What are 'token metrics'?
To evaluate token metrics is generally an analytical and data driven approach to identify ICO investment opportunities. As every investor is setting his own criteria for the analysis, there are no right or wrong strategies. We still capture some of the important factors you should have an eye on while examining your next ICO investment.
- Advisory board – ICOs are generally very transparent projects because they rely on capital of the public. Details about advisors are often published on their respective website. If you notice that an ICO has special personalities or experts on board it indicates a certain credibility and quality of the project.
- Idea – This is one of the most decisive factors ultimately determining success or failure of an ICO. You have evaluate if the projects vision makes the world a smarter place. Furthermore you have to identify potential competitors and find out how fast and realistic a technological transformation in the respective industry is.
- Total Supply & Circulating Supply – Look out for accurate numbers of the Toal supply of the coin. Coins having a larger supply generally need much more demand to increase the value of one token, as lower token supplies tend to result in faster price reaction. Moreover it is important to identify the discrepancy between total supply and circulating supply. If you determine a great variance it is generally a negative sign because it means that the developers themselves are holding a great stake, having the power to manipulate prices.