What is ICO?
The traditional way to attract large capital is to conduct an IPO (Initial Public Offering) - an initial public offering of shares. The company through the exchange sells its securities, thereby earning a profit, often far exceeding its annual income. But the IPO is a fairly elitist form of raising funds. The procedure for preparing shares costs the company a round sum and requires a large amount of time, up to a year. And for investors there is also a high entry threshold. Thus, only large companies can enter the IPO, and only large sponsors are able to purchase their shares.
So, which ICO should you invest in? In order to select the right one from a variety of projects on the market, the investor should answer the key question: "Why will a specific token grow in price, and what is the potential for growth?"
Now we have prepared the most complete Calendar ico on the Internet and the ICO list so that you do not miss the dream project. The calendar is updated daily. It is unlikely that traditional financial assessment tools will help in this situation, and there are a number of reasons for this.
How, in this case, in practice to assess the potential growth of the token in the price? Analysis will help here. The project is divided into certain key points, each of which is evaluated separately. This helps to identify the strengths and weaknesses of the company, the potential for development and its possible weaknesses.
Parameters that should be considered during the analysis of the project:
1. The market, which largely determines the scale and potential development of the project. The ideal situation is as follows:
A market with great development potential, which already has a sufficient volume, or a unique market.
Low level of competition or lack thereof.
It is projected that the project will take a significant share in the market.
2. Product. The value and potential of the idea itself can only be assessed subjectively. The properties of the ideal product (at the time of ICO):
A unique idea, the correct use of the block, open source.
Solution of the current market problem.
The technical component is correctly described in whitepaper.
The market is ready for the product now or will be ready within a couple of years.
The problems of other block projects do not affect the performance of the product.
Community speaks positively about the product, sees value in it.
3. The role of the token. An important point for any investor that directly affects profitability. Now it is difficult to single out the best model of the token, but you can describe the necessary properties:
Has a functional application within the network, which in turn can not work without a token.
Along with the development of the project, there is a growing demand for tokens among network members.
4. Current achievements. They will help to understand which team's main goal is to launch a particular product or earn money on the ICO, and whether the team can work without major financing. Significant achievements before the ICO reduce the risks for the investor. Examples of such achievements:
The alpha version of the product is publicly available;
Speeches at conferences;
5. Road map. Information from the roadmap will tell the investor when to expect activity in the market. It is the achievement of key stages that usually leads to a significant increase in the price of the token. An ideal road map contains a detailed description of the stages of development with a financial component. In this case, the team understands well how it will move towards the goal.
6. The team. For many investors this factor is the main indicator of the further success of the project. A good team can in the extreme case change the product or come up with a new one, and a bad one can fail even with the best idea. The ideal team at the ICO stage includes:
People with experience or expertise in the selected market (it is difficult to make a product for lawyers without the participation of lawyers).
People who will take over business processes (operations, finance, scaling).
CEO with managerial and entrepreneurial experience.
Advisory board, which complements the team on the above points.
7. Terms of the ICO. Here you need to pay attention to 3 components: the boundaries of the ICO, the conditions for conducting, the distribution of tokens. The correct format is not, depending on the particular krauseyla conditions can vary significantly. Positive moments for each of the components:
The minimum and maximum amounts that a project can collect are consistent with its scale. This means that if the project does not collect the minimum amount, then all funds will be returned to investors, and in case of full success it will not receive "extra" money. A big plus if the team can justify the boundaries of the ICO, and not just indicate the direction of distribution of the collected funds. Even better, if the funds are issued in installments, as far as the achievement of certain stages.
The conditions of holding prevent the concentration of tokens in the hands of the largest players (whales).
The distribution of tokens is specifically justified by the team, the creators are leaving a small percentage (15-20%). The team will not be able to sell the tokens for a long period of time.
After studying the project, it is worth considering the investment strategy. There are two main ways: to sell tokens immediately after entering the stock exchanges or store them in anticipation of future development of the company and a multiple growth of the token. Both strategies will work if during the analysis the investor realized that the ICO is worthwhile, and the project has great potential.