What is IPO in the field of cryptocurrencies?

Cryptocurrency IPO refers to the process of purchasing new cryptocurrencies or digital tokens launched by cryptocurrency projects during the initial selling phase. This process involves purchasing new cryptocurrencies before they are publicly listed on exchanges or before they are released to the general public.


Cryptocurrency projects go through 3 basic stages before arriving on popular trading platforms:

  1. Seed Sale stage: This stage is considered the first stage of subscription, and buyers at this stage are often institutional investors and small investment companies, and the minimum participation is usually high.

  2. Private Sale: This stage comes after seed and typically involves a network or group of private investors or large institutions. There may be a minimum participation level below the seed stage, but there are still guidelines and conditions set by the projects.

  3. Public Sale: This stage is where the sale is open to the general public. Anyone can participate in this phase and buy cryptocurrencies on sale, which are also usually divided into limited periods or rounds.

What are the types of cryptocurrency IPOs?

The types of subscriptions are divided based on the way the platforms display the currency project work into three main types:

  • Initial Coin Financing (ICO): An abbreviation for the phrase Initial Coin Offering, which may take place on a platform separate from the project, an “external site,” or a platform specific to the project or currency, as the risk in this type is high and it is not often recommended.

A platform or website for a specific subscription, and the subscriptions that take place on it are called ICO. We do not recommend participating in such platforms and subscriptions because the risk in them is very large, and there are many examples of these platforms and projects that caused the losses of many people.

In addition, the allocation (the amount of coins you will get from the subscription in exchange for what you paid) may depend on your financial ability or on the uniform allocation of everyone on the platform or site.

  • Purchasing through a well-known central platform (IEO): an abbreviation for the phrase Initial Exchange Offering, and it is considered safer than others, such as the Binance platform. This type includes a new separate type, symbolized by (FTO), which stands for Fan Token Offering, and it is specific to various sports currencies, as in the platform. Socios.

Well-known and famous central platforms try hard to bring in strong projects and win the love of their community, so profits are almost 99% guaranteed. The biggest example of this is the Binance Launchpad platform. Hence, the name of this type of IPO comes from because the place where it takes place is in the buying and selling platform (Exchange).

In addition, participation may cost you huge sums of money in order to obtain a good allocation based on the platform’s system, and because the central platforms contain millions of users, the greater the demand, the less the allocation, and so on.

  • Initial decentralized purchase, symbolized by (IDO): an abbreviation for the phrase Initial Dex Offering, as the word Dex comes from decentralizing, which is Decentralizing. The third type is the most famous and risky of the three types, which is purchasing from a decentralized platform such as Seedify through the use of an external wallet such as Metamask or TrustWallet. This type became safer after mid-2022, when a new system appeared, which is the Refund Policy system in some platforms, as most platforms are called, because it has different designations that focus on the same topic, which is protecting the community and returning their money in the event of any project failure.

Decentralized platforms controlled by a fairly small team, and offering subscriptions based on many conditions, including keeping the platform’s currency for a long or short period, as well as registration, etc., but they do not depend on you registering as a person in them or documenting your account except in some of them, while their primary function depends on decentralization and requires you to connect Your decentralized wallet, such as Metamask or TrustWallet, has it, and therefore it is called decentralized, and the subscriptions that take place on it are called IDO. These platforms are the easiest to deal with, the most famous, and their opportunities and credibility are rather large. The biggest example of this type of platform is the Dao Maker platform.

In addition, this type of platform depends on the level system in the platform, so customization depends on your level in the platform. Each level has a specific customization that may or may not be guaranteed.

What are the methods of purchasing in IPOs?

The different ways in which IPOs can be purchased reflect the diversity of methods used to distribute cryptocurrencies. Here's an explanation of some common methods:

  1. Guaranteed Allocation: This method guarantees buyers that they will receive a certain share of the cryptocurrency or token before the sale begins. This method usually requires pre-registration or joining a specific list and committing a certain amount of funds.

  2. Buy-in (Lottery): This method sometimes requires investors to participate in a random drawing to determine who will get a chance to buy. The opportunity to obtain a share in the subscription may be limited to a limited number of winners.

  3. Rush Buy (First Come, First Served - FCFS): In this case, the buy is open to investors and is based on who buys first. This often requires a high response speed to get a buying opportunity.

Each method has advantages and disadvantages, and the choice between them depends on the investor's preferences and the time available to him. It is important to understand the terms and conditions of each type of method before participating in any underwriting process, in order to avoid surprises or confusion during the process.

How to choose the appropriate subscription?

Not every project or subscription is eligible for participation, so important conditions must be met, some of which we mention here:

1- The legitimacy of the project.

