Astronaut Capital is an ICO investment fund which, having run its own ICO of the ASTRO token back in October and November of 2017, raised just over $2.5 million USD in what was one of the first ICO-focused crypto investment funds.
The outfit has since gone into partnership with Bloomberg, and is attached to ICO Research house Piccolo Research which publishes (retrospectively) all of its research on its ICO investments. It has now also laid out a list of guidelines for filtering through what it describes as the “the sheer volume of new token sales that are pitched to us on a daily basis.”
Needle in a Haystack
According to Astronaut’s CEO, Matt Dibb, finding a good ICO is about starting out from one simple premise: “Everything great about an upcoming ICO is already published. Everything which isn’t so great, however, is not.”
The fund manager goes on to explain that his own approach is to engage in a “lengthy filtration process” that is designed to identify red flags in an ICO project. As soon as one is identified, he generally finds himself moving “to the next on the list and [in order to] start from scratch.”
The filtration process involves asking eight specific questions that set out to challenge ICO project teams on their backgrounds, the proposed business model, and identifying legitimate – as opposed to opportunistic – blockchain use cases. Those interested in reading the full blog can find it here.
Interestingly, Dibb’s piece also advises vigilance on ICOs with successful private sales, implying that public sales are as much about publicity and attracting potential future users as opposed to simply raising capital. “In many cases, [ICOs] simply say ‘we will see how the private sale does before making a decision.’ Not a great response,” Dibb states in the blog.