5 Things you must consider before investing in an ICO

We, at Marginless, believe that everyone should understand the positive and negative sides of an ICO. With so many ICOs happening, its good to know which ones have potential, but its even more important to know whether investing in this space even makes sense. In many ways the current wave of ICOs (Initial Currency Offerings) looks a lot like the heady days of stock IPOs in the late 90s. The potential return was so enticing that euphoria overtook common sense in many ways. Today we would like to address 5 key factors on whether the ICO that you would like to invest in is good or not.

Its great to have a whitepaper and detail out a project, but how detailed has the team really thought through their own project?
Short Whitepaper? No Details? Avoid! The whitepaper contains all of the core information you should need to know about the coin. Once youve done that, go to forums to read about some of the holes that may exist within those Whitepapers. See if the developers are actively addressing the concerns or simply ignoring them. The more information available, the greater the debate, and the more transparent a team is about their tech, the better it is for the investor.

No Development Roadmap? Avoid! What is the teams development and marketing road map? Does it make sense? Is the time frame reasonable? Has the team already proven it can stay on top of its own development schedule from before the ICO? I am wary of any project that doesnt have a detailed road map and so should you be.
Does the team have real experience in the space they are attempting to coinify? If so, how much experience? What about relationships to industry veterans who can elevate the project further? Ultimately our investment is betting on the people behind the coin, not the coin itself. Our investment is a vote of confidence that the team can pull off the incredible feat they have set their sights on.

Are they full time? The worst thing is to have a part time staff. This means the project isnt their primary focus and it can mean the project may go slow or, even, no where. We want a full time team dedicated to fleshing out the vision.

How many years of experience do they have? Nothing wrong with the young diving into a killer project, but do they have support from a more experienced team? If not, then navigating the unknown could prove harder than initially anticipated. Nothing stays rosy for long. Having veteran team members can help to brave through turbulent times, which are guaranteed to happen.

Do they have every aspect covered? Architecture? Development? Scale? Business Development? Marketing? A team only comprised of technology developers can also prove to be a poor choice for investment. Its important to have a balanced team, one that can also get the word out, and build relationships to accelerate growth.

At the same time if a project only has a single developer, its a single point of failure. If anything happens to that one person, the entire project can head into a downward spiral. Redundancies are required to ensure that no single person can make or break the project.

Full article on our Medium

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