2- The project idea (is it creative or repetitive?).

3- The future plan of the project (Road Map).

4- Project team.

5- The project’s technical and general partnerships and its strategic and financing partnerships (financing the project at various stages of procurement and financing participants).

6- The purchase price and distribution percentage compared to the prices and distribution percentages in the various other stages of purchasing (seed sale, private sale, public sale, etc.).

7- The time of participation compared to the quality of the project and the demand of the digital community “trend” (example: We participate in a project related to the desired topic that is popular among people at the ideal time).

8- The project network (you may not be able to bear additional costs as a result of the project network. The Ethereum network requires high fees from you compared to other networks, such as the BNB network. We will differ in how to calculate the fees for any network because it depends on the percentage of the network’s currency price, but that is another topic, so there is no need to prolong it. It is here because in my dealings with the network I do not invest in its currency, but rather I use a small part of it as fees for operations on the network only.

9- Numerical information for the project (currency price, total number of currencies for the project, listing size, distribution,...etc.).

10- The purchasing platform, distribution method, listing date and location, as well as the project team’s interaction with the marketing community and the Market Maker.

Some important information:

We have previously talked about the fact that the subscription for any project on any platform is based on supporting this project in its infancy and financing it first, then the benefit and profit of the community participating in the financing second, but now we will talk about important information related to the system of your participation in the platforms and the system of obtaining currencies for the project in which you will participate as well. Following:

⭐1- Participation in any subscription is based on your commitment to the terms and conditions of the platform through which you will participate, and you may find this under the name IDO Requirements.

⭐3- Your allocation is determined based on your level on the platform, and the allocation may be uniform in some subscriptions and platforms, and you may find a levels system in any platform under the name Tiers or Levels.

⭐2- Participation and distribution of the allocation (currencies) takes place within several stages, including the stage of purchase, then distribution, then listing. The second may precede the third, and so on. You may find this in the project details under the name IDO/IEO/ICO/IFO/FTO Details.

⭐3- The subscription coins are usually distributed gradually, and may be daily, weekly, monthly, annual, or something else, but the central platforms distribute the subscription coins completely most of the time, as this happens in the rest of the types of platforms in some projects only, and you may find this under the name Vesting. Schedule.

⭐4- You need to follow the projects to know all the details related to their currency (its details, address, and on which trading platform it will be listed), their dates (such as when the currencies will be distributed to the participants and when the currency will be released in the market), and their work plan so that you are ready at the right time and are aware of what is happening with your money and may You can find this under many names, including TGE Details, Listing Informations, or Launch Informations.

⭐5- When you want to participate in any subscription, you must do the following:

  • Knowing the platform offering the subscription.

  • Commitment to the platform’s system in order to ensure participation (be within the levels specified in the platform or those registered in the subscription, etc.).

  • Participation in the subscription at the specified dates on each platform (you can find the dates on the platform’s website or its various channels, especially Telegram). Participation takes place in two steps: agreeing to participate, which may come under the name Approve on the subscription page, then payment, and may come under the name Buy, Join Pool, or Join, and others. Which performs the same function or meaning, and here you must be prepared in all respects, whether with the required amount and the type of payment currency on the payment network, or with the transaction fees, etc.

  • Follow the project and the platform to know all the details regarding the start date of trading (listing), its locations, how to obtain your coins, the address of the project’s currency, etc.

⭐6- There are several other details that we need to know, but most important of all is that you be prepared to bear the consequences of your choice and participation, because this market in all its fields has profit - God willing - and loss - God forbid - but psychological preparation is something necessary in this market (we mentioned previously There is a protection system for the community participating in any subscription on some platforms, but this system may not apply to some subscriptions, so please pay attention to that and learn risk management.

Some examples of underwriting platforms

As we said, the subscription platforms are divided into 3 sections:

✅ Decentralized Platforms ✅

✅ A brief overview of some decentralized platforms:

✔ The subscriptions that take place on these platforms are symbolized by IDO, short for Initial Dex Offering. We will put in this list the 5 most powerful decentralized platforms as follows:

💎 1- Dao Maker platform:

💰 Platform currency symbol: DAO.

🌐 Dao Maker platform website.

1ïžâƒŁ Number of subscriptions: +125 on the date of writing the blog post.

📈 Average highest peak: 38.57x

⏰ Current average profit: 0.8x

đŸ”ŒHighest subscription: GAFI ≈ 366.77x.

Explanation of the Dao Maker platform

💎 2- Polkastarter platform:

đŸ’ČPlatform currency symbol: POLS.

🌐 Platform website Polkastarter.

1ïžâƒŁ Number of subscriptions: +108 when writing the blog post.

