Before you invest in an ICO, it is essential that you carefully analyse each project to work out if it is a good investment. Below is a guide which will help you to work out if you should invest in an ICO.

Check out the business model

Before you invest in an ICO, you should look at the business model so you can identify the positives and any weaknesses. To do this, you should ask the following questions:

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• Does the platform need to launch its own cryptocurrency?
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• How will the token be integrated into the platforms business model?
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• Can the token be used outside of the platform’s ecosystem
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Investigate the team behind the platform

You should also take the time to check out each member of the development team and board. Ideally, the people on the team and board will be have proven experience. If there are few details available about the team behind the ICO, this could be a sign that the ICO is a scam.

Read community feedback

Any ICO which is worth its salt will have a community forum on social media such as Reddit, Facebook or Twitter. By reading these boards, you will be able to get a sense of how the platform is viewed. However, you need to be aware of fake social media posts which are used to spread positive information about scam ICOs.

Check the current state of the product

The final product is what will decide if a company will be a success and if an ICO was worth investing in. Typically, the closer a product is to launch, the higher the chance of success so you should look for ICOs which are well developed or near completion.

Research the industry

Finally, you should research the industry which the ICO product is aiming to target so you can assess the amount of competition the platform may face so you can assess the chance that the ICO will be a success.

If you would like to see upcoming ICOs, check out the Zloadr ICO calendar.