sale), which means you can get more for your investment.
https://ico.crowdholding.com/
