Frequently Asked Questions
Frequently Asked Questions
Q. How is an ICOs overall rating determined on ICOZaar ?
A. For the calculation of an ICOs on ICOZaar rating, four different aspects are taken into consideration: the hype rate, the risk rate, the ROI rate and our website rate potential. Each of these factors are determined seperately and can rank anywhere from “low” to “high”. These rankings all stand for different values/points. After giving a value to all hype rate, risk rate, ROI rate and website rate, the overall rating is determined as follows:
(Hype Rate + Risk Rate + ROI Rate + Our Rate) / 4
Example for an ICO with the rating:
Hype Rate: High, Risk Rate: Medium, ROI Rate: High, Our Rate: High
The calculation would be: (5 + 3 + 5 + 5) / 4 = 4.5
Meaning that the ICO would have an overall rating of 4.5.
Q. What is taken into consideration for evaluating the ROI rating of an ICO?
A. We try to be as accurate as possible with our evaluations and have therefore defined many different criteria for calculating the ROI Rating of an ICO.
Most important aspects:
– Token Metrics: how is the bonus structure (too high bonuses with a lot of tokens being available to that bonus are a really bad indicator)& how many tokens are sold at all
– What is the hard cap? Is the funding amount reasonable for that kind of project or is it set too high in our opinion?
– Usage of the Token: Are they a Utility, Security or Equity Token and how exactly will they be used? (e.g. if Utility, will the product really create a demand for these token?)
Other, less important aspects that mainly only become important if we stand between two ratings:
– the unique selling point
– lucrativeness of the market/product
– SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
Q. What is taken into consideration for the hype rating of an ICO?
A. We try to be as accurate as possible with our evaluations and have therefore defined many different criteria for calculating the hype rate of an ICO.
Considered for the hype rating of an ICO are among others:
– number of social media followers ,not all social media accounts have the same impact with the same amount of users. Facebook and Twitter, for example, are less important than Telegram.
– activity of the followers/members on social media/telegram – again, we check that everything is correct, not written by some type of bots.
– the general mood towards the ICO
Q. What is taken into consideration for the risk rating of an ICO?
A. We try to be as accurate as possible with our evaluations and have therefore defined many different criteria for calculating the risk rate of an ICO.
Considered for the risk rating of an ICO are among others:
– has the team successfully passed KYC so one can be sure they are not fake?
– are legal issues resolved as good as possible? (e.g. investor KYC)
– is there a soft cap so that investors get a refund in case the ICO is not successful?
– is there an MVP, maybe even paying customers, already?
Do people get to know full information about
– the team/the developers
– the product/idea
– the smart contract (on GitHub)
– business strategy
and how reliable is all that information?
Disclaimer: This website is for information and illustrative purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action, including without limitation as those terms are used in any applicable law or regulation.