If you’re a newbie in the crypto space, researching on ICOs especially the worthwhiles can be a challenging task. Evidently, the year 2018 has proven to be the year that has held the highest ICO thus far, and in these past 8 months many startups from diverse niches are popping up daily to raise funds for their projects, consequently increasing the numbers of different coin in the crypto market.
You may ask, what is an ICO? An ICO aka initial coin offering is generally defined as a fundraising method that trades a new cryptocoin for already existing cryptocurrencies of liquid value for example Bitcoin, Ethereum etc. An ICO allows both big player and small player to fund any project they like. Unfortunately, for the past 11 months, few hundreds of ICO have been confirmed to be successful while the rest are unsuccessful. This could be as a result of the idea on which the supposed project is to be built on, or that the fund to see it through some crucial stages while running campaign was not sufficient. Either ways, if you happen to just invest on such ICO, consider your money to be lost forever. Reason is because there is no regulator — government or any third party to help you recover your invested money. That is why it is advisable to invest only what you can afford to lose.
At this point, it’s very important that you know that there are many scam ICOs out there, and as an investor gunning to make profit from your investment, you really need to do a deep research on any ICO before investing your hard earned money on it. In other words, you need the right tool to aid you while researching ICOs.
Aside aiding your research on determining the worthwhile ICOs, these tools are also useful in terms of evaluation — in other words, it reveals some vital parameter that tells you how far the ICO will survive — will it crash on the completion of fundraising like the case of Mycelium? Or will it crash due to management? Will it’s token price value ever rise and or fall, and if it would, at what rate? Well, these are vital questions you should find answer to before considering any ICO for investment.
Before we go any further on this, it is imperative to know the major reasons for ICO failures. Most times the intentions of the developers towards an ICO are genuine and not scam, but their ignorance toward these following ruins the ICO project at their early stages of development:
Insufficient product market: This is one of the commonest reasons for ICO failures. Research has it that almost 60% of ICO fails at its infant stage because the product( or service) does not have any atom of value in the market which consequently leads to poor demand of the product. To be on a safe side, you must be completely aware of the ICO’s market value and do not invest on ICOs with poor market demand.
Unfeasible objectives and budget: Any business not just ICO, that runs on unfeasible budgets and objectives is prone to be faced with difficulties. Actually, if an ICO project does not have fixed objectives and constantly alters it , such ICO is likely to fail at some point. How, you may ask? The higher you set your objectives towards actualizing a project — may be what you need to spend on marketing, PR, design, content etc. you will need more budget to actualize those objectives and if peradventure, there isn’t enough fund to carry out the adjusted objectives, such ICO will likely fail.
Failure to create the ICO’s brand Identity: Most ICO developers fail to recognize this and that is why the project fail at some point. For most investors, the major way to convince them about an ICO is not how it sounds but mostly how professional you make the ICO campaign look. These includes, the website look, logo, visuals , font etc. On the contrary, if the ICO idea is very solid and developers fail to work on its appearance, such ICO has a higher likelihood to scatter on the long run.
More importantly, note that ICOs are high-risk method of fundraising. So, it is very advisable that you only invest only what you can afford to lose. Have it in mind that due to zero regulating parties, money lost during the process can’t be recovered.
However, here are 7 tools that can help you to effectively research ICOs.
Forum site like Bitcointalk.org:
Forum site? Yeah, it is a good starting tool for researching ICOs. Considering the advances in cryptocurrencies and blockchain technology, its no longer news that the rate at which the internet is being flooded with ICO ads has dramatically increased. But while there are some ICOs with genuine intentions, their are lots of them with malicious intentions. And forum sites like Bitcointalk.org — one of the biggest forum ever on crypto related issues, is a powerful tool that can help you ascertain the genuineness of the ICO from other investors’ comments
Actually, it is advisable that as an investor researching on ICO you should carefully read all the messages or comments — both the positive ones and the negative ones to verify if they are really what they claimed to be. Also, you have to look deeply for the following:
- Does their developer effectively answer questions asked by their investors?
- How fast and responsive were they towards answering the asked question about their ‘’ICO?’’
- And If peradventure, the devs does not answer the questions effectively or even refuse to answer, then, you can consider such as a bad sign while researching on the ‘ICO.’
