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8 keys for evaluating Initial Coin Offering (ICO) investments


Mar 21, 2018 Posted /  2939 Views


8 keys for evaluating Initial Coin Offering (ICO) investments

An ICO is a fundraising method in which investors are made to trade future or what can be upcoming coins for cryptocurrencies that have high volatility and liquid value. Generally, a small percentage of the token is sold to ICO participants and rest is kept for the sake of the company. The catch behind this investment is that the price of token would be higher than the token’s price during ICO.

ICO is a real chance for investors to score big. Two success stories include stories of Hdac and Filecoin which collected 258 million USD and 275 million USD respectively.

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There are some failure stories too. Mycelium ICO team members disappeared after fundraising to use the funds for their own vacation. CoinDash’s ICo lost 7 million USD because the hackers change the receiving wallet address to different one. The lack of regulations and security might have crept in.

Following key points must be kept in mind when investing in ICOs.

Team Composition

Find out everything about the team members. Look at their experiences. The easiest way is to google their name and see if they worthy enough to be trusted. Look at their experiences and illegal history(if any).

Use of crypto-forums

To start looking for an ICO first look in a thread in forums like bitcointalk.org because there exist more enthusiast people than you. There you can find everything about the company and if they are legit or not. Look for negative messages first then experts messages.

Social sites and Media

Sources like FB, Quora, Reddit can be very useful for evaluation of the project. Also, you get to know the support community. Look for the size o the community and its activity.

The need for a new token?

One of the most important questions is that why they need a new token for? Why ether or bitcoin is not fulfilling their demands?

Check if its Unlimited/Hard Cap?

Being hard cap is necessary because if its soft cap then investors can send unlimited funding to the projects ICO wallet. This results in more coins circulating and thus your coin value demand decreases.

Token Distribution

You can easily check if greed exists or not. If the token distribution is high, say more than 50 % then the token is suspicious. Because each step in the project requires a certain amount of funding.

Evaluating the guide(Whitepaper)

Whitepaper consisted of all the information you require about the upcoming project and the ICO. Justy read it thoroughly once to get the main idea and grasp the gist of the projects, the positive and the negative.

Check them on GITHUB

A programmer’s attitude can be identified by how the codes. You can check for program consistency on the GitHub profile of developer to get the confidence on the ICO.


Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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