ICO Calendar – Best Crypto ICOs to Watch in July 2025

According to our research, including investor sentiment surveys and on-chain engagement data, the top upcoming ICOs for July 2025 are Token6900, Snorter, and Bitcoin Hyper. These projects lead the pack due to viral traction, community depth, and distinct product positioning.

Token6900 is a hyper-meme coin blending absurdist humor with strategic scarcity, gaining cult-like attention. Snorter brings real utility to meme coins with its Telegram-native trading bot and support for multi-chain tokens. Bitcoin Hyper offers a trustless Bitcoin bridge with Solana VM speeds, making it a rare Layer 2 with real BTC exposure.

With meme coins capturing over 30% of new retail flow and ICO participation up 22% since May, these are the standout ICOs worth tracking. You can learn more about how we evaluate and rank ICOs here, including our full methodology based on tokenomics, on-chain data, community metrics, and market alignment.

Best active and upcoming ICOs to join in July 2025

1. Token6900 (T6900) — A fixed-supply, non-utility meme token ICO
2. Bitcoin Hyper (HYPER) — Fastest Bitcoin Meme Coin ICO
3. Snorter (SNORT) — Leading Meme Coin ICO
4. Best Wallet (BEST) — Best Ecosystem Token ICO
5. SUBBD (SUBBD) — Most Disruptive ICO
6. SpacePay (SPY) — ICO Bringing Web3 Payments to the Real World
7. Cogni AI (COGNI) — The AI Token ICO Built for Daily Use
8. InfluencerPepe (INPEPE) — The Meme Coin with Real Creator Firepower

In-Depth Reviews: Best Crypto ICOs to Watch

Want to learn more about the top crypto ICOs happening now? We’ll explore each in detail so you can decide which ones to invest in.

1. Token6900 (T6900) — A fixed-supply, non-utility meme token ICO

Token6900 is a fixed-supply meme coin inspired by SPX6900 and early 2000s internet absurdism. With no utility, roadmap, or technical ambitions, it embraces the current wave of anti-narrative tokens, betting entirely on virality, scarcity, and culture.

Token 6900 presale page. Photo: Token6900

The project launched a fair presale capped at $5 million, allocating 80% of the total supply to the public. There are no team wallets, no mint functions, and no post-launch emissions, making TOKEN6900 a rare example of a truly fair-launched meme coin in 2025. On-chain analysis and investor tracking tools show over 12,000 presale participants, and social metrics indicate a sharp rise in engagement driven by meme influencers.

While it offers no functionality or staking rewards, its appeal lies in early cultural positioning and market timing, similar to early DOGE or PEPE-style launches. It may suit high-risk traders, early adopters, and cultural speculators more than traditional investors or utility-focused buyers.

Why this ICO stands out: It’s one of the few meme ICOs with zero utility that is proving the power of brand, scarcity, and timing.

Who it’s for: Degens who thrive on meme momentum, early entries, and cultural alpha, not long-term holders or utility-seekers.

Community Growth: Rapidly spreading through meme influencer circles.

Access & Availability: Presale was capped at $5M with 80% of tokens distributed—no VCs, no team wallets, just pure fair-launch distribution.

Visit Token6900

2. Bitcoin Hyper (HYPER) — Fastest Bitcoin Meme Coin ICO

Bitcoin Hyper is a Bitcoin Layer 2 meme coin that enhances transaction speed, reduces fees, and facilitates decentralized applications (dApps) on Bitcoin, providing it with the long-needed execution layer. Backed by the Solana Virtual Machine, it aligns with the $1 trillion Layer 2 opportunity while infusing Bitcoin into the meme coin culture.

Image source: Bitcoin Hyper Presale Page

While Bitcoin is often regarded as a store of value, its limitations have hindered its adoption in decentralized finance (DeFi) and decentralized applications. Bitcoin Hyper addresses this with sub-second finality and near-zero gas fees, making it compatible with BTC, ETH, and SOL. Security is paramount, with zero-knowledge (ZK) proofs securing transactions and regularly committing to the Bitcoin mainnet, ensuring trust without compromising performance.

