Guideline: 8 Criteria for projects to launch IDO on Red Kite

Red Kite always carefully hand-picks the projects through a rigorous vetting process to bring the greatest quality initiatives to the community. Because of this, we want to share the requirements we apply when selecting projects so that they may have an appropriate onboarding procedure and a successful IDO.

1️⃣ Idea

• Innovation: A project has potential when it adds a missing piece of infrastructure or tooling, resolves existing problems, or creates whole new opportunities. If the project is similar to some already existing initiatives, it needs to demonstrate how its superior features, skilled staff, and other factors make it a viable rival to market leaders.
• Practicality: There are a ton of innovative and original blockchain technology ideas out there. However, we can reject a project if it has a too-distant product-market fit or an unrealistic vision. The project team should make reference to concepts that have been adopted successfully in the market such as play-to-earn, move-to-earn, sidechain, etc. If they do their study and identify the differences, this market could still be open to them.

The practicality of technology is also taken into account. Is it available technology? If it is new, does it have copyright registration?

• Trend/ Demand: If a product meets the trend and the user’s needs, success is more likely to occur. Therefore, we will confidently select your idea whether we believe there is a current or impending need for this product.

2️⃣ Team

Human is the core element in a project’s operation and growth. The project teams’ competitive advantage will be considered based on their relevant experience, market insights, adaptability, enthusiasm, and dedication to product development. It’s important for us to not only find projects that have a chance of succeeding but also find people that are genuinely excited to be in this blockchain space and want to add value to it.

A project combines professionals from many sectors; therefore, it is crucial to connect with each individual and allow them to grow. Red Kite consistently assesses a part of the project’s performance based on how they manage their team members.

3️⃣ Roadmap and development progress

We will welcome projects at any level of development. However, all initiatives must be able to demonstrate congruence between their external strategy and their internal development advancement. A detailed and realistic roadmap is a fundamental component of assessing the project development progress. We are less inclined to move forward with a project if we have reason to believe it isn’t designed to fulfill the ecosystem’s development commitments.

4️⃣ Documents

The most popular method for learning about a project is to go to its website, research it, and read relevant documents. Therefore, it will be a major negative if the project does not spend on the design and substance of the website, whitepaper, pitch deck, etc. In addition to Red Kite, the community — the project’s primary clients and users — can see the material on documents, thus it is important to do it properly, rationally, and succinctly while still being unique. Furthermore, documents can make it easier for the initiative to find partners and investors, which opens up a lot of possibilities for the future.

5️⃣ Tokenomics

Tokenomics is an important concept to consider when making an investment decision for all users, investors, etc. When evaluating tokenomics, we will look at some factors: vesting periods, hard cap, initial market cap, token distribution, and utility.

First of all, use the following criteria to determine whether the project’s basic metrics are reasonable: valuation at the public price, hard cap, initial market cap, total supply, etc. These elements may change based on the project’s size.

Secondly, we prefer to see a fair and rational token distribution. Further, each part’s vesting period needs to be reasonable to create stability and greater community involvement. We want to make sure projects foster the greatest possible token decentralization to prevent rug pulls, which rely on adequate public allocation.

Finally, utility and security must be included in every project token. We want to ensure our users can benefit from purchasing tokens and have faith in the security of the projects’ assets.

6️⃣ Investors, incubators, and introducers

The people behind the project’s incubation and support are other elements influencing its success. The project is not managed directly by investors, incubators, advisors, etc., but they are the ones who provide crucial guidance and advice so that the project team may operate flexibly and effectively on the product. Therefore, if the initiative has solid backers and investors, reliable partners, and introducers, it will be a huge plus factor that we can place our faith in.

7️⃣ Marketing and Community

Besides products and the development team behind them, we also evaluate projects through marketing and community activities. We take a close look at and analyze social channels to assess marketing effectiveness, community interaction, information quality, and overall professionalism.

Projects with real and active users are valued. They won’t be appreciated if they have a lot of followers or subscribers on Twitter, Discord, Telegram, etc. but few likes, retweets, or minimal activity in chat since they could include many bots and spam accounts.

Moreover, KOLs coverage is a crucial component of every blockchain project’s marketing plan. A strong KOL strategy propels brand awareness faster than traditional marketing. We may recommend or assist with the onboarding of KOLs for any project on our launchpad to draw users and build hype.

8️⃣ IDO and listing

Next, each project should have a clear and reasonable IDO and listing plan. We encourage the team to thoroughly consider the launchpad and listing platform they choose, the liquidity amount they add, as well as their price plans. This will support conducting a successful IDO, attracting users, and providing a solid foundation for project development.

Last but not least, the market situation has a significant impact on IDO’s performance. Therefore, the project team should not be in a rush and instead do a deep market analysis and carefully evaluate the timing of the IDO and listing to obtain the best IDO results.

Those are all the criteria that will be considered when we conduct our due diligence to choose projects that will be eligible to launch their IDO on our launchpad. We hope that this article will help users and projects have useful information, approach and collaborate with Red Kite easily and more efficiently, and give them more faith in how we operate. If you have any questions, don’t hesitate to contact us.