How to Choose an ICO: A Small but Powerful Guide by Gamblica
Good day, dear followers!
In today’s article, we are going to share some really useful tips on how to choose a profitable and trustworthy ICO to participate in. To brew this ICO-investor-empowering potion, we’ve put in the cauldron the accumulated knowledge and experience of the entire Gamblica team. After reading this, you will be able to tell a good investment opportunity from an ICO scam. Let’s get started, shall we?
To begin with, the crucial thing to check before investing in any ICO is the TOKEN’S CHARACTERISTICS. Take a thorough look at the token distribution: how many tokens go to investors and how many tokens are kept for the team. A high token distribution to the team members, say, 50% of tokens, is suspicious. The token’s model is another consideration. A utility token is used in the project’s ecosystem (profit!) and is not considered an asset. And you don’t want the Securities and Exchange Commission come chasing after you, do you?
What else is important? THE MAIN BUSINESS IDEA! It has to be economically feasible, logical, and attractive. To achieve their goals, the team should clearly define what would be done during each stage of the project. An adequate and logical roadmap is crucial because investors want to know the plans and vision of the company before funding their project.
The idea is not enough. Developing an MVP is important because it validates that the team is working on the product and not going to skip town right after raising some money. A strong track record of PREVIOUS PROJECTS would also be very nice.
Understanding who is on THE TEAM behind an ICO project is perhaps one of the most important steps in your due diligence. Why so? Half of the project’s success depends on the team. Hard-working and dedicated team members do their best to deliver the best product possible. It’s great to know that the project’s founders are well-educated and are capable of running a business you’ve chosen to invest in. Another thing worth paying attention to is the team’s openness and publicity. Scammers love using fake identities — make sure the team is open, and you can easily reach them through social media. These small things create TRUST between investors and the team.
We know it’s not the funniest part, but do check the project’s WHITEPAPER. Read it from cover to cover. That’s actually the thing that would normally consist of all the points mentioned above: use its Contents page as your checklist.
Finally, don’t forget about YOURSELF. Take the time and do some research on the market. Be safe in this turbulent initial coin offering space!
