ICO investing is NOT the same as it was in 2017. Many projects, especially the real good ones are skipping the Public Sale (ICO) in order to be not seen raising funds from the General Public. Most of these real good projects are raising funds from a mix of VCs and Accredited Investors leaving the general public at large
Hence the Strategy & Tactics to succeed in ICOs require a different approach
- Join a Public or Private Pool of Investors: These Pools are the ones able to enter into a SAFT (Simple Agreement for Tokens) with the Projects with an agreed minimum contribution which is very large and hence spares the Project from doing KYC of small individual contributors and maintain large records. This approach requires patience as the Token Generation Event usually happens after three months to in certain cases of highly valued projects between 6 months to a year. This is akin to pure gambling as the risk tenor is very long and usually the Identity of the Pools is unknown. However for seasoned investors and risk takers, this is currently the best approach. Not suitable for new investors or for the risk averse but has high profit potential
- Register for the good Projects well in advance before they are hyped and before the whitelisting is closed. This requires weeks of research into new projects and finding the “hidden gems”. There are a few Websites, Telegram channels and YouTubers dedicated for this. However the flip side to it is that even though one may succeed to participate in an ICO, there is no guarantee that one will be able to win the “gas war” (fastest fingers first and the GWEI needed to send your ETH well in time before the meagre ICO allocation gets over). Also many countries may be excluded from participating in the Project. Suitable for medium risk takers
- The third approach is to buy the tokens from a Decentralised exchange (currently the top one being IDEX for ERC tokens and Switcheo for NEP tokens with the NEX exchange coming soon). Hence one gets to buy the tokens right when they come out of the ICO and are unlocked. One approach Traders take is to buy it right from the DEXs as soon as the tokens are unlocked and sell it once they get listed on big Centralised Exchanges. There is a good profit potential in this trade especially if the Project is hyped and if the Centralised exchange where it subsequently gets listed is Binance or Bittrex. This approach is for the low risk takers who immediately get possession of the tokens. However sometimes the good and hyped tokens list on very high prices and if the entry is at a very high price and if the listing on a Centralised exchange gets delayed then there is a good chance for a dump in prices and hence loss.
As they say “there are many paths to heaven”. No one path is the best and for Seasoned Investors diversification into all the three is a better approach to minimize risks. However for a beginner it is better to move up gradually from 3) to 1) prescribed above cautiously
One of the best profit potentials in Cryptocurrencies still remain in the New Projects (ICO or Pre-ICO) because they are undervalued however with great profits come great risks which one must be aware of before dipping their toes. All the very best in your ICO endeavours!
Disclaimer: We are not Financial Advisors and none of this is Financial Advice in any shape, manner or form. Please do your own research or consult a Financial Advisor before making any decisions. Investing in ICOs is highly risky and please do ensure whether it is permitted under the laws prevailing in your jurisdiction
