ICOs: The Ultimate Guide to Finding The Best Ones!

What Are ICOs?

If you've spent time in the stock markets, you're probably familiar with IPOs. An initial Product Offering (IPO) is a fundraising method for the first time a private business offers shares to the stock market.

ICOs are not so different from that. Initial Coin Offering (ICO) is another way for companies to raise capital in the cryptocurrency market by offering their native token to the investors at the base price.

How Do ICOs Work?

Here's how ICOs typically work:

1. The company behind the ICO creates a whitepaper, which is a detailed document outlining the project and its goals, along with the technical aspects of the new cryptocurrency or token.
2. The company sets a fundraising goal and announces the start and end dates of the ICO campaign.
3. Investors can purchase the company's newly created digital tokens or cryptocurrency with fiat money (USD, EUR, etc.) or other cryptocurrencies, like Bitcoin or Ethereum. Investors usually get a discount during the ICO phase, so they can buy tokens at a lower price than what they would cost later.
4. After the ICO campaign ends, the company uses the funds raised to develop and launch the project or cryptocurrency.
5. Once the project is launched, the newly created tokens or cryptocurrencies can be traded on various cryptocurrency exchanges. The value of the tokens depends on various factors, like the project's success, market demand, and the supply of the tokens.

When a project decides to raise capital by offering its coins or tokens, it must first determine how they want to structure the ICO. There are six main ICO structures:

• Fixed Supply and Fixed Price: The company sets a specific funding goal, meaning the token sold in the ICO has a fixed price, and the total supply is also static.
• Fixed Supply and Dynamic Price: In this ICO structure, the amount of capital raised in the ICO will determine the overall price of each token.
• Dynamic Supply and Fixed Price: In the ICOs with this structure, the amount of capital raised will determine the overall token supply. 
• Dutch auction: In this structure, the ICO starts with a high token price, decreasing gradually until it reaches a floor price. Investors can purchase tokens anytime during the auction, but the earlier they buy, the higher the price they pay.
• Discounted offering: In this structure, the company offers a discount to investors who purchase tokens during the early stages of the ICO. This is usually done to incentivize early adoption and raise funds quickly.
• Bonus offer: In this structure, the company offers bonuses to investors who purchase a certain amount of tokens during the ICO. For example, an investor who purchases $10,000 worth of tokens may receive an additional 10% bonus on top of their purchase.

15 Most Popular ICO/ IDO Crypto Launchpads in 2022

Many ICOs have been conducted through crypto launchpads. These platforms offer ICO conductions in a simple, user-friendly manner and allow projects to access an active community of investors.

One of the best places you can look for new ICOs is through crypto launchpads, and all you have to do is to check their communities regularly to be notified about any new ICOs on the platform. We will go through the top 15 ICO launchpads in 2022.

Binance Launchpad

Binance is one of the most popular and well-known exchanges offering its launchpad, Binance Launchpad. Binance Launchpad is a token launching and fundraising platform that helps new businesses raise capital and increase their visibility.

Binance Launchpad uses a system similar to lotteries for choosing participants to invest in token sales. This launchpad has helped some of the most significant crypto projects, such as BitTorrent Token.

• Pros: Backed by a reputable and popular exchange, high visibility and marketing, large user base
• Cons: High competition for projects, high minimum investment requirements, limited availability for certain jurisdictions

Polkastarter

• Pros: Focuses on Polkadot projects, allows for cross-chain interoperability, low fees
• Cons: Smaller user base compared to other launchpads, limited availability for certain jurisdictions

DuckStarter

• Pros: Low fees, easy to use platform, strong community support
• Cons: Limited project selection, smaller user base compared to other launchpads, limited availability for certain jurisdictions

TrustSwap

• Pros: Innovative features like SmartLock and Launchpad Swap, strong security features, low fees
• Cons: Smaller user base compared to other launchpads, limited availability for certain jurisdictions

DAO Maker

• Pros: Strong focus on community building and engagement, innovative funding mechanisms like SHO and DYCO, low fees
• Cons: Limited availability for certain jurisdictions, relatively small project selection

Paid Network

• Pros: Innovative escrow and dispute resolution system, strong community support, low fees
• Cons: Limited project selection, relatively small user base compared to other launchpads

Poolz Finance

• Pros: Flexible token sale models, low fees, strong community support
• Cons: Limited project selection, smaller user base compared to other launchpads, limited availability for certain jurisdictions

Ignition

• Pros: Strong partnerships with reputable projects, high visibility and marketing, low fees
• Cons: Limited availability for certain jurisdictions, high competition for projects

OccamFi

• Pros: Focuses on Cardano projects, innovative token vesting and release mechanism, low fees
• Cons: Limited project selection, smaller user base compared to other launchpads, limited availability for certain jurisdictions

SuperFarm

• Pros: Innovative cross-chain features, focuses on NFT and gaming projects, strong community support
• Cons: Limited project selection, relatively high fees compared to other launchpads

Starter

• Pros: Low fees, easy to use platform, strong community support
• Cons: Limited project selection, smaller user base compared to other launchpads, limited availability for certain jurisdictions

Chainstarter

• Pros: Strong focus on security and compliance, innovative fundraising models, low fees
• Cons: Limited availability for certain jurisdictions, relatively small project selection

Launchpool

• Pros: Flexible token sale models, strong partnerships with reputable projects, low fees
• Cons: Limited availability for certain jurisdictions, relatively small user base compared to other launchpads

Scaleswap

• Pros: Focuses on scaling solutions for Ethereum, innovative token vesting and release mechanism, low fees
• Cons: Limited project selection, smaller user base compared to other launchpads, limited availability for certain jurisdictions

MantraDAO Launchpad

• Pros: Strong community support, focuses on DeFi and Web3 projects, low fees
• Cons: Limited project selection, smaller user base compared to other launchpads, limited availability for certain jurisdictions

Are Crypto Launchpads Reliable?

