The following is a checklist designed to help individual investors conduct basic due diligence on ICO projects. Of course no investment is a sure thing, but proper due diligence can reduce your chances of investing in a loser. It is important that you never invest more than you can afford to lose, and always conduct your own due diligence beyond the following initial screening questions. It is a good habit to watch a project over a longer duration of time to see how they react to market forces, and to get a better indication of their consistency level, prior to investing in them.
|Is the team behind the project comprised of real, verifiable people?|
|Does the team have relevant business or work experience?|
|Does the team work well together?|
|Is the team prompt to answer investor questions?|
|Are they asking for a reasonable sum of money in relation to their objectives?|
|Do they have a plan of action?|
|Is their plan achievable with the resources at their disposal?|
|Is their business legally compliant in all jurisdictions which they operate?|
|Are they a verifiable registered business?|
|Do they have a working prototype?|
|Is there room for growth in their industry of operation (not highly competitive and overcrowded)?|
If you did not answer yes to most of the previous questions, you may want to reconsider parting with your investment capital. Even if you did answer yes to all, conduct your own due diligence beyond this initial screening until you are convinced that the people you are investing in are entirely trustworthy.
You may also enjoy reading: Cryptocurrency & ICO Screening Guide For Investors