When a private company goes public by making its stocks available in the stock market to be bought by investors, they are said to be making Initial Public Offering (IPO). The Initial Coin Offering (ICO) is the cryptocurrency equivalent of an IPO. People who want a quick return for their investment resort to investing in ICOs with a potential of over 100 percent returns on the initial investment.
Like any other kind of investment, there is also potential for loss. Investing in ICOs requires a fundamental understanding of cryptocurrency. Usually, no one monitors this practice, so anyone investing in it must exercise caution and conduct proper research beforehand. Cryptocurrency is considered very volatile. If you find the right timing to invest, you can finish up with a massive profit.
However, its volatile nature also brings the case of considerable losses. So, if you want to invest in ICOs, we will provide a complete guide regarding ICOs and the best investment options in 2022.
What is an ICO?
As stated earlier, Initial Coin Offering (ICO) is a form of cryptocurrency that businesses use to raise capital for their company. The investors receive this unique cryptocurrency in exchange for their investment in that particular business. We can also relate the unique cryptocurrency to a token. The investors can obtain these tokens to gain access to features of the project run by the business. It could be a product, service, software, etc.
It is essential to know that since cryptocurrency first came into the scene in 2008, one can utilize it in two ways as an investment instrument: coins and tokens.
Coins have value, while tokens are like vouchers or coupons issued by businesses through ICOs to investors. Tokens can be of different types, such as membership in a community. Also, it can have exchange/value references, the right to use a service or product of that company, and the promise of future cash flow from that company.
What is the Difference Between ICO and IPO?
Initial Coin Offering and Initial Public Offering might share the same fundamentals. However, they are practically distinct, and investing in them requires a different approach. The most significant difference between ICO and IPO is that the IPO is strictly regulated. It is a mandatory practice to register with a regulatory authority.
There are peculiar criteria for a company to offer IPO, such as transparency and crucial information about a company to help potential investors. On the other hand, ICO is unregulated and riskier than IPOs. Despite this, it has certain benefits that venture capital and IPOs cannot provide to its users.
ICOs are feasible options for newer setups looking for early-stage funding. Many online services help in the generation of cryptocurrency tokens to help companies to launch their ICOs. However, a startup project can’t receive investment from venture capital firms because it will be troublesome to convince them in a newly formed company with no track record. Even if they invest in a startup, they will acquire a larger share in the company. Consequently, they will try to align it according to their interest. IPOs are also not doable for startup firms because of their costs and the prerequisites required to acquire funding.
Best Crypto ICOs to Invest In Right Now
Launching a crypto ICO and token is easy. That means many substandard projects are on the rise. Therefore, choosing the right one for investment can be tricky. We will list down the top 10 ICOs for investment in 2022.
➜ Battle Infinity (IBAT)
IBAT project is one of the most popular new cryptos in 2022. It sold out way in its presale phase, which exhibits its popularity.
Battle Infinity crypto project incorporates Play-to-Earn, NFT gaming, the metaverse, and much more. Players can participate in fantasy tournaments, which include real-world sports such as football, cricket, hockey, etc. Players can put together a team of real-world athletes and compete against others players who have teams of their own. Players will get rewarded in crypto tokens based on their performance in-game.
Battle Infinity engages gamers to enter Web3. In Web3, it has six products to form a complete gaming ecosystem. These include Battle Swap, Battle Market, Battle Games, Battle Arena, Battle Stalking, and IBAT Premier League. It has a deep ecosystem that combines many elements of metaverse and play-to-earn, making this project a great option to invest in, as its value will skyrocket on exchanges.
➜ Tamadoge (TAMA)
Recently, TAMA finished its presale, raising $19 million in less than eight weeks. Despite the overall decline in the market, TAMA expects to experience tremendous growth. TAMA is a meme-come-dog token but stands out compared to other meme currencies like Dogecoin by having practical utility.
