How To Evaluate A Startup's ICO Before Making An Investment

Before we can invest in a blockchain Startup's ICO, we need to first make research and evaluation of the new project. You must take caution before making that smart choice of investing in an ICO, because the founder may run away with your money.

Here is my evaluation process:

Who is the founder?
Let's look at the background of the founder, has he/she successfully built and sold a company before? or a new entrepreneur who is trying his/her luck.

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Do they have a professional whitepaper?
A professional whitepaper must be simple to understand by everyone or language user friendly. The whitepaper must have a proper structure and they must explain the problem, solution, allocation, funds and the future development.

Is the project's website professional?
Take time to review and open every page on the website. Does the layout look unified and professional?, is the message clear? or does it feel smooth?.

Is the coin necessary?
In this case, if the coin is necessary, what is it used for? can the coin be exchanged for other coins? or how long will it take to get listed on exchange markets for trading?. You must read carefully than following statements from other investors.

Is there customer service and tech support?
There must be proper communication, not robotic. Sometimes these projects tend to outsource their Public relations to outside firms which makes direct communication harder.

Do they have blockchain industry experts as their advisors?
Look at their advisory board, are they experienced members in the industry?. A lot of questions to be asked, but be ready to have the right answers.

Thanks for reading.

@timothy256