Invest Smartly in ICO: Essential Information You Need to Know before Investing in any ICOInitial Coin Offering or ICO is now the recent trend. With this, the increasing number of deceitful individuals is being attracted to it to gain benefit from this new instrument to rear more easy money. To avoid ending up as a victim of wobbly projects or frauds, here’s a checklist of the crucial things to consider that are proven to be helpful before you invest in an ICO.Know the People behind the ICO
Photo by PixabayIf you’re curious about something, the usual thing that you can do is to conduct an investigation. Before you deal with an ICO, one of the critical aspects to identify are the people who maneuver behind the ICO. How? Check the ICO’s website to see who the members are. It will seem legit if their professional profile is posted. But, it would be much better if you go to other available resources to gather further information. You can visit LinkedIn, Github, Twitter, Facebook or other pertinent sites where the stakeholders’ profile can be seen. In this way, you’ll have a better idea of their involvement and practice.Be Aware of the Purpose of the Token in the Project
Photo by PixabayThe Blockchain industry is a fresh innovation that’s essential to numerous businesses today and in the future. An ICO is, basically, being established by an organizer to create a new app, coin, and services. It acts as a fundraiser of varieties. Here, the investors agree to the offering through fiat currency or established digital tokens — for example, Ether. By sponsoring, stockholders gain a new cryptocurrency token explicit to the ICO.Take note: Legit ICOs use tokens that comply with the ERC-20 standard.Get Used to the Terms of the ICO
Photo by PixabayOnce the ICO has been launched, numerous things need justification. But, here are the critical questions that require answers:
- How will the ICO be completed?
- How many tokens does company wish to make?
- How will the token be sold?
Photo by PixabayIn line with the ICO’s consistency when it comes to presenting its roadmap, it’s essential for you to understand how the ICO will use the funds raised. Key questions that must be answered are the following:
- How will the company apply the funds raised at the ICO?
- What will be the dissemination of the use of the funds?
- Added messages to the recent commit
- Address which the crowdsale contract was deployed to — for example, 0xe477292f1b3268687a29376116b0ed27a9c76170.
Photo by GithubSee the List of AdvisorsIn the Blockchain industry, recognized and prominent individuals participate. Legit ICOs showcase them in their advisory boards. Be careful though as there are some ICOs that cite prominent individuals as part of the project, but in reality, not. That’s why your vigilance and thorough research are indispensable. There are genuine ICOs with reputable advisors. Their presence is a great plus in the credibility of the project. But, it should not be your only basis when looking for a good ICO.
Photo by PixabayKnow the Community across the Project
Photo by PixabayCommunity building for ICO marketing is essential. For an ICO to reach its goals, it requires support from others — the Blockchain community. They are the following:
- Small-scale stockholders
Photo by PixabayAnother option for you to check the reputation of the ICO is by visiting a specialized forum like Reddit and social networks. From these sources, you can gather essential general opinions. It’s an important project if it has reached a considerable number of exchanges. Not only that but, you also need to see if the leading exchanges have decided to deal with the token or not.Check the ICO’s Legitimacy
Photo by PixabayChecking the legitimacy of an ICO is a serious aspect that would challenge you. For an ICO to become sincere enough to users, the project must have legal specialists in the team to gain significance and credibility. Other ICOs are also incorporating external legal experts to strengthen the project’s objectives.Reminder: A legitimate ICO is transparent and authentic to its community. It provides comprehensive terms and conditions.Final Thoughts for YouIt’s essential for you to know the key points to look at before investing in an ICO so that you’ll not end up becoming a victim of a scam. Choose the right ICO for your business. To reach your business goals conveniently and securely, trust a world-class crypto exchange system — Bluebelt Asia. Founded by top experienced account and IT experts, it’s an ICO with a plethora of currency options that most successful investors prefer.