An ICO (Initial Coin Offering) is a fundraising method that allows start-ups and enterprises to raise funds for their crypto-related projects. ICOs are extremely hot among the crypto investors.
According to icodata.io, the total number of ICOs in 2018 was 1247 and the total funds raised were $7,541,925,063.
With a multitude of ICO projects on the market, it becomes really important to zero in on the best ICO to invest. Here are a few things worth considering to find out if an ICO project is worth your time and money.
It is beneficial to determine the nature of the business. Find out if the ICO has been created by a real company. In addition, understand why the token has been created and what is its utility for the company.
Choose a company that clearly explains its post-ICO strategy and its future evolution. After all, there is a certain purpose for raising funds through ICO. The best ICO is the one that has a roadmap explaining what the business plans to achieve in the future.
Team and its abilities
You, as an investor, would certainly not want to entrust your money to strangers, right? ICOs that are run anonymously are more likely to vanish out of the blue. It is better to steer clear of ICOs that do not have a team behind them.
On the contrary, legitimate ICO projects feature complete details about their teams. They proudly present their members and list their abilities as well as the contributions made by each one of them.
A business without an aim to grow is more likely to collapse. It shows that they do not have a goal, and it comes as no surprise when such ICO token sale ventures fail.
The competition is tough for businesses, and ICOs are no exception. Thus, companies need to create future plans that will bring desired results to them. The tokens serve as investment assets, helping companies to sustain their investment strategy and offer revenues to investors. Look for an ICO project that shows the potential to scale.
No matter how much amount you want to invest, you should have complete information about the project before putting into even a single penny. If you are unable to understand a project, and if there are no means of communication that can help you get more information, it is better to forget about that project.
Whitepaper is the best thing that you can refer for detailed information about the ICO project. Whitepaper explains the mission and vision statements of a business and how the funds raised through ICO will be utilized.
The companies behind ICO token sale are usually active on social media platforms like Twitter, Facebook, LinkedIn, and more. They also have their blogs published on various channels.
You can check the online presence of a company that you are considering for ICO investment. If the company is active on social media, and has sufficient educational content to inform the investors about cryptocurrency market, along with the news about the industry, then it is a genuine project and you can consider investing in it.
Terms and conditions
The whitepaper should put forth all the terms and conditions related to the ICO. It should explain how the ICO will serve potential investors and how the project will benefit the industry.
Most reliable ICO platforms come with online customer support system to answer any questions that investors may have related to the project. It is better to rely on such types of platforms, especially if you are beginner, to be sure that you have prompt assistance when you need.
According to a report, an average ICO investor sees 82% profit. To let your ICO investment make you the same amount of profit, choose the best ICO to invest.
Cryptoxygen is an upcoming ICO that follows all the points aforementioned, making it a trusthworthy project to invest. The project is backed by a strong team, with one of its members running a reputed commodities corporation and the other operating as an historical Fortune 500 enterprises agent in the Middle East and Africa. The company has a well-defined business plan, and they vow to offer specific bonus to each of their investors during each ICO phase.