Since July 2009, I’ve worked with many blockchain projects and so far advised 10 ICOs in 2017. During the entire period, the most frequently asked question I have is how do you find the best cryptocurrency ICO to invest.
My ICO picks had an average of 5,600% ROI in 2017. While I’ve lost 40% of my initial investment with 2 of my ICOs. So, there is a possibility of making 56x profit as well as making a loss. Just like every investment, ICO investment carries high risk.
So, as a part of this post, I’ll be explaining “what is an ICO?” and share my primary 4 points on “how to identify the best cryptocurrency ICO to invest in“. Let’s get started.
What is an ICO?
Initial coin offering (ICO) simply put is a crowdfunding method for startups via the use cryptocurrency.
So, when you invest in an ICO, you play the role of seed investor in a way. It is a methodology to raise funds without going through the VC bureaucracy.
Once a team decides to go for an ICO, they set up a website, publish their whitepaper, and choose the language they would have their smart contracts in (if the project is really blockchain based) and start ICO marketing. While this all sound straight forward, I must warn there are recently more fraud ICOs than reliable ones. So, the question is how do you distinguish a reliable ICO from SCAM iCO?
Chosing the best cryptocurrency ICO to invest in?
While looking for a reliable ICO to invest in, I look into 4 main requirements. These 4 main requirements identify whether or not my ICO selection is worth my time and money. In a way I see it as a starting point for my ICO investment qualification. You can see these points as your simple ICO investment guide.
- Idea / Whitepaper
4 points to find the best ICO to invest
So, let’s break these points down.
Reliable ICO team: ICOs predominantly focus on technological breakthroughs, innovations. Thus, it is essential for me to make sure that my ICO selection has a strong list of blockchain experts, developers, experienced directors and reliable key ICO advisors. No matter how strong the project idea is, no ICO is a good ICO to invest if they don’t have a strong team.
ICO plan is always reflected in the whitepaper. You need to read the whitepaper more than once. Specifically focus on the process on how the funds raised will be used for product development. Within the very same category, I am looking for fake blockchain wording. Does this given ICO really plan to utilize blockchain technology or they just use the word to appear fancy?
How scalable is the new ICO token? You will hear two new keywords on this sphere:
In short you need to understand if the token will have economics in its usage. If the token you are buying has no application, you better just stay away.
Finally, you need to have a strong ICO community that confirms the need as well as demand for this project. No matter how great your project is, if there is no demand for your ICO project, your investment might end up with a failure.
These are your starting points to identify a reliable ICO to invest in.
My ICO watch list
We have just last week finished with my October ICO pick, Genesis Vision. We made 262% profit with that ICO.
Also, check out the newest ICOs, STOs or IEOs on cryptocurrency ICO list. CryptoTotem platform has a database of more than 5500+ crypto projects.