FAQ

For Analysts

For ICO Issuers

For Investors

CAR Learning

Crypto assets are an evolving asset class and ICOs as investment tool are in the infancy of its life cycle. An Initial Coin Offering (“ICO”) is a way for start-up companies to raise capital by selling tokens (crypto assets). ICOs are quickly revolutionizing the fund raising model and becoming a preferred method of fund raising among issuers. ICO’s offer many advantages over traditional methods like VC funding because of the rapid turnaround time and lower costs due to the lack of intermediaries (middlemen). They also give issuers the benefit of direct along direct reach to investors. These benefits also come with many risks to the crypto investor. The market has been plagued with some cases of outright fraud, or cases where the project never comes to fruition. Investors have little to no recourse because there is no trusted intermediary performing any kind of regulatory oversight or vetting of the offerings.
Most of the crypto asset investors are multi-asset institutional investors who lack the particular expertise or are non-sophisticated retail investors, who lack the resources to do thoroughly research the crypto assets they invest in. Unlike traditional investors in the public market, who have access to countless resources for measuring their risk, ICO investors have very limited information they can rely on about the project or company in which they are investing.
In this scenario, an unbiased rating system developed by a team of subject matter experts helps investors navigate the clutter of ICOs and identify suitable investment opportunities. CAR’s rating system is an objective analysis of the underlying business (along with various other factors) and hence a fraudulent ICO with a frivolous or non-existent underlying business gets filtered out and can help investors separate the wheat from the chaff.