Analytical factors - how to find a good project for investment?

Before investing in the next ICO, see this list and ask yourself the following questions:

>>> Does the ICO site use the https protocol? If the team doesn't bother installing an SSL certificate, then what security for the project as a whole can exist?

>>> How is this site visible? what is the overall impression? Is that credible? Doesn't it look like it's made "random"? Are the contact details provided in full?

>>> Is there a whitepaper on the site and how detailed? Today it's hard to imagine, but there are sites without these elements, which have become standards in the ICO industry. Are there whitepapers in some of the most popular languages? If the team wants to collect the amount of investment announced, it must be calculated for users from various countries. What does the whitepaper look like? Is there enough information about the project and the reasons for joining the ICO, so as to ensure future profits for investors? Is the detailed business plan of the project and the required technical details explained? Fewer keywords, more digits.

>>> How much money does the team want to collect and why? good, if the whitepaper shows planned expenditure items from the funds collected. Pay attention to how much money the team wants to withdraw. Now, some projects want large amounts only from greed, and they don't really need such amounts of funds to realize their plans. It is very difficult to spend several million dollars at once, and keep it in a crypto currency, this is not safe because of high volatility, so it's good if the team mentions in the whitepaper several ways to diversify the funds collected for their greater safety.

>>> What problems do the project want to solve? Will this be useful for millions of people from all over the world, will it solve their problems? Do we carry out projects in general? This should not be a "stepping stone", but not "nonsense" - there must be a golden purpose between the benefits and ambitions of the project. Sometimes it's good if the project is somehow connected to the real economy and offline business, but not always. Here the main criteria are the economic feasibility of the project and the certainty that it will be needed. Also, it is necessary to pay attention to projects that expand infrastructure and make BTC and ETH work better / faster. It makes sense to avoid projects where blockchain is absolutely unnecessary and neglected - it is very likely that in such cases the team often just wants to raise money.

>>> Does the project have competitors? Now there are very few true revolutionary ideas, and most ICO projects are only skilled integration of existing products with the blockchain ecosystem. Good, if the project has at least 2-3 competitors or projects from related fields, and this is a successful project, or those who are also at the fundraising stage, or at least a prototype in the form of a classic business. Why is this important? Because if there are no competitors at all, then, most likely, there is no market, and such products are not needed by anyone and are not economically profitable. Either this is a brilliant new idea, but the possibility is very unlikely.

>>> Is the pre-ICO bonus for the initial investor not too high? In some ICO projects, the team offers a large bonus to attract early investors. If you make it into their project as a calculated investor - you're lucky. If you don't have time and ICO bonuses differ significantly from presale bonuses - it's better not to invest in this project, but you can buy tokens in exchange. Why? It often happens that early investors sell tokens immediately after entering the exchange and receive instant profits at the expense of large discounts with which they buy tokens, and the rates are down 2-3 times from the ICO price.

>>> Is the maximum amount of funds (Hard Cap) limited? If not, then this is a signal. If the project collects too much money (more than it should be needed), it will be very difficult to develop. Project capitalization can easily grow from $ 10 million to $ 100 million next time, but from $ 100 million to $ 1 billion - much more difficult. Such projects sometimes become financially sluggish, and the team loses motivation - why continue to work hard and develop projects if you have accumulated more money than you can spend? Also, pay attention to the total number of tokens - it shouldn't be too large.

>>> Is the initial token price not too high? And what is a reasonable price in general? The smaller the initial price of the token, the higher the potential for "psychological" growth. Agree that it is much easier to grow tokens from 10 cents to 1 dollar (growth x10) than, for example, from 10 dollars to 100 (the same x10 growth);

>>> Will the project team gradually buy tokens from the exchange? A good practice is if, after the completion of the ICO, the company plans to gradually buy tokens that are repatriated from the exchange, using part of the profit for each given period of time. Because of this, the level of tokens can grow.

>>> How are tokens used in the project? For what and will it continue to be used in the real project? This is good, if the token is really needed for project work, and it contains a certain scheme of value growth. If the token is only used to attract investment, the team must have a clear plan of how exactly it will bring benefits to investors. The general choice is to fill out "dividends" for tokens once in a certain period. Thus, the company will share part of the profits with the token holder and will attract investment. Sometimes for many early investors this is a good way to get passive income if the project is successful in the future.

>>> Does the project team seem to believe? Ideally, these people must be experts in their fields, who already have successful experience in implementing IT projects. Equally important is the balance of the team between the number of technical specialists and managers / marketers. If there are only "sellers" in the team, then they can provide development for outsourcing and this is not always good. If the team is one of the developers, then there may be problems with the sale and promotion of the ICO project and with investment attractiveness.

>>> How open is this project to the community? Look, is there a source code for the smart contract github? Are there statistics about the volume of investments that are interested in real time and what information about this in ehterscan? The greater the number of investors - the more likely the tokens will be distributed evenly and the more unstable will become the token rate after entering the crypto exchange.

>>> Has the project been audited financially and technically? Some teams use independent audit institutions, as well as information security specialists (or announce additional bounty campaigns to look for bugs and vulnerabilities) to increase the credibility of their projects by potential investors. After this, the team can publish short results from the study on the ICO project site and on the whitepaper.

>>> Does the team have a project work prototype? A brief history of the ICO contains many examples where talented teams attract investment only for page-direction and future project models, but fraud among these projects is usually even greater. If the team has at least a minimum applicable product (MVP) - then this is a good sign to think about investing in a project. If the team already has a successful IT project, and they just want to integrate it with the blockchain ecosystem and raise additional funds to expand business and enter new markets, then this is also a good sign.

>>> Does the project have an advisor (advisor)? If not - then this is a worrying sign. If anything, it's good, but it's good to look closer - what kind of people are they? It's great if they are recognized as leaders of the blockchain industry, but far from all projects can boast the support of these people. For small projects, there will be sufficient support from experts who are well recognized with a large profile background.

>>> Are there any business funds drawn on this project? If there is official information about the investments of some well-known company investors or "business masters", this means that the ICO project has certainly undergone a thorough audit by people who are willing to invest in the project with huge money and believe in a successful future.

>>> Does the project have a clear Road Map? Look at the Whitepaper, at what stage will the implementation of the project experience BEP, does the timeline look realistic? What exactly and for how long will the team apply and how fast is the MVP ready (if it's not)? Remember that the sooner the team is aware of its business plan, the faster the project will begin to generate profits and faster tokens will start to grow in price.

>>> Milestone and step-by-step reward teams .. Some teams lose motivation to work hard after a successful fundraising, so things that are good are considered if the team's additional tokens remuneration is broken down into specific stages related to the previous points - on the roadmap . Very well, if the token holder can somehow choose whether the next stage is carried out or not. An alternative option is to save loan funds from an independent organization (escrow), which partly provides funds to the team after each milestone implementation. In this case, the team receives the token only after successfully completing the next project development phase. The more intermediate stages, the better, because the team will not be able to immediately sell a large number of tokens on the exchange, it will very well affect the price of the token.

>>> How is the news behind the project? How often do teams upload news and articles about their projects on social networks and on the profile news portal? How does this news react to crypto investors and recognized blockchain specialists? Are there extensive reviews of this ICO project on the famous secret news portals? What is written by an independent rating agency and ICO calendar? Is there a real increase, not just walking in a place?

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