The HYPER token powers various functions within the ecosystem, including staking, governance, and payments. With the presale currently live, early investors can enter before major exchange listings.

Why this ICO stands out: Delivers true BTC bridging with Solana VM performance.

Who it’s for: Bitcoin users seeking faster, cheaper transfers and Solana-native DeFi participants.

Community Growth: Early interest from both Solana and Bitcoin builder communities.

Access & Availability: No VC round; BTC holders can bridge directly into the ecosystem post-launch.

Visit BitcoinHyper

3. Snorter (SNORT) — Leading Meme Coin ICO

Snorter is emerging as a top-tier meme coin ICO, blending viral appeal with robust utility and a solid foundation. At the heart of the project is the Snorter Bot — the fastest, lowest-fee Telegram-native trading bot for Solana and Ethereum enthusiasts. It transforms your Telegram chat into a complete trading suite, automating swaps, snipes, stop-losses, copy trades, and portfolio tracking.

Image source: Snorter homepage

Powered by the multi-chain SNORT token (on both ETH & SOL), Snorter unlocks advanced features like MEV protection, instant token launch sniping, copy-trading tools, staking rewards, and cross-chain bridging via Portal Bridge.

As investors search for promising, early-stage opportunities that merge fun with solid fundamentals, Snorter (SNORT) stands out as a structured, innovative alternative in the meme coin arena — built not just to make a splash, but to grow over time.

Why this ICO stands out: Combines Telegram-native trading with multi-chain token support and real-time execution.

Who it’s for: Telegram-native traders, degen communities, and users looking for simplified on-the-go swaps.

Community Growth: Over 9,000 Telegram users; viral campaign planned post-ICO with referral incentives.

Access & Availability: Launching on both Ethereum and Solana, token distribution is 100% public with no VC or private rounds.

Visit Snorter

4. Best Wallet (BEST) — Best Ecosystem Token ICO

Best Wallet is an up-and-coming crypto wallet platform that’s revolutionizing the space with tons of cutting-edge features. It supports more than 60 blockchains, offers airtight security, and bakes in Web3 essentials like the ability to buy crypto anonymously, staking, trading, and community governance. Best Wallet also offers its own crypto launchpad, making it one of the best places to find hot new ICOs.

Best Wallet Website. Source: Best Wallet.

Best Wallet is enhancing its ecosystem with the BEST token, which offers numerous perks for wallet users. BEST holders receive discounted fees on trades at the Best DEX decentralized exchange, enhanced staking APYs on their favorite tokens, and early access to new ICOs hosted on Best Wallet’s launchpad. The project also plans to incorporate BEST into upcoming features like its crypto debit card, where BEST holders will receive cashback and discounts on transaction fees.

Best Wallet has more than 250,000 monthly active users, giving it a massive built-in community for the BEST token launch. The ICO has already raised more than $11 million and is offering up to 128% APY for BEST token staking, giving early investors a chance to load up their wallets.

Why this ICO stands out: Combines wallet, launchpad, DEX, and staking in one platform, offering up to 128% APY.

Who it’s for: Web3 power users, ICO hunters, and anyone seeking to maximize passive earnings.

Community Growth: Rapid growth among DeFi users; Telegram and X communities expanding via staking campaigns.

Access & Availability: ICO open with staking-based rewards; BEST token required for access to key features.

Visit BestWallet

5. SUBBD (SUBBD) — Most Disruptive ICO

SUBBD is an exciting new AI-powered content platform aiming at the $85 billion subscription content market. The project aims to put AI content generation and assistant tools in the hands of content creators and influencers, freeing them up to create more and focus on more personalized interactions with fans. That results in a more engaged environment with more monetizable content — a win for creators, fans, and SUBBD token holders.

