Ways to Spot a Good Token Offering.

Initial few months of the recent year have been more successful for token offerings compared to all of the entire year before. Apart from some statistics exclaiming that most of the ICO will face the failure situation. Now, this becomes a critical situation for token investors supposed to recognize which project they can trust. As they are always worried whether they are putting money on the right place or a bunch of tokens only to crash and will be heard again about it? Here in this article let's discuss certain points that how to identify good ICO and bad ICO. Sharing views on how one can identify a good project.

Who is on the Team?
For every ICO project, one of the very important factors is the team of the project including co-founders, technology people, and thinkers behind the idea. As good ICO community is handled by the professional having good hands-on experience in social media, thus it is important to develop LinkedIn and other social profiles. There should be some endorsement on the bottom of the page if the team member is involved for at least a year with any business activity.  It should be very serious and one of the important thing to consider that members handling an ICO's have good experience and knowledge in community handling and community management. Experience of team members will list them on ICO page. And last but not least, what is their experience in the technology they are trying to create or expand. Profile of Linked members should be active, a profile which is not active should be marked the red flag. Check if team members specializations cover the most important areas of business needs. Check the capabilities of business members whether they specialize in covering all the business needs. Whether they are blockchain experts and have enough experience in doing and managing the business.

A successful ICO project is Clean :
Always take care of grammar, design, and structure. If you can read the whitepapers go to the website hangout on the Telegram go to the social media channels, and read the press releases. The best team takes a lot of effort to scrutinize (and pay people to scrutinize) their projects with a fine-toothed comb.

White Paper :
Always be sure that your company is having a white paper. Nowadays White Papers are coming in different styles and structures. It should be impressive and represent projects clearly. However, to the bad some are missing market analysis and financial projections, others are missing the technical description of the technology they are working on.

The existence of the community and support provided by the team members:
Any successful project has a community interested in the direction of the team. Review a project's channels and always check the level of communication and how active they are. How old are their social network accounts and how many followers do they have? Check if the Twitter follower is retweeting posts, commenting, and liking them.

Status of an existing business :
Check the list of products already developed which can be considered as assets. Kind of assets and financial position owned by a business. Their services and reliability factors. The bigger businesses will notice successful startups and aim their resources towards stealing its market. Therefore it is always important to have a customer base that can be used properly.

The flow of income of founders: Always check the core income of group members and the team. Having a steady source of income doesn’t mean having a profession including services or job. It could be having investments that are producing income for living a certain kind of lifestyle.

Escrow Payment: It is always a good sign if the team id having escrow service payment process based on milestones. There are legal services which for a fee will offer a controlled release of funds to the team based on the milestones. Under the escrow payment system, there is legal payment of services which will control the release and payment of services. Escrow companies are very strict towards following the escrow rule in case deliverables are not reported escrow companies have the mechanism of refunding. It is always a good sign that team members are having escrow services payment process based on milestones.

Above are the certain points always require to check whether the ICO you are working is actually good or bad.

The concept of Initial Coin Offering (ICO) and how does it work?

ICO ( initial Coin Offerings) is the process of creating digital tokens and selling to the public by exchanging other cryptocurrencies. Referred to as ICO is the mechanism applied for fundraising in which new projects sells cryptocurrency. Similar to the IPO process where investors purchase the share of a company. Within the Blockchain community, ICO's has become a highly discussed topic. There are different types of arguments comes for the Blockchain community for tradition funding model.

The public can take interest in tokens may be because of these two reasons :
1. Token with inherent benefits allowing users to access services.
2. Benefits will generate an increase in demands and will raise the market price of the token.

ICO's are easy to structure as it is using many advanced technologies which abstract various development process for creating cryptographic assets. ICO is one of the types of digital crowdfunding, and it helps startups in different ways to raise the funds and bootstrap the adoption rate of a particular project. It is also beneficial for buyers perspective as it gives them access to the services access and token's appreciation. This profit can be realized any time by selling the token on the exchange. The financial market has been changed recently. In this era, one change is the introduction of ICO's.

What are the ICO tokens and Smart Contracts :
A token represents the value of something in exchange. As of properties, gold, house, etc.  These tokens are not implicated in Blockchain technologies are available for the transaction in cryptocurrency only. The application used by tokens is called smart contracts. These applications are prepared by developers and coders.

Companies which are startup level entrance to the ICO process by establishing the blockchain rules and the protocols at which data is announced. Then after for the creator, the next step is to start with the data mining for coins which are sold during the ICO.

Process how ICO works are included with :
1. Pre-announcement: This is the first marketing step, with the vision for future projects sites by cryptocurrency investors. Here creator is referred to as the one who prepared white papers and presentations. After circulating the white papers, the company gets an idea of whether the investor is interested in the project or not. And helps investors to draw a final business model.
2.Offering: The offering is the final version of white papers, setting up the completion of a project that why a particular company is entering into ICO? Offer will outline the details of the project, related to capitals, project timelines, etc. Provides with the financial instruments sold during ICO in terms of tokens. After signing the token, ICO marketing gets started and date of start would be announced.
3. Marketing Campaign: ICO marketing campaign is the key to raise the funds and capitals.
Marketing campaigns are managed to build an effective community. In the ways to gain more tokens from the investors and it has a different strategy for these kinds of campaigns running ICO cryptocurrency market. After completing the successful marketing campaign, it is the time to exchange the value of tokens exchange for investors.

Rules for ICO companies for generating token will be in these two different ways :

- Collect the complete information from the offers what you have outlined, specific capitals, etc, and divide the token between investors on the basis of investments.
- Another way is alternative tokens are sold on the exchange of the cryptocurrencies which means tokens should be released on the number of exchange.

How one can join ICO (Initial Coin Offering).
1. With the growing worlds of social media, there are so many sites including Reddit, facebook BitCoinTalk are available which allows and lists the Initial Coin Offers (ICO's).
2. To invest in ICO first and the foremost step and to set up a cryptocurrency wallet it is important to understand the interesting launch by a particular company.

Apart from discussing the ICO's basis, of course, there are certain pros and cons of ICO's. As it gives new opportunities to the new projects, avoids unnecessary paperwork, helps in building strong communities, provides benefits with the incentives, early access to the new tokens.