Tuesday, June 6, 2017

Cryptocurrency ICOs: Turning $10,000 into $8,166,666 in 3 years

We all know what's an IPO. What the hell is an ICO? An ICO is an "Initial Coin Offering", and it's pretty much exactly what you would think it is.

Instead of exchanging money for shares in an IPO, you are exchanging money for cryptocurrencies in an ICO.

And why might anyone want to do this? Please see 2 mindblowing numbers. I only picked these 2 because I could find their ICO price and dates without much searching.

Ethereum (ETH) ICO-ed on June 2014 at $0.30 USD.
Gnosis (GNO) ICO-ed on 1st May 2017 at $30 USD.

ETH is now about $245
GNO is now about $265
(refer to coinmarketcap for the latest prices)

ETH has made MASSIVE returns of 81,500% since ICO, or 835% annualised returns.
GNO has made returns of 880% since ICO, or 68,800% annualized returns.

If you bought $10,000 USD in ETH during the ICO, it would be worth $8,166,666 USD, or SGD $11.3m after 3 years.
If you bought $10,000 USD in GNO during the ICO, it would be worth $88,300 USD, or SGD $121,000 after 1 month.

Yes, 1 freaking month. I shit you not.

 Asians with money swag? #bestgif5eva

Cryptocurrencies are the wild wild west. You think buying shares in small caps are risky and volatile? Pfft, you've obviously haven't heard of cryptocurrency investors and speculators.

One interesting thing to note is that most ICOs do not accept cash. That's right, no cash. They usually only accept cryptocurrencies.

For those people that like to "huat ah" on IPOs, this one confirm give you more thrill. Confirm, plus chop.

Anyway, there are plenty, plenty of ICOs that are ongoing, scheduled or in the pipeline. Kind of seems like the dotcom bubble to me, given how the market cap of cryptocurrencies has almost tripled in the past month. But then again, that's only 2.5% of the monetary base. In the US. Globally? Less than 1%. The long-term upside is still ridiculous.

Seems like most people in cryptocurrencies now are big speculators. If you read blogs, forums and watch youtube videos, the only thing that is talked about are mainly charts. I wouldn't be surprised if many people don't even know much about the coins that they own. Many things looks very pump-and-dump to me, so be careful when going into the CC world.

As for myself, I am still in the process of analysing a lot of CCs and thinking which are the ones that would actually still be around in a few years time. It's no easy task when there's like 740 currencies and news coming out every other hour about updates and news about different currencies, exchanges, wallets and corporate partners.

I am contemplating taking part part in 2 upcoming ICOs in that are launching in June. I'm not going to say which ones, but I think my June clue is a huge freaking giveaway. Once I've successfully registered, maybe I'll talk more about these ICOs and why I chose them. I'm thinking of throwing away $1,000 each on those (I could call it investing, but let's face it, this is just gambling).

Then again, cryptos are CLEARLY in its infancy, so there is definitely plenty of upside to be reaped. While you might not get insane 80,000% returns, there looks to be a lot of upside to me. I mean, everything is up 200% over the last month, haha.

Blockchain technology is going to change the world like how internet changed computing, or how smartphones changed our daily lives. We are barely in it and I already see how so many traditional businesses are going to get raped. Hell, the stock market might not even survive if ICOs and DEXs are the way to go. 0.01% transaction fees + 0% taxes on dividends and capital gains + no geographical / exchange boundaries? It will only be a matter of time before people start to realize what the hell is going on when big businesses are suddenly imploding because they no longer have a function in the value chain. It's going to take a while, for sure, but I'm confident that this is life changing technology that I will definitely see maturing during my lifetime.

I'll try to write a post about how to change your SGD into cryptocurrencies in a safe, secure manner, with some tips about best practices. However, I'm FREAKING busy juggling work and life, along with keeping up with the stock market, and now also cryptocurrencies. Haiz, it should would be nice to be able to link up and talk to some smart people in Singapore about cryptos.


  1. how do you join an ICO?

    I have my eye on GBTC the bitcoin trust. Dips seem like a buying opportunity

    1. Each ICO has different instructions, but it usually involves registering yourself at their website, then transferring coins to a specific address. Of course, this entails having a wallet to hold the contributing CC and having access to a crypto-fiat exchange that can turn your fiat into CC, 2 things which most people don't really have.

      I would be wary of GBTC. It has MASSIVE premiums over NAV. This means that the BTCs held within GBTC are being valued way more than the current market prices.

      If there was ever a perfect arbitrage opportunity, it would be to short the shit out of GBTC and go long BTCs.

  2. Which CC wallet do you use? Whatever the exchange provides? The one which interests me at the moment is Exodus. Any thoughts on it?

    1. Hi Anon.

      I strongly suggest AGAINST using the exchange wallet. You do not have the private keys of your exchange wallet.

      Exodus looks very nice. I've seen videos and people use it, but I personally do not use it. I use both Jaxx and Coinomi mobile wallets. I also have a Ledger Nano S to keep bigger amounts.

    2. Hi GMGH,

      May I know where you got the Ledger Nano S from? And how much did you pay for it?

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