Tamadoge includes a play-to-earn gaming ecosystem where you can train your digital pets. You can level them up and earn digital currencies by competing against other players. The NFTs represent pets, so their in-game owners also claim ownership outside the game. Tamadoge has its metaverse where you can socialize with others, have avatars, and use TAMA tokens as currency.
➜ Aura Network (Aura)
The inventors built Aura to provide a unified solution for evaluating and transacting NFTs. It comes with its ecosystem to provide decentralized NFT infrastructure. Aura focuses on NFTs as this platform serves performance, security, and use cases. Aura is regarded as the most awaited blockchain project of 2022 and a great investment option.
➜ Lucky Block (LBLOCK)
Another project for 2022 has gained a lot of popularity and turned into a terrific option for investors. Investors can purchase NFTs to enter competitions. Players can look forward to daily blockchain competitions on this platform.
Additionally, Lucky Block works with smart contracts, ensuring that all NFT tournament draws are fair. It reached a market value of $1 billion in record time, having one of the most popular presale phases.
➜ Fusotao (TAO)
A decentralized trading platform where you can make trades safely. It introduces a new system that keeps your assets secure. It verifies user transactions from off-chain exchange services.
These features make Fusotao an outstanding investment suggestion. Furthermore, its presale phase is one of the best in 2022.
➜ Shiba Inu Coin (SHIB)
It was introduced in August 2020, claiming itself as a Dogecoin killer. Sticking to the features, its ecosystem includes games, metaverse, and digital plots of land in the form of NFTs. It means you can get involved in real estate as an investor. It is a great investment option for those interested in digital real estate.
As of now, the market value of Shiba Inu is over $7 billion. You can buy this cryptocurrency on different crypto apps where you find low trading fees.
➜ ApeCoin (APE)
ApeCoin is one of the most popular meme coins right now. The prime purpose of its creation was to provide a diverse range of Web3 evolutions. ApeCoins gives its users access to different components of its ecosystem, such as games, services, merchandise, etc. The market value of ApeCoin is over $1.5 billion.
➜ Balancer (BAL)
Balancer runs on the Ethereum blockchain. This project aims to build a distributed computer network running on the exchange where users can purchase and sell any coin.
In short, this means you can perform different trading without the middleman. The market value of Balancer is over $280 million.
➜ Immutable X (IMX)
Immutable X is a powered Ethereum token known as IMX. When investors perform different transactions on Immutable X, it offers 9000 transactions per second with no gas expenses. It has facilitated over 31 million NFT mints. It has complete protection from Ethereum, and its market value is around $210 million.
➜ Crypto Blocks (BLOCKS)
It is home to a collection of 10000 NFTs and $BLOCKS tokens. It is built on the Ethereum network, and you will find its NFTs combined with tokens in-game, which resembles Minecraft. Rarity ranks every NFT, and higher tiers can get you different perks. It can give access to particular services offered by Crypto Blocks. It is one of the most exciting cryptocurrencies to watch out for when it goes into the presale phase.
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Frequently Asked Questions (FAQs)
ICOs are a form of cryptocurrency that firms can use to raise capital. Investors receive cryptocurrency tokens in exchange for their investors.
You can register for an ICO on the corresponding project website. You can then buy ICO tokens in exchange for Bitcoins or Ethereum.
Investing in ICO can be an exceptional opportunity to earn quick money. When a new cryptocurrency gets launched, it starts at a lower price. If it gains popularity after its presale phase, the tokens bought for a lower price during the presale phase will be in high demand allowing early investors to sell them for great profit.
Since ICOs are unregulated and very easy to make, the chances of fraud or poor performance of projects are higher than IPOs.
ICOs are in decline overall due to the crypto market crashing in 2022. Therefore, it is a great time to invest in ICOs because the chances of fraud will be lower. The chances of finding more quality projects offering ICO will be higher. So, if you invest when their stocks are lower, you can gain profit by selling them off when the demand for their tokens increases in the future.
Really an informative article.