ICO Rating System Breakdown – Token Sale

A lot has been said about the ethics of conducting a proper ICO, and in the process of all this chatter, issues of morals have arisen. Practitioners, for instance, question the virtue of having a high hard cap that surpasses the project’s foreseen budget. Conducting uncapped token allocation during the generation event has been a hot issue as well. In 2017, when the debate raged, Ethereum was branded greedy for holding an uncapped ICO. Overall, the critical integrity issues around token generation and sale include the amount of capital the ICO should rake in, fund and token allocation as well as a media presence.

To cap or not?

While offering an uncapped ICO has been branded greedy, the kind of token sale a team settles on should be thoroughly thought out and well planned. At the very least, it should suit the needs and plans of the project just perfectly. If the team decides to go with an uncapped sale, that decision needs to be justified by the various needs that the project presents both currently and in the future.

Minimum amount the ICO should raise

The number of tokens in circulation almost always hint at the plans that project developers have. The amount raised, as such, should reflect the overall needs and budget of the said project. Importantly, every adopted approach must be justifiable.

Allocation of funds

The actual token sale probably is the most critical aspect of the ICO project since it determines whether the whole project succeeds or flops. Like the minimum and maximum amounts of money that an ICO should raise, how to allocate the amount collected is just as crucial. Ideally, fund allocation should be well defined, reasonable, carefully planned and transparent.

Token allocation

Most ICOs that have concluded have set a precedent that upcoming events seem to be adopting. In the said processes, teams set allocate, say, x tokens for project development, y tokens for administrative purposes and z tokens for team members. While this structure all seems too reasonable now, a proper token allocation criterion should give away a considerable proportion of the tokens, say 70+%. It should also have strict vesting periods, and be in line with the various project milestones. Overall, the process should inspire trust.

Media presence

Every aspect of an ICO should ooze professionalism. The media surrounding the exercise must also be above board. The news and media articles describing the ICO should provide a substantial exposure, create compelling interest and leave a good impression. Preferably, the media efforts around every ICO should be exceptional and credible.


The token sale is the most important bit of an ICO exercise for obvious reasons. This part of the project determines the outcome. It should, as such be well calculated, done right and given a fair share of media coverage.

Part I – Whitepaper

Part II – Product



Part IiIiI – Compliance

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