ICO process and how projects are evaluated

It’s summer, the market is slow and with this reduced activity, we in Black Whale took the chance to sit on a side for a bit and think. Our next post is going to be related to the ICO process and how projects are evaluated. Very often, you will see us and other influencers focusing on the following: Idea, Team, Token Metrics, Market Awareness, Stage of Development (MVP, testnet etc). We use these categories as the pillars that define the success of a project. To give you a few examples: all-star team, testnet peaking at 200k TPS, new blockchain, top VCs are in and more…you know the drill. And sure – we believe these are all important assets to take into consideration, especially in the long-term. But long-term is considered by many as something very unclear in such a new and dynamic market and we, the vast majority of the crypto community, are focused on the short-term gains. Is that necessarily bad? Not really, it’s human nature and frankly – we believe it will change for no other reason but one – it is unsustainable. People are cautious to see top VCs funds already and question the terms they got in. Spreadsheets are more or less to highlight projects that the influencer invested in, of course with many exceptions – the space is a mixture of the good, the bad and the ugly. Flipping becomes less and less common, especially for retail investors due to large lock-up and vesting periods, also STOs are knocking on the door and might be the new wave.

So, let’s now highlight what we think defines by far the short-term profitability of a project: Market Maker, Marketing Strategy, Exchange Listing (Binance with a huge lead, followed by Huobi) and of course – Market Conditions and Terms. Truth be told, most of us won’t have access to this information, which is not a huge issue in a bull market, but it definitely comes of value in a bear, overly diluted and saturated market. Keep in mind that almost every other ICO is more or less a recycled version of a previously existing idea.

What to make of our post? We think that the market is very dynamic and new, at least to most of us. For these reasons, it’s extremely important do adapt and be open to new information. Be careful, but not fearful, we are definitely positive on the long-term outcome and where blockchain technology will lead us. Bear in mind that if you a retail investor who is here only for short-term ICO flipping, your days are likely either over or coming to an end.

That said: Blockchain will revolutionize and change certain industries by offering higher personal data security, transparency, also by cutting out the middleman for money transfers and more. Embrace the space and things it can teach you, because the tech is here to stay and will eventually change life around us for better. 🐋🐋🐋