ICO News – Things to check before you invest in an ico
October 16, 2017 12:16 pm
ICO News – Initial Coin Offerings is a process of selling tokens for a new cryptocurrency project to investors. This process is similar for tokens as IPO is kept for shares. Every ICO process is different and being performed for different ideas and projects. That’s why it is highly recommended to investigate appropriately before participating and investing in an ICO. Some of the things to check before you spend in an ICO:
Is it a whole new concept or copied?
If you’re planning to invest, in an ICO, then you should know if the project is about to launch anything fresh or exciting. While evaluating new cryptos, find out how the coin is made to differentiate itself from everything else that is already available.
Is this project able to solve an already existing problem within an industry that hasn’t introduced by any other cryptocurrency till now? For example, Rilcoin is building a platform that would support the technology backing fiat currency through smart contracts.
Is the cryptocurrency improving on an old problem within the digital world? There I nothing wrong with an incremental, but it has to solve some fundamental problem. Just get confirmed that the cryptocurrency to be launched isn’t copying an already existing currency.
What is the detailed plan for the project?
It’s necessary to go through the whitepaper and detailed manual about the project to know every minor information. The whitepaper is a manual that includes all of the core information one needs to know about the project. Check if the developers are clearly addressing the concerns rather than avoiding them in the paper. The more information available, the higher the clarity, and the more transparent a company is about their technology, more favourable it is going to be for the investor.
What about dominion?
Founders, as well as the development team, will save a percentage of the coins for themselves. That’s a positive thing. You should favour the proposal of owners to make money form the project the same way you will to. The reserved coins need to indicate a reasonable amount of value relative to the work that has already done and is being supportive towards the future requirements.
Is the liquidity delayed?
Skip the thought to get into an ICO in which the founders immediately turn around and liquidate their free coins’ stock after the completion of ICO. Even if you can bet that they are trust-worthy people with whom you want to deal with. It clearly means that theoretically, the company intends to sell all of its tokens and initiate the same project with their new sponsors who’re free of any crypto-term that pressurises them to share future earnings. Search for the ICOs where founders also issue their coins over time.
Don’t be late
After analysing, if you have decided to invest anyway. Don’t be late. Many ICOs avail early-birds with great offers and deals. Most of the time, you receive more coins for your investment.