Part II: How to spot a good Blockchain Company?

Note: I am not providing individually tailored investment advice, but rather providing an opinion.

Dear Intrachain Community,

In last week’s blog post I have talked about some very intriguing Blockchain Venture Companies and the future-oriented technologies they have introduced to the market.

Today, I want to talk about which elements are important to consider when you are thinking about investing in Blockchain companies.

As you have probably already noticed, if you’re interested in investing, there is a huge amount of Blockchain projects to choose from. The difficult part about an investment is to know which of those projects will be successful — or, what projects are to avoid.

In the consideration process, I suggest to look for elements that have the potential to make a Blockchain project successful.

However, before I start to mention the elements that should be considered, it is important to highlight that this blog post only demonstrates my point of views, and should not be considered a recommendation or advice for any person to purchase certain tokens.

Elements I focus on are, for instance:

Does the company solve a problem?

The company launching a token should be solving an in-depth explained problem. Already from the white paper and the website of the company you should be able to understand exactly what that problem is, why it needs to be solved, and how their project solves that exact problem.

However, if after assessing the whitepaper and the website, the purpose of the project is still unclear, there might not be much long-term value. Consider whether you are willing to contribute to a project where the mission is not crystal clear.

Is the project relevant to blockchain?

Apart from solving a problem and therefore having long-term value, the project should clearly identify how blockchain technology will be used to solve the identified problem. This is important because not all projects are suited for blockchain technology and the crowdfunding option of an ICO is not always necessary. Make sure the ICO you are contributing to has a clear purpose, product roadmap and most of all, a model that demonstrates future or current demand around the project’s token or coin.

What is the long-term revenue plan?

It is crucial to consider the project’s future beyond the ICO. Does the team present a plan for further research and development? How is the project planning on taking its technological innovation to market? How will it generate revenue? A blockchain company with a clear vision and business plan will be able to articulate the answers to these questions.

Is there an active community engaged with the project?

As we all have realized, there are plenty of ICOs out there. The most successful ones tend to already have an active community and passionate supporters. I strongly advise you to do your research— does the company have an active Telegram, Reddit, or social media presence? Is there any discussion about the ICO in the BitcoinTalk announcement thread? Look at the quality of discussions and see how the team’s developers respond to questions.

Take a look at the qualification of the team:

Is the team experienced?

It is important to specifically look for experience in the cryptocurrency or blockchain field. Look at both the team and the advisory board and find out whether the company has the right people steering the ship. It could also be valuable to check whether any well-known venture capitalists have invested in the project, or watch or listen to interviews with key team members to get a better feel for the company.

Summarizing it can be said, that it is crucial to do your own research and engage intensely with the subject matter before investing in any blockchain project. On the one hand, the team and the entire advisory board have to be researched. On the other hand, the project’s whitepaper and website have to be examined into the last detail.

Note: It is again important to highlight that I am not providing individually tailored investment advice, but rather providing an opinion when discussing ICOs.

Today I have examined important elements of blockchain companies in order to equip you with the relevant knowledge to invest in blockchain projects.

Next week, I want to elaborate more on the substantial use of blockchain. Stay tuned to learn about blockchain’s characteristics and use cases.

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I will keep you posted on exciting angles of the Blockchain Industry. In the meantime, feel free to contact me on Telegram to chat with me and my Co-Founders.