Written by Louie Procopio
Investing in Blockchain Startups via Initial Coin Offerings was once a game we all could play together. It was a medium of inclusion and opportunity to almost anyone with access to the internet and a few bucks to invest with. There wasn’t a hundred new ICOs popping up every day, and anyone was able to invest. If we had $10 or $1,000, all we had to do was contribute and we were in.
But those days are a thing of the past. “The good ol’ days of crypto”.
Today’s ICO scene is much different. If you’re still an avid ICO investor you know all too well the pains we face when trying to invest in a hype-driven market.
Private sales (or what I like to call, whale sales)
Maybe you too were looking forward to investing in Theta, CoinFi, or Telegram ICO? I’m willing to bet that if you were interested, you never got the chance.
What started out as high volume bonuses, has in recent times turned into a string of hyped up ICOs canceling their crowdsale… (crowdsale: an old ICO concept where a crowd of “regular” people can purchase tokens), and instead maxing-out via a handful of institutional investors and wealthy individuals, a.k.a. whales.
This trend is a bi-product of hype. Hype is not a bi-product of quality. Still though, the good ones get shut down before the doors ever open for you and me.
Why does this matter though?
There are no laws against it, and it saves the project’s team a ton of headaches. Following through with a planned crowdsale is a resource-killer! There’s a feisty community that requires around-the-clock attention, 30 scammers a day trying to pawn off fake offers, upwards of 10 social media channels that need constant attention, and the fear of the SEC knocking down the doors of ICO headquarters.
But not to worry! I mean, we still get a chance to buy all of these tokens once they hit the exchange. At least the bonus tokens the happy whales are so graciously selling at a higher premium to us guppie-sized investors.
If us crypto-guppies are lucky enough to get a crack at one of the many hype-driven ICOs that follow through with their ICO plans, then there’s that issue of paying miners enough gas to mine our transaction.
ICOs can literally raise a million dollars a second, giving contributors an entire half-minute to fight over who gets a spot as a crowdsale investor.
MedicalChain, Arcblock, and MatrixChain are a few examples of ICOs I and my friends missed out on because of gas wars. Gas used in failed transactions doesn’t equate to fortunes lost in an exit-scam, but they are nonetheless a pain point many ICO enthusiasts continue to feel, and we’d much rather do without.
The answer to the above-mentioned issues lies in ICO pools!
…or does it?
ICO pools, adding risk to an already risky situation
Just like this Russian high-heel-wearing tightrope-walker, ICO investors understand the high risks involved in the high-return game they are playing. Or at least they SHOULD understand the risks.
ICO Pools have become an increasing trend the last 6 months. It gives guppies the chance to join together and form a sort of “whale-sized” investment. This opportunity brings larger bonuses, no gas wars, and access to otherwise closed-door private sales.
Unfortunately, there are some major issues in the way these pools operate.
Transparency is the first. Most ICO pool admins are not open about who they are. Their credentials are not made available to the pool contributors and this leaves a serious trust gap. Pool admins are responsible for investing upwards of a few thousand Ether on behalf of their contributors, and some have ended up pulling an exit-scam once the pool contributions are made.
Besides the lack of transparency and trust in ICO pools, issues of regulations have begun to surface in recent months too. Due to not having KYC (Know Your Customer) in place, many ICO pools have been denied access to certain ICOs, and some have even been refunded their previously approved contributions. With ICO teams feeling the warm breath of the SEC seeping down their necks and the rise of ICO subpoenas reaching certain ICO mailboxes, there doesn’t seem to be a very sustainable strategy for investment pools to continue their upward trend.
BullToken has a solution to all of these issues and more, like how to research all available projects at once.
For all the other crypto-guppies looking to get a leg up on the whales without sacrificing transparency, trust, and .05 ether in lost gas, BullToken has some very good solutions.
What are your thoughts on the challenges us non-whale investors face in the ICO arena?
If you’re interested in reading more about how BullToken does this, I suggest you take a closer look.
For more information about Bulltoken please visit the following websites or join the official Telegram group (link below)