The mechanics of maximizing the effectiveness of investment in tokens
The Minister of information decentralized blockchain-state Decenturion, blockchain expert and investor Nikolay Evdokimov told about how to choose a startup on what to look for in the company of ICO, and how to invest to achieve maximum efficiency.
The expert said that when assessing the project to determine the best investment option is to rely not only on existing standardized scoring system, but also to do homework independently. Although the analysis of the startup, depending on depth, can take hours or even days, but in the end this will determine its attractiveness and maximize performance.
The assessment includes a lot of elements, but they are all grouped. First of all, you should pay attention to the intersection of the audience of owners of tokens, and users of the project:
“We always have to understand that a startup is a business, ICO is part of this business, and if ICO is held, it must meet the challenge of not only funding, but also attract users.”
The next point is the implementation of blockchain in the business. This factor reflects how well the blockchain involved in internal processes. This in turn attracts not only beginners captainvalor but professional, which also affects future success.
However, the most important element, of course, is the token economy, including supply and demand. For the analysis of demand is necessary to understand the principle of its building, the business itself, what’s the market position of this startup and what problem it solves. In this case, the method of study is similar to venture. It should be understood that the demand reflects the growth of the user base, turnover and the transfer of a significant amount of cash flow that provides the token economy and funding.
Should explore the possibility of producing miksovic deals, where the investor owns both a token share of the project. In this case, it is possible to simultaneously participate in the cash flow and business income, which may be based on not only the token but also on the classical distribution of dividends. Mix a deal can be discussed directly with startup without equity if you plan to purchase a serious amount of tokens, or when entering the project through the funds that can receive special conditions.
Do not forget about reducing the risks. It is primarily the escrow services, which offer startups access to funds only with the achievement of certain results. With the funds, you can also discuss the hedging of risks.
Analysis of documentation, marketing campaign, legal components and technological base will allow to evaluate the ability of the project to work in these areas. If at the most important stage of life (during ICO) project is good, it is likely he will continue to do so afterwards.
One should not underestimate the direct communication with the project team. Even if there are answers to all the questions in the documentation, the interaction will determine the involvement of founders and employees.