E 7 Things You Need To Know Before Investing In The Next Hot ICO

Ownership

Founders and the original development team will reserve a percentage of the coins issued for themselves. That’s actually a good thing. You want the owners and employees to make money the same way you are. If they profit through other means your interest is not aligned. At the same time the coins reserved have to represent a reasonable amount of value in comparison to what work has already been done and in relation to future prospects.

Delayed liquidity

Don’t buy into ICOs where the founders and employees can immediately turn around and liquidate their stock of free coins after the ICO. Even if you know they are good people you want to make sure your interests are aligned. A setup like this means it is theoretically optimal for the team to sell all their tokens and start the same venture with their newfound riches unburdened by a cryptocoin that forces them to share future revenue. Look for ICOs where founders and employees get issued their coins over time.

Be Early

If you are going to invest anyway. Do it early. Many ICOs grant better terms to earlybirds. Usually you get more coins for your investment. Small differences can add up when you are putting together a portfolio of ICOs

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Charles Howard 3 years ago Member's comment

Great advice.