SUBBD Official Website. Photo: SUBBD

In addition, SUBBD is giving fans access to AI-powered creator tools for the first time. Fans can use AI to generate and monetize their content based on their favorite influencer, with approval. It’s an entirely new way to keep fans engaged and amplify the original content created by top influencers on SUBBD.

The SUBBD token lies at the heart of this ecosystem. It’s used for payments between fans and creators, unlocks access to exclusive subscription content, and offers discounts and access to VIP features like live streams. SUBBD is offering 20% APY to early investors who stake their tokens during the ICO, making this one of the best crypto presales to lock in early gains.

Why this ICO stands out: Combines AI tools with token-based monetization for creators.

Who it’s for: Digital creators, fan-driven communities, and Web3 users.

Community Growth: Building through early creator onboarding; strong alignment with AI influencer spaces.

Access & Availability: Public ICO with 20% APY for stakers; SUBBD token required for full access to content.

Visit SUBBD

6. SpacePay (SPY) — ICO Bringing Web3 Payments to Real World

SpacePay is a crypto payments ICO that breaks through the noise by going beyond wallets and into the real world. Already live in early pilots with over 250 retail partners, SpacePay enables customers to pay with crypto, like Bitcoin or Ethereum, using nothing more than a phone tap or QR scan.

SpacePay Website. Source: SpacePay.

SpacePay is compatible with major blockchains and features real-time conversion, powered by the SPY token, which handles settlement fees, rewards, and merchant rebates. It is uniquely positioned to onboard physical retailers to the Web3 era. In a landscape where most “crypto for payments” solutions are vaporware, SpacePay Crypto stands out with live integrations and working infrastructure. If you’re scanning for ICOs with traction, fundamentals, and a working model, the SpacePay presale deserves a serious look.

Why this ICO stands out: Live merchant pilots, multi-chain conversion engine, and real-world payment UX.

Who it’s for: Crypto holders seeking real-world spendability, merchants, and Web3 payment enthusiasts.

Community Growth: Backed by IRL merchant partnerships and regional pilot campaigns.

Access & Availability: Public ICO with ecosystem incentives for early users and merchants.

Visit SpacePay

7. Cogni AI (COGNI) — The AI Token ICO Built for Daily Use

Cogni AI enters the AI token space with actual, working tech, not just AI-flavored buzzwords. This isn’t another Bitcoin GPT clone. Instead, Cogni delivers a real product: an AI assistant that helps users track portfolios, optimize DeFi yields, manage wallets, and react to market shifts in real-time.

Cogni AI Website. Source: Cogni AI.

Built on the Polygon blockchain for fast and low-cost transactions, the platform uses COGNI to unlock premium tools, DAO voting, and early access to new features. Cogni AI Crypto delivers usable infrastructure, and investors are taking note. As AI continues to infiltrate finance, the Cogni AI ICO positions itself as a rare project that integrates AI with on-chain behavior. If you’re looking for an AI presale that blends utility with vision, Cogni is one of the most promising contenders in the space.

Why this ICO stands out: One of the first on-chain AI assistants with behavioral learning and real-time Web3 action prompts.

Who it’s for: DeFi users, NFT collectors, and Web3 wallet holders.

Community Growth: Building via wallet partner integrations and early beta user feedback loops.

Access & Availability: Public ICO with token-gated features; runs on low fees and rapid interaction speeds.

8. InfluencerPepe (INPEPE) — The Meme Coin with Real Creator Firepower

InfluencerPepe is a meme coin ICO built for the age of social media dominance — blending degen culture with influencer marketing mechanics. Instead of relying on hype alone, the project partners with a network of mid-tier and micro-creators who actively promote the coin, driving real engagement. Holders of INPEPE can stake tokens behind their favorite influencers, boost campaigns, and earn rewards based on performance, turning social capital into tokenized value.

InfluencerPepe Website. Source: InfluencerPepe.

With its multi-chain deployment on Ethereum and BNB Chain, INPEPE Crypto is designed to scale because of its smart integration of meme coin virality with creator-led growth. As the presale gains traction, InfluencerPepe ICO is proving that memecoins don’t have to choose between hype and function — they can do both, and do it loudly.

