469
views

Tips to Evaluate Crypto Token Offerings Before Investing in 2021

You’ve finally found the one crypto token offering (ICO) you’ve always sought. Somehow though, a cautious part of you prevents you from taking that plunge. As excited as you are about the product, there’s that uncomfortable feeling urging you to reconsider. You finally submit to this prodding to evaluate the ICO that has got you so smitten. The problem is you’re at a loss as to where to start your search.

Crypto token offers (ICOs/IEOs/STOs) are the route that many projects follow to establish a market presence. Considering the proliferation rate and the buzz that accompanies their issuance, identifying a genuine product from the rest can be daunting. However, with the right knowledge, this shouldn’t be the case. In this article, you will find the knowledge required to determine any ICO’s value that interests you.

Considerations when Evaluating Crypto Offering

Scrutinize the Token’s Whitepaper

Before making any crypto investment, ensure you have read and understood the whitepaper. The whitepaper explains the thinking process behind the issuance of a particular token. This encompasses the road map, the objectives, and the timeframe for the implementation of the project. Whitepapers are usually detailed and, therefore, crucial sources of information regarding a project’s viability.

A white paper explains the following aspects of the project:

  • The project intends to cure pain points and how unique it is from those already in the market.
  • The concept behind the project and how the team leaders intend to implement it successfully.
  • The measures the firm will adopt to guarantee the achievement of its objectives.
  • The token’s application.

Seek Complementary Information

Look for complementary information after reading the whitepaper. Such information includes the financial projections, a SWOT analysis, legal compliance, and the timelines for implementing a project.

Trust them Cautiously

The absence of a white paper sounds alarms over the project’s authenticity. Should that happen, then it’s best to explore other investments. An investor shouldn’t take the promises entailed in the white paper to be the whole truth. A well crafted white paper could be the ruse that scam projects use to trap the unsuspecting. Before the U.S Securities and Exchange Commission shut down PlexCoin, it had used a well crafted white paper to raise over $ 15 million from the unknowing public.

Familiarize with the Team Behind the Token

Any project is as good as the team behind it. It is crucial to know the management and development teams pushing a particular token. 

Team Reputation

Their reputation in the crypto space should provide you with a fair idea of their project’s viability. It is crucial to ascertain if any has previous associations with reputable projects. Moreover, determine if they have the qualifications and experience to run the project they’re selling you.

Smell a Scam

Ensuring that people of impeccable reputation are the one’s running the project helps one avoid scammers. They’re inventive, and some use fake founders and biographies to hoodwink the public regarding their project’s authenticity. The only recourse is to research the team championing the token thoroughly. 

Scant or unavailable developer and founder information is the cue to avoid a particular coin. Take caution to match public profiles with their activities, including their followership and reactions to their online presence.

Verify the Project’s Legitimacy

Another factor to consider is the project’s standing within the law. Ensure that the law regulators within your area approve of it. One’s place of jurisdiction may disqualify them from participating in a token offer. Should they decide to go ahead and do that, they may run foul of the law.

Establish the Problems the Project Seeks to Solve

A couple of questions should come to mind when considering the token to invest in. First, what solutions is it offering the market? Second, what is its uniqueness in comparison to what is already available? Any project worth investing in ought to be clear on its offering and its different from the rest of the market.

Exercise Vigilance

To secure your investments, it is essential to interrogate the project. Increased awareness of how insecure one’s online presence is, makes many prioritize their security. We ought to exercise the same vigilance when determining the value proposition of a particular token.

Furthermore, projects with unique selling points have larger traction. Consequently, they have higher tradable values. It follows that one will strike secure and profitable investments with them.

Audit the Token Sale

At the crowdfunding phases, all ICOs depend on the token or currency system. As an investor, keep tabs on the token sales figures. Keenly follow the token sale over time. To establish legitimacy, projects ease the process of auditing their systems and token sales. 

We’ve made significant technological advancements, allowing any venture to attain openness with its clientele. As such, any project impeding you from tracking its ICO progress is probably a scam you’ll do well to avoid.

Study reviews and Ratings Of the token Offering

Take time to read reviews and critiques on the ICO you intend to invest in. One may indeed find enough information from ICOs marketing. Nonetheless, these often tend to skew information in their favor. An independent evaluation of the project becomes useful in judging the integrity of the information presented.

Expand Your Knowledge

Joining a crypto forum provides a better understanding of the project. Here, members offer their views on the project’s hits and miss enabling you to make informed decisions on the token’s investment. Notable platforms to sign up to include Quora, BitcoinTalk, Reddit, and other social media platforms. Exercise caution since some of the advice could mislead you.

Engage Trusted Players

Security is of paramount importance to any crypto enthusiast. Despite the strides the sector has made in securing user activity, vulnerabilities still exist. Here’s where working with reputable industry players makes sense. Seek the guidance of industry professionals. They are an invaluable asset because they have a good grasp of the crypto space working. Therefore, they give sound advice.

