Rating Methodology

CryptoStandard Score

While ICOs are gaining more and more momentum these days, massive amount of data are accumulated and available for us to do backtesting. From the pool we have come up with 10 dimensions, which we believe are the most reliable to evaluate an ICO. This comprehensive and rigorous model is backed by over 80 parameters. The dimensions and their explanations are as follows:

Idea
We look at the application of blockchain technology and see if it is disruptive and decentralised in nature. Besides, its scalability is an important determinant of whether the startup is a sustainable business.

Competitiveness
We evaluate the current market structure to see if there are any strong competitors and what are the company’s core competencies to fight against others.

ICO
Token sales structure including the role of the token and the planned composition of the proceeds will be analysed.

Team
Expertise, experience and execution ability of the team are the keys to building a great company.

Community
We will look at the size and the hype of the community. Marketing elements such as social media channels and the team’s responsiveness on those channels will be investigated.

Documentation
We will check the adequency and consistency of the startup’s whitepaper and technical paper.

Financials
We will examine the projected financials and the respective assumptions behind their financial models to see if they make sense.

Reliability
Availability and functionality of prototype(s) will be analysed.

Feasibility
We will check if there is any legal concern. Besides, our blockchain specialist will check the quality of the codes.

Outlook

In addition to CS Score, CryptoStandard also publishes an outlook as a general comment to the ICO as some readers may prefer a qualitative summary rather than a numerical score. We use expected business performance, market momentum and risk level to guide our derivation of the outlook. There are 6 levels of outlook:

Positive +
The startup has very strong expected business performance, huge yet reasonable market momentum, and a minimal level of risk.

Positive
The startup has very strong expected business performance, huge market momentum, and several risk factors that could potentially be mitigated

Stable +
The startup has strong expected business performance, strong market momentum, and several risk factors that investors should often monitor.

Stable
The startup has strong expected business performance, average market momentum, and several risk factors that investors should closely monitor.

Negative +
The startup does not demonstrate its ability to capture a promising market/ the target market does not have admirable features to pursue, and has average market momentum, and significant risk factors associated with the startup idea.

Negative
The startup does not demonstrate its ability to capture a promising market/ the target market does not have admirable features to pursue, 
and has poor market momentum, and significant risk factors associated with the startup idea.

Risky +
The startup does not demonstrate its ability to capture a promising market/ the target market does not have admirable features to pursue, and has below average market momentum, and significant risk factors associated with the startup idea.

Risky
The startup does not demonstrate its ability to capture a promising market/ the target market does not have admirable features to pursue, poor market momentum, and significant risk factors associated with the startup idea.

Scam
High risk of default.

Last change was made on: 7th February 2018