Last Updated on December 14, 2020
In cryptocurrency, initial coin offerings (ICOs) has been an unregulated means by which funds are raised for a new cryptocurrency venture. This shows that anyone can come up with ICO tokens overnight and call for investors to pilot their journey into crypto world.
In order to check ICO tokens that look promising to be enlisted on coin exchange market like Binance, Kucoin, coin market etc, one has to make a through research on each of the ICOs to avoid losing money on investment.
In this guide, we have outlined various ways one can check out the future of any promising ICO.
How to check how promising ICO Tokens are and whether to invest
1. Study and evaluate the white paper
White papers are not a remark for eligibility of an initial coin market into crypto exchange market. ICOs can fabricate the information on white papers in order to make a win in crowdfunding.
White papers are written by expert copywriters together with the design and fundraising consultancy services. From an article published by China’s Beijing News, some of these services may have been involved in abetting questionable ICO projects by agreeing to falsify information in their white papers.
The best way to evaluate white papers is to read it back to back. Do not skip any word. After thorough study of the white paper, read the about us page if found on the website. There’s a possibility that the white paper copywriter may not be the person to design the website.
2. Check ICO Roadmap
Roadmap is timeline for an ICO campaign. It shows the events of milestones covered during a particular campaign.
Not every ICO has a roadmap but it is necessary that every ICO as a roadmap to help direct investors on what has been accomplished and also their current step. It is like a calendar.
If any ICO is too slow to update its roadmap or even fails to indicate the status when the time frame has been reached, then it has to be queried.
3. Bounty or Airdrops campaign
Airdrop is a free incentives for any ICO campaign sake. An Airdrop is when a blockchain project – ICOs distributes free
Token Airdrops are free but when an ICO requires that one must donate certain amount of Ethereum in order to process a token into one’s account, then it is no longer an Airdrop. It is an Airdrops SCAM watch.
Crypto Tokens has no currency exchange either in USD or ETH. When you see token that speculates the value of its coin to a USD equivalent is a hoax. ICO becomes a real coin after it becomes enlisted in any coin exchange.