Transparent – Objective – Intelligence
STOwise Rating Score Algorithm
Our analysis algorithm uses 6 different components each with selective weighting to determine a final rating score from 0.00 to 10.00
All STOs are rated under the same condition, by the same assessment algorithm.
STO Profile: (weight 30%)
Completeness of the STO profile is paramount for investors to obtain the relevant information to make an informed decision. Lack of transparency will result in a poor rating. The following are essential:
- Website – well designed and easily navigable including links to social media, blogs and news
- General Information – clear offering description, video, white paper, roadmap, etc.
- Corporate Information – corporate structure, addresses, contact information and consistent updates.
- Legal & Financial – complete jurisdictional transparency and proof of adherence
Team: (weight 20%)
The quality of the project’s team is a key component of an STOs success. We rate the team based on the following criteria:
- Number of team members and advisors
- Transparency, experience, completed biography, LinkedIn profile and other verifiable sources
- We also query the internet to verify the reputation and accuracy of the team
Offer: (weight 15%)
- Offering memorandum – Are the specifics of the offering available and clearly stated.
- Product or service maturity – Does the product or service exist? Is this nascent technology? Is there a prototype What is the competitive environment? SWOT analysis?
- Roadmap and Milestones – are they clearly defined and reasonable
Legal: (weight 15%)
Security Token Offerings are held to a higher standard than an Initial Coin Offering (ICO). STOs are securities and must adhere to strict legal & jurisdictional regulations on a global scale.
- Corporation or legal entity is registered and verifiable.
- The entity is complying with all jurisdictional law to legally raise capital.
- Offering Memorandum clearly states key offering terms; token distribution, proceeds allocation, risk disclosures, etc.
- Investors rights based on the STOs jurisdiction concerning lock-up periods, transferability, protection measures, etc.
- Smart contract is properly coded to reflect: token distribution, vesting, transfers, dividends, etc.
Social Media: (weight 10%)
We rate the investors interest in the offering. This score is a good barometer of the likely success of the initial offering and ultimate long-term success of the project. Effectively communication with investors on social media platforms is key to an STOs success. The score accounts for the following: users or followers, mentions, website traffic and mainstream media mentions.
User Ratings: (weight 10%)
Our registered users are predominately well-educated, experienced in blockchain investing and accredited. Their feedback is extremely important and relevant. The score includes project voting and watchlist counts.
The STOwise Rating Score is not permanent. We monitor STOs daily and the rating cannot be manually changed. If you are a member of an STO team and disagree with your STOs rating, please contact us to discuss and or update your STOs profile with accurate data.