Points to Look at Before Investing in an ICO

Despite what you may hear on the news, the initial coin offering craze is not slowing down anytime soon. In fact, as more people educate themselves on cryptocurrency and blockchain technology, fresh investors enter the market on a daily basis. This is great for the overall community but it comes with a downside. These new investors have a big target on their head for scam ICO’s. So before you go throwing money at every cool project you see, here are some key points to look at before investing.


This is the most important part of the ICO research process. After all, the team represents the great (or not so great) minds behind a potential investment. If you don’t feel good about the team, then you should not waste your money on them. Aside from that, there are many instances of team profiles being fake altogether. Hence, you need to do your own research. The landing page of each project should have a full list of team members including links to learn more about each one. Dive deep into their LinkedIn or Github accounts to see if the person is truly who they say they are.


There are a lot of cool ideas floating around out there but not all of them work. Why is that? Well, a cool idea isn’t always enough to survive the ICO process these days. In order for a truly, innovative project to shine through, it must solve an existing problem in a new way. On top of that, it helps to look at the token itself. What does the token do? Does it have any real use? Will it benefit you at all? Believe it or not, it’s common for projects to start an ICO and have little to no need to create a token at all. If you’re just buying useless bits of computer code, then perhaps this is a bad investment opportunity.


Speaking of code, one must thoroughly analyze it before investing in an ICO. Now, of course, not everyone out there is an expert coder or even understands blockchain technology from a technical perspective. That’s fine. Whether you are a coding genius or not, it’s important to see if the underlying code of a given project is public. Furthermore, you must see if a trusted third party has audited/validated the code.

In addition to that, it’s worth mentioning to give a project’s whitepaper a deep examination, Think of the whitepaper as a foundation for the project. This is where you will find everything that ties this project together. Furthermore, it will help you see how the team will build upon this platform to create something of purpose.

These are just a few key tips to analyze before investing in an ICO but of course, there are many more. BestRate will always keep you updated on the latest crypto advice so keep an eye on this blog for more great content in the future.