Tropyc scores ICOs via a holistic and open-source rating methodology.
Tropyc rates ICOs and token sales based on the information they chose to release. The rating framework evaluates the risk of fraud and assesses the project’s credibility to go through a fundraising round.
The rating framework is based on objective variables with open-source weightage. Therefore, tropyc does not conduct any subjective analysis and does not receive any commercial incentive to increase or decrease ratings.
The full breakdown of ratings is available at the bottom of every ICOs.
However, tropyc is not assessing Initial Coin Offerings as investment vehicles and does not intend to predict any positive investment returns in the future through the rating framework.
The rating system should be considered as an evaluation of transparency more than anything else.
It is not an endorsement to projects and is not to be considered by any means as investment, accounting or legal advice.
It is divided into five sub-marks:
- Team (15%): Founding team is professional and fit to raise funds.
- Safety (25%): Ability to create a responsible environment for investment.
- Product (20%): Quality of project management and how well it is presented.
- Financial (20%): Delivery of monetary and financial information.
- Marketing (20%): Ability to market the project efficiently and to communicate with communities.
- Identity (26.67%): Founding team has revealed their identity. (0 or 1)
- Country (13.33%): Communication of the location where the company is registered. (0 or 1)
- Date (13.33%): Communication of the date when the company was registered. (0 or 1)
- LinkedIn (23.33%): Hyperlink to team member's LinkedIn profiles. (0 or 1)
- Pictures (23.33%): Photos of the top management are available. (0 or 1)
- Code audit (10%): Third party has conducted a technology audit. (0 or 1)
- Legal audit (10%): Third party has conducted a legal audit. (0 or 1)
- Vesting period (8%): Funds raised are locked for a certain period of time. (0 or 1)
- Asset issuance (8%): Digital assets are automatically sent during, at the end of or after the sale. (0, 0.5 or 1)
- Wallet (8%): Facilitation of wallets to securely store the assets. (0 or 1)
- KYC (8%): Verification of investors' identity: either none, whitelist or full KYC process. (0, 0.5 or 1)
- Whitelist (8%): Verification of investors' cryptocurrency address (0 or 1)
- Government, alliance (8%): Project is partnering with a government or member of a global alliance. (0 or 1)
- Smart investor (16%): Relevant stakeholders have assisted, incubated or invested in the project. (0 or 1)
- Corporate partner (16%): Project has built partnerships with corporates in relevance to their solution. (0 or 1)
- Liquidity (0% - coming soon): Partnership with exchanges to list digital assets: either listed, unlisted or in talks. (0, 0.5 or 1)
- Whitepaper (20%): Team has shared a comprehensive whitepaper. (0 or 1)
- Video (15%): Presentation of the project on video format. (0 or 1)
- Roadmap (15%): Project provided a detailed timeline of the project. (0 or 1)
- Stage (25%): Project is either an idea, a prototype, a MVP, a product with users or with revenue. (0, 0.25, 0.5, 0.75 or 1)
- Smart contract (25%): Project has shared a code repository for the sale's smart contract. (0 or 1)
- Product code (0% - coming soon): Project has shared a code repository for the product they are raising funds for. (0 or 1)
- Distribution (25%): Distribution of token is clear and precise. (0 or 1)
- Fund allocation (25%): Provision of a project finance projection. (0 or 1)
- Unit of account (25%): Base capitalisation is calculated in fiat rather than in a cryptocurrency. (0 or 1)
- Hard capitalisation (25%): Sale smart contract has a maximum capitalisation in place. (0, 0.33, 0.66 or 1)
- Valuation delta (0% - coming soon): Pre-ICO and ICO cap have not increased by more than 3 fold in 12 months. (0 or 1)
- Valuation cap (0% - coming soon): ICOs do not have a network valuation exceeding predefined limits. (0 or 1)
- Bonus (0% - coming soon): Bonus for early investors is not extravagant.
- Mainstream media mention (25%): Mainstream media houses have talked about the project. (0 or 1)
- Crypto news mention (10%): Cryptocurrency blog and news community have talked about the project. (0 or 1)
- Facebook (10%): Active page with periodic posts. (0 or 1)
- Twitter (10%): Active profile with periodic tweets. (0 or 1)
- Instant messaging application (15%): Facilitation of instant support via Slack, Telegram or Discord. (0 or 1)
- Blog (15%): Periodic informative posts on a blog, native, Medium, Steemit or other platforms. (0 or 1)
- Linkedin (5%): Active page linked with team members. (0 or 1)
- Reddit (5%): Active sub-reddit with links and posts. (0 or 1)
- Bitcointalk (5%): Presented the project on the most popular cryptocurrency forum. (0 or 1)