Performing market research for initial coins offers (ICO): a guide
The world of cryptocurrency has experienced exponential growth in recent years, with new projects and tokens that are launched daily. As investors and enthusiasts anxiously expect the next big thing, carrying out an exhaustive market investigation is essential to make informed decisions about investments in ICO. In this article, we will cover the essential steps involved in carrying out market research for ICOs.
** What is an initial (ICO) currency offer?
An initial currency offer (ICO) is a crowdfunding model used by new blockchain companies to raise funds for their development and marketing efforts. Unlike traditional initial public presentations (OPI), the ICOs that operate on a decentralized platform, allowing multiple parties to participate in the process of collection of funds without the need for intermediaries.
** Why do market research for ICO?
Before investing in an ICO, it is essential to carry out an exhaustive market investigation to ensure that you are making an informed decision. Here are some reasons why:
- Understand the project : Investigate the project development team, the mission and the objectives to determine if they are aligned with their investment objectives.
- Evaluate the tokenomics : Analyze the supply, distribution and possible cases of use of the token to evaluate its viability as cryptocurrency.
- Evaluate market demand : Identify the target audience for ICO and evaluate the level of interest in the project.
- Research competence : Compare the ICO with existing projects in the same block chain or cryptocurrencies to identify market gaps and opportunities.
Step by step guide for market research for ICO
- Define its investment objectives : Clearly define what you want to achieve through an ICO, such as financing a specific project or investing in a particular asset.
- Choose a research methodology : Select a method that adapts to your needs, such as:
* SOCIAL NETWORK ANALYSIS : Twitter monitor, Reddit and other social media platforms for discussions about the project.
* Blockchain analysis tools
: Use services such as CoinmarketCap, Coingcko or Cryptoslate to analyze market data and trends.
* Financial News sources
: Financial media research of good reputation, such as Coindesk or Coindesk.
- Investigate the development team : Search for transparency and a success history in similar projects. Check if they have any relevant experience working in blockchain technology.
- Evaluate the tokenomics : Analyze the cases of use of the supply, distribution and potential of the project to determine its viability as cryptocurrency.
- Evaluate market demand : Identify the target audience for ICO and evaluate the level of interest in the project.
- Research competence : Compare the ICO with existing projects in the same block chain or cryptocurrencies to identify market gaps and opportunities.
Tools for market research
- CoinmarketCap : a leading cryptocurrency data platform that provides an analysis, graphics and integral market news.
- Cryptoslate : a means of cryptocurrency communication that adds articles from accredited sources, including financial media.
- Reddit : Use subnetdits such as R/Coinmarketwatch or R/Cryptocurrency to stay informed about project discussions and market trends.
- Twitter : Follow development teams, industry leaders and influencers to measure the interest and sensation of ICO.
Conclusion
Making an exhaustive market is crucial before investing in an initial offer of coins (ICO). Following these steps and using tools such as those mentioned above, you can make informed decisions about your investments and minimize the risks. Always remember to do your own research and never invest more than you can afford to lose.