The Right Way to Analyze an ICO Project

The Right Way to Analyze an ICO Project
ICO Guide

Even though the ICO project, cryptocurrency, and blockchain technology are regarded as the next step in technological and business advancements. However, initial appearance only tells half the story.

You might discover an ICO which seems to offer immense potential that entices you to invest your hard-earned money. In the end, the ICO ends up being a scam and you lost a significant chunk of your investment.

It’s not always easy to tell a good ICO from a bad or even fake one; this is an ongoing issue that plagues both amateur and experienced investors.

Cryptography is a diverse field and carrying out one’s personal research, learning about new things goes a long way in making wise investment decisions. Additionally, not al information that is provided online is accurate, some companies might post fake profiles or inflate numbers to woo investors.

Advisors and Team Members

The best way to analyze an ICO is to study and judge the team members and advisors behind the project. Though it is difficult to verify the legitimacy of the information provided. Multiple varied online searches can help you learn a lot about these team members, their capabilities and previous work experience.

The ICO market is still largely unregulated when compared to traditional financial markets. In the case of an Initial Public Offering (IPO), there are plenty of prerequisites that are made mandatory by the governing bodies which the company has to honor to get listed. It may require financial records, company history and a myriad of different documents. Still, it might take years before a project gets the permission to get listed by the regulatory authority.

ICO’s work very different, there is little to no government intervention, the process can be started with little to none accountability.


A whitepaper is a document which an ICO publishes on its website. This document provides in-depth data on the company, it’s vision, business plans, marketing strategy, and future roadmap. 

It is always better to go with your gut feeling. As the old saying goes “If the deal sounds too good to be true, it probably is.”


Thanks to the blockchain technology and cryptocurrencies, anyone can start a project, and issue their own tokens or crypto coins. What potential investors should seek is the usability of tokens. Do they provide a real value outside of the project? One also needs to take into account the current value of the token against a cryptocurrency or fiat money. As you are looking for a measurable Return on Investment (ROI) for your money, this section of the ICO should be studied diligently.

Project Vision

Apart from the technical aspects, the vision of the project helps you understand the direction in which the project is going. It shows the project’s future plans that help you decide whether you should invest your money in the project.


Minimum Viable Product or MVP is probably the most important part of an ICO. It is a working prototype of the project which gives an idea to the users and investors about how the final product works.

You have read about the business and marketing plans, about the funds that the platform is trying to raise. You have also had a chance to study the team and its background. However, it’s the MVP which has the ability to bring in the maximum number of followers and investors to an ICO project.

In the end, there’s no denying that the crypto market has plenty of potential for investment. Ensure that you keep all the mentioned points in mind before investing.

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