As some of you may know, I wrote some articles last year evaluating some existing Lumen Wallets in detail. Those articles were helpful to many people that don't know much about cryptocurrencies but are interested in these topics and would like to know which wallets are more trustable.
After seeing how these evaluations were helpful to other people, I decided to evaluate ICOs - Initial Coin Offerings - built on Stellar. First, I want to explain briefly what they are, for those who don't know anything about this topic. Initial Coin Offerings are a practical way that companies - mostly startups - use to raise money to develop a project. They are often compared to Initial Public Offerings, but one of the main differences is that ICO investors can trade not only money but also cryptocurrencies for tokens of different kinds and, therefore, give different access rights to investors. Another difference worth mentioning is that IPOs are already regulated in most countries for a long time, while ICOs are not regulated yet since they are so new.
Secondly, I will explain what my project is and how it can benefit people that are interested in Stellar and would like to invest on ICOs built on this platform but don't really know how to begin, or startups that wish to use this innovative tool to raise money for their projects and want to know if it is worth to do so.
I created a website from scratch to share with as many people as possible all the information needed about ICOs. This information includes:
- Important facts, such as what are ICOs and how they are created and released;
- the benefits and risks to invest on those (for organizations, investors, the market as a whole);
- what are the current global regulations and countries understandings regarding this matter;
- kinds of existing tokens and the sale models;
- best practices that should be followed;
- finally, the evaluation of each organization that released ICOs built on Stellar.
I divided the evaluation in two parts: general requirements, for example regarding the whitepaper content and primary mission, and team requirements. Each requirement from the two parts was graded (from 0 to 5) separately, and then I calculated the average for each company and gave a final grade.
I needed to do a lot of research from different sources to create this material, and that is when I realized there is not enough reliable information about ICOs explained in a way that is easy to understand but also complete. The most complete and reliable source of information I could find is a whitepaper written by Stellar and LHoFT (Luxembourg House of Financial Technology) members. However, this whitepaper is quite long and a bit exhausting to read, even though the material is excellent. Because of that, I decided to read it carefully and summarize in my own words, and also include more information that I gathered in other sources to make my website as accurate, complete, updated and relevant as possible.
I separated it in the different topics mentioned above to make it more practical for the readers. The reader may be interested just in a few of the topics, so instead of reading through everything she can click on each of them and be directed to the link that explains just those topics. On the other hand, if she wants more detailed information she can go through everything and even click on the external links I provided to get extra information about a specific part.
In conclusion, my website is a complete source of information for anyone who wants to know:
- All the important aspects about ICO;
- which companies released ICOs built on Stellar and what are their main purposes (I went through all the whitepapers carefully and summarized);
- and finally, which of those companies are worth investing in and why.
There is currently no website with all this information and an evaluation of those organizations, so the person interested in investing on ICO saves a lot of time that would be wasted in exhausting research, plus she gets a reliable source of relevant information to be consulted at any time.
I will update the website as I learn new information about the topics mentioned and evaluate possible new organizations that release ICOs built on Stellar. Please, check the website and give me your feedback! I am also available to answer any questions about it.
Link to the website: