1. Research the Team: Make sure that the ICO’s team is well-rounded, experienced and qualified to carry out the project.
2. Read the Whitepaper: The whitepaper should provide you with a clear understanding of the project’s goals and objectives. If a whitepaper is not available this should raise red flags about the legitimacy of the project.
3. Analyze the Token Mechanics: Make sure that you understand the token mechanics. For example, what purpose will the tokens serve, how is the value of the token determined, and so on.
4. Check Future Development Plans: Verify that there are concrete plans for future development. Look at the roadmap or whitepaper to see if there are any milestones or goals outlined.
5. Assess Market Need and Potential Use Cases: Examine if the project is solving a real-world problem or meeting a current market need. Assess potential use cases and how the token will be used within the platform.
6. Analyze the Community: Take a look at the community surrounding the project. Monitor their conversations and interactions on social media sites such as Twitter and Reddit.
7. Be Cautious of Scams: Be wary of too-good-to-be-true promises, guarantee of returns, or overly-positive marketing materials.