Initial currency support (ICO) is a way to raise money by trading in future currencies against currencies with instant value and liquidity. Typically, a percentage of the currency involved in the initial currency support process is sold and a percentage of it is held to cover the needs of the company or so-called private investors.
To get all the information you need to make the right decision on your initial currency support (ICO) process, visit our specialized website to provide active, up-to-date evaluations of active, up-to-date active currency support operations, based on accurate information provided by the entrepreneurs themselves Brokers.
The initial currency offer allows both large and small investors to fund projects they like. The last year has been full of thousands of success stories for initial currency offers. The motive for such a project is clear. The motivation of investors in ICO operations is to contribute to making the currency price higher than its price during the initial support process.
Competition among currency investors for initial currency offers is also very complex. Recently, he raised amazing sums of $ 258 and $ 275 million for both Hdac and Filecoin, respectively. The success of the initial currency support process is influenced by many aspects, and investors should consider the following key elements that will be discussed in this article. At the moment, you should mention less successful stories of support operations such as the initial Mycelium coin. The team disappeared after raising funds and later found that they used the money to go on leave.
Such an incident may be due to lack of organization. Just a few days ago, $ 7 million was stolen when CoinDash began its initial currency bid. Before the exact currency was sold, its location was pirated and the transaction's wallet address changed to a pincers address. In this article, we will discuss the key elements to focus on when evaluating initial investment offers.
Important Warning Before we start, initial currency offers are a way to raise money based on serious risks. Never invest in amounts you can not afford to lose. Keep in mind that due to lack of regulations, you will find it difficult to recover lost money in the event of any error.
1. Composition of the process-based team
Gather all information about the team, especially the development team and the advisory board. Look for each team member and their previous experiences. Use Google to search for their names. Visit their personal pages on LinkedIn and look for the famous names in the project advisory board, and then find out if the team has any previous experience in digital currencies and more importantly, experience with previous projects or subscribing to the initial currency offers and the success of their experiences.
2 - Bitcointalk.org publications
The announcement of the project on BitcoinTalk.org publications is a good starting point, as the largest forum for developers and for currency-related issues. It is highly recommended that you read the messages carefully, and investors' concerns (or perhaps not) will be answered in the publications. It is clearly a bad sign when developers avoid asking questions or not cooperating with users. So, sending a personal message to developers to see how they respond to you is also a good idea.
Each Bitcointalk message contains the rank and degree of activity (number of previous messages) per sender. So you should beware of novices and writers of lower levels. Reputation is very important. You should be familiar with the comments of experienced writers, and look for negative messages, sometimes a warning signal. It is good to use the [Select All] option to see all comments in the publication and use the CTRL + F in the Windows operating system to search for any warning words such as "trick", "scam" or "network marketing." Then evaluate the relationship between the search results and total responses.
3. Project stage and venture capital
You should know the project stage evaluation. Will it include official white papers? Will the currency be a beta? Is there a product that has been launched with limited functions? You should prefer projects that contain "some" labor laws, although many initial currency offers have proven that they did not invoke any labor laws to become successful stories.
Venture capital tends to invest and support projects from the earliest stages. Look for this information that is usually found on the home page of the project site. It is likely to be a huge venture if the venture capital firm is known for digital currency, such as Blockchain Capital and Fenbushi, owned by Ethereal's Vitalek Putrin.
4. Society and the media
It is essential that there be a supportive community available to everyone, such as Slack, for all investors. Openness is a crucial factor in gaining our trust, as did the laws of Github. Try to understand the atmosphere of the community and see the size of that community and the volume of activity in it.
Other sources such as Twitter, Facebook or Reddit can be important when evaluating a project. She should also be wary of the pseudo-award publications. It is common to launch publications to reward users who are working to disseminate positive information about the project in order to increase media coverage or to assist in translation. These awards publications can stimulate this uproar around the project but are not objective. On the other hand, some investors only participate to get some of this digital currency.
Why do they need the currency? Is its balkin necessary?
