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Author Topic: Which are the main parameters to proper review an ICO?  (Read 173 times)
nuke_cat (OP)
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November 14, 2017, 12:13:11 PM
 #1

Hi everyone...this will be my first post, so I want to start with one of the main investing keys of last months, the ICOs!

After participating in different ICOs (more than 10), I have ended with really different outcomes. Therefore I have started to define some key points to review any ICO in order to have a clear picture of the project and a consistent answer based on "YES,definetly is a golden oportunity" or "NO,forget this one"

I would appreciate if you can review my method and give here your key points to evaluate any ICO. If you consider that something is not well evaluate, please I would enjoy your critical answer in order to better analyse the following ICOs (quantstamp, STK, WAX, oyster.,gladius...)

My main keys are:

1) Which is the output of the project?
2) Have the project any competitor or it is really innovative?
3) Is the product to be developed or it is curently delivered?
4) the project solve any real necessity?
5) Is the output a real product (tangible) or not?

The answers to this will determine if the medium and long term are proper for the project. If any answer is not good according to my point of view, the ICO can be considered as "NO,forget". If the answer are positive, we still have to work a little more to evaluate the short term of the project. The short term is as well important because if no momentum is created it can kill the project from the startes or you can end with some tokens whose value is overvaluated once the tradig of them has started.

6) Has the project enough hype to be successful in the sort term? check bitcointalk posts, google trends, reddit posts, telegram groups, slack.. and any other media that can give you some extra info.

7) Has the project undergone previous funding rounds? Try to evaluate the difference in the price of the tokens during the different rounds because if early inversors has been granted with higher discount than ICO round, maybe when the token starts to be traded, the price can dip even lower than ICO values.

8)How is the actual evolution of the crypto market? is it favourable to invest in altcoins (bull state) or it is not the best moment (bear state)?

9)Which is the total Capitalization of the ICO? This can gave us about the greedy of the team that develps the project. I am not saying that they do not deserve an economical benefit from the ICO, because at the end they are the ones will work to mooning your invest! So the thing is try to know which will be the total capitalization of the tokens during their funding rounds.

So, If market cap is low and previous answers are favourable to invest, do not doubt it! It can be a good multiplier of your invest.  Grin


Considering that if any important key is not well evaluated or missed...the ICO can end in a huge loss of money or invest in a token overpriced in ICO when compared to its first trading prices.

Have good luck with your investments everyone!
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nuke_cat (OP)
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November 14, 2017, 04:34:45 PM
 #2

up?
DIMKAZDS
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November 14, 2017, 04:49:56 PM
 #3

Hi everyone...this will be my first post, so I want to start with one of the main investing keys of last months, the ICOs!

After participating in different ICOs (more than 10), I have ended with really different outcomes. Therefore I have started to define some key points to review any ICO in order to have a clear picture of the project and a consistent answer based on "YES,definetly is a golden oportunity" or "NO,forget this one"

I would appreciate if you can review my method and give here your key points to evaluate any ICO. If you consider that something is not well evaluate, please I would enjoy your critical answer in order to better analyse the following ICOs (quantstamp, STK, WAX, oyster.,gladius...)

My main keys are:

1) Which is the output of the project?
2) Have the project any competitor or it is really innovative?
3) Is the product to be developed or it is curently delivered?
4) the project solve any real necessity?
5) Is the output a real product (tangible) or not?

The answers to this will determine if the medium and long term are proper for the project. If any answer is not good according to my point of view, the ICO can be considered as "NO,forget". If the answer are positive, we still have to work a little more to evaluate the short term of the project. The short term is as well important because if no momentum is created it can kill the project from the startes or you can end with some tokens whose value is overvaluated once the tradig of them has started.

6) Has the project enough hype to be successful in the sort term? check bitcointalk posts, google trends, reddit posts, telegram groups, slack.. and any other media that can give you some extra info.

7) Has the project undergone previous funding rounds? Try to evaluate the difference in the price of the tokens during the different rounds because if early inversors has been granted with higher discount than ICO round, maybe when the token starts to be traded, the price can dip even lower than ICO values.

8)How is the actual evolution of the crypto market? is it favourable to invest in altcoins (bull state) or it is not the best moment (bear state)?

9)Which is the total Capitalization of the ICO? This can gave us about the greedy of the team that develps the project. I am not saying that they do not deserve an economical benefit from the ICO, because at the end they are the ones will work to mooning your invest! So the thing is try to know which will be the total capitalization of the tokens during their funding rounds.

