Before choosing to invest in an Initial Coin Offering, it is essential to find out a few factors about its performance. Many offerings are being set up almost every day due to the increased flexibility of various platforms. However, before you put your money into it, you have to be certain that it is worth it. As you will find out, some of them may be good investments, but others may not be the right place for you to put your money. You must have heard of people who made a fortune through investments in ICO, but there also are those who are counting their losses because of the bad choices that they made. So, what exactly should you be looking for? There are many crucial factors to be considered, but we have selected the following because they are the ones that are likely to make the biggest difference. On a side note, one can click here: for more information.
Look at the team
You need to know the team that is behind the project before you make an offer. Usually, you will be looking for a team that is credible. You may want to deal with a team that is transparent and shares information about their operation. If you notice that there are too many grey areas in their operations, it could be an indication that they are trying to conceal some information. This is just one of the many red flags that will tell you if the investor should be avoided. Once you found a good team, you can move on to other factors.
The coin supply
Looking at the size of the coin supply will also help you to determine its suitability. Dig further to find out the size of investor’s tokens. This will help you to determine if the coin can stand the test of time. Factors such as inflation can also help to judge whether it is a good investment. The most important part when it comes to coin supply is to find out how easy it will be for the coin to be manipulated by the investors and its founders. Usually, the big investors can dilute it meaning that the value will go down.
Take a few moments to look at how the team plans to implement their project. This should be crosschecked with the timelines that have been provided in their whitepaper. If they are consistent, and they reflect a realist growth path, it is an indication that the ICO is worth investing in. You need a team that has everything well planned out. This is not something that you can go through by trial and error. From the beginning, there should be a clear indication of what will be achieved at every stage, and what will be done to achieve it.
The best Initial Coin Offerings also provide proper communication both internally and externally. It is through this communication that investors can know what they should do with their investments and therefore, it is for the good of all the parties involved.