Meta description: Now that you have decided to invest in an ICO, you must do a lot of research to determine which ICO is best for you. ICO ratings can help guide your research by providing an overview of the strong and weak aspects of the ICO project.
What Can You Learn from an ICO Rating?
If you have decided to get involved in the fun and fast-paced world of Initial Coin Offerings (ICOs), then chances are you have already done your homework on cryptocurrencies. You understand the value of investigating a crypto project before backing it. As you already know, it is important to be thorough in your research of a project before investing in any ICO.
With so many aspects of an ICO to research, it is difficult to know where to begin. This is where an ICO rating can help. As long as you chose a professional rating website, the ratings you read can give you valuable information that can help you make an outline to guide your investigation. It is important to be sure that the rating was created by a person who possesses the experience and knowledge necessary to research and analyze an ICO. You don’t want to use any rating that was written by someone with zero crypto, stock trading, or ICO experience. Additionally, many unprofessional websites allow ratings to be bought. Stay far away from these websites, as you can never be sure if the rating is accurate or if the ICO paid the right price for the website to publish an undeserved score.
The Rating Process
Once you have chosen a few ICO rating websites to use, it is important to research the website’s rating team and rating process. Ideally, the website should publish information regarding the process they use to rate ICOs. This will also provide insight into how the analysis is converted into a numerical score.
The rating process should consist of a few stages. In the first stage, a team of professional researchers scour the Internet in order to collect and aggregate information about the ICO. This includes finding information about the team behind the ICO, the project itself, and potential investors. This information is then passed to the analytics team. This team should be comprised of ex-stock market analysts, crypto experts, entrepreneurial experts, and other individuals with extensive experience in ICOs and other blockchain projects. They review all of the information the research team found and writes an analysis that is supported by facts. Finally, the analysis is checked for completeness and accuracy before it is published on the website.
The Parts of a Rating
When you read a rating and consider the score that the website has given to a particular ICO, you are able to get a superficial understanding of what the potential strengths and weaknesses of the project are.
Rating websites look at all parts of the ICO. They usually start with the project’s website and whitepaper to ensure that the information provided in both is accurate. Then, the project’s vision and roadmap are examined. The analysis is done to see if the project’s vision is unique, solves a real problem, and is realistic. The project’s roadmap gives insight into the planning of the team. Are they on track with their timeline? Have they reached the milestones they stated they would reach?
The next thing a rating site will look at is the project’s team. It is important to know that the team listed is real and that the information that each team member lists on their respective social media profiles is accurate as well. Furthermore, rating teams look to see what kind of experience the project’s team has in other crypto or blockchain projects, as well as the reputation the team holds within the crypto community.
Another aspect that an ICO rating team will investigate is the project’s token sale. The rating team will look to see how the token sale is structured. If the project is launching their ICO with a pre-sale, this is a good sign. A pre-sale, so long as not too many tokens are offered during this stage, allows whitelisted investors to purchase tokens and invest in the ICO. This also means that these investors had the opportunity to vet the project and decided that the ICO was a worthwhile investment. The amount of tokens kept for the team is another important matter. Ideally, the team should have between 10% and 20% of the total amount of coins. This gives them enough of a stake to continue to improve the project and continue to create value for all investors.
In this article, three aspects of an ICO project were discussed. There is no shortcut to proper due diligence. You should not rely solely on the information an ICO rating provides you. Instead, use the rating as a guide for your own research. Always thoroughly investigate an ICO before investing. This way, you will be confident in your investments and have an enjoyable experience learning more about the project you are investing in.
To visit Cointelligence’s ongoing and upcoming ICO list click here.
To read more about Cointelligence’s rating system click here.
To publish your ICO click here.