Note: Each messages on Bitcointalk.org contains ‘rank’ and ‘activity degree,’ so, as an investor using this tool, be very cautions of low-ranking writers — they could be paid to paint the ICO with good comments. Well, you can determine such ‘writer’ by going through their past messages and observe how their messages are being ranked on the site . Additionally, for safety sake, pay more attention on the following words ‘con,’ ‘scam’ ‘MLM,’ ‘fraud.’
Surprised? well , LinkedIn is a reputable business platform that can help you while researching on an ICO. it is no secret that LinkedIn is the top professional social networking sites with over 133 million users just in U.S alone, and it has reached out to over 200 countries around the world.
This platform is a powerful search engine tool and it can help you research on the authenticity and expertise of the developers involved in an ICO. You can research on the advisors that are involved on the ‘ICO’ project.
Don’t make the mistake of investing on an ICO without knowing the genuine nature of the team involved. The internet has given room for any one to claim what he or she is not. Do you know that some profile are not even real? So, as an investor researching on an ICO, you should take your time and investigate on the expertise of the team member involved — to know if they are really who they claim to be. LinkedIn is a better tool to go about it. And if they are really who they claimed to be, you’ll see the highlights of their recent experience and their objectives towards the ICO on LinkedIn.
ICO Bench is another helpful tool that can help you research an ICO. It is a professional crypto site for ICO grading and they also make use of crowdsourced ratings from expert in the cryptosphere. At ICO Bench, experts makes use of different parameter to evaluate ICO project which includes the team, hard cap and white papers and grade it accordingly.
Based on statistics, ICO Bench has rated and published over 4545 ICOs, it has over 358 active experts, its ratings total is about 16,000, and has over 65,000 active blockchain users.
Amazingly, this tool also has ICO calendar which displays upcoming, latest and next-to-end ICO on its landing page. So, If you’re looking for a tool that can help you breakdown an ICO, be rest assured that ICO Bench will give you a detailed summary about the ICO and other relevant information you need to know about it.
Top ICO List:
Top ICO List is another helpful tool that can help you effectively research an ICO. You can consider it as a bus-stop to discovering potential megahit ICOs in the crypto market. Just like ICO Bench, it has everything you need to know from A-Z about an ICO. One thing peculiar about this crypto site( or tool) is that it provides you with an updated and unique list of past ICOs, active ICOs and upcoming ICOs on its landing page.
Mainly, the true purpose of rating an ICO is to provide objective and solid information that will guide potential investors including newbie to help them make better decision — whether to go for it or not. Interestingly, Top ICO List has made the process very seamless as possible. So, to view ICO rating before you decide on investing further on ‘ICO,’ just click on them and you’ll see their ratings.
Aside rating, Top ICO List also provide detailed review about ICOs raging from the team member, the tokenomics, the media presence and community support, project marketing materials including the websites and the whitepaper, and technical implementation and perhaps possible product if available.
CoinGecko is another priceless tool that can help both cryptocurrency trader and investor to research ICOs. Experts usually advise any trader who want to be ahead of the market to use Coingecko because it provides a real-time ranking of live cryptocurrencies across several exchanges.
As an investor researching on the performance of cryptocoins, coingecko is the right tool to consider for this. On its landing page, it provides detailed insights about cryptocurrencies and tokens — their real-time prices, their percentage increase and decrease in the trading session etc.
Additionally, this tool will also provide you with information on the market cap of distinguished coins and also insights on developers development activities — that is how they are working towards keeping a strong community of users.
This is another professional ICO rating websites that you can rely on. They also evaluates ICO projects and provide detailed review about the ICOs. Specialist with in-depth experience in researching , buying and trading various cryptoassets are responsible for their “ICO rating.”
Tokentops updates their list of ICOs very frequent and they often advise investors to always keep their eyes on their sites, so as not to miss the chances of participating in profitable blockchain project.
Meanwhile, Tokentops stands out because they do not only provide you with the list of the best past, ongoing and upcoming ICOs, they also display the list of scam ICOs on their landing page.
Smith and crown:
Smith and Crown is the world’s leading blockchain research organization. They are very helpful when it comes to researching ICOs. majority of their research works on blockchain and ICOs are being published for free on their website. And this ranges from reports, memos, databases to research processes, intelligent networks and so on.
In conclusion: Researching on ICOs especially the ones with prospect could be challenging at times, but you don’t have to lose sleep over it. Just use the aforementioned tool and you’ll be on track. Still, invest only what you can afford to lose.