What does your due diligence look like before investing in ICO?

[dribel]

Hi I pretty new to this and just experienced my first success by investing a few ETH in the EOS ICO.

However, that seemed like an extremely risky investment and the only reason I did it was because I felt that everyone seemed super excited about the product they plan to build.

Would you say there is a general rule of thumb whether or not to invest in an ICO? What does your Due Diligence look like?

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[cryptohunter]

Invest tiny amount only

Better to search for undervalued projects that are live and have proven development.

ICO's are too easy to manipulate and make their own markets extracting btc from people over time before finally dumping the lot and the project.

[dribel]

Invest tiny amount only

Better to search for undervalued projects that are live and have proven development.

ICO's are too easy to manipulate and make their own markets extracting btc from people over time before finally dumping the lot and the project.

Thanks for your quick reply. I think you're right.

What's the reason people keep investing in ICOs anyway? Is it just quick money?

Do you think that a proper team with some good reputation builds enough trust so that people invest? I feel that this was the case at EOS

[AiWanChu]

sometimes i get FOMO and dont do research at all.. sad truth but most people fall for HYPE 

[dribel]

sometimes i get FOMO and dont do research at all.. sad truth but most people fall for HYPE 

That's very honest... Exactly why I invested in EOS. But I just need some more structure for the future .... 

[Alternative]

I am not an expert, but usually I tell myself that if there is many people in, that can only be something good. So the more people in, the more I am sure about it. The way it is advertised here is also a good indicator. The more often I see the signature of a particular ICO, the best it is I generally assume.

[eternalgloom]

What's the reason people keep investing in ICOs anyway? Is it just quick money?

Do you think that a proper team with some good reputation builds enough trust so that people invest? I feel that this was the case at EOS

I think that in a lot of cases, it's just a form of gambling to be honest. People just see the results of succesful ICO's and they want to jump on the bandwagon.

Usually completely ignoring all the ones that have failed.

Sure, it's certainly possible to do enough research about an ICO to be reasonably sure that it has a good chance of succeeding, but it's still a gamble in the end.
You never know what might happen after it launches.

[Emoclaw]

Always do some research on the project and the developer team, make sure they are legit and that they haven't been involved in past scams.
After that only invest what you can afford to lose. You should also convince yourself that the project will succeed first.

[13abyknight]

If you intend on investing in an ICO, it would be great if you do an extensive research about the coin and its features and you will have an answer for yourself whether you feel like it will take off or not.

As a beginner it would seem hard because everything seems as sweet as chocolate but only some of them are actually chocolates while the rest are all dirt.

[dribel]

I think you're all right.

Being cautious, not too much spending, back checking of the team and the business as well as possible and trying to grasp the general mood for the upcoming ICO.

Thanks

[jayc89]

sometimes i get FOMO and dont do research at all.. sad truth but most people fall for HYPE 

The proper due diligence is really up to the investor. Investing in different things would make you a better investor -especially if you make money on mostly all of those trades.
Researching what the coin is about, how old it is, why it was built, where it was built & comparing it to similar coins will allow you to get a better insight on how to invest a little better. Not all investors are the same.