For new investors into ICOs, knowing “which is which” when it comes to crypto investments. With the growing number of ICOs from 2017 till date, distinguishing between a legitimate and scams is quite a task. On the good side, ICOs have gone ahead to create innovative technology not to look away from those ones that have turned out to be Ponzi and scams. Crossing over from 2017 to 2018, the ICO landscape has changed. One of such change is the competitiveness that is present in the ICO ecosystem. Unlike what you are used to in 2017, investors are struggling to get the full allocation wanted in every ICO.

The situation of the ICO ecosystem is not the concern of this article.

What is of importance are the steps to take in investing in the right, legitimate and profitable ICO.

Let’s take a look at these ways to know ‘who is who’ and ‘which is which’

  • What’s the Whitepaper Saying?

Every ICO must have a whitepaper, more or less like the business plan or strategic business plan of every business. In the whitepaper, look at the problem the ICO is trying to solve and how to solve it. As an investor, consider if there’s really a problem. Not every ICO is trying to solve any problem and that means there’s nothing the ICO is aimed at. Using BullToken as an example, the whitepaper states that the ICO is building a people-driven investment community.

  • What’s the Pedigree and Credibility of the Team Behind the ICO?

The success and progress of any ICO is the team that is driving it. You must have taken the first step is assessing the whitepaper to know the problem to be solved. It’s one thing to have a problem, the other is to have a team that can solve the problem. Don’t just consider their pedigree and technical know-how, look deeper into their profile. Don’t be surprised to see some ICO copying a random person profile from LinkedIn. Who is Listing the ICO?

With the record from the numbers so far, people from other fields are trooping into the ICO ecosystem. That means there are new but wrong people initiating an ICO. Therefore, look into which ICO listing sites. This is a major red flag if there’s no listing from relevant sites such as ICO Tracker TrackICO, ICOMarks, ICO Bench, ICOBazaar, CoinSpectator, ICOSchedular and many others.

  • Who is Mentioning the ICO in the Mainstream Media?

Not a major requirement but still necessary. When major news outlets are mentioning the ICO directly or indirectly, then you should take it as a good sign. Major news outlets will not want to stick their heads into the murky waters of ICO without knowing it is legit.

All these are to help you create a baseline when it comes to settling for an ICO. This is not to say these are fool proof but it will go a long way in steering you towards the right direction.

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