What Is ICO (Initial Coin Offering)?
ICO stands for Initial Coin Offering. There are also IDO’s and IGO’s, but they all live under the umbrella of Initial ** Offering. ICO gives users the ability to participate in a coin offering and to show support for the project’s launch. As we all know by now, there are thousands of projects, tokens, and coins offered in DEX’s and in CEX’s. However, we don’t have the time to go through all projects and we certainly don’t always have the needed knowledge to understand if a project is a hit or a miss. So getting into an ICO is always a high-risk investment.
Decentralized Exchange (DEX) Listing – Launchpads
When a project surfaces and people get interested in a project enough. The team slowly starts to build hype around its token release to the public. The usual and decentralized path to release a token to the public is through launchpads like:
There are a plethora of launchpads and all of them offer the same ideology. Own the launchpads native token to participate in the launch of the token, to get the very best entry price for the token available…ever. Before a project can have a token launch party, they will go through a project validation process that is maintained and created by the launchpad to control the quality and bring “safe” projects to the public to participate in. In a sense, launchpads do the preliminary work for you, so there’s less chance for it to be a scam.
If you see a coin popping up to Pancake Swap or Uniswap you cannot be sure that the token isn’t a scam (so do your own thorough research). However, there’s one thing that should be remembered here and that is there are very clear steps to achieving the best ROI for your crypto investment. While you might get the very best price for the token from launchpads, it could be that you have to shell out a lot of money to get the launchpads native token, and even then the number of tokens you receive during the launch might not satisfy your needs.
So while launchpads are one way to get special tokens with a special price, you might want to look for CEX’s token listings as there are plenty of scam coins in DEX as there is no one person doing a validation process for the tokens.
For you to be able to get tokens from launchpads, you need to get yourself a guaranteed tier. The tier that will guarantee tokens to you, otherwise it will be a lottery, and you might be left out of tokens.
Launchpad Guaranteed Tier Examples:
Current price: 10/11/2021
- Seedify / SFUND (current price: $8.85) / Tier / Amount needed: 1000 SFUND : $8800
- Oxbull / OXB (current price: $4.42) / Tier / Amount needed: 1000 OXB: $4400
- TrustPad / TPAD (current price: $0.46) / Tier / Amount needed: 15000 TPAD: $6900
Centralized Exchange (CEX) Listings – Announcements
Token listing in CEX is almost the same as in launchpads, except that you buy the token via trading (if you are not participating in the free airdrop events). However, here’s one thing that you might have seen, and that is the huge spike in the first seconds when the trading starts.
The spike is created by trading bots, and those algorithmic bots are created by people like you and me. These trading bots will buy the token at the very lowest price point in the first 0.1s, this means that you will lose money on these trades pretty fast if not always. However, there is always the chance that you will nail an extremely low price point and sell at the very peak. However, that might happen more on luck than on skill and speed (you can’t beat a bot).
There are also scenarios where the growth will continue upwards from the first minute the token was listed. This happened with the DREAMS token listed on KuCoin. If you bought the token at the very beginning of the listing and sold it a few hours later, you made quite a nice ROI. During token listings, you should avoid doing a trade in the first minute as the bots will drive the price to insane levels until it will return to a more suitable level.
There are times when a token is listed on CEX and hasn’t been listed anywhere else. In these cases, the token enters what is called the price discovery phase. It’s a phase where the token is searching its price, meaning that people like you and me are creating the price for the token. A good example is SHILL, yet again listed first on KuCoin. The project peaked at the first minute to $1000 and then settled on a $10 level, then it climbed a bit to a $24 level and then went down to a level suitable for a project that size and quality.
When a project is in price discovery mode, you can make a lot of gains but you have to be super vigilant with your trades and know how trading metrics work. World premier listings are fascinating and there’s a possibility to make some serious gains fast.
Notes and examples:
- Gate.io CERE launches 8.11.2021 – volume 275K, KuCoin 2.7M. The price difference was 2x, 0.33 in KuCoin, 0.6 in Gate.io. The withdrawal wasn’t possible, so it wasn’t possible to withdraw from KuCoin and sell it on Gate.io. The price is settling towards KuCoin’s price.
- KuCoin HEGIC example: Bought from Binance and sold in KuCoin, didn’t make that much profit as the price was limited to $0.254 and it never went there so the sell went to the mean.. $0.154. Meaning that buying from one exchange and selling it for profit in another is not an option.
- Gate.io XPRESS token listing. The token was found from a DEX but turned out to be a fake listing. Do not easily trust DEX listings as there might be a lot of scam coins.
Token Listing Pumpings
Whenever a coin is listed on big exchanges the coin will experience a price pump, but it will also experience a price increase even from the announcement that a listing will happen. To get into these profit steps, it’s useful to keep an eye out on new coin listings and the less the coin is listed in exchanges the better.
For example, if a coin is listed on KuCoin but not on other exchanges then there’s a possibility to make money when it gets listed on Binance for example. When the coin finally reaches Coinbase another price increase and a coin pump is more than possible (usually this is always the case).
So another strategy would be to hunt coins that are only listed on DEX’s but are thought to be quality projects, and when the coin finally reaches a quality CEX, a price increase is almost inevitable.
Differences In Crypto Exchanges
There are differences when it comes to listings. Some exchanges are bigger than others and some countries can only some exchanges and so on. Gate.io for example is listing coins in a bit more relaxed way than for example Coinbase or KuCoin, so you might find some hidden gems from that exchange. Some exchanges do not offer fiat currency exchanges/transfers, meaning that you have to buy your crypto from one exchange and transfer those coins to another exchange to start trading.
- Binance: Biggest centralized crypto exchange in the world.
- Coinbase: U.S people can use this. Creates massive price pumps after token announcements/listings.
- KuCoin: Lists interesting and solid projects and roughly 1 of 4 crypto holders are in KuCoin.
- FTX.com: Heavy on Solana-based projects and listings.
- Gate.io: Lists projects in a more relaxed way, so gems are easier to find here.