An initial coin offering (ICO) is similar to an IPO (Initial Public Offering), where a company uses it to raise its funds. It is the most popular way to raise funds in the crypto market to launch new decentralized applications (DApps) or various other services.
The coins thus launched will have a purpose in the service or product when launched. It can also allow the buyer to have a stake in the company. There have been numerous ICO launches, and while very few coins fetched profits from the investors, many of them went out of circulation and lost their value over time.
Today, I will be explaining all the things that you should know about ICOs and tell you about the upcoming ICOs.
What Is ICO Crypto?
Initial coin offering (ICO) is a method of capital raising used by various crypto developers to secure funds for a project. Various companies sell new cryptocurrencies made in the blockchain and startups are offered to the public to raise the funds.
There are different ways to set the value for the newly launched coin since it is not pegged to anything:
- Companies calculate the money they need as funding and release a specific number of coins. Here, the amount of funding needed determines the value of each coin.
- The company can set a specific value to the coin and release it to the public. When the public buys the coins and reaches the funding they need, the supply of coins is stopped. The amount of funds received determined the value of each coin.
The coins released are tokens that are minted from a blockchain. Since these tokens are created on the blockchain, they are non-fungible and can be traded.
The companies use Ethereum, Solana, or some other blockchain to create these tokens, hence they don’t have to code for it. The companies then run a promotional campaign about the ICO offering to attract investors.
Upcoming ICO Launches
Here are a few ICOs that are dropping soon:
1. Unibit:
Unibit is a blockchain service that helps mediate transactions between the Bitcoin blockchain (BRC-20 tokens) and Ethereum blockchain (EVM tokens).
- Ticker: UIBT
- Type: ERC-20
- Role: Utility Token
- Fundraising Target: 100,000,000
- Tokens for Sale: 33%
2. Versus-X:
Versus-X is a blockchain sports gaming platform, where players can play skill-based sports to earn tokens, NFTs, and other rewards. The platform makes use of advanced gaming technology and virtual reality.
- Ticker: VSX
- Type: POLYGON
- Role: Utility Token
- Fundraising Target: $450,000
- Tokens for Sale: 100,000,000
3. Dappad:
Dappad is a decentralized launchpad for projects. It aims to bridge the gap between Layer 2 projects and investors, by facilitating token launches across various blockchain networks.
- Ticker: APPA
- Type: ERC-20
- Role: Utility Token
- Fundraising Target: $500,000
- Total Tokens: 1,000,000,000
- Tokens for Sale: 17%
4. Polyhedra:
Polyhedra is a blockchain service that provides cross-chain solutions with Zero-knowledge proof (ZKP) technology.
- Ticker: ZK
- Type: ERC-20
- Role: Utility Token
- Fundraising Received: $25,000,000
- Total Tokens: 1,000,000,000
- Tokens for Sale: 15%
5. Ponder:
Ponder is an open-source framework to make crypto apps on the Ethereum blockchain and non-Ethereum blockchain, thereby uniting the EVM (Ethereum Virtual Machine) and non-EVM blockchains.
- Ticker: PON
- Type: ERC-20
- Role: Utility Token
- Funds Received: $240,000,000
- Tokens for Sale: 120,000,000
6. Overlay:
Overlay is a protocol that ensures the security of transactions by using the immutable and cryptographic features of the blockchain. A large quantity of data can be streamed using the overlay protocol.
- Ticker: OV
- Type: ERC-20
- Role: Utility Token
- Fundraising Target: $500,000
- Tokens for Sale: 800,000,000
7. ether.fi:
ether. fi is a decentralized liquid staking token that allows users to get rewards for staking ether (ETH).
- Ticker: ETHFI
- Type: ERC-20
- Role: Utility Token
- Total Tokens: 1,000,000,000
- Funds Received: $32,300,000
- Tokens for Sale: 2%
Conclusion
Developers have to pay huge sums of money to create new blockchains, cryptocurrencies, and decentralized apps. The fundraising helps them to acquire money to develop the services, which in turn helps the consumers. Investors can be part of these crypto projects by investing in ICO. Not every ICO might turn out to be successful. So, be careful while investing in ICO.
