Pure ICO- Valuation method
Here at PureICO we believe in transparency. So much so, that we have released what we look for when rating an upcoming ICO. We pride ourselves on being thorough. Thus, we conduct the classic analysis of ICO details but at the same time every ICO report that is published is the result of various meetings with the respective ICOs management team. We believe that speaking to the people involved in an ICO can really add purity to our ratings.
We rate on several key areas, that are important in an ICO.
Both Pre ICO-specifics and ICO specifics are weighted in the same way. For instance, a discount in either the ICO or Pre-ICO stage can entice investors, however, a significant discount can signal that the ICO in question may be a scam.
In addition, we look at target market cap as a large market cap may not be viable for the ICO in question, therefore, our research may alert investors to a potential money grab, where, the firm issuing the ICO do not actually need that large of an investment.
Moving onto the General Token Metrics and Information, we look for projects that have a viable Minimum Variable Product (MVP) as this means you’re investing in something that can create value and not just an idea. In addition, another key factor is the Team Vesting Period. A long team lock up can instil the belief of longevity within the community, if there is no vesting period for the team this can signal that the team are looking to flip on the ICO and their focus is not on the long-term.
Whilst looking at Team and Advisors, it is essential that there is a good team behind the ICO in question and this can make all the difference between the success of the project and failure. A good team with experience in the ICO space are more likely to deliver on their promises. We also look for social media activity and viable social media links. Anybody can create a LinkedIn or Facebook page, however, active engagement with the community and posts on social media can reinforce the idea that the team and advisors are serious about the project.
The roadmap is one of the most important factors behind an ICO. It signals where the ICO is with regards to development. A detailed roadmap is something that indicates to us that the firm has thought deeply about where it needs to be and how it is going to get there. The roadmap needs to be viable and can be achieved in that time frame.
The business idea behind the ICO needs to be clearly expressed in the whitepaper. If you can replace the word “Blockchain” for “Database” in the company’s whitepaper, then there is no need for an ICO. We look for a clear problem that the ICO in question is trying to solve. Furthermore, analysis of competitors also helps us mark in this category. If an ICO has a competitive advantage, then the ICO is relatively more likely to succeed.
When looking at presentation, we believe that the website and whitepaper should be thoroughly checked through for any spelling mistakes as we believe if a company doesn’t pay attention to detail then it is likely to be error prone.
Our social media analytics play a large part in determining our hype factor. Breaking down social media into different categories, we can identify if the ICO is strong in the social media space and the hype that the ICO is generating. We can also determine if this hype is organic or if its impacted by airdrop or other various marketing exploits. We also judge investors sentiment on the data we gather from our social media analytics.
Our GitHub factor consists of a detailed analysis on the GitHub depository. We look to see if the code is open sourced and available to the public. We also check on the number of contributors and followers.
Technology is an important part of our reports. Technology is the key driver behind the exponential growth in the cryptocurrency space. We scored the ICO highly if its breakthrough technology and if it can solve a real-world problem.
Market perspective is a key driver in the reception that an ICO will get. We look at the overall market and deem whether it is a good time to initiate an ICO.
Communications with management is something that we have deemed important. We need to be able to ask questions and receive answers within a relatively short time frame.
At PureICO, we deem all these factors important in our ratings process. The reason for such a unique set of factors is that we believe the cryptocurrency space is one that is dynamic, thus, by having so many factors we can truly capture the rating of the ICO in question.
