The ICOs or the Initial Coin Offering were initially used in 2013 to fund the development of newer cryptocurrencies. This is when an offer is given to an investor in new sets of new cryptocurrencies and exchange this to other cryptocurrencies like Bitcoins. Since this is an unregulated means to raise funds for new cryptocurrencies, many are wondering about what expert investors have to say on how to evaluate ICOs.
Expert Investors’ Opinions On Crypto ICOs
Braden Perry. He is a litigation, regulatory and a government investigations attorney. According to him, when it comes to investing, he sees many risks that investors face when it comes to investing in cryptocurrency. ICO’s are not technically regulated by the SEC so the investors should review everything including the critical judgments and decisions in the investment process.
- Crystal Stranger. He shared that every investor should do their research and join an investment pool in order for you to get a pre-sale bonus. Never judge based on ratings because most of them are paid and doesn’t really mean anything. Also never fall for celebrity endorsements and avoid buying utility tokens that promise gains.
- Jack Dwyer. His advice is to be diligent. ICO is a new way to raise a capital but it doesn’t mean that it’s all good. It is important to research the company fully before you consider any investment. It can also help if you read through their white paper, check out their team and also truly understand their product.
- Mike Brusov. According to him, there are certain things that you have to consider. Check the founders and their team, know who the advisers are, read the white paper no matter how long it is, and ask if there is an MVP. Also, check the bonuses and see if you have guaranteed returns. Brusov also suggests to always check if the project’s partnerships are fake.
- Jeff Stollman. This technology futurist says that gone are the days when the cryptos are going up. He says that most cryptos won’t perform as well as the others. For him, due diligence is necessary. All of the information that you need can be found on the white paper. He says that you need a credible business model that will explain how everyone will make money. A marketing plan is also very important and the team should have operational credibility.
The industry of cryptocurrency is not as stable as it was a few years ago. There are so many ICOs nowadays and when you are looking to invest, you have to make sure that you have to be vigilant when choosing a company and team that you can trust.