Investment Rating Review
Importance of investment rating
Investment rating is an effective tool that helps attract attention of investors who have got real capital to support the project. Reviews and the audit will be presented in the most popular crypto funds. What is this system? The rating is based on a free and objective analysis of ICOs. This information is extremely important for the sponsors who want to evaluate new proposals and make the right decision. Audit in the process of investment rating allows identifying shortcomings and weak links of the ICOs in order to immediately take measures to strengthen their positions and find the path to success.
Components of the investment rating review
Any investor, regardless of his or her financial level, always has a number of questions, the answers to which must be given immediately. The rating system will help to do this without extra time. A startup prepared properly in this field has a better chance of being seen and contributed to the investment portfolios. It should be taken into account that ICOs are an innovation and there have not been such proposals in traditional segments yet.
Investment rating helps to obtain the following information:
- The reliability of the records provided, the current position of the ICO, the structure of the team, the technological base of the project.
- Are there any objective possibilities for ICO implementation? Don’t the expectations differ from reality? A great role in it is played by the experience and competence of the team.
- The analysis of the market, which the project is planning to enter after the crowdsale, is made. To what extent will the idea be reclaimed? How does it behave in a competitive environment?
Auditing and rating engage tools that are actively used for the similar purposes in a traditional field, but already taking into account the peculiarities of blockchain and release of tokens. Therefore, we add technological analysis to the general list of tasks. What technologies are used as the basis of the project?
The technological base and ecosystem of blockchain is crucial for tokens. What tools do developers use? Will the platform be relevant with time? Will the external forces affect the process? All these questions need answers urgently. It is also important to consider the interaction, scalability and potential distribution of the token. The last factor is crucial, as regards the growth of the value of a virtual asset.
As for decentralized applications called dApps, their analysis is carried out as far as possible, since there are certain limitations. It happens because of the platform which is the basis for them. A full-fledged analysis will determine the future of the project, for example, how it will be functional, whether users gain recognition, get global status or remain at the same level.
So, the evaluation of the project is carried out by two important criteria. The first is qualitative, and the second is quantitative.
In the list of qualitative features we distinguish:
- The block infrastructure is assessed, the speed and efficiency of solving current problems, the possibility of getting into other systems and starting new products.
- Estimation of market positions of the offer in a certain segment, analysis of competitors' projects and identification of possible risks.
- How well is the legal basis for the project? Are there any obstacles at the governmental level, the documentation including the passage of KYC, AML?
- Evaluation of the activities and experience of each member of the team, that deals with a particular direction, and the sufficiency of their competence is detected.
- MVP or at least a prototype of a finished product with visible technical capabilities should be analyzed.
- Checking the viability of the token, its functionality and how the coin will change its price in the future - the analysis is performed based on the rules of the exchange economy.
- Will the new cryptocurrency be in demand? It depends on a number of factors and the level of competition.
- The amount of money that organizers plan to collect should coincide with the real needs of ICO, all stages of financing should be considered.
Our task is to protect the investor from risks as much as possible, check the documentation and estimate. The review and rank in the rating list are based on the independent opinion of experts. The latter review the data provided by the project team, use open sources for this purpose. If any data remains closed, this leads to a significant drop in the ICO rating.
The metrics consist of 10 levels for 5 parameters. E.g.:
Who makes the investment rating review?
The team of our company includes experienced financiers and professional analysts with a thorough understanding of the market. We are competent in writing reviews and we use all our experience for this. The audit is conducted openly, so the organizers of ICO can directly contact analysts and get answers to their questions.