What is an ICO?
How Can you invest in an ICO?
How have previous ICO’s Progressed?
Investments in cryptocurrency, are high risk, but the potential for profits and being involved in some fantastic projects sets the sky as the limit. An ICO is an Initial Coin Offering, from a company related explicitly to cryptocurrencies. Some of these investments grow to earth-shattering potentials, and while doing so, they change industries for the better in many ways. This approach to funding is a beautiful and organic way to grow technology in the world that is funded by investors.
Typically, in the finance world, IPO’s (Initial Public Offering) is used when a corporation goes public and releases stock for purchase to the public in the stock market or specific stock exchanges. An IPO (Stock Market) is entirely different from an ICO (Cryptocurrency Market). IPO’s have many regulations from the exchanges they are being released on along with public reporting after the IPO. ICO’s have much less regulation, but governments around the world are explicitly defining this for their respective countries. Here’s a chart comparing these two types of investments:
It’s time for us to show you the potential for profits and losses with ICO’s in cryptocurrency. It all boils down to research and evaluation. So I turned to a friend of mine who is a real pro when it comes to ICO’s. I wanted to confirm some data with someone who knows the details of what’s happening with these investments. A good friend of mine; Roger Quartermain came to mind promptly due to his research regime and expertise in this market. Roger is one of my most trusted sources of mine for many types of crypto research. I interviewed Roger, asked him what the best ICO products were in the recent past. Roger shared with me some data and also lists he has made on how to quantify the value or potential of ICO investments.
Some of these products launch and take off in value. Many investors sell their investments at the end of the release period, and some wait years for increased profits. How can you learn and profit from this ingenious way to start a cryptocurrency company? The data presented here is from cost during the initial investment period, and selling the cryptocurrency in December 2017, just a short time ago as any savvy investor would have done. Keep in mind, that this is a measure of the maximum potential for profits. Very few people would have timed investments to this precision, but it’s exciting to quantify the possibilities! Let’s see the evaluations.
NXT – 1,477,000 % Return On Investment
Used as a currency for its own software platform, NXT can is used for asset management. NXT is applicable for project and contracts owned as well as managed through the value of NXT which has been substantial.
December 3 2014 – Investment $100 – December 20 2017 – Value $1,477,000
IOTA – 332,500 % Return On Investment
Used as a permission-less distributed ledger creating its own new economy. It’s open source, so it ties in well with IOT tech (Internet of Things). Recently after buying large amounts of IOTA, Bosch was speaking with Volkswagen at a convention in Germany. There is a large potential for the use of this across day to day access points. Look at this five-month investment turnover! Amazing!!!
July 13 2017 – Investment $100 – December 20 2017 – Value $332,500
Ethereum – 152,500 % Return On Investment
Used in many ways including decentralised smart contracts. Ethereum technology is removing the need for lawyers in some cases for business contracts. Smart-contracts such as this have no downtime, censorship, fraud or third-party interference. Ethereum is the second largest cryptocurrency in the world for market cap.
Aug 7 2015 – Investment $100 – December 20 2017 – Value $152,500
NEO – 114,000 % Return On Investment
Used combining Digital Assets (NEO), Digital Identities, and Smart Contracts, NEO is creating what they refer to as a “Smart Economy”, and it is very smart indeed. NEO is a non-profit community and has its own software client.
Sept 8 2016 – Investment $100 – December 20 2017 – Value $114,000
Stratis – 81,000 % Return On Investment
Used in many use cases, STRAT is a blockchain tech that is designed to work with C# and .net Microsoft programming networks. Specific uses include blockchain identity management, medical research transparency, product tracking and verification, data management.
August 11 2016 – Investment $100 – January 8 2018 – Value $81,000
What can we learn from this explosion of technology, new digital economies created, and investment opportunities before us? Don’t miss the boat, but don’t get onto a sinking ship either. The most crucial step to investing in a promising ICO is education and research. Now, we can run full circle back to Roger Quartermain. He has made detailed and straightforward evaluation methods for testing ICO’s to see if you want to invest in them or create an opinion of them so that you can put them on your investment radar.
Roger also has similar methods detailed in regards to cryptocurrencies themselves and also masternodes. You can read more about these topics in other articles on our website coming soon. The profits and savings you can achieve with these evaluations are astounding. You will be able to cut your learning curve incredibly.
On the flip side of ICO investments, what should you watch out for to avoid a catastrophic investment loss? In short, some ICO’s are pump and dumps. A lot of work can be placed into an idea, but if it doesn’t gain traction, everybody sells at the end of the ICO and many lose on the investments. Your choices are your own, but your opportunities are the same as everyone else’s. Look through websites, whitepapers (detailed explanation documents), and the teams behind ICO’s. If the team behind an ICO doesn’t include a strong technical background, it may not add up to anything close to a valuable investment.
How can you invest in an ICO? You should be familiar with cryptocurrencies before you do this. Start with the basics. Commit to the idea that investing in cryptocurrency requires a regular influx of education and reading. What many ICO’s prefer is not FIAT investments, but a transfer from another cryptocurrency such as Bitcoin or Ethereum to their companies. Once you decide to invest and transfer BTC or ETH to them, you wait until the ICO or funding period ends, and track the value of your investment. You can HODL your investment or sell it with a digital exchange to cash out the value.
With any investment, the goal is to have your profits reach the moon. What many in this brewing economy of technology believe is that if they invest and hold onto the ideas behind a new technology, they can help build the communities behind these investments, which is a novel idea compared to most investors who above all else, want the almighty dollar in their back pocket. As commented recently by Changpeng Zhao, CEO of Binance, referring to the companies offering an ICO, “At the end of an ICO, your job is not finished!”. Successful crypto companies understand this, push forward with something to prove and expand their value. The future of investments in the crypto world will continue to grow, develop and always keep us interested. Hopefully, this information and a few tips make you sharp at evaluating where you put your money.
For more information, contact our offices and we can point you in the right direction for any questions or comments that you have.
Ross Macdonald – 2018 Cryptoculture Magazine Inc.