ICO investment assessment of the top ten elements


nnnJudging: Tezos’s ICO financing creates $ 232 million in records, but there are also Mycelium’s ICO team members disappearing, CoinDash’s ICO was stolen seven million dollars. At present, there are more and more ICO projects, especially the increase in the number of stimulus projects after the release of the ERC-20. Accurate assessment and screening of so many projects is the key to proper investment and return.n
nnTranslation: Annie_Xun
nICO is a way of financing, with the upcoming issue of encrypted tokens with real-time mobile value of the encrypted currency. Usually a certain percentage of the token to sell to the ICO participants, a certain percentage of the company for the backup (private investors, etc., the specific terms of the ICO project varies). ICO allows large and small investors to invest in their favorite projects. In recent years, thousands of successful ICO. Project Motivation It is clear that the motivation for ICO investors is that the tokens rise above the ICO price.n
nLess than a month, Tezos ICO financing to create a record of $ 232 million, many factors affect the ICO success rate, can predict whether investors can bring benefits.n
nMycelium’s ICO should be mentioned here that is not so successful. The team members disappeared after financing and then reported that the investment was used as their travel expenses. Regulatory not in place may be one of the reasons. Seven days ago, CoinDash’s ICO was stolen seven million dollars. Before the tokens were sold, the project site was attacked and the ICO wallet address was modified to the hacker’s address.n
nThis article will explore the key factors that must be considered when assessing ICO investments.n
n* Warning: ICO is a high-risk financing, investment does not exceed their ability to remember the lack of supervision, the accident will not be able to recover the funds.n
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n1, team compositionn
nUnderstand all the team, especially the development team and the advisory committee. Search for each team member’s relevant experience, name, collar history. Understand the advisory committee of the celebrities. To see if the team has the experience of encrypting money, and more importantly, what projects they have participated in, ICO, and the role in them.n
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n2, Bitcointalk.Org on the same subject informationn
nThe statement of similar items on BitcoinTalk.org is a good starting point because Bitcointalk is the largest bit currency and encrypted currency forum. It is highly recommended to read the information carefully. Which will answer the investor questions, not necessarily be able to get answers. If the developer avoids the problem or does not cooperate, then it is bad signs. It is also a good idea to send a private message to the developer and see what they are responding to.n
nBitcointalk Each message contains the sender’s ranking and activity level (the number of messages sent in the past). Pay attention to novice and low ranking publishers. The reputation is so important.n
nNote that publishers are not experienced comments, as well as negative news, and sometimes may be warning. Use the full selection of all the same subject comments, through the CTRL F button (Windows) search “fraud”, “MLM” and other high-priority words. Observe the relationship between search results, and the number of reply messages, such as the following practical cases:n
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n3, the project phase staging and venture capitaln
nWhat stage is the assessment project and is it only a white paper? Only beta version? Has the product limited functionality been released? Choose to have some viable code of the project, but many ICO proved that no code can be successful.n
nVenture capital is biased towards investing and supporting projects at an early stage. The project website home page usually shows this information if the well-known encrypted currency venture capital is involved, it is likely to be considered items such as Blockchain Capital or distributed.n
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n4, community and median
nWhat is important is the open support community, such as the Slack channel for all investors. Publicity is just as important as Github’s way of getting trust. Try to determine the community’s atmosphere, community size and activity.n
nReddit, Twitter, Facebook and other related channels can also be used to assess the project. Pay attention to reward posts, often see the user to publish the project praise, increase the media attention, and then get the reward. These incentives can stimulate the project speculation, but not objective. In addition, some investors only to participate in the tokens.n
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n5, they need to use the token, block chain is necessary?n
nICO means developing new dedicated tokens for the project. One of the most important questions that each item must answer is the use of tokens. Why do not you use Bitcoin or Taitong directly as a project token? Yes, many projects are just making a scam. But ICO without special token is not ICO. The use of block chain technology behind the project should also be understood.n
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n6, no limit or limitn
nEncrypted currency ICO early, the difference between these two differences is not as good as today’s ICO. There is no limit to investors to arbitrarily send money to ICO wallet, the more the circulation of tokens, tokens in the follow-up transactions in the less unique.n
nICO became the mainstream of encrypted money, accumulated a lot of money. Such as Bancor three hours to raise 150 million US dollars, but did not give investors any return, so do not limit the ICO to remember this case.n
nIn addition, you do not become the only investor in the project. Smaller projects do not attract exchanges, it is more difficult to sell.n
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n7, tokens distribution time and moden
nThe amount of tokens assigned by the team members is more telling about their greed, such as a 50% token. Good project tokens are associated with the road map because the project requires a certain amount of funds for each stage or milestone.n
nThe token allocation stage needs attention. Some projects issue tokens several hours after ICO. If you look at the increase in ether coins (ICO and tokens are about 500% of the year), Augur (more than 1500% a year), Decent (350% in eight months), sometimes created Positive item speculation.n
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n8, white paper assessmentn
nMost typical investors do not read the white paper, even if they contain the necessary information for new projects and ICOs.n
nDo not hesitate to read it immediately. At least know most of the content. Pay attention to strengths and weaknesses, add some of their own research. Finally, the white paper is the potential investor SilverPlatter, reading can answer a simple question, the project can give the world what value? You can also know the object of their investment.n
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n9, code quality, refer to Githhub.n
nIf you have some programming experience, you can use it here. The quality of the developer can be determined by their code analysis. As a non-technical staff, or can be assessed by coherence of code. Another good indicator is to use the appropriate annotations. Avoid the mess of developers, a code can reflect the developer’s attitude.n
nThen another indicator is the length of the function. Function lines longer than 50 lines should be noted. Modularity is important, making the code easier to read and easy to maintain.n
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nEncrypted currency items tend to open source code. So that the project community mutual trust, to encourage community developers to provide advice and improve. The open source project provides the opportunity to view the submission log. Submission is a developer slang that draws a piece of code into the Github codebase. You can see each submission by clicking on the “366 commits” text. You can investigate each change. This “insider” gives you an overview of the overall development activities and shows the number of daily submissions in graphical form. Under the chart, you can see the activities of each developer, which is important information about the development team.n
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nYou can even know the popularity of the project by getting the number of stars.n
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nTip: Think about yourself, why the project chooses a block chain. Is it a bitmap or an ethercombian smart contract, or what is the Waves or any other block. In recent months, there has been an increase in the number of ICOs based on the ERC-20, which can be easily stored in the etherbox (such as MEW, Myetherwallet), and sometimes they do not require a transaction, but are usually very liquid.n
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n10, the bottom linen
nICO will increasingly become the mainstream of financing, and there will be more options available, so it is more difficult to evaluate these projects.n
nIt is important to investigate and read as much information as possible before deciding on the investment and document important content.n

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