Re: How to evaluate an ICO similar to how VCs evaluate Startups
The list you provided is very detailed and extensive.
In my experience there are so many ICOs that checking this list every time I come across a new ICO would be very time consuming.
I'd advise you to add that one should/can first check if the ICO is addressing a real problem.
Only if they address a real problem, their website looks good, and they do not plan to raise an absurd amount of money ($10M+) I would start going through the whole list.
Aside from that nice work!
In my experience there are so many ICOs that checking this list every time I come across a new ICO would be very time consuming.
I'd advise you to add that one should/can first check if the ICO is addressing a real problem.
Only if they address a real problem, their website looks good, and they do not plan to raise an absurd amount of money ($10M+) I would start going through the whole list.
Aside from that nice work!
Thank you for your feedback and suggestions riderinred! I agree with your advice. I'll add those to the post as soon as I have time
.With more than 80% of ICOs being confirmed as scams, it is difficult to justify the risk/reward in 99% of available ICO investment options.
Yes it's unfortunate that there are so many scam ICOs. Combined with a lack of restrictions as to whom can invest it really creates a situation where the impure of heart can profit significantly from the inexperienced.
Even the tokens that arent scams are still a scams in a sense. If you offer a dividend based token, but got "around" the securities rules it's still worthless because good exchanges will not list them. Or if it is a great idea, but cannot be used in the real life, what good is it?
That's a great point. Until securities are made properly legal, tokens with those properties just have another element of risk. And the reason that so many Startups fail is due to great ideas that people just aren't interested in.