In the 2017 boom, when the price of Bitcoin and Ether floated the dollar figure of fundraising efforts to insane levels, the baseline strategy was: buy as early as you can in the offering period and dump at or near the opening of the token’s market life cycle.
The token issuers didn’t care if you did exactly that; in half the cases, they themselves were pursuing a similar strategy.
Pick Your Horses Early, Often, And Carefully
The uninitiated might ask: where did all the money come from?
Barring a “greater fool” theory for a minute, let’s just say it in plain terms: the money came from “noobs,” or people so new to the market they had no idea which way was up or down.
The Token Days Weren’t All Bad
The first thing to remember in the coming wave of absolutely shifty IEO offerings, pie-in-the-sky tech projects, and straight-up scams is that, if history is any lesson, it won’t all be bad.
Any time you put a ripe investment market (in the case of crypto assets, the wealthy early adopter makes up a large portion of capital injection overall) and a budding technology in the same place, you’ll see an untameable rash of amazing potential.
At the turn of the previous century, the advent of electricity did much the same.
That being the case, several interesting projects live to this day from the 2017 boom, and we will see a similar thinning of the heard in the next wave. Therefore, the conclusion we have to make is: pick your horses carefully.
There’s no shame in either doing your own research or consulting experts. A mix of both is probably the healthiest strategy.
The Premise Is Maximum Profit
We live an age of mass deception. From our corrupt politics down to our festering gender relations, our society is in trouble.
People, good and bad, are therefore seizing the day. The absurdity of 2017’s deluge of scams is matched only by the community’s willingness to forgive and forget here in the era of the IEO.
So we must accept it. Another round of ICOs, truly a fourth wave of them, are on the cards. Here are some things we should be on the lookout (BOLO) for.
Thing 1 – Collusion Among Crypto Exchanges
One potential sign of short-term strength or long-term chaos in a given asset is if a few exchanges seem to be working together to “back” it.
Be wary of “communities” sprung up around an asset that doesn’t even exist — they’re all after one thing, which is either your investment dollars (which plump their portfolio) or some scammy “affiliate” program.
Thing 2 – Silicon Valley Invasion
It’s not clear if the lesson of Kik and its Kin token is fully sinking in yet.
You would think that a company with billions of dollars and a successful token raise would be able to execute a project launch without someone running the risk of prison, wouldn’t you?
You’d be wrong.
This is crypto, where anyone can get wrecked.
This being the case, have an extra mantra of doubt when approaching anything issued by non-native companies attempting to cash in on the crypto game. It can be profitable if hype is conducted, but learn from the mistakes of Kin holders and get out as early as and often as possible.
Thing 3 – Profit Opportunities
There are several areas where it won’t actually matter if it’s an IEO or some other attempt at a raise, it will earn and it will return. Industries such as artificial intelligence, industrial production (blockchain tracking a la IBM and others), and things in the same category as XYO.network will all do well.
The reason is less that they will have a blockchain focus and more that those industries are ripe for growth anyway.
Thus, anything which will likely have a real-world or industrial use case, and is conducted in a proper manner, can earn you money. Focus less on the project’s potential to do as promised and more on its potential to woo investors. As far as your investment goes, that is.
Carry On, Our Wayward Crypto Markets
Crypto investing can be a rewarding and educating experience. Done right, it can even be profitable.
That exchanges are looking to revive the ICO model, with some guard rails brought about regulation, can be viewed one of two ways.
We can be annoyed since a model that produced so much economic harm is being tweaked by the so-called good guys. It’s forgivable to find that obnoxious.
We can also be excited by the coming opportunity.
Which way will you go?
Note: the opinions expressed in this article belong to the author and should not be attributed to BSN, BitStarz News, nor any of its subsidiaries, affiliates, or investors. This article is not financial or legal advice and any risks incurred by the reader should be undertaken in the knowledge that crypto markets are volatile.
Disclosure: the author holds and sometimes trades crpytocurrencies.