Initial coin offerings (ICOs) have been a major part of the cryptocurrency world since their inception. They are often seen as a way for companies to raise funds quickly and for investors to get in on the ground floor with some of the most promising projects out there.
However, ICOs are highly speculative and risky investments, as there is no guarantee that the project will succeed or even be completed. Many investors have made a fortune from successful ICOs, while others have lost all their money due to failed projects.
So which ICOs were the most successful? Below, we’ll take a look at some of the biggest, most profitable ICOs of all time and how they were able to generate such massive returns.
What Are ICOs and How Do They Work?
Before we dive into the list of the most successful ICOs, it’s important to understand exactly what an ICO is and how it works.
An initial coin offering, or ICO, is a method of raising capital for new projects via the sale of digital tokens or coins. Many projects use this form of crowdfunding to rapidly raise capital for their project, with investors, in turn, receiving tokens for their investment.
These tokens can be used to purchase goods within the project’s ecosystem, or they can be traded on cryptocurrency exchanges in order to increase in value as demand increases. This means that if the project succeeds and its token gains popularity, investors may enjoy a significant return on their investment.
The process begins when a project team announces that they are launching an ICO. They will usually provide detailed information about the project and its goals, allowing potential investors to make informed decisions regarding whether or not they want to invest.
Investors then send funds (usually cryptocurrency) to the project’s wallet address in exchange for tokens. After the ICO period ends, the tokens are released onto exchanges where they can be traded freely by anyone interested.
The 5 Most Successful ICOs of All Time
Now that you have a better understanding of what ICOs are, let’s take a look at some of the most successful ones in history.
1. EOS
EOS is a decentralized platform and one of the most successful Initial Coin Offerings (ICOs) of all time. It was launched in 2018 by Block.One Chief Technology Officer, Dan Larimer, who had previously created the popular blockchain-based platforms BitShares and Steemit.
The EOS ICO ran for an entire year and raised $4.2 billion from investors worldwide, making it one of the biggest fundraisers in history. It was identified as a major rival to Ethereum, offering a proof-of-stake platform that promised to provide users with improved scalability, flexibility, and usability.
In 2020, EOS attained its goal of becoming decentralized following two years of developing and implementing its delegated proof-of-stake consensus mechanism. Unfortunately, this decentralization caused significant congestion issues on the network, which resulted in researchers questioning its claims to be truly decentralized.
Adding to these troubles was the surprise resignation of Dan Larimer as Block.One CTO on December 31st, 2020, which sent the EOS token tumbling 16%. Despite this setback, EOS remains one of the most successful ICOs ever due to its incredibly successful fundraising strategy and widespread adoption since its launch.
2. NEO
NEO is a Chinese open-source blockchain project that has gone by multiple names in its short history, most notably being nicknamed “China’s Ethereum” due to its utilization of decentralized commerce and smart contract applications.
NEO is one of the most successful ICOs of all time, largely due to a massive investment from companies such as the Chinese government, Microsoft Corp. (MSFT), and other major investors.
When the NEO ICO was launched, it had an initial value of just 3 cents per token. However, as demand for NEO grew and more investors came on board, the price quickly rose and, at its peak in January 2018, reached an incredible high of $180 per token. This resulted in an impressive return of over 6000% for those who invested early on in the project!
Since then, NEO has been able to maintain a relatively high level of success despite some market volatility. It currently ranks as one of the top 20 cryptocurrencies by market capitalization and continues to be a major player in the global cryptocurrency space.
3. Ethereum
Ethereum is one of the most successful ICOs of all time, having first launched in late 2013. It was created by Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine, with the goal of creating a platform for decentralized applications and digital contracts.
At the time of its ICO launch, Ethereum was sold for $0.31 per token and since then has experienced incredible growth – currently trading at an all-time high of $3,128 per token. This represents a return rate of over 10,000% for those who invested during the ICO period!
In addition to its impressive returns for early investors, Ethereum has made significant contributions to the blockchain industry. It’s the second-largest digital currency by market cap, and it offers both a digital currency (known as Ether) as well as a decentralized programmable platform that enables users to develop and deploy smart contracts.
The success of this platform has led to an explosion in development on the network, with thousands of different projects built on top of it, such as Augur prediction markets, Gnosis multi-signature wallets, Aragon decentralized autonomous organizations (DAOs), MakerDAO stablecoins, etc.
4. Ark
Ark is a unique blockchain platform that promises to make it easier than ever for developers to create their own blockchains. It is one of the most successful ICOs of all time, with its tokens generating massive returns for its initial investors.
The Ark team set out to create a platform that would enable users to create their own blockchain projects while still benefiting from the scalability and security of the Ark main chain. To achieve this, they implemented a concept known as ‘chaining,’ which allows multiple blockchains to be linked together securely and efficiently.
The Ark network utilizes delegated proof-of-stake consensus combined with Practical Byzantine Fault Tolerance algorithms to ensure high transaction speeds and reliability. In addition, their use of smart bridges enables other blockchains to interact with each other, providing users with unprecedented interoperability between different networks.
Since its launch, Ark has become one of the most popular cryptocurrencies in circulation today. Its value at launch was only $0.04 per token, but it has since risen to nearly $11 at its peak. Those who invested in the project early have seen tremendous returns, making Ark a prime example of a successful ICO.
5. NXT
One of the earliest ICOs, NXT, was launched in 2013 by a developer known by the handle “BCNext.” The platform was designed as blockchain technology for various financial services, including online payments and asset trading. At its launch, NXT boasted an initial token price of $0.0000168, with the team managing to earn $16,800 worth of bitcoin from their efforts.
Since then, NXT has gone on to become one of the most successful cryptocurrency projects in history. The coin peaked at an impressive high of $2.15 in 2017 and has since seen consistent growth over the years.
Although it’s currently trading at around $0.0037 per token, this is still significantly higher than its initial price and remains a strong sign that NXT is well-positioned to have continued success in the future.
NXT’s success can be attributed to its strong development team and its innovative feature set, which includes features such as decentralized crowdfunding and asset trading capabilities. Its low transaction fees also make it attractive for users looking for cost-effective ways to transfer funds across multiple blockchains or make purchases online.
How to Choose a Profitable ICO: Essential Tips
With so many different ICOs available, it can be difficult to know which projects are worth investing in. Here are some key tips that can help make the process easier.
Conduct Research
Before investing in any ICO, conducting thorough research is important. Find out as much information about the project and the team behind it as possible. Check the project’s whitepaper, website, and social media pages to get a better understanding of what it is they are trying to achieve and if there’s an actual demand for the solution they are offering.
Evaluate the Team
Having a strong team behind an ICO is essential for its success. A good way to evaluate a team is to look at their industry experience, past track record with other projects, and ability to execute the project they are proposing. You should avoid anonymous teams as they are often associated with malicious intentions.
Look at the Tokenomics
It’s also important to take a look at the tokenomics of a project to get an idea of its potential profitability in the future. Evaluate the total supply of tokens, how many have been allocated for sale, and what percentage of the total tokens are held by the team and investors. This can give you an idea of how profitable the project might be in the future.
Wrapping Up
The ICO space has grown tremendously over the past few years and is now home to some of the most successful projects in blockchain history. These five examples show that investing in quality projects can lead to significant returns if done correctly.
That being said, though, investors should always do their own research before investing in any project and be sure to understand the risks involved.
