You’re Guide to Evaluating a Good Initial Coin Offering
If you heard about ICOs (Initial Coin Offering), it is high time that you dive deeper. You only know ICO as a project offering investors several units of new cryptocurrency or tokens in exchange for Bitcoin or Ethereum. ICO is basically a presale idea that involves coins or token of a blockchain project.
The blockchain technology is an instrument utilized to raise funds for the development of new applications. The pre-created token is easily sold and traded on all the cryptocurrency exchanges if there is a demand. Many experts see ICO as a tool that can transform not just the currency but also the entire financial system. If you are interested, it is important that you are updated when it comes to ICO calendar.
How can you know if the ICO is good? Here’s a guide to evaluate if the ICO is worth your time and money:
Check if they have a good page setup
it is important for an ICO to have a good page setup because that is how they will represent the project or the company. You should look for a solid and structured page. Anything mediocre without any videos or images means that the developer put little to no effort into the marketing of the coin or token. This can tell you a lot about the project.
There are some investors who think that putting flashy images mean that the developers are only looking for profits and it is more likely a scam. The reality is if you see poor page setup, it is a red flag. Remember that the more work they put into the page, the more it can perform.
Get to know the developers
The name and images of the developers should be transparent. If the developers are hidden, it is more likely a scam. When you finally see the team, you should at least recognize one as a sign of credibility and reliability. It is a good sign if you see experienced members who previously generated successful projects.
Determine if the coin has a long-term use
One way to evaluate the coin or token is through its long-term value. The project should not release a coin just for the sake of releasing it. It should have a market value to give you profit in the long run.
Recognize the current market capitalization
Market capitalization is crucial but often overlooked. When you are investing in any asset, it is crucial that you recognize the current market capitalization especially if you are looking to produce a long-term increase in use for a particular market. As an investor, you need to ensure that you are entering at the best price. To do this, you have to consider underpriced and undercapitalized. If the market capitalization is above the actual use, it often leads to strong price drop to stabilize its intrinsic value.
Additionally, you can look for forums that discuss a particular token or coin. The reviews are very important so you will know things about it. Investing in ICO can be very profitable – only if you identified the right one. Remember that picking a bad coin or token can lead to complete loss of investment.