Before dealing with how to find out what new cryptocurrencies are coming out on the crypto market, let’s take a look at what ICO, IEO, IDO. Moreover, we’ll explain where to find more information about upcoming crypto coins and main stages of token sales.
Core types of token sales in crypto
ICO
Initial Coin Offerings or ICO for short, is the very first type of token sales. To conduct it, a crypto startup only needed to provide technical documentation, announce tokenomics (starting price, number of coins in the offering, etc.) and launch a website.
The first ICOs were held back in 2013, but only gained popularity in 2017. According to reports, $4.9 billion was raised through ICOs in 2017.
IEO
Initial Exchange Offering is an improved version of ICO, which transfers the token sale to the exchange.
IEO has become popular among both projects and investors. It gave the former access to the exchange’s user base and the latter additional security for their funds.
When placing projects with the help of such token sales, the exchange risks its reputation, so the projects are thoroughly checked. In addition, IEO is subject to more stringent legal requirements, as exchanges are obliged to comply with the laws of the countries in which they are represented.
This is both a plus and a minus for users. Since it prevents outright scam from participating in sales, there may also be restrictions for users. For example, US citizens are often cut off.
The IEO gave birth to some of the most popular blockchain projects today, such as Polygon and Elrond (now MultiverseX).
In 2020, DeFi began to actively develop, which brought us the next evolutionary stage of token sales – IDO.
IDO
Initial DEX Offering is a new token sale format focused on decentralized exchanges (DEX). Unlike traditional ICOs and more centralized IEOs, IDO aims to provide a more flexible and decentralized model for token sales.
In brief, IDO works like this: investors lock their funds in a smart contract for the duration of the token sale. Then at the time of TGE, they receive their assets at a certain percentage, depending on the terms of the token sale.
IDOs provide projects with a fast and inexpensive option for token distribution and fundraising, while providing investors with a higher level of security than ICOs.
Using Binance DEX, Raven Protocol held an IDO in 2019 and was the first project to utilize the IDO model. Later, launchpads began to appear, which gave crypto projects more options in this direction.
How to find coins that will be launched soon
New tokens appear on the crypto market almost every day. At the same time, keeping track of them is not an easy task. But you need to realize that the earlier you start researching the market, the much higher the chance of becoming a participant in a project that will bring you good revenues.
Let’s consider a few key methods of searching for new token sales. This approach will also help you find current ICOs, IDOs, IEOs and more.
- Watch the news, events, research trends, technical materials of those or other blockchain projects. Be sure to study the development teams and their backgrounds. Famous or experienced developers and partnerships with reputable blockchain companies are important factors.
- Be sure to join crypto-oriented communities on social media and messengers. Telegram, X (Twitter), Discord, Reddit – these are the best platforms for like-minded people with a wealth of relevant data. Communicate and interact with other participants, listen to what they are talking about, because it is often the communities that lead to very profitable projects and tokens on the market.
- Follow opinion leaders in the media space, including Influencers, experts in the crypto industry. From them, you can hear a lot of valuable information, more details, arguments and reasons in favor of this or that crypto project.
Note that when searching for up-to-date information on token sales, you should use trusted platforms that often contain a wealth of information on tokens that will be launched in one place, including information on current and upcoming crypto projects.
Main stages of token sales in cryptocurrencies
In an effort to achieve high efficiency, attract more liquidity and achieve the main goals, crypto project developers and launchpads give the opportunity to conduct token launches in several rounds.
Private Sales
One of the early stages, which is usually available to large investors, close circle, and privileged partners. Everything depends on the plans and views of the organizers of the blockchain product. At the same time, this stage carries the greatest risks for investors. There is little information about what the team is capable of and what their product can solve. But the prospect of excessively high profits from participation in such rounds is very high.
The main condition for participation in such rounds is to keep the project tokens in the accounts for a certain period. And most often, such tokens are frozen for a predetermined period of time. Thus, investors will be able to use these tokens to transfer or exchange them only after the completion of the set limit.
Pre-Sales or Pre-ICOs
After private rounds, token prices can be worth much higher. And at the Pre-sales stage, developers can already offer the community more features or solutions that their product offers. The team can present their solutions, share roadmap, marketing strategy, and more. Pre-sales are usually based on lotteries or whitelists and are divided into several rounds (Round 1, Round 2, Round 3 and FCFS Rounds).
To date, Pre-sales are quite popular in the crypto-community. During this period, developers have an opportunity to re-test the project on a wider audience. In addition, this stage, as a rule, solves advertising purposes, which means it is an additional tool to attract a larger part of the community.
Public Sales
This stage is intended for any type (ICO, IEO, IDO, IGO, INO and others). So, to buy tokens of crypto projects at an early stage is an opportunity for everyone. After public sales, as a rule there are listings on trading platforms. During public token sales, the price of the token is fixed and has no unique conditions for purchase. In addition, unlike previous stages, the risks become significantly lower, which means tokens become more accessible and attractive to investors.
Participation in various token sales is a very attractive and promising type of earnings. However, it is worth remembering that there are a lot of risks in this direction. Therefore, we strongly recommend using only trusted platforms to find quality token sales or Pre-ICOs and do your own analysis.