Investing in ICO – How to identify a good ICO
Initial coin offering refers to a fundraising project similar to an initial public offering for stocks. It emerged with the rise of the cryptocurrency market and served to promote the projects surrounding new cryptocurrencies and tokens. It doesn’t have to be directly linked to the launch of a new cryptocurrency.
More and more often, projects are promoting the launch of new technology, software and online service. The owners of digital tokens related to projects become the owners of capital in a startup company that stands behind these projects.
Ethereum is considered one of the most successful ICOs. As per the latest reports, there were thousands of successful ICOs so far, but the truth is that rare are the projects that reach that level of notoriety as Ethereum. Among the most successful are also IOTA, NEO, Stratis, EOST projects.
Where to find the right ICO- ICO listings sites
But how to spot the right ICO and where to find concise information about them? Well, it’s quite easy to find the ICO for your future investment.
There are a plethora of specialized websites, the most popular being the Coinmarketcap. In their ICO calendar, you can check the recent ICOs, ongoing projects and details related to the project’s start and end date, initial market cap, link to the project website, community and developers behind the project, audit reports and many more.
What makes a successful ICO?
Similar to an IPO, the ICO project needs to state the maximum amount of coins planned to issue, the team members working on the project, as well as the business model and the product behind it.
Early investors involved in the projects can also be a guarantee for the success of a project, as well as the number of coins allocated to the founders. A detailed overview of the ICO needs to be presented in the White paper document.
Are ICOs still popular?
Yes, they are, although they are not still a thing as they were a few years ago. It means that the quality of the projects gets better and that the cryptocurrency market tends to consolidate on that level. It’s a good sign because the more unsuccessful ICO projects, the more investors and the public become reticent to this investment.
Some of the upcoming ICOs to consider
Concerning the success factors we mentioned before, here is the list of the best ICOs in 2021 to consider.
- The first is Scaleswap, an ICO project to harness the power of the EThereum network. The sale of the token takes place in July 2021 via their website.
- (DEX) platform DeversiFi enables anyone to have access to DeFi opportunities on Ethereum. It enables users to provide liquidity, trade and invest, and earn interest based on their investment.
- The Axia coin ICO project allows users to participate in the financial markets by changing the way investors interact with money by eliminating socioeconomic barriers.
- DeFiCity is an upcoming ICOs and gaming platform that allows borrowing from the popular VR platform Decentraland aiming to gamify yield farming.
- Qredo (QRDO) represents a decentralized protocol enabling encrypted trade negotiations.
How to buy and ICO
Once you have read the white paper of the particular project and made sure it meets criteria for investment, the process of participating in ICO is quite straightforward. You need to buy Bitcoin or Ethereum, go on a project’s website , and move your crypto into your wallet. Then you buy ICO tokens sending your crypto to the project’s address. In the process, you have to make sure to only buy from the specialized website dedicated to the ICO in question to avoid scams. Moreover, before buying tokens, make sure to carefully scrutinize and double-check the whole website information related to the launch of the project.