Why this ICO stands out: One of the first meme tokens to tokenize real influencer virality with creator staking and engagement rewards.

Who it’s for: Fans of influencer-backed coins and users who want exposure to creator-driven upside.

Community Growth: Growing via influencer partnerships, YouTube and TikTok cross-promotion, and early community staking rewards.

Access & Availability: Open ICO with creator-aligned staking incentives.

Best Crypto ICOs Recap and Market Analysis

Stay on top of the fastest-moving ICOs with our weekly market recap. From top fundraising projects and new presale launches to viral community growth and exchange listing signals, here’s what’s shaping the crypto launch landscape right now.

Top Fundraising Rounds (Last 7 Days)

• LILPEPE raised $2.5M in Stage 3 and is now in Stage 4 at $0.0013, with over 20K wallets active.
• NeoPepe launched with viral governance mechanics and closed $1.2M in its first 5 days.

New Presale Launches

• Token6900 opened its hard-capped $5M presale, focused on a transparent and accessible launch.
• Pipe Network began its token sale with a focus on secure, composable DeFi infra.

Community Growth Highlights

• Snorter surpassed 9,000 Telegram members in pre-launch.
• INPEPE saw a 300% spike in X engagement after onboarding TikTok and YouTube creators.
• SUBBD grew its waitlist and creator onboarding funnel after its demo release.

Exchange Listing Announcements

• Bitcoin Hyper and Snorter are rumored to be in pre-listing talks with Tier 1 exchanges.
• SpacePay confirmed its pilot merchant program will onboard into a centralized exchange listing campaign post-launch.

Major Milestones & Project Updates

• SpacePay crossed 250+ live merchant pilots, with a cross-chain POS payment engine live in beta.
• SUBBD completed the first AI creator test cycle with successful gated content trials.
• Cogni AI secured a micro-grant from the Polygon ecosystem and expanded wallet integrations.
• INPEPE launched the influencer staking leaderboard and began daily reward drops.

Top Performing Past ICOs Tracker

Understanding what made previous ICOs succeed helps sharpen your investing edge. Below is a curated snapshot of recent top-performing ICOs, showing key ROI metrics and the core factors that drove their growth.

What Drives High-Performing ICOs?

Reviewing the top-performing ICOs of 2025 so far reveals several consistent patterns that separate high-ROI launches from the rest. While individual projects may differ in theme or tech, successful ICOs tend to share a handful of strategic advantages:

• Clear, Memorable Positioning
  ICOs that carve out a distinct identity — whether through meme appeal, utility, or branding — tend to attract stronger early interest. A compelling hook, even without a complex roadmap, creates immediate narrative clarity and viral spread.
• Community Before Capital
  High performers usually grow organic Telegram and X communities before or during the ICO, rather than after. Investors are increasingly sensitive to signs of manufactured hype; early community traction is a reliable proxy for project credibility.
• Simplicity in Tokenomics
  Flat presale structures, capped supplies, and no confusing vesting schemes often correlate with better early performance. Transparent distribution models reduce fear of insider dumping and build investor trust, especially among meme and retail participants.
• Narrative Alignment with Market Trends
  ICOs that ride macro narratives — like Bitcoin scaling, AI utility, Telegram-native tools, or creator monetization — benefit from built-in momentum. When a token becomes a proxy for a trend, its upside grows beyond the project itself.
• Post-Launch Utility or Activity
  Tokens that offer some form of staking, gated access, bot usage, or Layer 2 interaction typically maintain better engagement and lower sell pressure. Even minimal functionality can anchor price action after the initial hype.

What is an ICO?

An ICO, or initial coin offering, is a type of token sale in which a crypto project offers its new coin directly to public investors. It’s also known as a crypto presale. ICOs are one of the most common methods for new projects to distribute their tokens to investors.

