6 Rules for Finding and Investing in ICOs during a Bubble

What's going on: Investing in ICOs is risky, there are a lot of scammy people out there and I think that there is in fact an ICO-bubble (of shitty projects with no value) going on. And yet I think that maybe the next Google will emerge out of this fancy new way of funding. I found an interesting an article that breaks down some of the key elements, that I think should be considered before putting your Bitcoin, Ether or whatever in an ICO:

Question 1: Is the project just hype or will it potentially provide value?
Question 2: Who is the team, are they known, are they already successful?
Question 3: Are there "dark periods" in the road-map, do they have a plan?
Question 4: Is there a (good) Hardcap, will unsold tokens will be destroyed?
Question 5: Does the project really need the blockchain?
Question 6: Are the founders engaging with the community?

Why should I care: With this questions in mind, it is of course not guaranteed that the projects will be successful. But you can easily avoid most of the bad ICOs, that are built on hype and / or scam out there.

In the article I mentioned, there also some criteria, that projects should fulfill:

- Hardcap $2M - $10M, average investment of around 4 Ethers per backer.
- Founders that are business oriented and already successful (won awards, have established businesses etc.).
- Direct application of the token with a unique service immediately after ICO.
- Truly blockchain based project and disruptive in character.
- Be able to speak with the founders any moment you like, via Telegram or other social channel and to make sure they don't make money out of the business operations, but rather out of increasing the value of the token.

Source: albertmurphy.com
GIF: giphy.com

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