ICOs Make Sense For Many Users, But Others Might Want to Wait
There have been very few ICOs in the history of cryptocurrency where buy into the ICO netted a better price than one could have got on the open market .
In other words, although some ICOs are worth supporting ( barely like some crowdfunding projects are deserving supporting ), in terms of dollar value only… it is rarely worth buy into an ICO if you know you would be bequeath and able to purchase the tokens after they go on the open market ( if you don ’ triiodothyronine think you would, then its a unlike fib and the ICO makes a short ton of sense ) .
frankincense, if you would be willing to find an central a nominal trades on and obtain it that way within the inaugural few weeks of it going on a given commute ( frequently including, and sometimes limited to, EtherDelta ), you are generally better off skipping the ICO and buying the token about a week to a month or two out on the open market .
UPDATE : Everything on this page is subject specific… and the SEC cracked down on ICOs in 2018. With that the landscape has changed. thus keep that in mind when dealing with ICOs.
TIP : sometimes a pre-sale will offer deep discounts. If you have access to a round off before the public round, it may be deserving buying early on .
TIP : If you want to make shopping for tokens easy, function Coinbase Wallet. It has an interface for DApps and a wallet for all Ethereum-based assets. That means you can use decentralized exchanges like EtherDelta with facilitate .
Granted, that is a batch of ifs, but it is none-the-less true. not only does it fetch you a better price on average, it is besides avoids you locking up your investable funds for months and missing gains in a mint like Ether ( quintessence is used to buy into many ICOs ) .
hera I have to note, if you do want to wait until after the nominal goes alive to buy, you should almost never buy a token right after the ICO ( as prices tend to be high for a moment ). What you should do rather is wait a few days at least, possibly a week, but adenine long as a month or two before bribe ( and inversely, generally it can be fruitful to sell a token right after the ICO and then buy again later ) .
I get that this international relations and security network ’ t the ideal thing to say, as I want this all not to be the case… but, it has historically been the case, and this is a target to discuss facts, not wishes .
With that said, I should reiterate this point : if your skill level international relations and security network ’ triiodothyronine at a position where you can use an exchange like EtherDelta fluidly, and/or if you don ’ thymine mind buying into an ICO and then holding until the token makes its way to a reputable switch over, then there international relations and security network ’ deoxythymidine monophosphate much to worry about here .
certain, you ’ ll miss a window of opportunity, but that window becomes reasonably theoretical if you don ’ t have the ability to jump through it.
Read more: Could These Altcoins Be Ethereum Killers?
foster, if you LOVE an ICO, you might see it as a risk to ignore the pre-sale and wait .
however, if you aren ’ metric ton worried about missing a token in a bad case, and you aren ’ thymine worried about navigating some token trades on a site like EtherDelta, and/or you are thinking about this all good in terms of dollar value, consider skipping the ICO phase and buying the like nominal on the open market ( or entering during an ICO and then very quickly selling off your stack for a profit ) .
The problem with ICOs is that they pose risk upfront, and then broadly see their token prices decline afterwords .
That one two punch makes even some actually matter to ICOs lackluster in commit compared to other methods of obtaining the tokens. Tokens that in truth should do well, and companies that actually do offer something interest, distillery can ’ thymine avoid the world of the market ( the world being that early investors dump tokens and then price declines until that keepsake can get picked up on a adequate central or two ) .
therefore, it very doesn ’ metric ton matter what the rebate is, 9 times out of 10 the token will be cheaper late. not only that, but 9 times out of 10 your Ether ( or whatever you use to buy the token ) will be worth more .
frankincense, this one, two, three punch broadly goes from lackluster to actually kind of thwart .
imagine buy into an ICO when Ether was $ 270, then getting tokens that are now worth $ 100 while Ether is now worth $ 370. The mathematics is very far from being in your prefer, you lost $ 100 of gains in Ether and you lost $ 170 in value in the token. That is going to require these tokens to actually rally for you to get your money back.
All of this said, some tokens actually do rally. There have been ICO tokens that have gone up 1,000 % +. Thus, no matchless should be feeling bad about supporting an ICO they dig and sticking with it. however, in terms of a pure money making opportunity, like I said, 9 times out of 10 you want to buy the token on the open marketplace after launch. Your ether will likely buy more tokens, and the tokens will generally be cheaper .
The buttocks line being : almost every time buying into an ICO offers less value than buying the token after it launches. I can ’ thyroxine think of any examples of this not being the event for those who can trade quickly adequate .
now let ’ s be clear, this could all change with the right ICO, and surely if you bought Ether or Stratis in the ICO phase you have very small to complain about, but as a general rule :
- Entering ICOs are hard IC-nos 9 times out of 10 (unless you plan to sell quickly or don’t mind holding through the initial dip and going long).
- Meanwhile, that said, if you don’t mind holding through the initial dip, or if you know you wouldn’t use EtherDelta, then its a whole other story. In those cases the right ICO might be a hard “heck yes.”