In an ICO, anyone with a crypto wallet can purchase a project’s new token. All they have to do is connect to the ICO and swap an established token for the project token. Typically, this reserves their coins, and investors receive them after a token generation event (TGE), which is the actual process by which the new token is created on the blockchain.

ICOs are significant in the crypto market because they put new cryptocurrencies into the hands of investors. This is important for decentralization — for any tokens that are used to validate transactions or govern a decentralized autonomous organization (DAO), the more investors holding a token means validation and voting power is more decentralized.

ICOs are also important because they represent a way for new projects to raise investment. Investors in an ICO offer cash or established cryptocurrencies (often Ethereum, Bitcoin, Tether, or another major token) in order to receive the project token. The project can use the tokens it receives to pay for development, marketing, and other startup costs.

Many crypto exchanges also monitor ICOs to determine which tokens to list. Projects that raise a significant amount of money during their ICOs or attract a large number of investors are more likely to be listed on major centralized exchanges.

Historical Context

ICOs have been popular for many years, dating all the way back to the launch of Ethereum in 2014. When the Ethereum ICO began, investors could trade 1 BTC for 2,000 ETH. The ICO sold more than 60 million ETH at an average price of $0.31 and raised more than 31,500 BTC (worth around $18.3 million at the time).

This success foreshadowed the ICO boom that came in 2017, as new tokens built on the Ethereum blockchain began to launch in droves. More than 800 crypto projects held ICOs and raised more than $10 billion. Some of the best crypto started as ICO tokens in 2017.

In the wake of the ICO boom, new token offerings have continued at a rapid pace. The number of crypto ICOs and their value raised with each successive crypto bull market, although ICOs have also declined in number and value during bear markets.

ICOs vs. IEOs, IDOs, and STOs

ICOs are just one of several ways that new crypto projects can release their tokens. Other options include IEOs, IDOs, and STOs:

• Initial Exchange Offering (IEO): In an IEO, a project distributes tokens directly to a centralized crypto exchange. The exchange pays the project a fixed price for the tokens, raising money for the project. The exchange then makes money by offering the tokens to its customers at a slightly higher initial price.

• Initial DEX Offering (IDO): An IDO works the same way as an IEO, except the exchange involved is a decentralized exchange (DEX) instead of a centralized exchange.

• Security Token Offering (STO): An STO offers investors a blockchain-based token that represents real ownership in a digital or real-world asset. It is very similar to an ICO, except that the token involved is considered a security and is subject to securities regulations.

Reasons Why ICOs Are Popular

Since projects have several options for releasing tokens, why do so many choose ICOs? ICOs offer several key advantages:

• Fundraising: Projects with savvy marketing teams can often raise more money through ICOs than through IEOs or IDOs. They have more flexibility to raise the price of their token as the presale progresses or to offer other incentives to investors, such as staking benefits or early access to project utilities. Projects are also only limited in their ICO fundraising by how many tokens they can offer for sale, whereas in an IEO or IDO, they are limited by how many tokens an exchange will buy.

• Community-building: ICOs enable crypto projects to build a direct connection with their investors. They receive information about users’ wallet addresses and can survey them about how they found the project or why they joined. This can help a project better deliver for its investors.

• Investor loyalty: ICOs also engender loyalty among investors. Investors are more likely to hold onto a token and stick with it through volatility if they have “found” a project and invested in it directly. Investors who buy a token through their crypto exchange are less likely to feel direct loyalty to the project itself.

How Do ICOs Work?

ICOs all work in the same way: they enable investors to swap established tokens or fiat for a project’s new token. They also follow the same basic three-phase structure.

• Token sale: Tokens are offered for sale to investors. Some ICOs are split into a presale, in which tokens are available only to a limited group like team members and venture capital firms, followed by a main sale that’s open to the public.

• Distribution: Anyone who purchased tokens can claim their tokens and add them to their crypto wallet. In some cases, tokens are distributed directly to investors’ wallets through an airdrop.
• Listing: Tokens list on a DEX or centralized exchange for trading. Anyone can buy tokens once they are listed. ICO investors can typically sell at this time, although some projects have lock-up periods that prevent ICO investors from selling right away.

