The ICO craze from 2017 to 2018 has been a major event in cryptocurrencies’ history because many developers saw the opportunity to create their own companies by building products based on Ethereum tokens.
I participated in this massive event, gaining the opportunity to create wealth fast. In this article I’m about to tell you how it happened so that you’re prepared for the next ICO bubble and to help you understand how to spot market trends, step-by-step.
Here’s what you’ll learn:
- How it all started
- My own perspective on the ICO craze as a developer
- How the ICO bubble began to explode
- Predicting market trends and profiting from bubbles as they happen
- Building relationships step-by-step to gain exclusive insider knowledge
- My views on luck and how to create it
It started in mid 2017 when people began to pay attention to cryptocurrencies for the first time. Big companies such as JP Morgan invested heavily into crypto for their own profit moving people’s attention into the market. In fact I believe they created this event by themselves.
You see, companies such as JP Morgan understand how markets work since they have been in business for centuries so it just natural for them to invest in crypto to bring people’s attention to this untapped market.
Their plan was simple:
- Increase cryptocurrencies prices drastically to show people that they can make money too.
- Get everyday people to invest into the market, fuelled by greed.
- When the market is at an all-time-high, take your profits home and slowly extract your earnings to not raise suspicions.
The price of Bitcoin and all altcoins began to raise dramatically and in 6 months, it reached an all time high. Quickly after that, it dropped slowly for an entire year.
When it comes to ICOs, people took advantage of this movement by creating their own cryptocurrencies with the easy-of-creation of Ethereum ERC-20 tokens. These are tokens that can be created pretty quickly and have the same advantages as traditional cryptocurrencies such as Bitcoin.
You can transfer them, you can generate as many as you want and you can burn them. They are modular and expandable which allows you to create your own coins. Creating your own crypto became accessible to everybody.
The word quickly got out and people began imitating each other by creating similar looking ICO websites whose only purpose was to convey trust and get people to invest in their project.
Many projects raised millions of dollars considering that the market was rising because everyday individuals put their money into the market to generate a profit. Soon after that, many millionaires were made and many others lost their own fortunes.
Unfortunately, many ICOs didn’t even reach their soft goal which means they had to return the money invested and start again with other ICOs.
Personally I’ve been involved in 4 ICOs helping people build their Smart Contracts on Ethereum and get that investment going. The first one was called Fizcal which now has been rebranded into another company.
This CEO wanted to create a triple-entry accounting system which essentially meant signing and storing your documents in 3 different places for increased security. The implementation didn’t matter.
The point is that I helped him build the MVP (Minimum Viable Product) in about 2 months from a PDF mockup. The result was excellent. It looked great and worked exactly as you’d expect. It was one of my favorite projects because it was useful, fast and elegant.
After delivering the project, he started his own ICO. He created a login system in which any user could create an account and be given access to the investment dashboard in order to fulfil the KYC (Know Your Customer) requirements.
In my honest opinion, this was a huge mistake because investors had to give their personal details to this project not knowing where that could end up. I’m pretty sure many didn’t invest because of that small issue.
Lesson number one: Make investments as easy as possible in order to raise more funds for your project.
The next project was for a company called Pally in which I helped them build the ICO and token contracts. After months of working on all kinds of tasks, they began their ICO raising half a million dollars. It was a great project from the start.
My point is: many of those projects were possible because Facebook and Google didn’t have any limitations in terms of who could promote their cryptocurrency-based project. They quickly realized the scams that were going on and decided to block all crypto-related ads on their sites.
This heavily slowed the market by forcing people to stop promoting their projects because there wasn’t a good way of promoting their ideas. That’s why most of the marketing funds where used towards influencer marketing.
Therefore many ICOs failed because they joined the party too late while others succeeded because they were at the right place, at the right time.
On another note, the Ethereum ICO bubble started because big companies invested into the market. That heavy investment made many traders realize the potential of the technology which in turn brought the general public to the decentralization ideas and made them invest their own money.
The ICO bubble stopped when those same big companies decided to take their profits home by massively selling crypto on their own terms. Slowly, the price began to drop and most people didn’t realize what happened.
In reality they slowly sold over time to stay under the radar and avoid bringing too much attention to themselves.
What this bubble did is create massive wealth for those that were quick enough to predict what was going to happen and take advantage of it.
You see, if you knew the Bitcoin price would reach $20k in half a year, you’d heavily invest all your savings into it in order to get the most earnings possible.
How could you predict and participate in the next bubble before it’s too late? Continue reading to see how it all works…
Predicting trends is not easy. Many have tried creating entire sciences around the topic, millions have been invested into machine learning prediction systems.
Unfortunately, the only way is to pay attention and be proactive to recognize market movements by feeding yourself the right information.
If you see a constant increase in cryptocurrencies prices, that’s because companies and executing their own plans to increase the price artificially and make the general public believe they can make a great profit.
Read on smart people’s discussions on twitter, facebook or instagram. They know what’s happened on the inside and they may share it with their followers which is an excellent source of exclusive information.
You got to look where not many people are looking. Private groups on facebook or telegram, specialised forums with a paywall and email lists. Many of them will cost you money but the potential return on investment is incalculable.
