Tips from CryptoProfile on how to assess if an ICO has potential value

Guest post by CryptoProfile who provide many services in one place including trading in cryptocurrencies, and also learning about Initial Coin Offerings (ICOs).  You can also learn more about their ICO campaign and how to get involved in it here. 

There has been a lot of speculation about whether cryptocurrencies offer a bubble of rising and falling expectations in terms of their potential value. At CryptoProfile we believe the underlying blockchain technology is already a transformative development. However, much like the web 1.0, there is also a lot of hype, inflated projections, and noise. In such a challenging environment we have put in a lot of work to effectively assess which potential blockchain based technological solutions actually offer value, and which less so. This expertise is something we now also offer as a service too. In this context we are often asked how do we vet projects?

NB This is not a complete list of what we do, but they are some key pointers which have helped steer our team on the right track. If you wish to know more please drop us a line.

How does Cryptoprofile analyse projects?

We have 10 basic pointers in our vetting process.

1: The Whitepaper

This still remains an important and useful starting point. Ideally we look for detailed information on the following key areas.

-Commercial project (min28 pages)
-Technology project (min38 pages)
-New technology project (min48 pages)

2: Total token supply not a whole number

It is important to see if there is a logic and a rational behind the proposed tokenomics. Is this something that can be tokenised, and does it need to be. Are the number of proposed tokens realistic or far too large?

3: What are the Soft and Hard caps?

The project founders need to be aiming to raise a realistic amount of funds, and to build an appropriately matched infrastructure. What are the proposed funds for, are the goals and the time frames realistic and achievable?

4: MVP and business on profit

What have the built so far, and can they make a profit, is this something that the world actually needs, wants and will use?

5: Founder/co-founder are crypto people and has invested in ICO before

Past experience is no guarantee, but it is a useful indicator of problem solving, previous experience, and a greater likelihood of success this time around.

6: Use of funds not a whole number

Is this a get rich scheme for the founders, OR is there a real and logical need for their fundraising campaign?

7: Marketing team are crypto marketing team

For any campaign to succeed it is vital for the team, founders and everyone involved to get behind it. What is their digital profile like, do they even have one? What have they been saying on social media, if anything, about their project. Silence or good communication makes a big difference.

8: The plan for after ICO

The hardest part of the process is to actually build and grow the product. Is there a clear, logical and reasonable time frame outlined, in the whitepaper, and on the website. Without this, it will suggest that founders do not have a clear strategy or effective plan for success, post ICO.

9: Their social media exposure especially telegram deleted accounts

Do they have a real and engaged presence online, or do their social media accounts have unfeasbily large numbers of followers who never seem to actually say anything (sounds like bots and / or airdrop acquired fans).

10: Team member response time

Reach out to the founders, or team members, do they respond quickly, or even at all? If they don’t then this will signal some red flags already. Beware with people who don’t even take the time to respond when you are trying to find out more about them.

If you would like to have your company featured in the Irish Tech News Business Showcase, get in contact with us at Simon@IrishTechNews.ie or on Twitter: @SimonCocking