An ICO’s token sale phase can be further subdivided into stages, which last for several days or until a certain fundraising milestone has been reached. The price of the project’s token typically increases in each successive stage of the sale.

Smart contracts play a crucial role in ICOs, especially since investors typically pay for tokens during the sale phase but don’t receive them until the distribution phase. Smart contracts ensure that when distribution happens, investors can claim their tokens simply by connecting their crypto wallet to the project site. The smart contracts underlying ICOs are visible to investors and are often audited by third-party security firms to ensure the process is truly automated and trustless.

How to Buy Exclusive Crypto ICOs Early

Now that you know the basics of how ICOs work, let’s walk through the steps involved to join a crypto presale.

Step 1: Research the Project & Whitepaper

To get started, it’s important to carefully research any ICO you’re interested in joining. While there are many legitimate ICOs, this space is also a common target for scammers. Additionally, not every ICO will be a success; some tokens can see their value decline rapidly after launch. It’s important to make sure the ICO you’re joining is likely to be a winner.

To conduct research, dive into the project’s materials. This can include the whitepaper, project roadmap, tokenomics, and social media channels. Explore what crypto analysts have said about a project and try to learn more about the project team members, especially if they are doxxed. It’s also a good idea to look at similar crypto projects and how they have performed recently.

The more information you can analyze, the better positioned you will be to make a decision about joining the ICO.

Step 2: Create a Compatible Wallet

Next, you must create a crypto wallet that’s compatible with the ICO. Your wallet needs to be able to connect to the project site and hold the project tokens. Most presales work with any ERC-20 compatible wallet, but it’s important to double-check.

We recommend using Best Wallet as one of the best decentralized crypto wallets. It’s free, secure, and supports thousands of tokens across 60+ blockchains. You can create a new wallet anonymously in a few minutes. Best Wallet is available for iOS and Android.

Step 3: Transfer Funds

Your wallet will need to be funded with ETH, USDT, or another token accepted by the ICO for payment. If you already hold these tokens in another crypto wallet, you can transfer them to the wallet you set up in Step 2. Blockchain transfers incur a gas fee but take place instantly.

If you don’t already own the needed crypto tokens, you can purchase them with fiat on a centralized crypto exchange such as Binance or Coinbase. You’ll need to create an exchange account, go through the ID verification process, deposit funds, and then purchase the tokens you need. After purchasing tokens, you can make a withdrawal to transfer them to your crypto wallet.

Step 4: Access the ICO Platform or Launchpad

Now navigate to the ICO platform, which may be the project’s website or a crypto launchpad that the project is working with. Click ‘Connect Wallet’ or a similar prompt and choose your wallet from the menu that appears. Follow the prompts from your wallet to authorize the connection.

Step 5: Complete KYC

Some crypto ICOs require you to complete Know Your Customer (KYC) checks before you can make a purchase. This process includes providing details like your name and birthdate, uploading a photo of your ID, and providing proof of address.

Many ICOs don’t require KYC, so you may be able to skip this step.

Step 6: Purchase Tokens

Now you can purchase tokens. Enter the amount you want to invest in ETH, USDT, or whatever token you’re paying with. The ICO site should display the equivalent number of project tokens you’ll receive in return.

Confirm the transaction to complete your purchase.

Step 7: Store Tokens Securely

Some ICOs will send tokens to your wallet immediately after you make a purchase. In these cases, you can store your tokens in the wallet you used to join the ICO or transfer them to another wallet for safe storage. Consider moving your tokens to a cold storage or hardware wallet if you have one, since this is the most effective way to keep them safe.

Most ICOs will not distribute tokens right away, but rather will hold a distribution event or token claim once the presale ends. At this time, you must return to the ICO platform and reconnect your wallet to add your tokens to your wallet. Once your tokens are in your wallet, you can transfer them to another wallet for storage if needed.