So, If market cap is low and previous answers are favourable to invest, do not doubt it! It can be a good multiplier of your invest.  Grin


Considering that if any important key is not well evaluated or missed...the ICO can end in a huge loss of money or invest in a token overpriced in ICO when compared to its first trading prices.

Have good luck with your investments everyone!
The main factors which you should look out for are :-
1. Team - a strong team is the backbone of a good project and it aids in faster growth of the project.
2. Idea - it is the most important thing to look out for. A project based upon a unique idea has a higher chance to grow.
3. Popularity - popular projects are really stable in the long run.
Ertetert
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November 14, 2017, 04:57:03 PM
 #4

Looks overly complicated.

1) Does this project solve any existing problem?
2) Is it good at it?
3) Can the project team properly inform their target audience that they can solve their problem?

That's about it.
sultanali
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March 17, 2018, 10:27:42 PM
 #5

There is always a section in the white paper that says a thing or two about the advisors of the firm, and how many shares are they getting, You have to see the names of these advisors and their own specific history, you also have to see how much these advisors are asking for the total investment received. If they are getting more then 20% then it's better to select some other ICO because if ICO is keeping more coin than they share this means they will sell more in the future and because of that coin price will go more down.
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March 19, 2018, 08:02:23 AM
 #6

What it is already mentioned is true and right. I won't repeat them again but I'll add something I find equally important. Read carefully the White Book. How is it written? Is it inspiring? Or do you read again and again the same phrases? Is there the purpose of the project written and explained or you read 'generally written' words? A good team who has a good project can write a good White Book in the proper language.
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March 19, 2018, 08:06:13 AM
 #7

Very informative specially for those like me whom are new in this field.
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March 19, 2018, 08:30:48 AM
 #8

1. The project must meet the real challenges faced by millions of users. The market for this product, the segment, the main competitive, price and other advantages should be understandable. For example, a convenient crypto-jar, file storage, information registry, and not use a contrived binding to the block to monetize the wave of interest in the new technology.

2. White Paper. Be sure to read White Paper. From this document you should understand the essence of the project, from the general idea to technical details. Well, when a clear business plan is presented with real goals, objectives, target audience, the main markets for which the product is targeted and the stages of financing. A bad sign is the abundance of "water", masking the absence of meaning, vague wording and abuse of terminology.

3. Venture capital participation is a good sign. The investment of venture funds in the ICO project at the "presale" stage is an important signal for the market that the project has been expertly evaluated. In this case, the fees during the "seed stage" should be at least $ 1 million.

4. The team is the basis of success. The prospective ICO team should include domain experts, preferably with a successful history of commercial or technical projects.

5. Presence of an operating prototype or MVP. MVP (Minimum Viable Product) is a minimally viable product. It can be an application, a demo version on the project site or a prototype posted on Github and other authoritative resources and critically analyzed by the crypto community.
wanderloy
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March 24, 2018, 06:13:10 PM
 #9

there are so much ways on criticizing ICOs and how well their performances and their potential to have success in the future.
some said they study through their websites, road maps, dev and other teams like marketing, advisors etc.
I don't really prefer those criticizing because fake nad scam ICOs could even make better websites than any good ICOs today.
for me, I usually bump on their social communities like Telegram Channels because I do believe that good ICOs have good social networks and communities.

wanderloy
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March 24, 2018, 06:17:28 PM
 #10

Looks overly complicated.

1) Does this project solve any existing problem?
2) Is it good at it?
3) Can the project team properly inform their target audience that they can solve their problem?

That's about it.

ICOs today are brining new flavor of new projects long with this coin but most of the ICOs have no working and functional products that's why they struggle on pursuing more investors to support their projects.
more ICOs aren't backed by companies and corporations so they require investments to support their projects into reality that's the main issue of the ICOs today.
but, the main point that I am going to check whether that ICO is a good one of a fake one, I only bump on their social network communities like Telegram Channels because good ICOs have so many admins and active members on their channel discussing related or non related to the ico, otherwise I find something else.

Aleksandr_ov
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March 24, 2018, 08:30:18 PM
 #11

for me the team is important, the direction of the sphere of development, the development plan, the team, the advisors!
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March 30, 2018, 06:33:50 PM
 #12

i think it is news about that project
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