Recently saw some posts about detecting "scam" ICOs-- but what about detecting just "bad ideas" for ICOs?
What's your smell test?
(1). Check the management team, check for people who have a history of previous successful ICOs.
(2). Read the white paper and consider-- why can't this just be done with a database? What's the true use value of the token? Why does it benefit from being decentralized? Is it truly decentralized?
(3). What is your smell test for ICOs?
1) Developers who have made
previously successful ICOs only mean that they are good in marketing their product. It does not mean they are technically qualified in developing good cryptocoin protocols.
2) But we do not have enough technical knowledge to know if the whitepaper is good or not. Whitepapers have also become marketing tools to trick less knowledgeable people like us.
3) It is not we who decide what passes the smell test. If it passes your smell test but it does not with the SEC then you still made a bad investment.