Although crypto launchpads aren't 100% risk-proof, they still provide investors with exclusive investment tools so they can make more profit. Investors would mainly consider investing in launchpads and projects launched via them because they would gain early access or, in some cases, purchase the tokens at a lower price.

Remember that every investment decision involves some risk, but you can manage the risk using the ARC strategy!

Here are some tips on how to find reliable crypto launchpads:

1. Research the launchpad's track record: Look for launchpads with a proven track record of successfully launching and supporting cryptocurrency projects. Check launchpad's website and social media channels for information about their past projects and their performance.
2. Check the launchpad's security measures: Security is critical when it comes to handling cryptocurrency assets. Ensure the launchpad has robust security measures, such as multi-factor authentication, encryption, and cold storage of funds.
3. Evaluate the launchpad's team: Look for launchpads that have an experienced and trustworthy team with a strong background in the cryptocurrency industry. Check the team's credentials and experience with launching and supporting cryptocurrency projects.
4. Read reviews and feedback: Look for reviews and feedback from other investors who have used launchpad's services. Check social media, online forums, and other platforms to see what others say about the launchpad.
5. Check the launchpad's regulatory compliance: Look for launchpads that comply with relevant regulatory requirements in their jurisdictions. This can help ensure that the launchpad operates legally and transparently.
6. Look for partnerships and endorsements: Look for launchpads that have partnerships with reputable companies or endorsements from industry experts. This can help validate the launchpad's credibility and reliability.

How To Know If ICOs Are Legit?

You can use various factors and tools to check if ICOs are legit or potential scams. Don't worry; it’s not rocket science! We’ve already done your hard work, gathered everything in one place, and made pro-investment tools. Let’s dive deeper!

Here are some key things to look for when evaluating the legitimacy of an ICO:

1. Check the team's credentials: Look into the background of the team behind the ICO. Do they have relevant experience and qualifications? Are they transparent about their identities? Scammers often use fake identities or aliases to hide their true intentions.
2. Evaluate the project's whitepaper: The whitepaper is a critical document that outlines the project's goals, roadmap, and technical details. Read the whitepaper carefully and assess whether it's clear, detailed, and feasible. Look for red flags, such as vague or overly complex language, unrealistic promises, and lack of a clear use case.
3. Look for a working prototype: A working prototype can help validate the project's feasibility and demonstrate the team's ability to execute its plan. If no prototype or MVP (Minimum Viable Product) is available, it could be a red flag.
4. Check the ICO's website and social media channels: Look for a professional and well-designed website with clear information about the ICO, the team, and the project. Check the ICO's social media channels, such as Twitter and Telegram, for updates and community engagement.
5. Verify partnerships and endorsements: Look for partnerships and endorsements from reputable companies or individuals in the cryptocurrency industry. Scammers often use fake endorsements or logos to create a false sense of legitimacy.
6. Evaluate the ICO's token economics: Look into the ICO's token economics, such as the total supply, the distribution method, and the use case of the token. Ensure the token has a clear and useful purpose in the project and the supply and distribution are reasonable and fair.

Use Social Media Channels and Communities to Find Legit ICOs!

Legit cryptocurrency projects tend to form an engaged and active community of enthusiasts around them. They understand the power of a good society and how much it can contribute to the project's success.

You can check the social media channels of the new crypto project you're researching and the team members' social media profiles. You also can research who they are and what they have in their resume’ before teaming up for this project.

Read Whitepapers to Find Legit ICOs!

A reliable source to start evaluating an ICO’s legitimacy is its whitepaper. This document should give you a clear idea of what the startup is trying to achieve and the risks involved. It should also contain details about the founders, advisors, and other key players. Projects with whitepapers are much more reliable than projects that haven't released any whitepapers yet.

Check Technicalities to Find Legit ICOs!

When checking a coin’s information section here, you can see a “technical” section which refers to the project's code status and other details. Projects with higher stars, higher code commits, and more contributors tend to be more reliable and active, and the possibility of them being scam projects is very low. 

You can also check the following if you want to make sure you’ve done complete research.

• Check the project’s website.
• Check the members’ LinkedIn profiles.
• Read reviews about the project.
• Thoroughly study their roadmap.

Are ICOs A Good Investment?

ICOs are on the riskier side of investments since the legality of crypto assets isn't guaranteed to persist. Even though ICOs are legal, they are usually involved in some regulatory issues.

For example, the People's Bank of China banned ICOs in 2017 because they are "counterproductive to economic and financial stability". We make no representations and do not give investment advice; each individual's situation is unique, and you should weigh your options before making your investment decision.

Cryptologi.st does not give investment advice but provides investment tools, like educational crypto articles, a crypto screener, and a watchlist, to help you make the best investment decisions.