Some of the characteristics of a project that one should search for before and ICO investment
Initial Coin Offering is the most modern and an efficient way of fundraising which trades tokens for cryptocurrencies. All the tokens that are developed for a particular project are not auctioned in the Initial Coin Offering but a set of them are kept aside for the company’s private use. The initial coin offering (ICO) has opened up new opportunities for both the investors as well as the entrepreneurs. The entrepreneurs can now reach the corners of the world and hence the offering is not restricted to any geographical location. Also, the investors can buy the tokens irrespective of the size of the project. Equal opportunity is provided to both of them when it comes to the ICO investments.
In the recent days, the cryptocurrency field has managed to bag a lot of investments from a number of investors around the world. This benefits both the project members as well as investors as the project members would be able to get the required funds for their project and the investors, on the other hand, might get the return of Investments. There are also a number of scams and frauds that have been run in the name of initial coin offerings (ICO)Hence one must be careful and do complete homework regarding the investments. Below are some of the key points that can be kept in mind before investing in any Initial Coin Offering.
The project members are one of the key people in any Initial Coin Offering (ICO) because they are the one whose potential would decide the future of the project and hence the profit that can be made out of the investments. The investors can check the various social media profiles of the team members. Good history and a huge experience in the cryptocurrency field of team members is sufficient to consider the project to be more promising and reliable.
Bitcointalk.org is one of the biggest online Bitcoin discussion forums in the world. The project member’s discussions related to the project on such forums provide an effective picture of the quality of the project. Their responses to some of the questions which are not going in line with the project give the idea about their attitude towards the project. Sending personal messages to the developers is also possible. The higher rank and activity degree of a particular post on the forum, about the project, is considered to be optimistic as reputation is important in this competitive world.
The status of the project must also be known to the investors. The project might not have been developed or it might be in the beta or Alpha version. Some of the projects might have written code are some of them even might not have that. The white paper of the project is also crucial. Also if a number of venture capitalists are looking forward to the investment in a particular project then that particular project is considerable.
Media and community involvement.
In today’s competitive generation it is very important to have a number of designated and dedicated community members. The community forums must be open to everyone as openness is very important for trust. The activity and the enthusiasm of the members of the community forum give as a naive idea about the development. The most popular social media websites such as Reddit, Facebook, and Twitter can be used to evaluate them.
Quality of the code.
The project looks forward to implementing a concept in either a physical form or in the form of software. If the project is software card then the success can be measured by proofreading the code. For any particular project, it is very important to post their program code on GitHub in order to gain trust. The quality of the code can also be checked here. An unorganized and unstructured code reflects the attitude of the developer and to some extent the future of the project itself.
The modularity of the code must be maintained as it makes the code easily readable as well as understandable. GitHub provides a provision of improving the program code by providing a provision named commits. Gaining transparency among the community members by accepting the commits is a crucial ingredient in the success of the project.