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How to participate in Initial Coin Offerings (ICO)
#1
In this thread I will try and give a basic and non technical break down of what is an ICO.

What is Initial Coin Offering (ICO) or Token Generating Event?
Basically a company or a team of developers will pitch their idea to the public and ask for money to build their idea into a product. People will pay their hard earned cash to the team in hope of gaining profit after the product is built. You will receive Tokens (=Coin=Cryptocurrency) for your money and you can sell these tokens on secondary markets (crypto exchanges) hopefully at a profit.
However with over 10 ICOs launching every month it's not an easy task to find the profitable ones and more importantly finding and avoiding the scam ICOs.
Here I will try to list my criteria for finding the best ICO's.

i] WHITEPAPER
Whitepapers are like an essay detailing the whole project. This is your bible. first thing you need to do is to familiarize yourself with the concept the team is selling.
What you should be looking for in the whitepaper is:
  1. What is their idea, product, tech
  2. What problem they want to solve
  3. How they will solve this problem.
  4. What is the history of the project
  5. Minimum Viable product (MVP) or a demo
  6. Roadmap
  7. Team and Advisors backgrounds
  8. Token Metrics
In the next post I will expand on these points.
code is law
[Image: 5OW9U6D.png]

#2
1. What is their idea, product, tech
Is it a game changer Idea? How is the competition in their target market? If it’s not a novel idea you should see what is the value of other products in the market and how much room there is for growth.
Example: Quantstamp! They are building a platform for Smartcontract security Audits. There is no universal security audits at the moment for the blockchain. 

2. What problem they want to solve
What is this project adding to the world? Do we even need this? Does it even make sense to make this or there other solutions that can be altered for our problem.
Example: Bitconnect and all the Ponzi schemes. Nobody needs that.

3. How they will solve this problem.
Do they really need blockchain tech? Or they just want to grab some easy $$? What is the advantage of their way of doing things over their competition?! 
Example: All the bitconnect rip-off and look a likes. Just cash grabs. AVOID! 

4. What is the history of the project
While it’s possible that some kids getting together and starting an ICO succeed. A company with stablished business and actual work experience can be a very good assurance.
Example: Ripio Credit network already has it’s own clients. With Blockchain tech they will be borderless. Even if they fail to expand, they already have their previous clients.  

5. Minimum Viable product (MVP) or a demo
Never invest in Whitepapers. Never invest in promise of product. The project should at least have a MVP. Try testing the demo. See if you can find any reviews for the products.  
Example: Wabi was on app store before ICO. Fully functional App already available.

6. Roadmap
This is very important, if their milestones are too far apart public interest will die down and the price will go down subsequently. Best ICO’s are the ones that will have a big release/Announcement in the span of 2 months’ time around Crowdsale.
Example: Request Network released Colossus ahead of schedule and the price jumped like crazy

7. Team and Advisors backgrounds
You should check each team member’s experience. Do they have LinkedIn profiles? Is it legit or they just set it up yesterday? 
Advisors are crucial. They will add value to the project with their relationships and connections.
Example: SingularityNET has more PHD in it's team than Zuma's cabinet! Tongue

8. Token Metrics
Market cap, Total Token Supply, Circulating Supply and token price.
An ICO raising 10 million dollars vs one asking for 30M! If the first project does a 5X it’s marketcap will be less than the other project at 2X! Lower marketcap more room for growth.
Example: Publica with 2 Million dollar marketcap did a 10X


All these criterias are interconnected. While a project can be week in one or two area the overall score should be HIGH. The best practice is to have a spreadsheet with a column for every criteria. For example if we give 4 star to each criteria you should avoid any project that has less than 27 overall score.
27 out of (32=4*8). Any ICO with more than two criteria with 1 star should be avoided.
code is law
[Image: 5OW9U6D.png]

#3
I will start introducing the projects on my spreadsheet with 30+ score soon. I Will be happy to hear your feedback and input.
code is law
[Image: 5OW9U6D.png]

#4
Other Important criteria for successful investments in my opinion are:
i]Whitepaper
ii] Hype
iii] Industry Climate
iv] Timespan
v] Diversification

Will post soon.
code is law
[Image: 5OW9U6D.png]






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