Go to events and talk to people building great things. They are the best source of interesting information that you can find. Direct contact to establish personal connections will always be the number one strategy to stay updated when it comes to recognising trends.
I’m pretty sure you have friends or family member with whom you share secrets and what’s going on your mind at all times. They reciprocate because you’re on the same team. Now imagine that level of insider knowledge from the smartest people involved in crypto.
You could potentially predict the start and end of a trend like the ICO bubble and get wealthy in no time.
It’s up to you to find those juicy sources of information to have an edge when it comes to being the first.
Lesson number two: only those that are at the right place, at the right time will enjoy the largest profits.
The sooner you get into it, the better you’ll be. Personally I got into crypto a bit late since the movement started in 2016 when Ethereum was evolving and producing new token standards.
Imagine the millions of crypto users that could’ve become rich if they invested in Bitcoin soon enough. That’s why being in those circles is of extreme importance.
Find where the smart people are and you’ll find the right information to make an informed decision. Just think about it, whenever something bad happens, what’s the number one question people make?
Who did this? Because once you know who, you know what happened, why, how and how to avoid it if it was a mistake. People are the best source of information. The closer you’re to the source, the more insider knowledge you’ll get.
Lesson number three: create connections with people that are deep into the industry to benefit from exclusive knowledge that may catapult you into the right direction.
How do you build those relationships? First off, creating a new solid connection with someone takes time and a whole of patience. You start by providing value.
Reaching out to them on all social media sites until they notice your presence and start giving you information back is your strategy. After that, it’s just a matter of following up until you both get value.
Here’s a step-by-step guide on connecting with the right people:
Deep searching: Search for influencers and people with the experience to know what the market they are in is all about. Those are few and far in between that’s why a simple google search won’t cut it. You have to search several pages deep, in many different social media sites and forums until you recognize them.
List improvements: Research their current situation. What are they up to? What things can be improved in their current business? Make a list of suggestions and pick the top one. Expand upon that idea and contact them with it.
Initial contact: Reach out to them via email or social media. Most people use email on the daily to stay updated on business-related activities so your best bet is to reach out to those influencers via email with your valuable suggestion to improve their business.
Short and actionable advice should be your focus. Besides, email is more personal.
- Follow up: Keep following up on the conversation until they respond. Most people will either ignore your message, not even open it or simply forget about about it.
That’s why it’s extremely important that you follow up by sending weekly emails reminding them of your initial value-driven email until they either ask you to stop or respond to your suggestion. That’s when you start connecting with that person.
- Continue interacting: After that, it’s a matter of asking them what you want to know and talk about ideas that you considered doing so that they can help you kickstart your success.
That’s a simply way of creating solid connections that will provide you with the knowledge you need right now to elevate yourself to the next level in terms of being the first one when new trends arise.
That process is how you’ll be one of the “lucky” ones that got early, making millions in the process.
Lesson number four: Luck is created by your daily efforts in the right direction, it’s not totally random and you have much more control than you think. Take responsibility.
I consider myself lucky in the crypto space because I got into it right when the party was starting. However, I didn’t stop there. I quickly decided to specialize on it to provide value as a developer and earn a decent living salary for as long as possible.
I spent week after week coding, researching development guides and exploring the marketplace until I found companies willing to hire me. It wasn’t easy but it was well worth it.
The crypto bubble is just another of the many bubbles going on around you all over the place right now. It’s just a matter of looking at the right places like I told you, to recognize them.
You see, perception is always subjective. Imagine having a pair of glasses that allow you to see a small portion of the entire picture. When you surround yourself with the right people and the right knowledge, your glasses become bigger and you see way more of what’s out there, thus benefiting yourself in the process.
For instance, the collective student loans debt is constantly increasing dramatically. Soon, the market won’t be able to sustain such a massive amount of dollars invested into students that can’t repay their debts back. It will break causing the entire market as we know it to sink.
Those that are free of debts won’t notice a difference except by the fact that things become much cheaper because nobody is buying. But those that were unprepared and tested their luck receiving student loans, will have to work for years to repay the damage done.
Eventually, those that made the right decisions will rise and increase their wealth even more, to the point of creating monopolies and dominating their particular industries.
Lesson number five: Once the bubble bursts, your best bet is to either sell as fast as possible or to play the waiting game and purchase when the market is cheap.
That’s why it’s so important to save money and create assets that will pay you in the future, regardless of how bad the market turns.
The ICO and crypto bubble was the natural consequence of big companies manipulating the market to their advantage. They have the power to change prices at will. That’s why many lost money when so many opportunities arose, because they didn’t see the whole picture.
There are countless bubbles growing at this very moment, it’s just that you don’t have the perception to see them because you’re not connected to the right people that can give you insider knowledge.
Each bubble creates massive opportunities to create wealth fast and those that are into it at the right time, will be the ones profiting the most. That’s why it’s important that you’re always paying attention to market movements.
If you liked this article, be sure to join the Ethereum Developers Club and get that insider knowledge that will help you spot market trends and ultimately create wealth. When you’re at the right place at the right time, good things happen.