ICO Club is a relatively recent invention of cryptoindustry. So far there are few of them, but it is possible that in the near future there will be more. ICO clubs promise participants super profits that are possible in the crypto industry, and this forces many potential investors to consider them seriously and with interest. What is it and is it worth joining the ICO club? We will describe in this article!
What is an ICO club?
ICO Club is an organization uniting cryptocurrency experts who are well acquainted with the intricacies of ICO, and investors who do not understand the new ICOs, but want to invest in the most profitable ones.
ICO club is usually established by people with experience in the crypto industry. It can be experienced cryptoinvestors, financial analysts, lawyers and other specialists who work with cryptocurrency projects, who in one way or another are capable of evaluating crypto projects.
How does the ICO club work?
In general, the club members entrust the founders, as more experienced people, with managing their funds. The founders are guaranteed to earn a commission, which is charged to the participants.
Anyone can become a member of the ICO club, although the conditions of entry may be different. Some clubs do not require de-anonymization of participants and are asked to indicate only the number of the purse, which will receive income. Others ask to fill out a form with a large number of fields. However, passport scans in ICO clubs are usually not needed.
Some clubs set additional conditions for using only a certain cryptocurrency for investment or a specific wallet for cryptocurrency.
This can be connected with legal issues – for example, smart contracts allow you to prescribe specific terms of the contract between the club’s organizers and the new participant, while investing in bitcoins will make it difficult to sign the contract.
The size of the investment is also different. In some clubs it is fixed, while in others the participant decides how much he is willing to invest. In some clubs there is a threshold for entry, in others an investor can invest at least $ 20.
The operation scheme of the ICO clubs resembles the work of cryptocurrency funds – the same transfer of funds to the management of more experienced people, the same fees for their work, and so on. But still these organizations differ – in several ways.
What profit can an ICO club give to an investor?
The profitability of ICO clubs depends on the competence of the founders. The more professionals are in the club, the more projects can be analyzed, the more tactics can be applied.
Small clubs that have one or two people in the founders are unlikely to quickly achieve regular super profits, although they can provide a stable small income.
The cryptosphere has a few examples of ICO with a yield above 100000%, even more – from 10,000%, ICO clubs are designed to identify such cryptocurrencies. Therefore, if there are truly competent people in the club, an investor can count on an ICO with a yield of 1000% at least after several investment attempts.
Another question is when exactly tokens will grow 1000 times. It is unlikely that this will happen immediately after the ICO and not necessarily a month after it. Here the investor will need consulting services of specialists and patience. However, even 100% is a good result. Some promising tokens grow quickly to such figures.
How to choose a reliable ICO-club?
The disadvantage of ICO clubs is that they may be unreliable. Here there are all the risks that are observed in the cryptosphere when assets are transferred to management by third parties. In other words, there are no guarantees at the level of legislation. Therefore, an investor who is interested in a question should pay close attention to choosing a club.
In such circumstances, the choice of a reliable ICO club, which really brings profit to the investor, becomes no less difficult than the choice of a promising ICO.
On the other hand, the club can be selected once and stay there with a favorable course of events for decades, and the ICO will have to be monitored regularly – and why not let the club do this? This is the choice of investor.