Cryptocurrencies are among the trendiest industries of today. Its novel process took the world by storm that some Initial Coin Offerings (ICOs) are greatly hyped up to increase its value far beyond its actual value. The marketing involved in cryptocurrency is to make it highly anticipated and wanted by investors and buyers. Some of the most successful ICOs have great marketing methods that allowed them mainstream recognition.
ICOs are risky investments since they are based on extremely speculative data. To date, only a few ICOs have successfully launched their tokens. A majority of hyped-up ICOs turn out to be fraudulent. So how do you really separate the wheat from the chaff in the ICO world? You can start by first doing due diligence and research on the most successful ICOs of all time. This includes:
Most Successful ICOs of All Time
BCNext launched NXT in 2013. It was one of the pioneers of ICOs and still remains one of the most successful. This blockchain platform was designed specifically for the financial services sector. They sold tokens for $0.0000168 and managed to gain as much as $16,800 worth of bitcoin. The development team used the money to develop the currency for the platform. During its peak, the NXT tokens valuated by as much as $2.15 each, with each investor earning a whopping 1,477,000% return on investment.
Ark features an efficient design. The ARK platform provided an avenue for speedy integration of different cryptocurrencies into its very own blockchain. The goal was to decentralise different digital currencies. During its ICO, ARK’s initial token price amounted to $0.04 and peaked at almost $11, giving its investors a 35,000% return on investment.
Whilst Stratis is yet to make an impact in digital currencies, it boasts of a platform compatible with different programming languages. Thus, allowing the business to create and design personalised applications with ease. Stratis ICO remains one of the most successful thanks to the support of Microsoft. In just five weeks, the project received almost 1,000 BTC. With investors paying only $0.01 for each token, they had a return of investment exceeding 50,000%.
Launched in November 2016, Spectrecoin features a privacy-focused cryptocurrency, which can be sent and received around the world anonymously. This feature pushed government agencies worldwide to carefully consider what they can allow from digital currencies. Despite its unique feature, it has yet to hit the mainstream. Its ICO in 2016 was $0.001 per token and now worth $0.60, shows a good gain still.
Ethereum is a widely recognised cryptocurrency. Aside from being a digital currency, Ethereum is also a foundation for decentralised applications that uses smart contracts. It is the second-largest digital currency today. During its launch, ether tokens were only worth $0.31 each. Now, each token has a value of roughly $700, giving its investors a 200,000% return on investment. Today, this digital currency is widely used by a number of large companies who have expressed trust and confidence in it.
The most successful ICO of all time is NEO. The Chinese open-source blockchain project has had several names but is more commonly known as China’s Ethereum for also offering smart contract applications and decentralised commerce similar to Ethereum. The ICO was successful because of the immense support it got from Microsoft, the Chinese government, and a host of major companies. During its ICO, the token price was only equivalent to a little over 3 cents but jumped to about $180.
Interestingly, these successful ICOs are not well-known tokens. For instance, NXT ranks 90th in total market cap and ARK at 64th place.
Investing in ICOs are highly risky since the market value is highly speculative. A recent study conducted by Satis Group LLC showed that as much as 81% of ICOs are scams and should not be invested in.
Sorting Wheat from the Chaff
Check the Whitepaper
As any diligent investor, it is of utmost importance to thoroughly check, read, and analyse the white paper of any cryptocurrency project. This paper is commonly available on the website. It outlines all the strategies the project would undertake. Carefully look for any problematic areas. Think whether the project’s goal is indeed feasible. Watch out for any stratospheric ideas but lacking any practical approach to realise the goal. It is true that a whitepaper is never a guarantee of success but finding a hastily written and incomplete one says more about the project.
Preparing a white paper should include a basic roadmap that includes a reasonable timeline and plan for action to achieve the mentioned goals. Also watch out for grammar issues, spelling, and formatting as this could also signal a potential scam.
Get to Know the Team
Meticulous investors know that the team behind the project is crucial to its success. Taking time to research the individuals associated with the project is important. There have been instances in the past where high-profile projects specify well-known team members who, in actuality, are not part of the project.
Research from Reputable Sources
Before putting money into a project, make sure that you do extra research about the project from reputable sources. It is not enough that you read about they offer from their website as it will be biased. Get your information from trustworthy publications. In the case of ICO, listen to the opinions of other potential investors but still approach with caution as forums can be forged as well.
Trust ICOs that are transparent with their finances. Withholding financial information from investors may signal trouble within the company.
Ownership of Tokens
Knowing how tokens are distributed and owned is important before going ahead and investing in an ICO. This will allow investors to speculate whether the tokens will increase in value over time. It is also best to know why the company is making its own token instead of using an already established token in the market. Having a balanced token distribution is a common denominator in successful ICOs because not one entity can monopolise it. Note that a project with too much or too little tokens can also be problematic. Check the cap of generated tokens. Find out if the company placed individual caps on investors and whether the tokens are properly distributed amongst investors.