Bubble in the ICO market: How to Improve the Chances of a Return on Investment

Bubble in the ICO market: How to Improve the Chances of a Return on Investment

Serggo Nikolaev

According to various forecasts, the bubble in the ICO market (Initial Coin Offering) has been inflated from three months to two years. Then there will be a second dot-com crash, only now in a crypto environment. Startups collecting over $100M selling dreams and ideas - this is nonsense. Collapses all the market - no doubt, but surely some will rise.

How to determine who has the chance to rise?

Use the principles of due diligence (assessment of investment risks).

Be sure to use your own assessment, don’t rely solely on rating sites (their reports will make the investment bankers laugh).

I will tell you about my principles (so far they have not let me down)! They are based on the selection of projects in start-up incubators (venture investors know about seed investments if not everything, then almost everything).

Recommendations will be on the examples of ICOs below. Most of these startups are launching their token sale this month: Agrello, Everex. Mybit, Propy, Rialto, Skycoin, Suretly.

Not everything is publicly available on project sites, some of the questions have to be asked directly to the team. Remember, you are investing a lot of money so be ready to invest your time in doing some research too.

The startup limits the amount of investments between 10 - 15 million US dollars

Of course it is better to raise one hundred million dollars than ten. But earning $100M with no right development and usable product to spend on is just burning the money raised for nothing. For such startups, what good can we expect to happen? The market understands it too: having collected 153 million dollars, Bancor has fallen to Bitcoin since the ICO by 20%. By the way, I did not invest in it. Here are some ICO's with 10 - 15 million US dollars hard cap:

 Agrello yes

 Everex yes

 Mybit yes

 Propy yes

 Rialto yes

 Skycoin no

 Suretly yes

  There is an official topic on BitcoinTalk

Collective minds perfectly remove the husks from projects. Read diagonally on the topic of the project in most popular Bitcoin-forums like BitcoinTalk. Look for problems and contradictions, the positives and the feedback. This can help you quickly analyze the ICO project you wish to invest in. Which of below ICOs are present in BitcoinTalk?

 Agrello yes

 Everex yes

 Mybit yes

 Propy yes

 Rialto no

 Skycoin yes

 Suretly yes

The team has a working prototype

Find a working business model (or project) that the team has already made - in the current composition and with their own funds. Look at these three important factors: the team, the project, on their own. If the project is attracting funding at the development stage, then this can serve as an alarm signal before investing. Which of the following ICOs have a beta version of their product:

 Agrello no

 Everex yes

 Mybit no

 Propy yes

 Rialto no

 Skycoin yes

 Suretly yes

 Business has the potential to expand internationally or become an industry standard

The market potential of the idea should be such that the company's value can exceed one billion dollars. Not necessarily that this company will become a "unicorn", but a large or growing market gives the startup a much better chance.

 Agrello yes

 Everex no

 Mybit no

 Propy no

 Rialto yes

 Skycoin yes

 Suretly no

 The team has public profiles, photos, biographies and links to social media.

Fashionable filters on photos, caricatures and other ways to hide the person? Attract money - and also shows reputation too.

 Agrello yes

 Everex yes

 Mybit yes

 Propy yes

 Rialto yes

 Skycoin no

 Suretly no


It took me about 7 hours to compose such a rating. This is based on the analysis from three of the recent ICO's I participated in and have invested two or three Bitcoins with (guess which projects). If you do not have time, then invest in all the projects with a little amount on each.

Join the startups Telegram and Slack channels, ask questions and get into discussions. Here are some of the Telegram groups for the above rating:

https://t.me/everexio (Everex private pre-sale is ongoing and runs until July 7th. Bonus of 20% is given to early participants)

https://t.me/agrello (Agrello can potentially become the second Ether, the expectations are good)

https://t.me/mybit_dapp (next Youtube?)

https://t.me/Skycoin (third-generation crypto asset)

 

Quick and adequate answers and support in chats are a good criterion for investing.

Crypto startups, want a successful ICO? Start Telegram chats.