The Most Successful ICOs In The History
Once cryptocurrencies started entering information space, the very first ICO was a matter of time. That is not a big surprise as both phenomena have common features. Initially, the development of blockchain technologies and blockchain-based protocols seemed attractive only to interested enthusiasts. The same thing happens with ICOs, as voluntary investments to projects push their idea forward.
The term of ICO stands for Initial Coin Offering. Essentially, an ICO has a lot in common with crowdfunding. It is a way to finance a project, which is still under development or even at the planning stage. The wide opportunities of blockchain have led to the great variety of such projects. The idea of each ICO is that a developer rises money from a number of private investors and use it to create a blockchain-based product. Instead, investors receive issued tokens, which guarantee some rights, bonuses or services related to the project. This could be the right to receive revenue percentage, to use improved functionality of the product and some other benefits.
In fact, ICO tokens can be divided into two types: utility tokens and equity tokens. Depending on the financial policy of a country, these two groups may acquire different status. The list of countries, that are considered to have the best conditions for ICOs, includes the US, Russia, Singapore, the UK, and Switzerland.
For the first time, an ICO took place in June 2013. It was carried out by the authors of the Mastercoin project. That time the developers managed to get about $5 million. The sum does not seem significant, as nowadays some companies attract several hundreds of millions of dollars from each ICO round. There are websites that provide statistics on the success of ICOs. For example, icostats.com, icoholder.com, tokentops.com, icowatchlist.com and many others. According to icodata.io, in 2018 the amount of money spent on ICO exceeds $5.47 billion (as of of June 19).
Now it’s time to have a look at the most successful ICO projects. However, you should take into account that rankings may differ depending on a source. It is related to the fact that all official estimates are based on investments and funds volumes, expert opinions and many other complex parameters.
The first ICO project that should be noted is Ethereum launched in 2014. Today it is one of the most popular ICO proceeding platforms (it covers more than 83% of the market) that also gives wide opportunities to use smart contracts. Return on investments here currently exceeds 1820%.
Another famous project is NXT. NXT is a programing platform that allows all interested people to create their own cryptocurrencies and softwares. It’s ROI s 4000%.
It is also worth noting the Filecoin project that has managed to attract $257 million from ICO. This blockchain solution was intended to be a decentralized data storage based on the Inter Planetary File System (IPFS).
Despite the fact that Brave has originally had a built-in ad blocker, the developers decided to give users an opportunity to earn bitcoins for viewing ads. The program itself has already become quite popular. According to Google Play, several million users have already downloaded the Brave application to their mobile devices.
In conclusion, it’s worth saying that ICOs can be used by scammers for fictitious fundraising. However, a thorough analysis of a project, its ideas, goals and white paper is able to significantly reduce the threat of fraud. Any investments, regardless of the sector of the economy, may involve risks, but luckily they are completely preventable.
Sergey Borsuk, Blockspoint