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The cryptocurrency industry has grown tremendously over the past decade. How can you recognize the best ICOs?

How to recognize the best ICOs

The cryptocurrency industry has grown tremendously over the past decade. However, it is still a relatively new industry and a huge part of its operation is still in the trial and error stage. Older financial systems like the securities and stocks market are well regulated and you can easily trust your assets are in safe hands when you invest. When a stock is first offered for public sale, it is referred to as an initial public offering (IPO) and members of the public can buy at the listed price. When altcoins are first offered to the public for sale, it is called an initial coin offering (ICO). ICOs are not subject to strict regulations and the decentralized nature of cryptocurrency means that fraudulent developers can easily take advantage of the system. In this article, we want to show you how to recognize the best ICOs.

Tips on how to recognize the best ICOs

Research the people behind the project

If you want to know if a crypto project will be successful and if it is safe enough for you to invest in its ICO, the first place you should look at is the top. Founders and developers can be relatively new in the crypto industry. However, they will have a verifiable past record of success in their field. They will also have relevant experience, great personal branding and technical expertise if they are to see the project through to success. If you come across a ICO on social media, you have a personal responsibility to research the people driving it. Most fraudulent developers hide in the shadows and they will stay anonymous through the process of the ICO. You should always run away from such projects. 

Opt for new concept projects

Another way to know if you should buy a crypto at its ICO is if it offers a brand new solution to the crypto ecosystem. Most cryptocurrencies are a replication of existing coins and they only aim to function better or sell cheaper than their predecessors. Opt for coins that solve a new and unique problem in the blockchain industry. However  you should note that there are exceptions to this tip. The Solana blockchain was created to solve the unique problems facing the Ethereum blockchain and today, users and developers are grateful for the Solana chain. If a particular coin has extensive new features and unique solutions for the crypto ecosystem, you can invest in its ICO.

Guidelines may be provided beforehand to educate about identifying authentic coins at ICO but these may be well forgotten when the situation presents before one. With Bitcoin up, you get a sort of warning caution before you participate in such and this may serve as a reminder to you.

Read the whitepaper

Perhaps this is the most important thing to look out for when you want to invest in an ICO. The whitepaper of a crypto project contains the purpose, structure, roadmap and other vital information of the project. Any cryptocurrency that is serious with success will have adequate planning and this will reflect in it’s well written whitepaper. If you wan to buy a coin at its ICO and the whitepaper is not convincing enough, you should hold off a little. For example, the bitcoin whitepaper that was published in 2009 already contained in extensive information on the volume, mining process, halving schedule and other vital processes of the bitcoin evolution. In 2022, everything written in the bitcoin whitepaper has still not played out go the end. This is the standard for any whitepaper.

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Summary

It is true that the people who reap the full rewards of any investment are those who get in early. However, this doesn’t mean that you should jump at every investment at the beginning. The cryptocurrency market is very volatile and largely unregulated. You need to do a lot of research before you invest a single dollar into any project. This article has already given you some of the tips on how to recognize the best ICOs.

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