Hello. I must say right away that I am not a consultant, my method of analyzing ICO projects is based on my personal views and the strategy that I developed during the year while I was working on promoting projects.
Perhaps if you have been creating reviews for crypto projects for a long time, then you also developed a flair for potential scammers. But for beginners, as I was recently (now my knowledge is 20-30% better than that of a noob), it will be difficult to assess the possible risks and prospects.
What I noticed when evaluating projects:
- 1. Website. Are there any mistakes (there are even grammatical ones), how clear is the basic information about the project, participation in crowdfunding, how easy is registration
- 2. White paper. As the main document of the project, it should
contain information about
- the problem that prompted the creation of the project
- an idea how to solve this problem
- the presence of market and competitor analysis with an action plan, how to become better than competitors, how unique the project is
- indications of possible difficulties in implementation
- the team’s actions if crowdfunding does not collect enough investment (money must be returned to investors or there must be a detailed scenario, which part of the project can be implemented with such a budget)
- technical information about the blockchain, technology for developing a platform or solution
- benefits for token holders and investors
- 3. Road map. It would be good if the plan contained a clear structure, from the beginning of the idea and the gathering of the team, the preparation of crowdfunding and of course the subsequent actions for the implementation of the project. Planning is a weak spot for many startups, as they are not able to follow the deadlines. The best option is if the roadmap contains specific actions for the next 2-3 years, so that the investor can see that the developers have a holistic view of not only how to create a product, but also convey it to the consumer.
- 4. Marketing plan. Promotion is no less important part than the development of the project itself. Therefore, the team must provide information on how the promotion will be carried out (social networks, work with the audience, articles, etc.). In addition, it is necessary to evaluate the team’s work with subscribers at the stages of preparing for ICO, conducting, and subsequent support. Since more than once I saw how after crowdfunding, communication in social networks with users almost tended to zero. And of course, see how many subscribers there are now, how interesting and popular the content is. Because if he is weak, it is unlikely that something will change even after raising funds.
- 5. The team. The experience of the team is important, but it is also necessary to check the reality of the existence of such people. You can check linkedin and facebook, see what these people did before, what kind of education and experience they have. Photos can be fake, so we check them through a search on Google pictures. In addition, pay attention to the number of team members and the possibility of expanding staff.
- 6. Smart contract. Technical experts are able to read the github code, but this is not available to me. I can only say that the sample of a smart contract in open access does not always mean that the developers work honestly. The code should not contain important information that could lead to problems with the protection or copying of the contract
- 7. Security. A technical document is no less important than a white pager, because here you can find out how the team is going to protect the personal data of users and their wallets.
- 8. Demo version. Some projects require an initial investment to develop the entire part of the project. But this method of crowdfunding is not profitable for investors, since the implementation of all components of the project will take at least 3 years. MVP is necessary, by studying the demo you can initially assess how promising such a product can be.
In conclusion, I’ll say that you begin to see well the weaknesses and mistakes of projects, if you first carefully study successful ICOs. I saw projects that started well and had excellent marketing support, but ended up being a scam. That is why you should carefully study the startup, preferably at least a month, to see all the interaction of developers and investors. And of course, among the successful ICO with which I had a chance to collaborate at the level of assistance with some promotion services, there are Vertex Market, Hygh Tech, 300 cubits, Spiking (for traders), Midas protocol, etc.
So, good luck, friends, if you decide to invest in ICOs!