In 2017, cryptocurrency particularly the Bitcoin emerged as the biggest rivals to the traditional investment avenues such as shares and stocks. It was not only about the popularity of the digital currencies but, several Initial Coin Offerings (ICOs) fetched similar or higher returns. With an average return of over 100%, who wouldn’t want to be a part of this profit making and growing industry?
But, the fact is that with the alternative coins and ICOs getting increasingly popular there has been a tirade of investors who do not hesitate to invest even in the upcoming and not so popular ICOs. Hence, for an average investor, it becomes a challenge to channel his investments into getting maximized returns and benefits.
What is an ICO Pool
There are three stages to invest in ICO token sale – the private sale, presale, and the public sale. The earlier the investment has made, the higher the return. Thus, investors opt to invest during the private sale where they can get significant discounts and bonuses. However, there’s a minimum buy-in before an individual investor can participate in the private sale. And, that’s the reason why there’s an ICO pool.
An ICO pool is a group of individual investors who come together to make an ICO investment which otherwise would not be possible for an individual investor. Through an ICO pool, an investor’s limited investment can get through the presales and get the maximum benefits.
In a pool, there is a memorandum of understanding (MOU) and a contract between the members which could be fixed or changing depending upon the type of investments. As a community, members not only discuss ICOs and investment opportunities but also share upcoming ICOs and which ICO tend to offer best returns. ICO pools are a combined investment platform where combined funds are channeled to generate maximum return on investment (ROI) on a profit-sharing basis.
Why an ICO Pool
The core guiding principles of any alternative currency or an ICO is its anonymity and freedom from any regulation or control of banking institutions. However, many have been arguing that it is a fake or a bubble currency which they expect would burst soon, but it turned out to be exactly the opposite.
Those who picked it up in time have been benefiting from their investments in ICOs. But, as there has been a significant shift in investments from the traditional stock market and as the finance giants are losing a substantial amount of money, some countries do not support ICOs such as the United States and China.
While investing in an ICO (including ICO pool) is getting extremely difficult for a US investor, China on the other hand completely banned ICOs. This means that for an average investor in these countries getting the benefits from ICOs is a distant possibility even when they have the funds to invest.
Many ICOs are not even accepting any investment from the US or Chinese citizens, and from all other countries where the government is implementing strict regulations against ICOs.
How to Participate in ICO Pool
Determine ICO pool operators
Identify the ICO pool operators you want to do business with. Make sure to know who the admins of the group are since they are the one’s who will answer your questions. They usually use Discord or Telegram for communication and to discuss the potential of an ICO.
Register to the ICO Pool
When pool operators have already selected an ICO opportunity, they create a form where investors can list their names. Research about the ICO pool you will be joining to ensure that it is not a scam. If you believe that the ICO pool can handle your investment wisely, then sign up and be part of the community. The goal of the group is to ensure the right investment is made.
Investors will receive a wallet address where the investment will be sent. The investment can be pooled together by either using the smart contract to streamline the process or by each member sending the funds.
Receive ICO token
The pool operators then send the ICO tokens back to your wallet depending on how much you put on the ICO investment.
Two Distinct Forms of ICO Pools
The trustless pools use smart contract in their transactions. This ensures that nobody controls the investor’s funds. The smart contract is an open source which allows the investors to review the code before sending the funds. After the pooling process, the ICO receives the Ether to its Ethereum address, and investors receive their ICO tokens.
Non – Trustless Pools
The non-trustless pools don’t use the smart contract. In this type of pool, the pool managers are the ones who collect the funds from the investors. The pool managers provide the Ethereum address where the investment will be sent before they will send the funds to the ICO address. The pool managers are also tasked to who redistribute the ICO tokens to the investors. The pool manager will act as the middleman between the investor and the ICO.
Pros in Investing in ICO Pools
Investing in ICO pools has advantages to offer which won’t be available if you join the token sale as an individual investor. Here are some of the benefits:
The ICO pool can participate during private ICO sale then enjoy significant discounts and returns which is nearly impossible for an individual investor. The private sale offers the maximum bonuses and guaranteed token allocation; however, it is often restricted and open only for those who make huge investments.
ICO pools can raise a large amount of money, and some ICOs offer discounts as an incentive for choosing their project. ICO pools are beneficial to maximize ICO tokens.
ICO pools may provide its members access to pool resources so they can do their own research about the ICO pool’s chosen ICO. Members of the ICO pool are also searching regularly for promising ICOs to invest in.
ICO Review and Analysis
Two heads are better than one. In an ICO pool, several members will look into the potential of the ICO. They can do a deliberation to weigh in the quality of the project through the ICO review and analysis. Thus, improving the decision-making procedure.
With more and more people from all across the globe trying to invest with popular ICOs it is very frequent that your transaction fails or you aren’t able to get whitelisted to be able to make that investment. It is not only a hassle which demotivates you as an investor, but it also keeps you away from reaping the benefits with no faults or shortcomings on your part.
With ICO pools, this is no more a challenge as your investment gets through and is guaranteed. Moreover, for investments from certain countries like the U.S.A, Canada, and China it is nearly impossible to get across their investments without an ICO pool.
