You Should Have The Answers To These 4 Questions Before Investing In ICOs
Investing in ICOs can bring a huge fortune as well as it can bring your doom. The many ICOs out there with about 80% of them presumed to be scams and out the remaining 20%, only about 5% actually do succeed. Previously, I have been posting about upcoming and outgoing ICOs but I have decided to stop that thread and creat more educational posts about ICOs and Cryptocurrencies in general.
In this post, I present to you the four (4) questions that I always answer before investing in an ICO. These are:
What Does The Token Do?
Buying a company's token doesn't mean you're buying a stake in the company. So, you need to find out what the token does on the network and if there is no reasonable answer, don't buy it.
Who Are Those Behind This ICO?
There are a lot of companies or projects with great technological ideas but just lack a team will good skills and popularity to execute them. So, it is your duty as an investor to check how qualified the team is.
Also, look at the team and check every details of them provided. Details such as their Social media account(s) to find out if these people are actually real and are working on the project. You should also check out the level of experience and confident.
Futhermore, don't border checking out the advisor list as it is most often made up of highly reputable people that will definitely have little or nothing to contribute to the project.
Is There A Product?
Most platforms organizing ICOs most often don't have a product that is already running but there is a big difference between a product that is in development and a shitty shinny whitepaper attached to a website. So, check out if the team is actually working towards the realization of the project.
Can This Product Be Sold?
Aside the design technology, marketing is a great aspect towards the realization of an ICO project. Despite the presence of a great team behind a working product, this project might turn out to be a terrible investment because of lack of attention in marketing the product. So, as an investor, always research on how the product is being marketed.
Moreover, some platforms get money from token sale to employ and expand their staffs including marketing staffs. So, this point does not really count a lot.
Lastly, do not invest what you can't afford to lose. Stay safe. If you like what you just read, upvote and follow me for more. A big thank you to @matytan for her support and @crypto.piotr for his efforts in making me come up with more valuable posts.
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Great post!
Thanks for tasting the eden!