Plenty has been written about how to best judge an ICO. The FT's Alpha Grid has supplied some useful tips, transcribed (and cut to length) below. I would agree with all of these; they make commercial and investment sense.

The general approach on the legal side is to say "well, no rights anyway, I may as well not worry". I say there are areas to watch. The three main tips are as follow:

  1. Read the white paper from a due diligence perspective. Has the company said how it will deal with tax issues arising? Has it got any customer contracts? Has it got a sound business? These may sound like basic questions, but those need to be asked to make sure the token is worth having.
  2. Read the terms and conditions. A particular focus should be the risk factors. Are these clear and do they tie to the white paper? 
  3. Get a laywer. If you are investing a substantial amount or being asked to sign a soft commit (a kind of discount arrangement) get someone to look over those for you.