An ICO (Initial Coin Offering) is a fundraising method, where new projects sell their crypto tokens in exchange for Bitcoin or Ethereum. The funds raised through an ICO are used by businesses to cater their needs.
If you are looking to invest in an ICO project, it is important to know your options in the first place. An ICO alert can help you stay informed about existing and upcoming Initial Coin Offerings from across the globe. For the beginners, ICO investment guide can be useful to make the right investment decision. However, we also bring to you a list of a few important points worth considering prior to investing in an ICO project.
Team composition
Find out all that you can about the team, especially the advisory board and the development team. Google the names of the team members and check their LinkedIn profiles. Find out the popular names among the advisory board. See if the team has relevant crypto experience and which projects they were involved in. If it is a genuine ICO project, you are more likely to get some updates through the latest ICO alert.
Stage of the project
Assess the stage of the project. Find out if the project only has a whitepaper or if they have the Beta version ready, or if the project is launched with limited functionality. ICO investment guide says it is better to choose projects that have some lines of working code, however, many ICO projects have turned out to be successful without any code written.
Venture Capitals invest in projects from the very beginning. Find this information on the website’s homepage. You can consider investing in an ICO project if a renowned VC is involved in the project.
Why is the token required?
ICO means that a new dedicated token is created for the project. An important question that every project needs to answer is for what purpose is the token being created? Why cannot Bitcoin or Ethereum serve as the project’s token?
Token distribution
If a startup distributes more than 50% of its tokens, then there is something suspicious. A good project will stick to the roadmap that it has built because a certain amount of funding is required for each phase of the project.
Watch for a project’s token distribution stage. While you can get information about the number of tokens that a company will release on their website or whitepaper, the latest ICO alert can also update you on the same.
ICO will become a more preferred method of raising funds. There will be a plethora of projects to choose from, thus it becomes really important to evaluate these projects before investing.
You can subscribe for the latest ICO alert to stay informed about ICO projects, and also make sure to stay informed about the latest news on cryptocurrency market or the latest blockchain news so that you have adequate knowledge about the crypto world and you can make more informed investment decisions.
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