Criteria for a successful ICO


In 2018 ICO, despite the unfavorable forecasts, has not lost its popularity compared to 2017. On the contrary, a huge number of ICOs are held, and according to the CoinSchedule report, the amount collected for the first half of 2018 is twice as high as all funds raised in 2017.
However, according to statistics, only a small percentage of ICO leads to a real appearance of an interesting new product and brings profit to those who invested money in them. According to the consulting company Satis Group LLC, 80% of the ICO they tested are fraudulent, and only 8% of projects are listed on crypto-exchanges.
It’s not easy to distinguish a successful ICO from a scam without knowledge of the industry. However, there are some mandatory criteria that need to be considered when making decisions about investing in a project.
A bona fide project must have:
1) lending, which is periodically updated;
2) White paper, at least in English, and more often on several languages. Moreover, in this document, the project, its application, business plan and market analysis should be understandable for investor and described in detail. It is important that anyone who has read White Paper can understand the main idea and application of the project.
A very important section in the White Paper is the road map. It should describe in detail the steps of the development of the project with specific time periods. And these steps must be realizable in the specified time;
3) telegram channel in native language and English, where the project team regularly publishes the latest news of the project and answers any questions from users. It’s bad if the uncomfortable questions for a team are simply deleted from the chats;
4) a team of at least 10 people. And on the website of the project and in White Paper there should be links to the profiles of each member of the team in social networks;
5) the team should have foreign advisors, again, links to their profiles in social networks should be available to all visitors to the project site;
6) clear video about the project;
7) there should be a regularly updated branch on the bitcointalk forum;
8) if the project is honest – the team is not afraid to show their face at conferences, you can meet and talk with them;
9) an original and realizable idea, which the investor understands;
10) the team has a minimally viable product (prototype) – one of the key signs of a bona fide project.
Undoubtedly, we need to pay attention to purely legal issues. In particular, to the project’s compliance with legislation of the USA, SEC requirements, passing of the Howie test. Conscientious projects strictly follow this.
Another important feature – very often scam projects promise guaranteed profits. And then disappear with the collected money instead of working on the product. Accordingly, in such cases there is no potential for raising the price of the token to the level of ICO and higher. On the contrary, those who work on the planned (over applications, the site and promotion) – have potential for growth of the token in the long term.

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