7. A Word on ICO: Handle with Care
They are all very difficult - two men and a dog mostly. Most are based on Ether Smart Contracts. You need Ether to get in, for that you need BTC to get Ether. if you can’t read and judge from the white paper or you have another Solid reason that your GF is issuing them, stay away as a trader. Better off holding Ether and Bitcoin.
But newly released ICO’s can sometimes be wonderful. Look for a great Whitepaper that even my grandmother can be proud of. See that the source code is open. Otherwise its not decentralised to begin with and might be just a theory. Above all, a great team and strong advisors. There are other factors as well but then I might as well write a book on ICO’s.
Let me just say that this is a complex topic which makes me passionate about this story. It is hard to explain in one line. But you should pay attention to it, yeah.
This is an interesting area, due to which this industry will grow very quickly. Also it is the subject for a whole separate book. In General, the economic model needs to be effective, the system must have all necessary economic incentives to achieve the desired goals!
The structure of the distribution.
If founders want to own 90%, that is a centralized thing, and the risks increase. The norm in ICO is the reward of the team in the amount of 10% -20%.
A technological approach.
Some comrades are trying to create their own independent network of one feature. Or on the contrary try to implement over an existing network, which requires an independent network. Here it is necessary to pay attention, since architectural mistakes in the design of the blockchain system very quickly kill a potentially interesting project.
Generally, all these criterias are not exhaustive. However it is enough to understand that making such decisions requires analysis and understanding of whole picture.
Guys from cyber.fund collect significant ICO in their radar