Efficient ICO pools do not only guarantee that you’re able to, but it also ensures that you make the right investment and are not left out of capitalizing on any opportunity that comes up.
Cons in Investing in ICO Pools
Like any platforms or system, ICO pools also have some disadvantages. Below are some of the downside of joining an ICO pool.
With the growing number of ICO pools, the number of scammers also increased. They look for gullible investors and take their money. The activity of ICO pools is not regulated; thus, making it difficult to determine whether you are dealing with scammers or not.
The more number of members, the harder it is to manage. The growing number of participants makes it difficult for pool operators to supervise. The operations in an ICO pool is done manually which is prone to human error.
The ICO pool operators may hide the profit from investors, or they may distort the number of tokens.
ICOpicker is one of the legit platforms that offers an avenue to submit ICOs and allows its members to create an ICO pool. With ICO Picker, you can ensure that your investment is in good hands.
Challenges in investing in ICOs
While ICO as a fundraising process is completely banned in China, in the U.S they are getting extremely strict with KYC. This has made it very difficult for individual investors in the US to invest in their chosen ICOs, and that means they cannot capitalize on relevant opportunities despite having all that is needed to make a successful investment.
In recent months there has been a strike down on ICO investments by the government and to make any legitimate ICO investment KYC is almost mandatory. KYC is a financial term where the identity of the investor must be disclosed.
This completely defies the very idea of cryptocurrency and ICOs, and that’s precisely why many ICOs are not even accepting investments from citizens of certain countries. This has led to a near complete exclusion of small and medium investors from these countries to participate in best ICOs and token sale.
Also, the KYC process is so complex that by the time you get through it your investment opportunity already becomes obsolete. There have been numerous cases of people complaining about not being able to invest in their favorite ICOs. This situation is getting worse day by day.
How to Identify the best ICO
Most ICO’s and token sales are time sensitive, and therefore it is essential to make the right choice in time. As an individual investor, your resources are limited when it comes to identifying and choosing the best ICO to invest in.
Being an active member of an ICO pool allows you to get access to the best opportunities available and within your budget. In an ICO pool, you get secure, proven and reliable trading signals providing you with an upper hand right from the beginning.
ICO pools could increase your returns considerably and could also help you avoid getting into scams and falling prey to frauds that have been mushrooming since lucrative returns have made investors more vulnerable to such traps. But it is equally essential to be part of ICO pools which are authentic as identifying a genuine community of proven and trusted investors is equally important.
Here are some tips to look into when choosing the best ICO:
Purpose of ICO
Check out the purpose of the ICO in the company’s white paper so your money will be placed into something valuable. If the project is something that people can use, then it has the potential to be successful. However, if the members of the crypto community think that it is deemed to be useless, then think twice before investing in the ICO.
Projects on Major Platforms
Conduct a research on major platforms which discusses cryptocurrencies. Typically, investors talk about the potential of the project on crypto-forums. You can also check the ICO Picker website for reviews and analysis of each ICO to help you decide which ICO is worth investing. The ICO Picker is a community-driven platform wherein members can select the ICOs they want to feature and rate the potential of an ICO.
Dedicated Admin and Support
Professional ICO pools and investment groups have a dedicated admin or a group that manages the functioning of the ICO pool. Research the people behind the project and make sure that they have the skills required to accomplish their task. Look for red flags like newly created accounts as it may be an ICO scam.
There is also a nominal fee that a member has to contribute to keeping the group running and that is utilized towards researching and verifying the trading signals, making sure that investments are duly made in ICO private sales, ensuring that members receive the acquired tokens proportionately, and all such activities that make your investment a successful venture.
While everything works in tandem with the smart contract, admins make sure that the members get the most out of the ICO pool.
The white paper is a document which contains the specifics of the project. This includes the rationale of the project, what it is about, the architecture, the roadmap, the team, the minimum amount of investment, token information, and the process on how to invest in the ICO tokens.
Go through the white paper to better understand its potential and if it is worth investing.
Once you’re a member of an ICO pool or an investment pool, it is crucial to know how it works. Imagine if you were looking to make a combined investment with your friends or acquaintances, you would find it very difficult to come at a binding contract, and it would mostly be a word mouth contract.
But with ICO pools the members are bound to a smart contract, and this not only ensures that every member gets his share of the acquired tokens once a combined investment is made in any ICO presale, but also it safeguards an individual investor against any potential scam or fraud.
Therefore it is always recommended that you join any investment or ICO pool that has a smart contract and also make sure you read and understand the terms of the agreement.
The best ICO to invest in must have an open-source coding so that the community can freely inspect and contribute to the coding of the project.
Proof of Concepts
The viability of a project venture can be evaluated through its proof of concepts. It is safer to invest in projects where pilot case studies have been made. ICOs with functioning technology have a better chance to succeed.
Before participating in an ICO pool make sure you know the background of the group you are joining as their are many fake investment groups and ICO pools. Once you find the right ICO pool that fits your budget, get on to their website and become a member.
If you’re a frequent investor or are looking to get the best out of your investments, then consider joining an ICO pool. It makes the ICO investment smooth, easy and less risky.