📈 Average highest peak: 35.45x

⏰ Current average profit: 0.45x

đŸ”ŒHighest subscription: ERN ≈ 269.62x.

Explanation of the Polkastarter platform

💎 3- Red Kite platform:

đŸ’ČPlatform currency symbol: PKF .

🌐 Red Kite platform website.

1ïžâƒŁ Number of subscriptions: +74

📈 Average highest peak: 38.47x

⏰ Current average profit: 0.347x

đŸ”ŒHighest subscription: BLOK ≈ 698.23x.

đŸ’Č You will find the platform on digital currency websites under several different names, namely Red Kite or Polkafaundry previously, and now Firebird.

💎 4- GameFi platform:

đŸ’ČPlatform currency symbol: GAFI.

🌐 Platform website: GameFi.

1ïžâƒŁ Number of subscriptions: +80

📈 Average highest peak: 49.40x

⏰ Current average profit: 0.296x

đŸ”ŒHighest subscription: SHILL ≈ 752.5x.

Explanation of the GameFi IPO platform

💎 5- BSCPAD platform:

đŸ’ČA platform belonging to the BlueZilla group.

đŸ’ČPlatform currency symbol: BSCPAD .

🌐 Platform website (BSCPAD).

1ïžâƒŁ Number of subscriptions: +74

📈 Average highest peak: 36.11x

⏰ Current average profit: 0.495x

đŸ”ŒHighest subscription: 333.38x AG.

đŸ’Č We did not touch on the results of the IPOs of its projects that were affiliated with their platforms, such as Adapad&VelasPad& MetaVPad, as they gave an average of more than 200x upon listing.

💎 Many powerful platforms are added to these platforms, such as:

🌐 Seedify & Poolz & Engine Starter & TrustSwap & TrustPad & SOLANIUM & BSCStation

✅ Central platforms ✅

✅ A brief overview of some central platforms:

✔ The subscriptions that take place on these platforms are symbolized by IEO, short for Initial Exchange Offering. We will put in this list the 3 most powerful central platforms as follows:

🔾 1- Binance Launchpad:

🔾 Platform currency symbol: BNB.

🔾 Platform website Binance.com.

1ïžâƒŁ Number of subscriptions: +80

📈 Average highest peak: 205x

⏰ Current average profit: 30x

đŸ”Œ Highest subscription: NFP ≈ 6000.35x.

Explanation of the Binance platform.

🟱 2- Kucoin Spotlight platform:

🟱 Platform currency symbol: KCS.

🟱Platform website Kucoin.com.

1ïžâƒŁ Number of subscriptions: +35

📈 Average highest peak: 40x

⏰ Current average profit: 2.8x

đŸ”ŒHighest subscription: VR ≈ 212.78x.

Explanation of the Kucoin platform

đŸ”” 3- Huobi Primelist platform:

đŸ”” Platform currency symbol: HT.

đŸ””HTX.com platform website.

1ïžâƒŁ Number of subscriptions: +55

📈 Average highest peak: 29x

⏰ Current average profit: 2x

đŸ”ŒHighest subscription: EPIK ≈ 171.21x.

Explanation of the Huobi platform

💎 In addition to these platforms, there are other platforms that provide the same service, such as:

⚫ Gate.io platform (gate.io), Mexc platform, OKEX platform, Bybit platform and others..

✅ External platforms ✅

✅ A brief overview of some of the platforms that provide ICO subscriptions:

✔ The subscriptions that take place on these platforms are symbolized by ICO, short for Initial Coin Offering. We will put in this list the 3 most powerful platforms as follows:

💰1- Coinlist platform:

💰 Platform website. coinlist.co

1ïžâƒŁ Number of subscriptions: +36

📈 Average highest peak: 65x

⏰ Current average profit: 3x

đŸ”ŒHighest subscription: SOL ≈ 1180.1x.

💎 2- TokenSoft platform:

🌐 Platform website Tokensoft.io.

1ïžâƒŁ Number of subscriptions: +23

📈 Average highest peak: 34.4x

⏰ Current average profit: 3x

đŸ”Œ Highest subscription: AVAX ≈ 291.71x.

💎3- Republic platform:

🌐 Platform website. republic.com

⏰ Example: CERE ≈ 17.96x.

đŸ’Č This platform is similar to investment funds, as more than 600 transactions took place with different results.

✔ Either 💎 or 🗑:

Under the ICO symbol are subscriptions that take place on sites specific to the proposed projects and are the most risky.

alert:

Investing in financial markets and digital stock exchanges is unstable and unsafe. Please see our Risk Warning for more information (invest with caution).

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