Have you ever raised little chicks when you were young?
I had several when I was in elementary school. And…many of them died (sorry chicks)
I guess many of you also have similar experience.
So when you select chicks to raise, it is hard to distinguish which one is healthy one.
One of my friends back then actually succeeded in raising a chick to a grown chicken which shocked me a little.
I think this shares some similarity with selecting ICO
ICO stands for Initial coin offering.
For example, company A develops a crypto coin. They decide on the type of coin,
create a white paper and a road map for it.
Then, they announce, “this is how our crypto coin would be like, do you want to buy? The sales will start on 00 (date)!”
This means the company is participating in ICO.
And with collected Bitcoin and Ethereum, they fund their company, select developers, and start running the company.
However, among ICOs there are some fraudulent crypto coins-which is commonly known as a scam coin.
Some just get the money, but run away because it is hard to develop.
So how valuable the new crypto coins will be? You would not know, just like I did not know which chicks were healthy ones.
That is why new regulations on prohibiting ICOs are emerging worldwide.
But if the new coins have a real potential, that is…just god’s blessing.
I wrote about such a blessing in one of my previous postings.
About $9,400 worth of Tron coins become $1.6 mn, or $1400 worth of Icon coin become $200,000.
All these legendary stories are from ICO.
Think about it.
IF..
I were in the Ethereum’s ICO…?IOTA ICO…? Or in Stratis…?
You can be the hero of this legendary coin money.
So if you plant some money here and there, one of them can come back to you as a huge reward.
Now, second point about why ICO is good.
Those who are expanding your fund cap may be frustrated by the funding cap, especially you see that Ada coin’s price will skyrocket, but the market cannot digest your funding cap.
Say Ada is only $0.01 per unit, but you want to purchase them the amount of $200,000.
The market cannot digest your order, because there has to be 13,333,333 Ada.
Out of total 25,927,070,538 Ada,
If you want to buy ca.130K of them in upbeat for $0.01 per unit, how much do you need to push up the price?
At least, you need to drag that up dozens of percent by yourself.
In this case, ICO can be helpful.
Let’s assume another situation.
Even if you are in ICO for popular coins,
The cap per capita is only 5 ethe
So if you want to invest $100,000 at once,
You need to find other routes like pre-sale or private sales.
But here comes a picky part.
Generally, presale is conducted via a company,
But private sales is via an agency.
That means, agency dealing with private sales has high risk of runaway after only getting the money.
It is also difficult to find a credible agency.
Because they deal with a huge amount money through Ethereum wallet, etc., if that is hacked, you should just think that you will never get your money back.
Pros of using pre-sale or private sales is that the cap is almost limitless.
Cons is that the minimum amount you need to find can be quite large.
At least it will require $50,000 to $100,000…and private sales often deal with transaction that goes for hundreds of millions of dollars.
Another good part is that you do not need to be agitated all the time, just like you when you are in ICO.
Although it may vary by coin, in pre-sale, when you purchase a large sum,
the company will give you bonus %. E.g. 30% more for ICO price per 1ethe.
How to find good ICOs
There are so many ICOs. So here are my tips for selecting good ones.
1 Look at the team members of the crypto coins.
The developing team members should be experienced and have great potential.
The coins should be based on Neo/QTUM Dapp
Also, see who are the supporters/investors of the coin
2 Look at its white paper
The white paper tells you what is the coin made for, and whether that technology can be realized.
3 Look at the road map.
A roadmap plays an important part of crypto coin investment because it tells you when and how the process will be conducted
4 The amount of coin issued and the hard cap.
Billions of units of a crypto coin are issued. And if the price goes for $0.01, there is nothing much you can invest in. There is one such an example…T** coin.
So here are my tips for choosing good ICOs.
I think it is worth finding out valuable coins that you may want to invest in a long term via ICO or presale.
Until all of us become rich!!
Everipedia just announced it's intentions to "airdrop" it's new IQ token to the EOS token holders. Everipedia has gained the original founder of Wikipedia as it's CTO and plans to adopt the EOS.IO software. This new form of coin distribution bypasses securities laws as the "airdrop" is free to the EOS token holders. Everipedia hinted there would be more "airdrops" in the future from new Dapps. As more government and regulation pressure mounts against the ICO model, this new structure that EOS seems to have created could be a game changer!
Check out my recent article titled, EOS advantages for token holders
Thanks @healings for this post. It resonates with points I outlined here https://steemit.com/steem/@jackdickens382/how-to-choose-the-best-ico-to-invest-in Your'e right the dev team should be experienced, though would like to ask how comes you have advised coins to be based on NEO or Qtum?
glad to hear it helps! For answering your question, it's given the fact that the tech and roadmap behind those coins (NEO or Qtum) seems pretty solid and it contains high potential. Also, it's highly likely to be skyrocketed when restriction policy on coins in China is getting relaxed.
Thanks for your reply. So how do you review coins/tokens that are f rom China? For example Coinmeet, Oceanchain, CPChain? China seems still to be banning ICOs.
Worth it to read..Thank you for sharing..
No, thank you!
Good post.👍 And your post upvoted
Thank you!!
It gets harder and harder to find a good ICO.
I agree.. There are many ICOs, but only few good ICOs with high potential.
Nowadays we must research about ICO before joining it and Ofcourse luck works too
But these days lots of ICO come with the intention of looting the invetor's money .
Thanks for such a great post man :)
As I mentioned above, you should spend some time to investigate ICOs that contains high potential.
thx, heaps!!
haha cute!
Coins mentioned in post:
very helpful post (ICO)
Thanks!! glad it helps.
welcome my dear friend @healings
With all the respect: nice article. but.... but.....
"For example, company A develops a crypto coin. They decide on the type of coin,
create a white paper and a road map for it."
A) first of all The company A, has to have a Vision, and business plan, how the company will operate / how will make money / what expenditure will have / staff/ USP / etc etc etc.
B) Then.... when company A, has that vision, and operational process in mind, they will need CAPITAL, and to attract that capital, they have few options: put money together (if they have) / release shares / get Venture capitalist / of make ICO, and attract money that way.
C) And when the company, is attracting that capital via ICO, best if the company if as much transparent as possible: making constant updates in terms of: staff / project success / goal achievements (whitepaper) / expansion / any issues (all companies have issues... or challenges) / milestones etc etc etc.
Then I agree with your tips: team / market cap / money use cases / etc etc.
If you can filter down: real viable potential projects from just "vision on paper", then you will have 100% success in investing!
Good luck everyone!
Great so useful and informative topic thank you dear for sharing this great topic with us i appreciate your efforts