In recent months, ICO has been quite controversial. Some start-ups have raised money quite easily but just couldn’t turn their investment promises into reality. Some of them haven’t even published a whitepaper yet.
2. Pay Attention to Project Introduction
To put it simply, the community clearly understands now is still a hype period for both bitcoin and blockchain. Blockcain industry is still yet to be transparent, not to mention ICO. ICO is still a speculation game so investors are facing huge risks. Besides the ability to withstand risks, you need to be more careful to judge various information. Here are some important tips you need to know if you want to participate an ICO in China.
To invest a Blockchain project, the first thing is to focus the team especially the core members. A capable team will have first level technical and marketing members. Their promotion will be open and firm. You need to question a team if they not sharing their thoughts and project progress in QQ, Wechat, forums and media. Remember, blockchain projects gain trust only by being active and open to discussions on social media, and patient responses to questions raised by investors. Here are some commonly-used website in China where you can check the related information about the company you need to know. a) news.8btc.com The only English news media for Bitcoin/Blockchain of Chinese Community b) 8btc.com the Biggest Bitcoin/ Blockchain online Forum in China c) bizhongchou.com The biggest ICO platform in China d) www.baidu.com the most popular search engine in China
Different from traditional financing means, ICO (Initial Coin Offering) will tokenize the projects of the Blockchain technology companies. You can also call it a process of asset securitization. But to avoid legal risks, people in China prefer to call it an online crowd-sourcing.
4. Financing target and ownership structure
Not a few good projects have funded through some agencies and investors. These projects will be more reliable. You had better consult some people who truly know the situation to confirm the financing records. If you find any bogus information, you can basically give up the projects.
You need to read through the whitepaper of the Blockchain projects. Is it a detailed one being able to clearly describe the projects and the problems the projects are going to solve. The mode should be innovative without hype. From the technical angle, a good project needs to possess irreplaceable key technology or function. If you are not a technical expert, then you need to consider the feasibility of the business mode. There are too many projects that are just carried out in the name of Blockchain.
You need to be cautious once you find the start-up set an over high funding target. A good start-up should actually consciously limit the maximum of funding. The start-up should account for 10% to 50% of the ownership structure after the ICO. If the original team takes less than 10% will result in a lack of motivation for the team to make progress. If it takes too much proportion of the ownership, the team will have too much control over the strategic direction of the company, putting the interests of investors in jeopardy.
3. History of the Company’s Financing.
Above are the tips for anyone who wants to be a Blockchain investor in China. The ICO market is still far from mature, you really need to be careful before you make a decision.
1. Know the founding teams
The Code for Ethereum's Consensus Change Is Now Ready for Review
New code written to change the way the ethereum network reaches consensus is now ready for review, developers said Friday.
Ethereum improvement proposal (EIP) 1011, known as Hybrid Casper FFG (shor
$10K Test? Bitcoin Price Hits 4-Week High As Altcoins Shine
Bitcoin hit four-week highs in Asian hours but continues to underperform when compared to alternative cryptocurrencies (altcoins).
Having scaled a long-term bearish trendline, the world's largest c
DOJ Charges ICO Co-Founder With Securities Fraud
The Department of Justice has unveiled fraud charges against another co-founder of cryptocurrency startup Centra, a move that comes weeks after two other founders were arrested and charged.
Russia's Supreme Court Orders Review of Crypto Website Ban
The Supreme Court of Russia has directed a court in the city of St. Petersburg to consider an appeal against a blocked cryptocurrency information website.
According to Russian legal information sit
Quebec's Chief Scientist Denies Dismissing Crypto Concerns
Contrary to recent media reports, the Chief Scientist of Quebec has not downplayed concerns about the illicit use of cryptocurrencies, his office said.
On Thursday, several media organizations publ
Amazon Web Services launches 'blockchain templates'
Amazon.com wants to make it easier for developers to create projects based on the blockchain technology underlying bitcoin and other cryptocurrencies. The company's cloud computing division
Cloud Giant Xunlei Claims Blockchain Advance With 'ThunderChain'
Xunlei, the NASDAQ-listed cloud network provider, has launched its proprietary blockchain platform, despite ongoing class actions over an alleged initial coin offering (ICO).
At a press event in Be
Taiwan Eyes November Deadline for Bitcoin AML Regulation
Taiwan aims to formally regulate bitcoin under anti-money laundering (AML) rules before the end of the year.
According to the Taiwan Central News Agency, Chiu Tai-san, the country's minister of jus