The presentation of the primary currency means creating a new currency designated for the project. One of the most important issues that each project should answer is what is the need for that currency? Why are not currencies such as Betcquin and Atheros enough to meet the needs of this project? I assure you that many projects fabricate stories of fraud. But hey, the initial currency offer can not be made an initial offer without assigning its own currency. The same question must be asked about the use of the technology behind the project.
6. Maximum and unlimited market value
In the early days of initial digital offers, the difference between the maximum and open market value was not the same as we see today. Open market value allows investors to send unlimited funds to the portfolio. The more currencies traded, the lower the level of excellence in the currency in subsequent trading because of the low demand for them.
The greater the popularity of the initial currency offer in the currency market, the greater the amount of money. Take a look at the Bancor project, which raised $ 150 million in just three hours. This has resulted in no increase in the rate of profits of investors. Keep this in mind when participating in an initial currency offer that does not have a maximum market value. On the other hand, you do not want to be the only one who invests in the project. In addition, the digital currency platforms do not care about projects that raise a little money, making it difficult to market the initial currency after launching.
7 - Distribution of the primary currency - when and how?
Greed can be defined as the distribution of a large proportion of the primary currency on the members of the team, to transfer more than 50% of the supply of the currency is questionable. A good project will set the steps for distributing its initial currency within the scheme of the project. This is because each stage or milestone in the project requires a certain amount of funding.
You must monitor the currency distribution stage. Some projects launched their own currency hours after the end of the initial currency offer, and some projects needed to issue a beta version before sending the currency. If we look at the percentage of the profits of the etherium (within one year between the presentation of the currency and its distribution, which led to about 500% of the profits) and the currency of Augur (about one year between the presentation and distribution of the currency, with a profit of up to 1500%), Decent "(about 8 months between the presentation of the currency and its distribution and profit rate of up to 350%), we believe that the relatively long period of separation creates a positive buzz about the project.
8. Evaluation of the official white paper
In fact, the biggest problem with ordinary investors is that they do not read the official white paper, although they contain all the necessary information about the project and the initial presentation of that currency. Do not hesitate to read it or at least read most of it. You should note its positive and negative aspects, and add to that the results of your research. In the end, this official paper provides information on a silver plate to potential investors. After reading, you should be able to answer a simple question. What value will this project bring to our world? You will also know what you intend to invest in.
9 - Code quality - Search in Github
If you have some programming experience, you should use it here. The quality of the developer can be identified and understood by analyzing some of the code he created. If you do not have enough technology, you can still assess the quality of these instructions because of their consistency. Another good indicator that you can rely on in the evaluation is to use the appropriate comment within the code. You should avoid anarchist developers, as a small part of the code reflects the personality of the developer.
The length of the function is another indicator to be taken care of. A function that contains more than 50 lines of code should ring the alarm for you. Synthetic programming is important and makes the program more smooth, readable and acceptable. Projects related to digital currencies tend to be open-source. This creates trust among the project community and encourages developers from the community to make suggestions or improvements to the project. The open source project also provides an opportunity to consider the Commit register. These are important words from slang terminology meant to push a portion of the code into the Github Help repository.
You can view all Commit by clicking on the text "366 Commit" where you are allowed to investigate each change. The Insight tab gives you a general summary of developer activity. This tab also shows a graph of the amount of Commit you receive daily. Below the graph, you can see the activity of each developer individually. This information is important to investigate the development team. It is also possible to see the popularity of the project given the amount of stars it receives.
Additional Notes: Ask yourself why the project chose to work on specific blockers. Whether they contain pluchen, betcoin, etherium (smart contracts) or on waves or others. In recent months, the introduction of ERC-based prime currencies, called ERC-20, has become increasingly popular. These currencies can easily be stored in Ether wallets such as Myetherwallet and sometimes do not require them to be traded on digital exchange platforms, .
**10. Conclusion
The offer of primary currencies will be more popular as a means of raising money. There will be a lot of projects that you can choose from, so it will be difficult to evaluate these projects. It is essential that you investigate and read as much information as possible and write down all important aspects, whether positive or negative, before making any investment decision.
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