Roadmaps are about the future. Investments in digital assets shouldn’t just be limited to when the tokens hit exchanges, but a little more concern about what happens a year or even 5 years from now wouldn’t hurt a bit.
Let’s take a look at bitcoin as an example since 2009 people didn’t really take it seriously until late 2013 and even then, people still felt it ‘wasn’t all that’. And now, you can bear witness to the rave on how everyone wants in on that piece of the cake.
Many people who invest in tokenized assets really don’t care about how the blockchain works, they really just care about where their money goes and how much it can be generated as ROI within a specific period of time. But a good ICO is one with an actual plan laid out on how to use investors funds to actualize their set objectives.
Am not talking about budgeting or fund management here, am talking about what visible or tangible results investors should look out for as evidence that the project is on its track.
This is one of those detailed aspects of a blockchain project that gives us a clear idea of how the idea will progress and what will be the measurable milestones to be recorded as successes during the development process. Without a roadmap, an ICO has no direction and should not be trusted. It would be like a person heading nowhere – eventually, they get there – nowhere!
These references are not just designed as measurable milestones, they are functional and objective instruments that can be used to assess the condition of the startup or the coin itself even after the success of the crowdsale. Often times, people skip the relevant details presented by the roadmap and head towards other information that may not be as important. In the end, the result is a bitter experience.
One very popular misconception within the crypto forum is to judge a crypto by its scanty roadmap. While it is good to know where the project is headed, it is also important to scale the overall objective of the ICO alongside its roadmap.
What this means is that a startup might be simplistic enough to accomplish its first phase of the development within a very short time and that’s it – objective landed. However, this is no excuse for the project not to outline the specific indicators that will prove to its investors that everything they promised is on schedule.
When using a speculative analysis on a crypto asset (already listed coins), people often refer to the previous milestones achieved and when the next one is bound to happen. For example, if a major development is about to happen, let’s say a new and updated version of the platform is to be released which is supposed to bring about features that were not existing in the previous version(s) and would enhance the performance of the overall product, we would notice an increase in the price of such an asset.
A typical example will be when a tokenized asset which was dependent on another blockchain for its operation and then decided to create its own blockchain. This would be a huge developmental progress for the product and would see an increase in use-demand in the crypto market. So, ideally, a project during the ICO stages would do well to indicate to its investors when and how they would be taking such a giant stride.
In essence, the roadmap and its content have a way of helping investors know when to be more involved in the project and also when to steer clear.
Sometimes, and very important, roadmaps can be misleading. Some people can spread a single activity of their project through many weeks and even months or years, meanwhile that activity can be achieved within a lesser period.
This deception makes it look like they will be busy for a long period of time and would be good to stake for long-term investment. However, they are not being fair to their investors who pour in hard earned money into the startup. This is why it is very important for investors to consider due diligence when investing in any project – whether new or old.
Yeah, I know… At this point, you might be wondering hey, what has this got to do with me. I just want to invest in an Initial Coin Offering and make 10, 20 or 100x in return. Let’s get on with it. PAUSE!
Remember, investing in cryptocurrencies are very tricky as the market is highly speculative. The torrential flow of speculations can drive hype up by more than a thousand percent. So if all you do is listen to which crypto other people ‘THINK’ will create ‘Ripple (XRP) effect 2.0’, then you are in for a sore disappointment.
What you need do is get those speculations and add them to your storyboard for further analysis and ensure that you understand how all that fits to the core objective of the platform in question.
Well, it may be true that with the advent of smart contracts and KYC and all that policy thingy, the rate at which scam ICOs emerge have reduced a bit, but this has in no way squarely excluded the fact that you could invest in what seems to be a ‘good’ project, like is commonly used as chants in forums like bitcointalk, and other social media channels; and still have your funds tied up for a really long time and be waiting for that miraculous 100x-5-star rated ICO to hit the landmark.
So it is important to match the reality of the startup with their scheduled journey down the development path.
Sure, crazy as it may sound, this whole crypto business might be more than meets the eye. You might even wonder how much intellectual power is involved in simply tossing a few dollars into a project. For some it would seem like too much of a hassle; for others, they take their time and a reasonable amount of resources at their disposal to make sure that they would not regret that one action. Because, like every other element required in judging if an ICO is worth it, if you get this wrong, you are in for a long cold lonely night.
So, SWOT analysis – looking at the strength, the weakness, the opportunity and the threats that could possibly influence the final product can help you say a lot about how the developers plan on overcoming the obstacles ahead and achieving their set objectives. Because, no doubts, there will be obstacles, and they are not usually seen at the onset of the planning process.
Hint: a good ICO doesn’t just give you disclaimer notices because that won’t do you any good if they experience hitches. But they offer you scalable insights – in other words if they do experience difficulties they have a way around it – and that should be included in their roadmap.
During the course of the development, a team has to ensure they undergo serious self-scrutiny before they commit themselves to investors’ funds. Otherwise, there will be too many press releases apologizing for too many ‘unforeseen circumstances’.
As a final knot, look through the information carefully and check if their claims are bogus or can be achieved considering what the final product will be like.
I personally look out for a clear, outlined and well-structured roadmap indicating quarterly prospective goals, alpha, beta and zeta versions of their platform and a global perspective for their product.
Because, hey we are talking about decentralization here and anyone limiting their product to a few localities isn’t visionary at all – that doesn’t mean if I see a credible and potential product that I won’t go for it. But am just saying, the internet is vast and people ought to think that way.