What to Look For in an ICO?
ICO launches are a new phenomenon in modern times. Just like with new startups, new products and ideas launching on sites like Kickstarter, new ICO’s are launching weekly. Some claim unbeatable returns using revolutionary technology, but is every project worth your attention?
There are ton’s of experts, website and reviewers looking into these projects, but at its core, there is just a few main things that should be high on your radar when looking to invest.
Here’s are a few key items on what should be in a strong ICO.
The Whitepaper
An ICO whitepaper is a documentation of what the ICO’s architecture, mission and the processes towards achieving it, the technology overview and other aspects of the business. In as much as the whitepaper should impress the reader and show a pathway to success, it at its core needs to be realistic, honest and lay out the pro’s and con’s of the business plan.
What is the problem being solved and how realistic is the solution?
Just like any other business, the ICO Company must have identified a need or an opportunity in the market. Not every token sale solves real world problems with obtainable markets like the one offered by companies such as Horizon Communications. For instance, Horizon Communications have identified the need to have fast and reliable internet and cell phone service throughout the world, which is currently not the case. Be wary, you do not need to be an expert in the field, but you should know enough to detect something maybe amiss.
The project should provide a detailed plan on how they plan to meet this need. An outline on how they intend to deal with issues that might arise once they roll out their solution should be included on the whitepaper. Horizon Communications have identified the problem that is lack of high-speed internet and where it is available, it is costly. Along these lines, they intend to set-up infrastructure and provide Next Generation data services.
The team matters… Alot
No matter how great an idea a company has, the team is vital, perhaps the most important part of the company itself. Has this idea generated enough interest to bring on quality people? If the team is light on manpower, that speaks to the actual chance of success of the project and faith in experts to get it done. Do they have experience in this particular industry? Many people have great ideas and while we should not discredit newcomers to a field, it helps to bring experience to quickly navigate past pitfalls. Have they proven their ability to execute? As a student of startups as I build Horizon, one common theme among those both as Founders and Investors is they need an ability to power through the up’s (and most importantly the downs).
The ICO’s location
Nearly 1/3rd of ICOs fail to include their location on the white paper. Knowing where the ICO is located is pertinent to the investor as they will know what rules govern that particular region. Besides, investors are on the lookout for rules that will protect them in case of ICO delays or even fraudulent activities. A legitimate ICO whitepaper, like Horizon Communications’, should detail the company’s exact location and have a list of their top management. Horizon is set to be headquartered in Bermuda, launch its initial markets there and in BVI and has a road map to expand to multiple countries in a few years.
Token description
A whitepaper should also outline how an investor can sell, buy or transfer tokens. Tokens as well as how they can be used should also be described. A whitepaper should also indicate whether the ICOs founders will have reserve coins and outline the ways through which they can liquidate them. Transparency is important. Knowing how many tokens are being reserved and for how long will show if the company has long term faith in the success of its offering and services.
Gilbert A Darrell is the Founder of Horizon. He has 18 years experience in information technology and telecom solutions, a veteran in Fire and EMS Services, a crypto enthusiast and a member of the Bermuda Government’s Cryptocurrency Task Force.
Horizon Communications is an upcoming fixed wireless internet and cellular service provider looking to provide services in Bermuda, the Caribbean, and Central America before expanding internationally.
While utilizing 4th generation and soon 5th generation wireless technology, it will also heavily incorporate blockchain and cryptocurrency technology, one of the 1st ISP’s in the world to do so and the 1st to tokenize their services using an Initial Coin Offering (ICO).
More information can be found on their website —
www.HorizonComm.co
