Our rating methodology is based on independent research, and is designed to provide a qualitative overview on various ICOs.
Perhaps more important, it is a necessary effort to educate the crypto community, and help establish some best practices to strive towards. We attempt to kill scams and call out on money-grab ICOs by introducing some reasonable and objective, although yet still preliminary, standards to evaluate things by. Additionally, our goal is to create a clear, concise, and informative framework, allowing our community to make educated decisions in a highly dynamic and rapidly changing environment. ICOBirds is using Token Metrics rating methodology.
Token Metrics methodology aims to assess the quality of different ICOs and is based on our experience investing in ICOs and historical data of the best ICOs. Our methodology consists of three key dimensions: token economics, hype metrics and qualitative metrics. Each dimension has its own indicators that are assessed for a given ICO. After all indicators are assessed we calculate the overall rating by dividing number of points awarded to ICO by the maximum number of points (excluding bonus points) that can be achieved (which is currently 101 in methodology v2.0 but may change in the future as we enhance the methodology). Token metrics ratings should be used only for comparison purposes but not as a financial advice or guidance.
There are bonus points which a project can earn in every dimension. Bonus points are given for indicators which are not common for most projects and do not affect its’ perspectives in a negative way if not presented. Bonus points are added only to the numerator but not the denumerator of the ratings equation. With the bonus points project could potentially receive more than 100% score for any of the dimensions which is unlikely, except for the Hype metrics as recently some of the ICOs succeeded to attract massive attention from the crowd.
Each dimension score is calculated by dividing the amount of points earned by the project by the total possible amount of points that a project could earn in a particular dimension (not including bonus points).
Before scoring the project we look at the whitepaper and website: whether it is mostly promotional or concentrated on the product, the team, use-cases, we search for evidence on claimed on the website partnerships and look for concerns expressed by other crypto investors. Last but not the least we check whitepaper for plagiarism. We assess how the team is transparent and responsive: do they provide answers on tough questions for example, on legal concerns. Are there any government fillings or tests passed? All these steps are taken to prevent low-quality ICOs from getting into our spreadsheet.
The total number of points an ICO could get in ICO economics dimension is 36 and 1 bonus point. Amount of points awarded to the project is then divided by 19 and calculated as percentage. The total amount of points for qualitive metrics is 51 and 1 bonus point. For hype metrics there are 14 points and 3.5 bonus points. Description of how different indicators are assessed provided below.
ICO Economics (MAX 33 points)
Fundamental (MAX 52 points)
Hype Metrics (MAX 15 points)
This is not a financial advice. Investing in ICOs may be extremely risky, always remember to do your own due diligence and consult financial and legal advisors before investing in ICOs. We are not paid for our ratings and analysis and do not grade ICOs for money. We do not take part in bounty or referral programs.