ICO, BEST ENTRY METHOD OR NOT ?

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When a new project wants to enter the cryptocurrency world, it is normally faced with the problem of funds especially the funds to provide liquidity in exchange, funds to carry out marketing, and the rest. To solve this problem, initial coin offering ( ICO) was introduced to help new cryptocurrency projects generate funds.

WHAT IS INITIAL COIN OFFERING?

Initial coin offering is a process used by cryptocurrency projects to generate funds for the project. They achieve this by creating a whitelist form where interested investors show their interest. They receive the token of this new cryptocurrency project for payment in either stable coins or altcoins. The good part of it is that they pay less for the coin during ICO.
After the ICO, the worthless token is given a value by being listed in a decentralized or centralized exchange. The liquidity provided for the trade comes from the fund generated through ICO. Those investors who bought the token during the ICO will be at a profit when the token is listed in an exchange because the price at which it is listed will be higher than the price at which they bought.

This is why investors put their funds in " trusted" projects during their presale to have up to 50× profit when it is finally listed in the exchange. Those who bought at Initial Public Offering will have to buy at a higher price and they also stand the risk of losing, as those who participated in ICO will likely sell a few hours or days from public launch.

Having said this, which is the best market entry method, private sell or public sell?

There is no direct answer to this question, it is a function of choice and the strategy that one deem best.

ENTRY THROUGH ICO.

To the best of my knowledge, this is the best way for anyone who wants to get a quick 10x to 50x of his funds because he is buying at a lower price. However, the person has to be active and monitor the project after public launch to know when to collect profit. Before I forget, many people have been scammed through ICO, so ensure to do proper research before going for it.

Any demerit attached?

Most times when the token is launched publicly, private investors at some points dump their tokens to collect profit, and this leads to a huge fall in the price of the token.
To the private investors who were able to sell 100% of their tokens before the clash, he is in profit as he is opportune to take out his capital with some profit and he can buy the same quantity he sold at a lesser price.
To the private investors that failed to sell his tokens before other private investors dump their tokens, he will surely be at a loss because he is likely to see the price of the token dump to a price below the price he paid for during ICO or witness public investors buying at the same price with him.

ENTRY THROUGH IPO

To the investor that bought at the price with which the token was offered to the public, he is likely going to see a dip in the price of the token a few days or even hours of the launch, and it might take time before the coin reaches a new all-time high. His chances of making a profit are lower than that of the ICO investor.

To the investors that want to be smart and wait for a dip to buy, he can witness two scenarios;
He can be fortunate to see the price of the coin dips lower than the price at which it was offered to the private investors or IPO price, and thus buying then will be a good entry.
He can also end up buying at a price higher than the price at which the coin was offered to the public because more investors have been buying the token which leads to a further rise in the price of the token.

I guess you will agree with me from the above explanation that the best entry method is a matter of choice. However, I wish to point out something here. As the cryptocurrency world is evolving, new strategies are being deployed to solve the existing problems of the cryptocurrency world. To solve this issue of early investors clashing the market upon launch, new cryptocurrency projects make early investors sign a VESTING CONTRACT.

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In this contract, the ICO investors agree that they will receive their purchased tokens in intervals. With this, they cannot crash the market as they will only have a lower percentage of the amount they bought at the point the token will be offered to the public.
When this method is used, ICO investors are likely to benefit more than IPO investors.

Finally, from my point of view. I prefer to be an ICO investor because experience has proven that it is more profitable. This is just my own opinion, please DYOR.

IF you read up to this point of my post, I say thank you as I hope to welcome your contribution and criticism.❤️❤️



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