HOW DOES A COMPANY(ICO) EVALUATE ITSELF

[crypto1010]

Am interested to find out just how do some of these cryptocurrency companies evaluate how much they are worth with their over the roof HARDCAPS?
Because strangely enough most of these projects today are not the first to venture into a certain industry and are most likely not backed by a big cooperation or working product to vouch for them?

So just how or who does the valuation of how much is needed when investors are just sold some good words from whitepaper?

[knircky]

Am interested to find out just how do some of these cryptocurrency companies evaluate how much they are worth with their over the roof HARDCAPS?
Because strangely enough most of these projects today are not the first to venture into a certain industry and are most likely not backed by a big cooperation or working product to vouch for them?

So just how or who does the valuation of how much is needed when investors are just sold some good words from whitepaper?

Thats what a market is for

[leea-1334]

That is the point raised so many times, and conveniently ignored by 99% of ICOs. In my entire time here, I have seen only 1 ICO with exact dollar amounts for every item they need and want, and several stages, like a minimum soft cap and a maximum hard cap.

I have seen 1 other ICO with a small hard cap of $1 million, which it did not really budget to the detail I like, but at least it was able to give large sections with costs.

No other ICOs do this, the best you see is 100Million - 10% dev, 70% platform 20% marketing etc. Complete nonsense,,, like they came up with it in 15 minutes.

[illiki23]

They do it in many different ways.

Some use 'greed' to motivate their choices.  Others look at other successful ICOs.  

Some use a knowledge of economics and business while others use knowledge of technology and its use.

Some base it on an understanding of software development and try to raise what they will need to release a product.

Some just guess...

Many get it wrong.

[Murloc]

Thats what a market is for

While the most companies are doing their ICO they are not taking any part in the market yet.
tbh no one is evaluating anything. People just count the expences for equipment, rent etc. And adding the rest as a payment for themselves (usualy in the whitepapers those money are reserved for different purposes but no one controls anything).