ICO scoring — The 5 factors for the success of the project
In autumn, we have launched the educational project howtotoken.com. It has allowed us to dive deep into the crypto market and talk to the founders of many projects. It allowed us to watch the situation with ICO from the inside.
In this article we want to provide a simple method of evaluation for any ICO project which has a right to exist from our point of view (The Author is very skeptical about different ICO ratings and does not provide any recommendation to make investments into tokens). We tried to choose such projects for every aspect which ones are currently in a token sales process or have just finished recently.
1. The Idea — a breakthrough idea
As an “idea,” we understand a breakthrough idea for a concrete market, considering its particularities. It does not need to be a scientific development. Ideas like Uber and Yandex.Taxi are breakthrough ideas for a taxi market, while Tetra Pak is a breakthrough idea for the packaging market, as the packing of rice and buckwheat into packets allowed for a much higher earning potential on well-known products. It seems easy to develop a breakthrough idea, but in practice,diving headfirst into the market is required.
The project team at btcgpu.org wants to solve a problem of ASIC domination on a mining market. The project slogan is, “To make the bitcoin decentralized again.”
Electroneum.com is the application which makes cryptocurrencies accessible to more users. Authors see the main implication of it in the gaming industry. As a benefit, you can earn a virtual currency in one game and transfer it to other games, so you avoid a trading of in-game goods on the exchanges.
2. SC — a social capital of a founder
The number of subscribers on social networks, radio listeners, real world contacts etc. To put it simply, it is an audience who know,s follows, and trusts a project founder.
Storiga.com is a platform that allows local businesses to scale worldwide. One of the founders is Evgeniy Gavrilin — a videoblogger, and the owner of “Life of BE” channel.
Stox.com is a blockchain betting system. Few people have known about the platform until the famous boxer Floyd Mayweather talked about it on his Instagram account saying that he was going to invest in the project.
3. The Experience — successful business experience of founders
The chance of success is much higher in this case if you already have experience running a business, even if that business was in a different niche.
Tokenstars.com is the platform of investing in talent. There are some people with successful business experience on the team.
Crypto.tickets is the blockchain ecosystem of event ticket sales. The company’s CEO has had successful experiences in this area.
4. The product
Such projects are notable because there are professionals from particular spheres (developers, designers, marketers) on the founder’s team who can develop a product without outsourcing.
There are a lot of examples when a product is being developed, but business does not grow. In any case, the working product, or prototype, during the project launch significantly increases the success rate. And the support of investors during ICO can attract attention to a project and people with business experience to the team.
Prover.io uses the technology of video stream validation. The team has over 10 years experience working with this market.
Snip.network is a decentralized newsfeed platform. The founders are developers and marketers.
5. The X-factor
This factor was put into a scoring system to not to lose sight of dark horse projects. In this category, we consider projects which do not have the four factors from above, but show fast growth.
We will not provide examples of projects with x-factors. We want to see the companies with a significant x-factor, from your point of view, in your comments.
There is the pivot table below (each factor is scored from 0 to 5) with the total scoring sum. It will be very interesting to come back to this table after the ICO of each project is over to check the evaluation’s fairness.
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