A few weeks ago, we surveyed our members...
We wanted to learn where you thought the most exciting investment opportunities were in 2018, and where you needed the most guidance from us.
Well, after combing through all of your responses, the answer became clear:
Initial Coin Offerings (ICOs)!
Crowdability’s ICO University
Now that we know what you’re most interested in, we’ve decided to make it our mission to teach you everything you need to know about ICOs — including how to profit from them.
Which is why we’ve started creating a virtual “ICO University” for you:
Over the next twelve months, we’re planning to bring you in-depth white papers, entertaining video lessons, and live online webinars.
These resources will help you master the systems and strategies we’ve used personally to earn enormous returns in the crypto-currency markets.
But today, we thought we’d kick things off with the basics.
Today, we’ll walk you through what ICOs are, how they work, and most importantly, how you can profit from them.
What’s an Initial Coin Offering?
An Initial Coin Offering (or “ICO” for short) is a way for early-stage companies to raise capital. This capital helps them launch and grow their business.
Traditionally, an investor provides a start-up with a cash investment, and in exchange, the investor is granted an ownership stake in the business.
With ICOs, things are a bit different:
With an ICO, investors don’t give cash to a start-up...
Instead, they give the company a crypto-currency, like Bitcoin or Ethereum.
Furthermore, rather than receiving an ownership stake in exchange for their capital, investors receive a new type of crypto-currency instead — something known as a “token.”
This new approach might sound strange…
But as you’ll learn in a minute, it might be one of the most profitable — and lowest risk — ways to invest in an early-stage company ever conceived.
What the Heck is a “Token”?
Before I show you how investors profit from these “tokens,” let me explain what a token is.
Think of a token like a poker chip from a Las Vegas casino:
You give the casino cash, and in exchange, it gives you chips you can use to play games.
Critically, you can only use those chips at one casino. For example, you can’t use your chips from The Sands to play poker at The Wynn — your chips are no good there.
It’s the same thing with crypto tokens:
The tokens you purchase during a particular company’s ICO are directly connected to that one specific company.
To show you what I mean, let’s look an example…
Beyond the Void
Perhaps you’re familiar with a gaming company called Nexium.
Nexium publishes a video game called Beyond the Void, where players aim to collect various tools and weapons in order to defeat their opponents.
To get access to the best tools, players need to purchase them. But the only way to make those purchases is with Nexium’s token.
For people who play Nexium’s video games, these tokens are very valuable. But they’re worthless in other games — just like chips from The Sands are worthless at The Wynn.
But as you’re about to learn, for investors, those tokens could be worth a fortune!
Let me explain….
How Investors Make Money With Crypto-Tokens
Traditionally, after you invest in a start-up, you have to wait months or even years before you see a return on your investment and turn it into cash.
That’s because start-ups are still at their earliest stages…
Their shares don’t trade yet on a public exchange like the New York Stock Exchange or the NASDAQ, so you can’t just sell your shares whenever you’d like.
But in the crypto market, it’s a different story:
Exchanges like Bittrex and Binance enable investors to “cash out” of their cryptos in as little as sixty days after an ICO.
So, bottom line:
Investing in an ICO can be similar to investing in a start-up — but with an ICO, you can cash out of your investment in weeks rather than years.
And not only can investors cash out of these investments quickly...
But they can also earn massive returns…
ICO Profits
According to a report from Mangrove Capital, a London-based venture capital fund, the average return across 204 ICOs in 2017 was approximately 1,320%.
Now, obviously you need to know exactly what you’re doing in this market to succeed — otherwise you’re putting yourself at enormous financial risk…
But that’s more than 13x your money in less than a year, and it includes the winners and the losers.
To understand where these profits come from, let’s take another look at Nexium:
Let’s say you invested in Nexium’s ICO back in November 2016, purchasing 1,000 Nexium tokens (NXC) at $0.005 each.
In addition, let’s say that, between the time of the ICO and today, Nexium’s game Beyond the Void became very popular — hundreds of new players were joining every day.
Remember, in order to win, players need to buy various tools and weapons — and that requires getting their hands on Nexium tokens.
As more players enter the game, the demand for Nexium tokens will keep going up…
And because Nexium has capped the number of available tokens, this increased demand will lead to increased token prices. That’s basic economics.
Which explains why, today, you could sell your Nexium tokens on an exchange like Bittrex for roughly $0.43 per token.
That’s a gain of roughly 8,600% in just over 12 months!
More ICO Education Coming Soon
Every token has a different use case — some tokens are for video games, others will have more “serious” applications — but the same economics will always apply:
By getting your hands on ICO tokens, you can invest at a very low price — and once the company makes progress and its tokens start trading, you can cash out.
And as you’ve learned today, if the company is successful and demand for its token goes up, your ICO profits can be extraordinary.
I hope today’s article was helpful.
This is complex stuff, and ICOs certainly aren’t for everyone…
But if you’re aiming to turn a small stake into a significant amount of capital — without waiting years for your profits to roll in — this is a market you should learn more about.
In the coming weeks and months, we’ll provide you with much more content on this topic.
In the meantime, please click the “Comment” button below to share your thoughts and questions with us.
Happy Investing.
Best Regards,
Founder
Crowdability.com
