Find a Trustworthy ICO in 3 easy steps

[ico_daily]

Hello Everyone,

It sure is a problem to find a good and trustworthy ICO these days. But I strongly believe that by asking ourselves these 3 simple questions, we can easily pick out the best ones, or the safest, at least.

WEEDING OUT BAD ICOS

Some say that 99% of ICO projects are fraud. One of the worst things about ICOs is the stigma. The ICO title can make good teams and projects appear shady, and we must put an end to this.

People can spend a whole day trying to figure out whether their selected ICO is a fraud or not. Some sort of a framework must be used to easily weed out the bad ICOs from the rest.

First of all, we must understand what Decentralized Networks, Tokens, and ICOs are. After we do our research, then we can distinguish trustworthy ICOs relatively easy.


Decentralized networks don’t have a central/main hub
These networks don’t have a central operator who could enforce certain rules. Also, the network is distributed all over the globe and doesn’t rely on one single entity.


Tokens keep networks alive
Tokens are virtual items that help people interact with the Networks. They are just like an entry for the database. The value of the token can increase if the network grows. Also, tokens are really useful when it comes to decentralized networks since there is no central operator you could contact in case you don’t understand something.


ICOs are the innovative business model for new organizations
An ICO can be described as a transaction between the organization and the future consumer. The consumers pay the organization to develop their business.



How to find a needle in a haystack (ICO Edition)?
First of all, you have to ask yourself the following questions:

1. Is the organization trying to build a Network or it’s just a regular company trying to make easy and unregulated money?

2. Would it be valuable to decentralize this network? Some things work really well in a centralized environment. Decentralization is still a technology in its early stages which is really expensive, and in some ways – troublesome. We shouldn’t decentralize everything we see.

3. Is the value of the product/service/solution the organization is trying to build related to the amount and % of tokens it’s asking for? (Example: asking for $x00 Million and x0% of tokens to “Build the first flying car” by copying Ethereum is questionable).

If you answer Yes to these questions, you have probably spotted an appropriate ICO with a legitimate business model. The rest is a traditional analysis of the team, market, product and etc.

You can find more ICO Related news in today's blog post: https://icodaily.net/2017/10/09/weeding-out-bad-icos/