TruDex has developed a comprehensive ICO scoring system that examines 7 different aspects of each ICO. With this broad approach to ICO auditng, we are able to hit upon over 50 criteria, each one meticulously scored in our transparent process and weighted by their significance. Once put through our audit process, ICOs receive data regarding their strengths and weaknesses with recommendations and resources. The seven areas of a TruDex Audit are:
- Do team members show past success in executing a start-up?
- Are they balanced across multiple areas of expertise?
- What is the status of developers on the team?
- Are team members transparent on social media?
- Do any team members have industry expertise?
- Are team members engaging with their audience?
- What advisors are contributing to the project?
- Have partners been identified?
- Do any team members have experience in business development?
- Has a legal advisor been selected?
- Does the team have a prototype or beta up and running?
- Are their smart contracts published?
- Is the project’s GitHub showing active contributors?
- Is the code public and open source?
- Have security procedures been outlined?
- Is a problem resolution strategy in place?
- Has scalability for anticipated growth been planned?
- Has a code audit been done?
- Has the underlying foundational technology (i.e. Ethereum) been used successfully prior to this project?
- Does the technology show innovation?
- Does the project show buzz level across social media and activity in GitHub?
- Is the project website professional and interactive?
- Are team members active across multiple social media outlets?
- Has a social media manager been identified?
- Does the startup show an impactful brand identity?
- Is the social media activity primarily bot-style?
- Have we found any evidence of pump and dump schemes, fake news, teasers, etc.?
- Has a target audience been identified?
- Does the project demonstrate adequate press coverage?
- Does the ICO’s white paper effectively explain the project’s business plan?
- Has a security policy been outlined?
- Has a risk analysis been performed?
- Has the team created a legal framework?
- Is there a roadmap available?
- Have milestones been met thus far?
- Is there evidence of centralized or fiat-style manipulation?
- Is the ICO process transparent?
- Has delayed founder liquidity been addressed?
- Does the amount raised match development goals?
- Is it clear who will get what tokens?
- Has an escrow system been set up?
- What are the business based thresholds for minimum and maximum raise?
- Has a lock up period been established for founders, investors, advisors, etc.?
- Is the ICO’s date in step with the startup’s goals?
Problem and Solution
- Has a problem been clearly identified?
- Has a solution been clearly identified?
- Are user cases developed?
- Is demand for solution established?
- Does project show improvement over competitors?
- Does solution show innovative aspects?
Token Strength* – Based on Mougayar’s Benchmark
*Mougayar’s Benchmark provides a detailed look at the utility, strength and staying power of each ICO coin.
TruDex utilizes Mougayar’s Benchmark, a 20-point system, to determine the value and potential of an ICO’s token.
For ICO scoring using this Benchmark, our researchers determine the answers to the following questions while guiding the ICO on areas that can achieve improvement.
- Is the token tied to a product usage, i.e. does it give the user exclusive access to it, or provide interaction rights to the product?
- Does the token grant a governance action, like voting on a consensus related or other decision-making factor?
- Does the token enable the user to contribute to a value-adding action for the network or market that is being built?
- Does the token grant an ownership of sorts, whether it is real or a proxy to a value?
- Does the token result in a monetizable reward based on an action by the user (active work)?
- Does the token grant the user a value based on sharing or disclosing some data about them (passive work)?
- Is buying something part of the business model?
- Is selling something part of the business model?
- Can users create a new product or service?
- Is the token required to run a smart contract or to fund an oracle? (an oracle is a source of information or data that other a smart contract can use)
- Is the token required as a security deposit to secure some aspect of the blockchain’s operation?
- Is the token (or a derivative of it, like a stable coin or gas unit) used to pay for some usage?
- Is the token required to join a network or other related entity?
- Does the token enable a real connection between users?
- Is the token given away or offered at a discount, as an incentive to encourage product trial or usage?
- Is the token your principal payment unit, essentially functioning as an internal currency?
- Is the token (or derivative of it) the principal accounting unit for all internal transactions?
- Does your blockchain autonomously distribute profits to token holders?
- Does your blockchain autonomously distribute other benefits to token holders?
- Is there a related benefit to your users, resulting from built-in currency inflation?