Behind all ICO there must be a purpose that justifies this collection. That project must have a vision of solving a problem or a need. You should know what is that lack? Is there really? Is it important that it be resolved?
Evaluate if there is a market for that ICO
Although this aspect should be well detailed in the ICO whitepaper. It does not hurt to dig a little before making a decision. Be aware of the possible demand that a project like this may have.
The competition, if there are already other companies that offer the same. Here it is important to make the point that although there are other companies does not necessarily have to be a bad sign, because the demand is exponentially higher than the offer for that particular moment, in which case an investment in that ICO would be a great opportunity.
Having talked about the market, competition, supply, and demand, you should also delve into the world of ICOs to know if there are more campaigns with similar proposals. And if so, we must make sure that the ICO in which we intend to invest has the best proposal to achieve the objectives.
One of the biggest fears in this type of investment, apart from the possible failure of the project, is the possibility that the people behind it will disappear with all the money raised.
In fact, the fever for this type of investment has caused an increasing amount of fraud and/or fraud.
A fact to take into account is that currently many of the developers link all this data with social networks of each, as well as the ability to see previous work, blogs, and pages, platforms of which they are administrators or are part. In order to accredit their identities.
Reputation, very important before investing in an ICO
It is advisable to inquire about what is said of the project in specialized forums, although they can serve as a guide. We should also observe the excessively positive comments published anonymously, which, most likely, are false.
Visit some platforms that tend to have ICO reviews in progress at that time, and that also makes the analysis of all the details of the ICO in question, comparative with others, advantages and disadvantages, etc. Although we will have to monitor all parts of the project since many of its analyzes will be promoted by the ICO.
Another mandatory aspect that is worth analyzing, when considering an ICO investment, is to identify the custody services controller for crowdfunding. Genuine development teams will generally recruit people with a strong reputation within the concurrency community to act as faithful holders of the funds raised.
With their reputation at stake, these people are less likely to run away with the funds raised. In addition, if funding for the project is not achieved, there must be a condition to reimburse the money contributed to the respective investors. This acts as a failure to test in a case where a project ends up under funds.