ICO Evaluation Tips for High Capital Crypto
Crypto Initial Coin Offerings (ICOs) have become increasingly popular as an innovative means to raise capital without needing to register with the Securities and Exchange Commission. But before investing, it’s essential that you conduct due diligence on an ICO by considering all relevant aspects, including its risk-reward ratio. It is therefore vital that investors evaluate key elements like these before deciding if an ICO meets their criteria for investment:
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Team An ICO’s development team is one of the key success factors. Successful teams should be well-connected within the crypto community and boast strong backgrounds in tech and business; committed to producing an exceptional product on schedule; capable of communicating its vision clearly while convincing investors they can deliver; this requires hard work from all members involved and should boast proven results from previous projects.
An ICO without a strong team is unlikely to succeed, so it is vitally important that investors do their due diligence on its team members before investing. Checking social media and checking on team member reputation are both great places to do this research; any inexperienced or unreliable staff members could cause major losses for investors – just look at Mycelium where their founders disappeared after raising funds, later being found out using that money for themselves on vacation!
Token Supply
The circulation of tokens is another critical element that determines the performance of an ICO. Beyond those sold during an ICO sale, mining and staking of tokens contribute to their total supply. Too much supply could cause prices of tokens to drop precipitously if left uncontrolled; controlling it is essential.
An ICO requires appropriate infrastructure in place in order to successfully manage token sales and the distribution of new tokens, including smart contract software designed to handle its underlying blockchain, wallets for holding and transferring tokens and server technology that supports website traffic and onboarding services. Furthermore, KYC (Know Your Customer) processes should also be in place so as to identify investors as legitimate rather than scammers.
Promoting an ICO requires active engagement from its team in crypto-related communities, platforms, and forums. Roadshows and conferences can also help raise awareness among potential investors while specialist rating agencies may give an ICO the needed boost in terms of profile enhancement.
