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CHOOSING A GOOD COIN BASED ON TOKENS. by jackdickens382

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· @jackdickens382 ·
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CHOOSING A GOOD COIN BASED ON TOKENS.
We all desire to have investments in cryptocurrencies that have potential increase in price. Closely pegged to this desire is the frequently mentioned token economics. This relates to the amount the project is looking to raise i.e. the hard cap and the soft cap, the currency token price, total number of tokens offered by the project i.e. total supply and the token distribution. 
A good investor will be at ease if the project discloses the actual amount it wishes to raise(hard cap) and the minimum amount of capital it wishes to raise(soft cap). A project reaching its hard cap is a great confidence booster into its value and growth in price. An inverse of this situation means the project will be in danger not reaching its goals and thus a low uptake by the public. Undisclosed amounts of capital to raise, leaves the investor to put in the highest amount of money for most tokens but will not assure of what amount of stake he/she has. A good investor will look at a definite hard cap and a reasonable & achievable hard cap based a project’s purpose and roadmap.
The total supply and the currency token price are related. I have noted that a project that issues a very large number of tokens (e.g. a billion tokens) for public sale will relatively have a low price. Good to attract the most investors but a disadvantage once the token is listed as the price movements tend to be small. A good investor will look out for good examples such as Bitcoin; a total supply of 21 million coins and keenly note that the tokens not taken up during the public sale have been burned to assure of non-dilution of the prices once listed. For success, a low finite supply of tokens/coins will result in high demand and thus lead to a rise in price.
![38444286-a-green-upward-trend-arrow-moulded-onto-extruded-white-text-that-says-grown-on-an-isolated-white-bac.jpg](https://steemitimages.com/DQmRe1jeT9n1ncWJtTUExsMAVCyCDvBTwE5gwkoJ9nGDtdd/38444286-a-green-upward-trend-arrow-moulded-onto-extruded-white-text-that-says-grown-on-an-isolated-white-bac.jpg)
The project has to clearly outline how the funds will be utilized and how they have been distributed among the public, angel investors, advisors, founders, employees and the company. A good project will link its token distribution to the roadmap. Because each phase or milestone of the project requires a certain amount of funding. A good investor will seek to select a project with a public distribution of 40% to 50%. This puts trust in the investor that the project team will strive to create value as they have a substantial stake.
All investors look out for bonuses in ICOs. By taking part in a pre-sale or early into a crowd sale one is assured in getting additional coins/tokens. A good investor, away from the crowd, will invest in coins that have a low bonus e.g. 30%. A very high bonus e.g. 150% should be a red flag indicating a likely post ICO price dump as the participants only want to get fiat for the coins/tokens. A very low bonus e.g. 10% is also a red flag as this will leave few to manipulate prices on exchanges once the coin/token is listed. 
A pray that this be used for refinement in decision making and also be improved by the community. Let’s meet in the comment section and discuss more.
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vote details (10)
@cmbugua ·
There is one local ICO at the moment with a large amount of coins, I raised the issue of hard cap with them, the didn't respond or rather their explanation was flimsy, from past experience I have seen that the team behind the coin really matters, and also how they started (tokens that started around 4-5 years ago have alot of potential compared to coins started a year or months ago, but not always the case).

What is your view on airdrop tokens?
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@jackdickens382 · (edited)
Thats a good observation. Just like in the financial world we have to know how much the business has been making over the period before seeking the funding. Since this is disruptive technology we are able to look at the potentiality of growth n value in a short time.

Airdrop tokens from listed coins are usually the best. For example ETC has an airdrop. Majority are promotional and mostly end up a bag of coins with no use if not backed by good fundamentals and if they perform poorly upon listing on exchanges and CMC. What's the name of the local ICO?
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@cmbugua ·
Its callled Nurucoin https://www.nurucoin.com to me its just mpesa on blockchain, there is no real value am seeing, we have mpesa its working fine, for them their product isnt really solid.
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@mutitum ·
I haven't participated in any ICOs. Maybe it could be for the fact that I do not want to lose my hard earned coins. However, there are some genuine ones out there. Maybe in the future I will participate.
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@jackdickens382 ·
We try to select the genuine ones via the information we have shared; info that helps us make better decisions. It is best you put in money that you will not feel pain losing but not all your savings. I will be here to assist you participate.
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@sirkim ·
I hear zukerberg is coming up with a facebook coin! I'm waiting to see how that one goes..
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@jackdickens382 ·
I think it can be big for facebook to have its own cryptocurrency. Mark has seen the potential and the future.
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@sylviam ·
Can you please touch on transaction costs if there are any in crypto currencies?
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@jackdickens382 ·
Transaction costs apply to crypto currencies. Compared to money transfer solutions we use everyday, these are extremely cheap. For example when sending ethereum from address to address there is a gas fee for this transaction. You can follow your transaction via etherscan and will notice this. I recommend you read Mastering Bitcoin by Andreas Antonopolous. Good basics. Going through it myself.
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