After extensive research, and thanks to innumerable online sources, we have created our own rating system (that we use internally for our own investments). At high level, we are evaluating:
- Whitepaper (comprehensive, thorough, clear, right timing, credible implementation …)
- Token Sense (token needed, core to the product …)
- Team & Leadership (experience, advisors, information available …)
- Tech & Developing Ecosystem (sound technology, community, engagement …)
- Transparency & Trust (updates, direction …)
- Traction & Roadmap (execution, market size, community growth …)
- Terms of ICO & Funding Structure (vesting period, limited supply, distribution …)
- Trading (exchanges listed, returns …)
- Risks (competition, technology, market …)
- Secret Sauce (Tokenrati members own consensus)
Each of the rating categories has a number of metrics. For each metric a rating from 0 to 2 is assigned.
Overall Score is the average (base 10) rating for all categories.
Early Score is the average (base 10) rating for all early metrics. We define as early metrics those who are clearly set at the beginning of the project and that will likely not change significantly (whitepaper, token sense, technology, market size …). Early Score will give a better sense of the potential of a project during early stages, when Late Score will still be low.
Late Score is the average (base 10) rating for all late metrics. We define as late metrics those who are more clearly evaluated as the project matures (community size, trading, partnerships, execution …). Late Score is a good indicator on how the project progresses, independently of the initial expectations.