Invest Smartly in ICO: Essential Information You Need to Know before Investing in any ICO

2019/05/03

Initial 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

 

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If 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

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The 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

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Once 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?

Take note: If you don’t prefer unpleasant surprises in the end, make sure that the ICO that you would want to get into exudes transparency to the community.

Analyze the ICO’s Roadmap

In every business, creating a roadmap or outline is a critical part of the company to meet its objectives and priorities strategically. This is how you can facilitate your business growth. A business plan exudes the transparency of the project and the significance of the work. So, to be sure of that you’ll gain something from an “Initial Coin Offering,” make sure to analyze its achievements and future goals. An ICO that lacks detailed roadmap is a sign of a weak strategic vision —representation of a potential scam. Legit ICOs, typically, present their roadmap on their site. Take time to review it. In this way, you can track the progress of the ICO’s initiatives. If the information is detailed, you’ll have peace of mind that the ICO has credibility.

Know How the ICO will Use the Funded Money

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In 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?

The bottom line: Getting answers from these questions will give you an idea where your money will go.

Check the Code

Assessing the strength of the code behind an ICO can be very challenging, especially if you’re don’t have access to it, and adept in programming. What you can do is to look at the white paper or groundwork issued by the project team of the ICO. The paper shows the technical foundation of the project.

Another technique that wise investors do is to search for available other resources. Google can be your gateway to see the details. For example, when you type “HEROcoin Github” on Google search box, you’ll be presented with search results, and one of them would be “Repository for the HEROcoin ICO.” When you open the link, you’ll have the chance to see some of the available essential information like:

  • Added messages to the recent commit
  • Address which the crowdsale contract was deployed to — for example, 0xe477292f1b3268687a29376116b0ed27a9c76170.

Then, they utilize https://etherscan.io to see the details by entering the address, token, txt, and others on the search box. It’s vital to see the “Contract Source” for you to have a glimpse of the deployed and verified code for transparency.

For example:

Photo by Github

See the List of Advisors

In 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.

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Know the Community across the Project

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Community 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
  • Developers
  • Supporters

The success of an ICO relies on how strong and active the community is in the project. You as an investor, if you want to know more about the ICO, it would be wiser to check the feedback about the project. Active ICOs make use of the community to gather information linked to structural and technological issues of their ICO. They should always have available skilled developers so that when a problem arises, it can be resolved immediately and enhancements can be made when needed.

Check the ICO’s Reputation

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Another 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

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Checking 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 You

It’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.

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