1 min read

The 8 Questions Investors Should Ask about Blockchain Projects

500 Global Team

Published

17.01.21

1. Does the team have relevant industry experience and technology background?

From a tech perspective, typical relevant backgrounds include: distributed network, cryptography, security.  Do they have credible advisors and/ or early investors?

2. Is the team transparent and in it for the long term?

Supporters want to see a history of consistent and credible communication from the team regarding development progress and use of funding to early supporters.  Typical distirbution channels include Discord, Telegram, Reddit, WeChat, website, channels, press, interviews, etc.

3. What market/ industry is the project aiming to conquer?  How big are these potential markets? Typical targeted industries include payments, shared economy, smart contracts network/DApps platform, advertising, and IoT/Data.

4. Does it make sense to use blockchain/ decentralized network to solve the problem? And If a new token is involved, does it have a clear utility & role in the closed/circular economy created by the network?

5. Is there a clearly written white paper detailing the vision, technical solution, business model, development schedule, and token economics?  

6. Does the token design correctly align the incentives of the users, token holders and transaction facilitators of the network?

7. What is the state of development?  Is the network in operation (i.e. Mainnet up and running)?  If not, is there an early prototype (testNet) that the community can evaluate?  Has the team released any code on GitHub for community review? Essentially, this tells you your technology risk and what stage investing are you going to be doing (e.g. angel, seed, or series A)

8. Is the token’s fundraising being managed by a reputable issuer/ exchange?  (Equivalent will be having an IPO done by Tier 1 bank) Who will be managing post-listing market making and treasury management functions for the team?

500 Global Team

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