What to consider when planning to invest in an ICO
When you are planning to invest in an ICO there are quite a few uncertainties and difficulties. For example, which ICO to choose and to decide which one is worth an invest. We want to help you with your decision making and protect you against bad investments. This article will guide you how to check some basic information to invest more profitable and safe.
Check out the company!
First of all you should try to collect as much information as possible about the company. In my opinion the most important question is: Is the company already incorporated/registered? What kind of incorporation (Ltd. In UK, GmbH in Germany etc.) did the company choose and in which country is this company incorporated? Sounds like a lot of research work but shouldn’t be. If it’s a legit company, they will provide this information on their website and won’t try to hide it.
Furthermore t is important to know whether the company already has a working business model and if the company has been founded recently. Already operating business is less risky since the team has experience and they have proven themselves.
Attention if there is no existing business or a real business model!
Read the Whitepaper!
Read the whitepaper carefully, since the whitepaper is the core information source for most ICOs. The whitepaper should provide insights into all relevant information about the project and it should be well written and designed. Short and bad written whitepapers are kind of fishy. A good whitepaper should cover all information — Roadmap, Team, Competition, Tokenomics, Blockchain-Use-Case etc. — It’s always easier to just read the lightpaper but if you are seriously considering investing a large amount, you should definitely take your time and read the whole whitepaper.
Check the Team!
Take a look at the core team and the advisors. The team should have experience in the respective branch of industry and should consist of some well-known names. LinkedIn is a good source to check the background of the team. No LinkedIn-profiles are usually a red flag.
Is there a timeline/roadmap for the ICO Project?
There should always be a timeline or a roadmap for the ICO project. The roadmap demonstrates what the company has already achieved and what they are planning to achieve. An ambitious roadmap is important but the history of the company is as important as future plans. When was the company founded, what has the team achieved so far, which awards have they won…
Check expert-ratings!
There are several possibilities to check expert and listing rating for the project. I recommend to check the project on icobench.com and to get an overview about everything. A project should have at least 5–10 ratings from expert. This way you know that the project has created some hype in the community. Of course there are far more sites where you can read ratings about ICOs. A good ICO is listed on several rating sites.
A few examples: icobench.com, icoranker.com, icomarks.com, foundico.com, wiserico.com, trackico.io
Are there partnerships with other Companies or planned fairs?
Quite important for your investment are partnerships. Cooperations and Partnerships with other large, well known and renowned companies are a good sign that there is a solid business model behind the ICO project.
Another good indicator for the team and the project is their community management and the team’s willingness to meet the community face to face at Fairs. This way you can meet the team and ask them your questions. Of course this is not always easy as the ICO market is a global one and you can’t just travel anywhere to ask questions. This is why it’s very important that the team provides a 24/7 support on all well known channels such as Telegram, Facebook, Twitter and Email.
Homepage: https://ico.trustedcars.com/
Bounty Campaign: https://ico.trustedcars.com/Bounty
Telegram: https://t.me/TrustedCars
Whitepaper: https://ico.trustedcars.com/source/documents/TrustedCars_Flex_Whitepaper.pdf
Lightpaper: https://ico.trustedcars.com/source/documents/TrustedCars_Flex_Lightpaper.pdf
Youtube: TrustedCars Flex explained in 75 seconds:
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