ICOs. The bane and joy of an investors life. This is my take to my writer Gonzalo’s Researching New ICOS
Initial Coin Offerings have become a saturated market and while the amount of money raised is slowly becoming ludicrous it appears that it is merely a short-term boom. Many investors have begun flocking to these coins looking to hit it big with the next Ethereum or the like.
Profits in ICOs have always been a tough bird to catch in terms of which coin is profitable and which is not.
Here are my tips to dealing with an ICOs
Tip 1: Look at What You are Investing In
There is a fine line between something being revolutionary and something being stupid. Before you get caught up in the hype of a coin. Stop and ask yourself “Does [blank] need decentralization? Is it sustainable? Will someone actually use this?”
Tip 2: How Many Coins are There and What is the Distribution
While coins are great, having too many is bad, even worse is when the founder’s wallet contains more than 30% if of all of the coins. Look at the Number of coins and distribution.
Tip 3: Look at the Team and who is active
Getting someone on your team as an advisor that doesn’t do jack is easy. Look at their team, if a coin has only one person doing all of the work. Look at that. A coin should have multiple active people
Tip 4: Look Who Is Profiting
If the ICO is paying a bunch in bounties, that is a red flag. As many bounty recipients dump the coin as fast as they can. Which hurts the coin in the long-term circulation value.
Tip 5: Don’t Trust Corporate Backing
Sticking an unconfirmed companies logo onto an ICO is easy. 9/10 times companies won’t correct misconceptions of ICO’s having their support. Unless the company clearly backs it. Be vary.
Tip 6: Is the price worth it
The idea may be the next great thing, but inevitably the second the coin hits the exchange it is going to spike then dump. Is there a point where you would rather buy at the dump?
Bonus Tip 7: Am I Invested In It?
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You Know The Drill: This is my personal opinion I am not your financial, marital or legal advisor