5 criteria for evaluating ICO investment for newbies


Investing in ICOs has always been considered a form of risky investment, containing a lot of risks. Because most ICO projects are startups, investing in startups requires a lot of micro and micro vision experience. So are there any opportunities for newcomers to invest in ICOs? In my opinion, yes, today I would like to introduce to everyone 5 elements to make the process of ICO evaluation easier. These factors will help you find good investments for the future.

5 criteria for evaluating ICO investment for newbies

1) Team

This is arguably the most important factor in evaluating an ICO. Investment funds often target the first human factor when investing in projects because ultimately the picture of the promising numbers that come true is dependent on the people who carry out the project. .

When evaluating an ICO project, it is necessary to consider the practical experience and skills of team members. We need to ask questions to see if members of this team can implement the project well.

  • What companies have they worked at?
  • What area of ​​experience do they have? How many years of experience?
  • What positions did you take?
  • Have they ever been a startup?

In addition to information such as "former Google employees" or "former Facebook employees", we should clearly understand where they work at these companies, what projects they have been undertaking, What have they accumulated during that career period.

On average, an ICO team will have 6-9 people. But we should aim for ICOs with a team of 20 or more because the more people I think the more certainty the project.

Besides, we also have to pay attention to the advisors (advisors, support) for the ICO project. Taking the example of Vietnam's Kyber Network project, this project was advisor by Vitalik Buterin (founder of Ethereum) and has raised $ 120 million in funding for a few days. If the project has good advisor, famous, experienced, it will contain less risk and higher probability of success.

Development team - Artwork

2) Partner

The project partner is also one of the extremely important factors that require investors to consider carefully when deciding to invest in an ICO project. Partner is an indicator that helps us assess whether this ICO project is really good.

Why is that ?

Most current ICO projects are solutions that help optimize operations in many different industries. If a large company uses the product of an ICO project, then surely, this project must go through many rounds of persuading this big company and have proven itself to become a partner of the company. this company. For example, Ripple is a solution that helps to optimize the cross-border money transfer of banks and Ripple has many partners who are big banks, we are small and new investors. how Ripple is superior, but the big banks seem like a sign of Ripple's superiority.

Investment partner - Artwork

Therefore, we should pay attention to the partners of the ICO project that we intend to invest in to evaluate the potential and prospects of the project.

3) Evidence and implementation plan

In the early days of the launch of the new ICO, investors were almost uninterested in the ideas of projects, and many even had no clear idea but still raised capital. work. The dotcom bubble of the late '90s was the same, as long as the Internet-related companies were put in, investors would pour money in, they wouldn't bother asking whether the idea was real, have the ability to succeed or not? As a result, we all know their money disappears when the bubble burst.

Therefore, to invest more wisely, we need to consider clearly the idea of ​​the project. Are these ideas practical and feasible? Examine carefully the evidence, the figures they give is true, studied or published by any agency? Are these agencies reputable? Do they anticipate possible scenarios in the future?

After that, you have to carefully consider the roadmap / plans to see how they will implement the project, how the order is reasonable and feasible? Do they have backup plans?


For example, a blockchain project capable of performing 3000 transactions per second is truly a groundbreaking innovation in 2018. But the future will require higher, maybe 1 million transactions per second, whether that Is our company investing in 2018 able to compete in the future?

4) Market potential: looking to the future

Cryptocurrencies in the top 10 currently prove that they are widely accepted by the market. However, over time the market welcome will change, the market will appear many other needs. And a potential ICO project will predict the future market needs or may create a new demand that will be well received by the market. Like Uber, it has knocked out traditional taxi companies to become a multi-billion dollar company.

5) Avoid scams: identify the signs of an ICO scam

Some signs to receive a scam ICO project

  • Inexperienced team
  • Guaranteed to investors about profitability / high profit promise
  • Lack of many details about the project
  • There is no clear roadmap
  • No mention of risks to investors

I hope the above 5 criteria will be helpful for everyone, especially those new to ICO investment. Wished everyone success !

See more: 3 years in the market, this is why I am always a "fuzzy" trader

According to Medium / Traderviet
Recompiled by Blogtienao.com

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