Why Initial Coin Offerings can sky rocket

Initial Coin Offering

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What is an Initial Coin Offering?

Initial Coin Offering (ICO) is the cryptocurrency equivalent of an Initial Public Offering (IPO), where a company goes from private to public status by selling shares for equity. This is typically done to get funds without the need to go to a Venture Company (VC) or bank. An ICO solves the basic problem of initial coin distribution.

Initial Coin Offering List


On our initial coin offering list you can find the next big ICO! Further below you can find more info about the whole crypto token sales.

 NameStatusDescriptionCountdown Funds RaisedSentiment
Adelphoi ICOAdelphoi (Adel)

running

Prefex
Community based investing in Bitcoin StartUps.starts in
8 d : 12 h
Not available414 Views
0 Comments
Aeternity ICO æternity (AE)

coming

Prefex
Smart-Contracts enchanced with oracles (real life based events). starts in
5 d : 12 h
Not available221 Views
0 Comments
Bancor ICO Bancor

coming

Prefex
Instant Liquidity for Any Cryptocurrency.starts in
7 d : 12 h
Not available239 Views
0 Comments
TaaS ICOToken-as-a-Service (TaaS)

over

Prefex
A Fund where token owners get 50% of the quarterly profits. finished
27.04.2017
$7.9 Million135 Views
0 Comments
Lunyr ICO Lunyr (LUN)

over

Prefex
An Ethereum-based crowdsourced encyclopedia which rewards users for reviewing and contributing information.finished
26.04.2017
$2.4 Million 78 Views
0 Comments
WeTrust ICO WeTrust (TRST)

over

Prefex
Create a trusted lending circle and profit as the community lends together. finished
13.04.2017
$4 Million92 Views
0 Comments
PrefexEthereum (ETH)

over

Prefex
Open source platform to write and distribute decentralized smart contract applications.finished
15.08.2014
$18.5 Million345 Views
0 Comments
PrefexFirstBlood (1SŦ)

over

Prefex
Decentralized eSports platform based on smart contracts. Play eSports, Win Rewards.finished
24.10.2016
$5.5 Million94 Views
0 Comments
Maidsafe ICOMaidSafe (MAID)

over

Prefex
Network offering highest user security and privacy.finished
22.04.2014
$10.6 Million105 Views
0 Comments

More info before you invest in ICOs


As you see, there are always many chances to invest in initial public offerings. Hence, we will try to showcase more info about this fast changing environment.

Two types of ICO usages


There are two purposes of using initial coin offerings:

  1. Crypto Coins – Create a new coin which is different to Bitcoin and has it’s own unique feature.
  2. Crypto Equity – Create a new project, for which to work a special currency is needed. The equity is raised via crowdfunding, so everybody can take part of it. Later on the bought equity can be sold on some specific crypto exchanges. This is similar to startups, so you invest in the idea behind it and hope they get profitable. A crypto equity is equivalent to a crypto token.

Interestingly, only about 12% of the bitcoin and blockchain projects raise money over a token presale. See pie-chart below.
Funding of Blockchain Projects

The difference between crypto tokens and equity

Examples of the two ICO types


So now you know that you can create a new crypto currency or token – for it being a coin or it being a share out of a project. But let us examine some examples to make the whole a little bit more clear!

The initial coin offering of LISK

New Crypto Currency

We take as an example Lisk – the first modular crypto-currency. Lisk ICO was in May, 2016. In their initial coin offering, they managed to gather up to 15k Bitcoin.
Their core feature is the scalability, where they will be utilizing side-chains as a solution.
If this coin will succeed, or not, it depends on how many people believe in the coin.

The initial coin offering of FirstBlood

New Crypto Project

Let’s take FirstBlood.io as an example since they represent the perfect vision of a blockchain startup, which launched in the end of 2016.
Slogan and Vision: Building a decentralized eSports reward platform that every gamer loves.
Business Plan: Players earn coins by competing in computer games, tracked on smart contracts over the blockchain. People get rewarded by being a jury.
What they offer: 1SŦ crypto tokens in exchange for Ethereum.
What they need: Money to host tournaments and build up the FirstBlood infrastructure etc.
Info about this initial public coin offering taken from their whitepaper.

Basically, you are buying stakes of a blockchain startup.

ICO Crowdfunding


The process of an ico crowdsale is nothing too special. In the current state of the art, the developers of the crypto tokens create an Ethereum smart contract (official Application Code). Over this smart contract the whole magic happens. People register on the platform and get a special ethereum wallet address. Now they simply need to send ETH to this address, and after the ICO end, the crypto tokens will be automatically distributed to the right owners.

Each initial coin offering has its special pricing, but normally it’s divided into multiple stages. After each stage the price per crypto token increases. So the earlier you join, the better price per coin you get!

So what is next after acquiring the crypto tokens? You need to trade them!

ICO Trading


We will try to answer one of the most often asked questions on this topic “How to trade ICOs?”. Well, this is simple, an ico crypto token can be traded on every exchange, but only if the exchange accepts it. This means, that for example a crypto coin is listed on poloniex.com but not on bitfinex.com.

There are also ICO specialized exchanges like Yunbi and Bittrex. But those are not generally the best ones to trade your icos.

How to find the best exchange to trade Initial Coin Offerings?


Here is our hidden trick, which very few people use and know! Find the cryptocurrency exchange best suited for your token in just four simple steps:

  1. Go to CoinMarketCap.
  2. Search for the currency you want to trade.
  3. Press on “Markets”.
  4. Select the exchange (market) where the crypto token has the lowest price.

Now you just need to register there and buy it cheaply. If you need to sell the coin, then just find the exchange with the highest price (step 4) and sell it there.

Alternatively, in step 4 you can also take the exchange with the highest trading volume if you plan to trade the ico-token frequently.

How to find the best place to trade an initial coin offering

Best and Worst Initial Coin Offerings


Here you can find the currently (as of writing this article: 30.3.2017) best and worst initial coin offerings.

Best ICO


Ethereum and its development was funded by an online public crowdsale in mid-2014. People were able to buy the crypto token Ether for Bitcoin. Ethereum managed to raise a record sum of $18.4 million in their ICO.

Token presale as StartUp vs new coins

Worst ICO


Criminals always try to create money from thin air. And this is how shitcoins or scamcoins are made. There are many examples, but the biggest ICO scam (as of writing this article: 30.3.2017) that we know is GameBet Coin (GBT)!
They stated that they will launch a platform enabling sports and eSports betting. And, also offer a marketplace. They managed to create good looking graphics and even a business plan. Everything looked fine on paper, but sadly they never delivered. This way they committed the biggest ICO scam, worth 268 BTC!

Summary


As a summary to the whole ico investment, one can say it is tied to high risk and high reward, similar to the bitcoin hyips. A Bitcoin high yield investment will always make some returns, but not always make full returns. A crypto ICO on another hand can skyrocket and more than double your investment in just some minutes. Also, it can happen that you don’t even get a single satoshi out of it.

Initial Coin Offering
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