What Should You Look For In An ICO?

When you are looking for the best ICO to invest in, there are many factors that you need to consider. However, before we even start to mention them. it’s important to realize that the ICOs new world can be a dream as well as it can be a nightmare. The fact that there is a complete lack of regulation is launching some dark shadows in the industry. The truth is that there are numerous successful ICOs lie SingularDTV, Firstblood, Blockpay, Antshares, and ICONOMI. However, there are many others who failed considerably because they have either presented too optimistic ideas or they were pure scams.

The fact that ICOs is one of the best ways for companies to fund great blockchain projects is unquestionable. However, as time goes by and more investors are burned on the way, the euphoria around ICOs may start to see some decrease.

So, we have already seen some signs that we’re not alone in this way of thinking, In fact, you just need to take a look at Gnosis, for example, who promised to release code in advance. Another example comes from Gnosis, who decided to publicly discuss both their business plan as well as their whitepapers before their ICO. And if you think this is only our opinion, just check out Golem’s ICO success. This is a clear evidence that transparency is needed and is being asked by either companies who launch their ICOs as well as by investors who need to make sure they are making good investments with fewer risks.

According to the best experts in the field, a good ICO should include:

  • Business viability check
  • A transparent ICO process
  • Technology check
  • Controlled release of funds
  • Scam protection
  • Proof of ability to execute
  • Escrow
  • Delayed founder liquidity
  • A defined legal framework
  • Efficient use of funds.

There’s no question that ICOs just can’t remain unregulated for much longer. So, we believe that entrepreneurs need to have the time and ability to focus on the development and on their overall business, and, at the same time, create a certain degree of protection for their investors.

If you look at the ICOs market right now, you see it almost resembles chaos. However, if we want investors to keep putting their money in the blockchain community, it’s time to start caring about them.

There’s no question that there is the need of new best practices and basic standards that every player in the industry should follow. Not only will this help more projects (or ICOs) to succeed as it will also allow investors to profit. Plus, the entire industry will benefit.

Leave a Reply

1 Comment on "What Should You Look For In An ICO?"

Notify of
avatar
Sort by:   newest | oldest | most voted
kevin zayas
Guest

Very well written and very helpful, thank you!

wpDiscuz