ICO, IEO, IDO As Ways To Get Xs In Cryptocurrency

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One can often hear the expression "make x's" from crypto investors. This is the name for making a big profit as a result of th...

One can often hear the expression "make x's" from crypto investors. This is the name for making a big profit as a result of the multiple growths of an asset. For example, over the past three years, bitcoin has risen in price more than three times (from $ 10 thousand to $ 31 thousand). Investors who bought the coin in June 2019 were able to triple their deposit, that is, earn x3 profits, writes RBC Crypto.

It is not necessary to wait a year or more to "iksanut". From January to May 2021, Dogecoin has risen in price by 182 times (from $ 0.004 to $ 0.73). In the middle of last month, altcoin quotes went down. As of June 22, the digital coin is trading at $ 0.20, or 70% below its all-time high.

There are cases when assets almost instantly showed X's. In early June, the Automata token was listed on the Binance crypto exchange. After that, the price of the digital coin skyrocketed by 12,350%, to an all-time high of $ 4.5. Then the Automata rate began to decline. The token is currently trading at $ 0.59.

Often, the Xs show exactly the new coins that are just entering the crypto market. ICOs, CEOs, and IDOs are commonly used to invest in tokens in the early stages.

ICO

ICO (Initial Coin Offering, initial placement of tokens) is the sale of tokens by a project in order to attract investments for its further development. Ethereum, the largest altcoin in terms of capitalization, also chose this model of attracting investments. In 2014, the digital coin was sold for $ 0.3, and in 2021 the price of the token reached an all-time high of $ 4.3 thousand (an increase of more than 14 thousand times). As of June 21, the cost of the altcoin is $ 1.9 thousand.

"X" profitability was shown by the initial placement of the Chainlink (LINK) project. The token sale took place in September 2017. Back then, new digital coins were selling for $ 0.110. In May 2021, the value of tokens rose to a maximum of $ 52.7. Crypto investors who have held the coin since the ICO were able to increase their investments by 479 times.

In 2015, the IOTA project conducted the initial token offering. You could buy digital coins for $ 0.043. Three years later, when tokens began to be traded on large crypto exchanges, the value of IOTA set a maximum of $ 5.25 (an increase of 122 times). In April of this year, the price of the cryptocurrency reached $ 2.6, and now it is $ 0.74.

Another example of high profitability after ICO was the TRON (TRX) project. In 2017, the ecosystem attracted about $ 70 million in investments. In four years, the capitalization of the project has increased 61 times ($ 4.3 billion). The cost of the TRX token in 2018 reached $ 0.23 (an increase of 115 times). In 2021, the price of the cryptocurrency exceeded $ 0.18, after which it went down. As of June 21, the altcoin is trading at $ 0.05 (a 30-fold increase since the ICO).

The boom in initial offerings of tokens was observed in 2017. Then a large number of attackers took advantage of the lack of regulation of the crypto market by conducting fraudulent ICOs. According to statistics, 94% of altcoins launched through the initial placement fell in price relative to bitcoin by 90% or more. Only 10.8% of startups showed positive results, and 11 ICOs had investor profits exceeding 1000%

IEO

In 2019, a new popular way to raise capital for the development of a project appeared on the crypto market - IEO (Initial Exchange Offering). IEO differs from ICO in higher reliability, since it is not the project developers who are looking for investors, but the cryptocurrency exchange selects promising teams and promotes their coins among its users.

Three years ago, with the help of IEO, the investment was attracted by the peer-to-peer torrent client BitTorrent. The sale of digital coins was completed in 13 minutes, and one BTT token could be purchased for $ 0.00012. A few days after the initial public offering, the token rose to $ 0.00186 (15 times more). In April 2021, the BTT price reached $ 0.013 (an increase of 108 times since IEO). As of June 21, 2021, BitTorrent is trading at $ 0.00247 (up 20.5x).

In April 2019, the initial public offering of the Polygon token (MATIC) took place on the Binance Launchpad. The starting price of the coins was $ 0.00263. By May 2021, the value of the token rose to $ 2.6. Crypto investors who took part in the IEO Polygon were able to increase their investments by 988 times.

In February 2020, the Indian crypto exchange WazirX decided to conduct an initial token offering. The platform sold WRX tokens on the Binance Launchpad platform for $ 0.02. By April 2021, the digital coin had grown to a maximum of $ 5.8 (up 290 times).

Despite the fact that promising tokens for IEO are selected by large cryptocurrency exchanges, investors still risk their own funds, since no one can guarantee that after the token sale the value of a digital coin will grow.

For example, in May 2019, the initial exchange placement of Magnachain (MGN) tokens on the Bitforex platform took place. The starting price of digital coins was $ 0.0076. After IEO, the value of the token began to decline and as of June 22, 2021, it is traded at $ 0.0002. The loss of token holders was 97%.

IDO

In 2020, in the wake of the development of the DEFI industry, another way to attract investment began to gain popularity - IDO (Initial DEX Offering). Its meaning lies in the fact that the tokens issued by projects are already provided with pools of investor liquidity on decentralized exchanges. Often, the IDO token grants its holders the right to vote and control the direction of the underlying protocol.

You can take part in IDO using various aggregators, for example, the CoinList service. Tokensales can be held on several platforms at the same time, and after IDO, tokens often appear on Uniswap, Binance Dex, Bancor, or other exchanges with a significant premium to the initial price.

The most profitable IDO at the moment is considered to be the placement of FLOW tokens on the CoinList platform. At its peak, the value of the digital coin rose 433 times ($ 42.4) from the results of the initial offering. Currently, according to CoinGecko, the token is trading at $ 6.8.

Investors who took part in IDO Solana (SOL) also received high returns. In March 2020, tokens were sold on the CoinList platform at $ 0.220. By May 2021, the digital coin has risen in price to $ 58. Thanks to this growth, investors were able to increase their investments by 263 times.

"X" can also be observed in the example of IDO, which took place on the Polkastarter platform. The prices of some digital coins increased significantly after their token sale: Shift - 15 times, Bridge Mutual - 19 times (Polkastarter), ExeedMe - 37 times. Polkastarter's tokens went up 500% in two months from December 2020 to January 2021.

Before participating in a token sale, you need to take into account that IDO has high risks, since listing a token on a decentralized crypto exchange does not guarantee the growth of its quotes. In early May of this year, the IDO of the Crypto Puzzles (CPTB) project took place at the DuckStarter site. The initial cost of the token was $ 0.05. After the initial offering, the price of the coin began to decline and is now trading at $ 0.017 (down 66%).

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