HOW TO EVALUATE AN ICO?
There is a lot of excitement currently about Initial Coin Offerings (ICO’s) with opportunities for participation increasing everyday. To help new entrants to the crypto currency community, below are some key considerations to think about when evaluating an ICO.
Necessity Of The Token Or Coin:
Does the project fill a void in the marketplace. Will it add future value in the industry or marketplace it is being introduced in. It is fair to say that, a project that targets a specific industry is more likely to see robust growth. A good example is GLITZKOIN that is geared to move diamond trade on a state of the art blockchain.
Pricing Of The ICO:
When making a purchasing decision you always want to ensure that you are not buying something that is too expensive or out of reach. A high priced ICO doesn’t necessarily imply good prospects. Picking an ICO that is affordable allows for more utility tokens or coins to be acquired in the beginning. Moderate and cheaper priced ICO’s allows you to spread your budget across difference ICO’s.
Does The Business Model Make Sense:
When evaluating an ICO include taking a look at the business model. Focus on identifying the strengths and weaknesses of the plan. Who are the key players in the management? Do they have the required technical and industry expertise needed to make the project a success?
Evaluate The White Paper: Besides detailing with the technical side of the project, a White Paper should also prove its necessity in the industry targeted. Examine the White Paper as this would have a lot of important information that will help you make a well informed decision. Ask yourself if the project makes sense and if it provides a solution to an underlying problem? Technical Team: Learn everything you can about the development team and the platform being deployed. Does the project implement a secure and efficient payment system. Does the platform for the blockchain efficiently process transactions? Answers to these questions will reveal a lot about the capability of the technical team.
Examine to see if the management has strong backgrounds and experience in the field that the ICO is being introduced. The project has more than technical importance, specific industry knowledge is also essential.
GLITZKOIN is positioned to build a blockchain based diamond-trading platform. The scope of the diamond-trading platform allows sellers to get access to markets that were not known to them before. Eventually, both professionals and novices can purchase listed diamonds directly from the seller. This removes the existence of multiple layers of brokers and commission agents. GLITZKOIN’s crypto coin is an example of a reasonably priced ICO and the project, includes a strong plan to build a state of the art diamond trading platform using the Stellar based blockchain.