Procedure of investigating ICOs
Of late, the digital upgrade is used in most transactions including the IPOs. Private entities use it while raising capital from shareholders. This is contrary to traditional stocks of a corporation.Just like Cryptocurrencies, ICOs are not regulated and devolved.
Therefore, there is no entity that checks that supervises the activities of this venture. While this is suitable for shareholders, it is prone to many security threats.
Forthcoming ICO List, ICO Assessment Site, And Other Defensive Measures
Many propose that ICOs should be regulated to prevent Online fraud. Although, governments are trying their best to safeguard citizens from online fraud, the industry regulates itself. Potential investors have an option of turning to future ICO list.
To that end, a tool potential investors can turn to is an upcoming ICO list, which can serve as a launch pad for their own research into the respectability of the product. ICO ventures are listed in these websites for the future.
However, they are rated based on certain standards. Coin intelligence has incorporated some features which assist shareholders to make wise decisions. For example, project vision and corporation identification. It will safeguard investors from losing money.
Why Shareholders Must Exercise Due Diligence.
Investors should not only rely on rating sites and ICO list. They must conduct thorough investigations when searching through various ICOs. Developing tokens and white paper need slight technical skills. Several scammers make millions of dollars for doing little work.
Investors can exercise due diligence by following these tips:
1. Identify key factors in IPO’s. It comprises of project team, code and website.
2. Investigate ICOs on dependable websites. Search for websites which give accurate news on cryptocurrencies and ICOs.
3. Check if the project website has a clear vision before committing any funds.
4. Investigate if the project teams have enough experience to execute their ICO venture. Check if their names appear in cryptocurrency sites.
5. Check if details of whitepaper have useful information like target audience and roadmap. If such information is missing, ignore the investment.
6. Assess the company’s goals: Investigate why you should invest in this corporation instead of others.
7. Verify the code: Make sure that the code used to create a blockchain or cryptocurrency is published on reliable sites. The code should be accessible to any potential investor.
Why It Is Necessary to Research Before Investing
Research is vital before investing to avoid losing money. This is because ICOs are risky since they are prone to Online fraud. Potential investors should get information from reliable rating sites. On Yavin, an angel investor has made efforts to safeguard Online transactions. The step will increase investor’s confidence in the industry.