Top Things To Look For In An ICO/Token Sale
There are thousands of ICO/Token Sales happening so what should people look for before investing?
1) Team and Office Address – You need to check out the team and their office address. You wouldn’t leave your money in a bank with no physical street address run by people who you didn’t know who they were so why would you do the same with an ICO/Token Sale?
2) The White Paper – This is the main item that requires serious inspection. This details where they will be spending money and how the token will work once it is listed at an exchange. After reading through the paper ask yourself this “Will this work and can you see people using it?”. If the answer is no then don’t touch it!
3) Stage of The Project, Money Raised and Investments So Far – Check out the website and see what stage the coin is at. They should show you information detailing how much has been raised to so far and what percentage of the total amount has been distributed so far. Always best to only get a coin which is already 25% minimum funded.
4) Unlimited/Hard Cap – Basically this means is there a cap to the amount to be raised? An open cap means that investors can send unlimited amounts to an ICO wallet. The more coins in circulation the less unique your coin is so not very good for trading afterwards. Bancor, for example, raised $150m in three hours which resulted in zero return for investors. Keep this in mind if you see people rushing to buy in something that is unlimited.