The rise of cryptocurrencies as a premier asset class has taken the world of finance by storm. Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and Litecoin (LTC) have become extremely valuable as well as household names. No doubt about it, the upside of the cryptocurrency industry appears to be unlimited as institutions are rapidly integrating them into business operations.

One method of becoming involved in this new environment is through participating an Initial Coin Offering (ICO). In much the same fashion as a traditional stock IPO, ICOs give investors the ability to get in on the ground floor of a fledgling cryptocurrency enterprise.

The goal of an ICO is to raise money for a cryptocurrency startup. From basic e-commerce to exotic applications of blockchain technology, these companies offer the public a financial stake in the venture through a crowdfunding approach. “Tokens” are sold on the open market and represent a vested interest in the company. In the event that the business is a success, the tokens appreciate in value.

ICOs have become a popular way of raising huge amounts of capital quickly. Here are a few of 2017’s most successful:

ICO                           Money Raised

Filecoin                      $257 million

Tezos                          $232 million

EOS                            $180 million

Bancor                       $153 million

Popular ICOs For 2018

If you are interested in getting involved in an ICO, performing the necessary due diligence is a must. There are a myriad of products, with new ones coming online constantly. Be sure to study the corporate white paper for insights into the core business and corporate leadership before jumping in with both feet.

For the first quarter of 2018, here are a few ICOs that are rapidly gaining notoriety:

ICO                            Core Business           Ending Date (2018)

Clear Coin                  Advertising                         March 31

Dogezer                      Labor Investment              March 8

Nucleus Vision          Identification                     February 28

AMLT                          Compliance                        January 30

HOQU                        Advertising                          February 26

In truth, there will be hundreds of ICOs hitting the market in 2018. Some will succeed and many will fail. Just as any publicly traded company, success is most certainly not assured.

However, securing extraordinary profits is possible. As in all things trading, just watch the risk exposure and appropriate funds wisely. Throughout 2018, we at FXLeaders will be studying these budding markets and passing along insights and ideas on how to benefit from the action.