Final Thoughts

Bitcoin live price
Btc
Bitcoin
$23.108
price
0.44049%
price change
BUY NOW

The proliferation of ICOs makes determining the right product challenges. The noise and glitz that accompany their introduction may hinder a careful analysis of their value. This evaluation is critical since not all projects are well-intended. To the uninitiated, this doesn’t need to be a complex engagement. Equipping themselves with the right information builds their capacity to discern the gold from the dross. It’s essential to scrutinize the project’s whitepaper, research the team pushing the product, understand its value proposition, and comply with regulatory requirements. Also, it helps to audit the token sale, study reviews, and opinions about the project and seek professional advice. Armed with this knowledge, anyone can make informed investment decisions.

Stay up to date with our latest articles

More posts

An Easy Guide to Initial Gaming Offerings (IGO)

Initial Gaming Offerings, or IGOs, have been gaining in popularity as of late. This guide will explore the ins and outs of IGO investing. The aim of this post is to help you make informed decisions about this investment opportunity.  We'll cover everything from what they are and how they work to the benefits and risks associated with them. At the end of the guide, you will find it easier to assess IGOs on the market. What Are IGOs, and…

Initial Metaverse Offerings (IMO) – A Beginner’s Guide

Initial Metaverse Offerings (IMO) allow businesses to raise money by issuing tokens on the blockchain. IMO offer investors a chance to get in on the ground floor of exciting new projects. Through an IMO, you may provide businesses with the capital they need to get started.  This guide will explore what IMO are, how they work, and what you need to know before investing in one. What Are Initial Metaverse Offerings (IMO)? Initial Metaverse Offerings are a way for blockchain…

What Is Liquid Staking? A Beginner’s Guide

Liquid staking is a new way to stake your coins and earn rewards. Here we will show you how to get started with liquid staking and explain the benefits of this new system. We will also discuss the main difference between standard staking and liquid staking. What is Liquid Staking? Liquid staking is a way to earn rewards for holding tokens. You can stake your tokens and then easily withdraw them if necessary with liquid staking.  This makes it an…

Sleep Minting – A Guide to a Potential Threat for the NFT Market

Sleep minting happens when a scammer mints an NFT to a renowned creator's wallet with authorization to retrieve it. This gives the impression that creators legitimately minted an NFT to themself before sending it to a criminal. This guide will teach you how to protect yourself from sleep minting scams. Moreover, we will mention what steps you can take to prevent the phenomenon from happening. What is Sleep Minting? Scammers utilize "sleep minting” to mint an NFT and deposit it…

NFT Floor Price – A Beginner’s Guide

When you think about it, the concept of a floor price is relatively simple. It’s the price below which no one can sell an asset. In traditional finance, a centralized exchange is responsible for setting a floor price.  For example, if a stock falls below a threshold, the exchange may halt trading to prevent prices from dropping further. The same principle applies to digital assets and securities. The floor price for an NFT depends on supply and demand, historical prices,…

How Do NFT Transaction Fees Work?

When sending or receiving NFTs, you'll need to pay a fee to the blockchain to process the transaction. This fee helps to cover the costs of processing and validating the transaction. The fee varies depending on the blockchain, but it's generally small. If you're new to NFTs, then it's important to understand how transaction fees work before sending or receiving any tokens. By understanding the fees involved, you can avoid unexpected costs and make sure blockchains process your transactions smoothly.…

Buying and Selling NFTs – The Most Important Criteria to Consider

Non-Fungible Tokens (NFTs) are digital assets that are not interchangeable. They each have unique characteristics, making them unlike any other token on the market. For this reason, they hold a lot of potential for various industries and use cases.  In this guide, we will take a look at the most common criteria for trading NFTs. What Are NFTs? NFTs are unique digital assets and cannot be interchangeable. This feature makes them perfect for various applications, including gaming, collectibles, and online…

How to Protect Yourself from NFT Scams

As the popularity of cryptocurrencies and blockchain technology continues to grow, so does the potential for scams and fraud. In this article, we’ll go over some common threats to your safety when investing in or using non-fungible tokens (NFTs).  The guide will provide some tips on how you can protect yourself from these dangers.  The NFT Opportunity and Its Appeal to Scammers Blockchain, a decentralized ledger tracking all transactions involving an item, is where NFTs reside. NFTs can represent anything…

The Importance of Smart Contract Auditing

Smart contracts are the innovation that propelled blockchain technology to where it is today. This invention fulfills the agreement between all the parties in a deal without the need for intermediaries. As a result, it boosts the security and immutability of a blockchain network, allowing numerous and diverse applications to develop. Unfortunately, smart contracts are not flawless and could lead to million-dollar losses if hackers can exploit their tinniest loopholes. For example, some famous attacks on smart contract code glitches…

Top NFT AR Projects to Follow during the Crypto Winter

The crypto market is experiencing one of its worst “winters” in its 12-year history. Some pessimistic voices claim it's all downhill from here. However, expert traders know that the future is not as bleak as it seems. On the contrary, new and innovative projects are still surfacing in the market, giving us a glimpse of how promising the new "crypto spring" will look. Sitting and waiting for the crypto winter to pass is gruesomely depressing. That’s why we put together…