It is necessary to assess the ICO comprehensively, paying attention to a number of factors:
Token viability. Read the white paper, look at the source code, study the project website. You should clearly understand the task/idea that the developers want to convey. It is important to understand what your money will be spent on.
Composition of the team. Pay attention to who is in the team? What is their background? Do these people have enough experience and qualifications?
Venture capitalists. Have venture capitalists who have already invested been involved. If so, who?
The project’s community. What is the project’s community like? How large is it? How many social media posts are there? What media do they appear in? What is the rhetoric of these publications?
Monetary policy. Is there a fixed monetary policy or no policy at all?
Token distribution. How are tokens distributed? Who owns tokens in presale and postsale? Are token capitalization figures publicly available?
Regulatory compliance. Who regulates ICOs? It very much depends on the jurisdiction. In the U.S., it is the Securities and Exchange Commission (SEC) since the U.S. many ICOs do not comply with securities regulations.
Conclusions:
- Assessing token viability
- White paper and source code research
- Team
- Attracting venture capital
- Community activity, media publications (Reddit, Medium, BitcoinTalk)
- “Monetary policy.”
- Token distribution
- Regulatory compliance