It is advisable for one to conduct their own research regarding ICOs and their limitations or advantages as the internet is not a good financial adviser when it comes to how one should handle their money, however, a quick overview of the way an ICO works, its token economics and its white papers is a good dive into what the ICO stands for.
One of the upcoming ICOs that exist today is Fantom. This ICO wants to create an open source and permissionless smart contract platform while supporting 300,000 transactions per second. They have actually adjusted their token economics due to which they score higher in that regard. They have also reduced the bonuses that they are giving to private sell and pre sell investors. Their hard cap is set at 40 million dollars, having a three and a half billion token supply. 40 percent is going to be sold to the crowd so 15 percent is given to the team. The private sell bonus is set at 30 percent with the pre sell bonus being set at 15 percent. There is also a three month lock up on bonus tokens. What is a positive for this venture is that it wants to improve upon the confirmation times of existing blockchain technologies using direct acyclic graph smart contracts which use an ordering structure to sequence data simultaneously. It is more open source and unlike the other proprietary ICOs that exist out there. Moreover, transactions are asynchronous with instant confirmation times.
A negative about this ICO is that they do not actually have a product. It is merely a white paper idea and there is just too much competition in this field for them to survive on merely that. When it comes to their team, it is very hard to analyse from the limited information that they have provided on their website but even with that information one can not be too confident. What one needs to remember is that Fantom is a project that is still in its infancy and that they do not even have anything with them that is solid in terms of product or team or their goals. Their main net will not launch until the third quarter of 2019 which is too far away and in those terms it is too big of a risk to take with a project of this undertaking. Furthermore, for token economics, they are simply asking for too much money and thus should be placed below average in those regards. They have gotten a good strong team but it is still not world class and thus they place above average in that case. They should be placed much higher where hype is concerned, however, with a 40 million dollar hard cap it may not be enough for them to become a good short term ICO. The roadmap is far too long and they need to achieve those goals in a shorter time frame.
Keeping all that in mind, it is essentially up to one’s own self whether they choose to invest in an ICO or not. Research, analyse and approach with caution. The world of ICOs is your own playing field and whatever way you choose to venture out in it, make sure you are fully equipped and motivated before doing so.