What Is The Best ICO of 2019???
ICO. Initial Coin Offering. 3 words that many, many people have heard in the crypto space over the last 2 years, accompanied by dreams of rocketing prices, Lamborghini’s and of course your own piece of the moon itself. Have some of these promises been fulfilled? Yes.
However, did the majority of them fall well short of their promises? That would be a big, big yes. This is the main reason why I have never been an advocate of ICO investments.
Rewind back to September 2017, the beginning of the huge Bull Run. A time where Bitcoin was trading over $4000, media attention was increasingly focussed on its rise and the average retail investor was eager to get involved.
Aside from Bitcoin, there were numerous ICO’s that were launching, all individually claiming that the unique, decentralised nature of their “product” would revolutionise a certain field. They equally came with promises that would make people rich beyond their wildest dreams; if they simply invested at the ICO launch.
But there were a few that stood out, not necessarily for the right reasons. A few that had some genuine celebrity backing. How or why these celebrities were backing them, however, was a totally different story. And one that only came to light, when it was too late.
Arguably the greatest boxer of his generation, Floyd Mayweather had endorsed the Stox project, Hubii Network token sale and Centra Tech via his own Twitter and Instagram pages.
DJ Khaled, DJ and social media sensation, was also proudly endorsing Centra Tech, and of course, many people blindly followed their “advice”.
Floyd Mayweather and DJ Khaled are unquestionably hugely influential figures in their own right. Both are highly respected and admired by many, but would you, or any rationally thinking person ever turn to them for investment advice?
Those who did, have hopefully learnt their lesson from what ensued. All of the mentioned ICO’s were uncovered to be nothing but scams, and it was later revelated that Mayweather and Khaled were both paid large amounts of money to endorse the ICO launches.
Both Khaled ($150,000) & Mayweather ($600,000) were fined by the SEC for their respective roles in the ICO’s and banned from promoting any securities for the next few years.
This was a significant set of cases, after which we haven’t seen any other media or sporting celebrities try their hand at becoming “financial advisors”. After some harsh lessons were learnt, going forward, who would retail investors look for as credible backers for any new opportunistic ICO’s?
A Three-Headed Monster?
Fast forward to Jan 28th2019, the BitTorrent BTT token launch, exclusively on Binance’s exchange. All 50 billion tokens sold within 15 minutes, for a combined total of over $7m. The BTT token is based on the Tron TRC-10 token, & has been described to be used to “transact in computing resources shared between BitTorrent clients”.
What the true definition of this apparent use case is, is yet to be fully determined. However, as we delve deeper into the story and see what is actually going under the surface, the BTT token launch starts to become a little more interesting.
There are 3 key aspects to this:
- Binance – one of the most credible and popular crypto exchanges, growing from strength to strength, founded by “CZ”.
- Tron – one of the most controversial cryptocurrencies, founded by the ever-vocal Justin Sun
- BitTorrent – quite possibly the most popular peer-to-peer file sharing client available.
Like it or not, Justin Sun, Founder and CEO of TRON is a very influential figure within the crypto space. Whilst the jury is still out on whether he actually as a viable, working product, his presence and vocal endorsement of any token, would not go unnoticed.
The BTT token is TRC-10 based, this comes with the full quota of Justin Sun’s infamous social media presence and “announcement of announcements”.
BitTorrent is a peer-to-peer file sharing client that has been around for many years, with a large user base and a genuine working product.
All three aspects are well-respected within their own fields, and this combination may well have been the perfect trifecta for this ICO launch. The results of the sale were evident; from a launch price of $0.0005 to a high of $0.0015, within a week. Anyone who had done their research, bought and sold, would already be looking at a very handsome profit.
What Exactly Will The BTT Token Do?
Whilst the actual use case of the BTT token still seems a little unclear, that does not make it invaluable. In any simple economic standing, anything that has a demand, and especially with a limited supply, holds value. The BTT ICO didn’t have any random celebrities blindly endorsing a product that they didn’t have a good understanding of. It came with a trio of entities that all held substance in their own fields. The fact that the actual token could be totally useless and won’t be used until Summer 2019 at the absolute earliest, is irrelevant.
The crypto world is full of illogical beings, fanboys and price movements. But there are key lessons to be learnt here. Who would have invested in something like BTT? In all honesty, anyone from a seasoned ICO investor, to someone that we can label a “TRON fanboy.” But why?
Value is driven by hype. Or for better wording, it is supply versus demand. The supply was there, and it was cheap. Even if you were remotely intrigued by such an unusual ICO listing, it would have been more than tempting to “take a punt” on something like the BTT launch.
Were there any obviously clear red flags that had been so evident in certain ICO launches from the past few years? No.
With any investments, ICO’s, cryptocurrencies, companies, stocks…anything, you have to be aware of what you are investing in. Taking financial advice from celebrities, a taxi driver or a complete stranger via social media is nothing short of idiotic. All you have to do is your own research, you have all the tools right at your fingertips!
In summary, I will happily admit the BitTorrent Token has launch taught us something good. It was a good example that there can be good investment opportunities for retail investors, as long as they understand what they are investing in…and more importantly, who they are investing in.
Disclaimer: I did not participate in the BTT token launch and this should not be considered to be financial advice.