5 Factors to Consider When Looking to Invest in an ICO

5 Factors to Consider When Looking to Invest in an ICO

May 2, 2018 ICO, Investment by admin

2017 saw a real Initial Coin Offerings (ICO) boom, as this innovative form of capital raising and investing took centre stage in the blockchain world.

ICOs are the hot new way to raise funds for new cryptocurrencies. In an ICO, a certain amount of a digital token is created and sold to the public (usually in exchange for other cryptocurrencies like bitcoin or ethereum) and a percentage is kept for the project’s needs.

The great thing about ICOs is that they allow both large and small investors to fund the projects they like and deem to be promising in terms of return (ROI).

For an ICO to be worth the investment, investors need to be confident that the digital token will get used a lot and be in high circulation, what leads to raising the value of the currency.

The success of an ICO is influenced by many different factors. Let’s look into five of the most important things that investors should study before jumping into an ICO.

1. The Team Behind the ICO

Who’s behind the ICO? It’s important that investors find out everything they can about the team behind the project. Any ICO that doesn’t provide information on the people behind it should be avoided. You won’t regret anything, trust me on that!

An ICO with a strong, verifiable team is one of the most important indicators of a legitimate ICO project, as it will be down to the team to ensure the ICO’s success. Investors must take the time to do a background check on each team member for relevant experience and previous business successes. This can be done by Googling their names and consulting professional networks like LinkedIn. Particular attention should be paid to the names of the advisory board of the project, as these people should be blockchain experts.

2. Whitepaper

An ICO project will be backed by a whitepaper that details exactly how the system will work and how the project will be run. Many investors don’t take the time to read whitepapers but they absolutely should, because they contain all the vital information about the ICO project.

It is by reading and evaluating the whitepaper that investors will be able to determine the legitimacy of the project, and if it’s likely to gain traction. Good writing and clear presentation of the idea and its potential for growth is essential to a strong whitepaper, so investors should be critical of missing jigsaw.

After reading the whitepaper, investors should know exactly what they’ll be investing in, and understand the value that the project will bring to the world. If either of these things is unclear, the ICO should be avoided.

3. Token Distribution

A good ICO project will have a realistic and well-defined roadmap with set milestones and will link its token distribution to the roadmap. This is because each milestone requires a certain amount of funding, hence such information should be clear in the whitepaper.

What investors should look for is the percentage of tokens to be distributed to the public during the pre-sale phase of the ICO against the proportion that is going to be kept by the development team. If it appears that the team is withholding an unfair majority, that should raise questions for investors.

4. Media Attention and Community

Investors need to look into the media coverage of the ICO that they consider investing in. Any positive media attention should be taken as a sign of encouragement – but it’s important to make an objective assessment of all coverage.

Social Media communities such as those found on Facebook, Twitter and Reddit will usually provide a balanced and objective view which would give investors a true feel for the atmosphere surrounding the ICO project.

5. Global Potential

What’s the scope of the ICO project? Assessing the potential for expansion is important, as this will help investors determine how quickly the value of the ICO will grow.

ICO projects that aim at solving small issues at a local level will only have value for a niche audience, and it’s unlikely they grow to a level that potential investor would like to. Investors should look for projects that have roadmaps that extend for at least 2 years and solve problems on a global scale.

 

The Best ICO to Invest in for 2018

Backed by a world-class team with a wealth of experience in blockchain and recruitment, Talenthon’s proprietary technology eliminates the recruitment industry’s huge problem of fake references and false information on CVs. The vision for the platform is to see a day when employers can login directly to a simple portal, select the very best, fully-vetted candidate, and hire them as easily as shopping on Amazon.

In order to encourage 100% honesty and transparency, Talenthon engages candidates by rewarding them with cryptocurrency – Talenthon’s own Talent Coin. Talent Coins are earned when skills assessments are completed and genuine referees listed on the platform, with the ultimate aim to bring trust and reliability back to the recruitment industry, and revolutionise the way employers hire talents.

Talenthon is distributing 60% of its Talent Coin allocation to users who participate on the platform. Users will then be able to spend their Talent Coins on technical assessment sessions, training, and other career development options to increase their skills.

With a Wiser ICO rating of 4.8 stars out of 5, if you’re interested in getting behind a passionate, well thought-through, top-rated, and worthy ICO campaign, then Talenthon is undoubtedly the best ICO to invest in for 2018 according to Yahoo! Finance.

To find out more, check out Talenthon’s website and social media channels:

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