Interest in investing in ICOs continues to grow. As the marketplace for tokenized assets expands, it becomes ever more important for investors to have a source of unbiased analysis to make sound investment decisions.
But, how do you analyze a concept that is relatively new and a marketplace that is, essentially, being defined in the moment?
To address this investor challenge, Bitcoin Market Journal has developed an analysis tool called the Blockchain Investor Scorecard. Based on the input of BMJ’s knowledgeable analysts and experts, this scorecard creates an industry standard for “apples-to-apples” (or ice cream cone to ice cream cone) comparison of token offerings in clear, concise language.
How the Scorecard Works
The scorecard weighs a new token investment opportunity objectively using five criteria:
- Market: Does the token address a problem that it solves? Does the token clearly identify its customers? Does the token add value to the adaptor’s life or business? What is the size and composition of the token’s market? What are the regulator risks of this token?
- Competitive Advantage: Is the blockchain a well-known one or a custom build? Does the company have an advantage in lead time to its competition? How strong are the developing team’s contacts?
- Management Team: Does the team have a record of success? Does the team have a proven history in their industry? Are they “straight-shooters?”
- Token Mechanics: Does the problem the token was made to solve a problem that needs an immediate resolution? Is the token a new type of value or is it a clone? How decentralized is the blockchain? How many tokens are there, and can more be made? Where will the token be traded? Is there an existing product attached to the token?
- User Adoption: Can a layman understand this concept? How strong is the token’s name recognition? Who are talking about the token?
Each of the sub-criteria is judged from one to five, and the average for each criteria group is taken. The average of all five criteria groups determine the token’s final score. What’s the benefit?
- For the investor, the scorecard presents a single-page look at a token presented in a way to make side-by-side comparisons easy. An investor can now see why a token outscores another, so that effective investing strategies can be drawn.
- For the blockchain company, the scorecard creates a metric for improvement. By understanding in what areas the company will be judged, the company can work to make improvements that would not only improve the ICO’s score, but improve the quality of the ICO itself.
To get your free copy of the Bitcoin Market Journal Blockchain Investor Scorecard and Early Investor Scorecard, simply fill out the form below for immediate access!
This scorecard is just one way that Bitcoin Market Journal is your place for ICO investing information. Our team of analysts and experts uses this very scorecard to rate and review ICOs each week. Check out our initial coin offerings page and subscribe to the Bitcoin Market Journal today and join a community of likeminded investors who are building the world of New Finance together!