Tips for Maximizing Presale Access

Investors who are first to an ICO — or who can buy tokens during a presale before the main sale — can lock in the lowest token prices and the highest staking rewards. So, it’s important to set yourself up to get early access to new ICOs.

There are a few ways to do this. Some projects offer a whitelist you can join, which is similar to a waitlist for a new ICO. If you’re on the whitelist, you’ll have exclusive access to buy tokens before anyone who isn’t on the list.

Other projects require involvement in the community. This is especially common for established projects that already have a strong following, but are releasing a token for the first time. These projects often provide early presale access to existing community members, such as those who own NFTs or have other proof of membership.

Finally, be on the lookout for airdrops, which can be a way to get tokens without having to purchase them. Airdrops often require investors to complete tasks, like sharing information about a project on social media. Completing more tasks may qualify you to receive more tokens when the airdrop happens.

How to Identify Legit ICOs

There are hundreds of legit ICOs in the cryptocurrency market every month. Still, investors must be vigilant for scams and inauthentic projects that aim to defraud unsuspecting investors. Unfortunately, crypto scams and rug pulls have been highly effective at stealing money from ICO investors — they have taken more than $500 million from investors in 2025.

So, it’s important to know how to identify legitimate ICOs. We’ll explain how.

How to Invest in ICOs Safely?

The key to investing in ICOs safely is doing research. You need to know as much as possible about a project and make sure that everything checks out.

Key elements to investigate include:

• KYC compliance: Do projects require KYC checks before you can invest? Many projects don’t, if they only accept crypto payments, but projects that accept fiat are required to comply with KYC regulations.

• Smart contract audit: Has the project’s smart contract been audited by a trusted third-party security firm like Coinsult or SolidProof? These audits ensure that a project’s smart contract is legitimate and that tokens will be delivered at the end of the ICO.

• Tokenomics: Are the project’s tokenomics reasonable? Projects should allocate tokens for development, exchange listing, and other key initiatives. Also, be cautious of large project team token allocations, as these could be sold suddenly and significantly impact the price of a token.

• Project whitepaper: A project’s whitepaper explains what it’s all about, including its tokenomics, roadmap, expected audience, and other key details. This should be a well-thought-out document that reflects the same information as other project documentation.

• Development team: The team behind a project should be fully doxxed, except in the case of meme coins, where teams often remain anonymous. Research the developers to see what projects they have been involved with in the past and whether they have a good reputation.
• Legal compliance: Projects should always comply with legal requirements, which can vary depending on the country where team is based. If a project appears to skirt the law, that’s a significant red flag.

How to Spot an ICO Is a Scam?

When researching a project, it’s important to watch out for any red flags or suspicious activity that could indicate the ICO is a scam. Potential flags include:

• Promises of riches: While many projects, and especially meme coins, aim to generate returns for investors, they should never explicitly guarantee riches or specific levels of profit. No ICO is guaranteed to go up, so this type of language is at best misleading and at worst indicative of a scam.

• Poor track record: Watch out for developers or team members who have been involved with scams or rug pulls in the past. There is a strong likelihood that they may execute a similar scam again.

• Unrealistic project details: Scam projects often have unrealistic details or mismatched project details across different resources. For example, the project’s tokenomics may not add up or the project may promise different goals in the whitepaper and on the website.

• Unusual payment platforms: Only invest in ICOs that use legitimate, well-known payment platforms. Never send crypto or fiat directly to a wallet address without going through a smart contract.

• Lack of smart contract audits: An audited smart contract isn’t a guarantee that an ICO is legitimate, but nearly all legitimate projects go through audits. Avoid projects that haven’t undergone a third-party audit.

Are ICOs Legal?

ICOs are generally legal, although there are nuances in different markets and for different types of tokens. Let’s take a closer look at the regulatory landscape.

US Regulatory Landscape

In the US, ICOs are legal as long as the underlying tokens are not considered to be securities. However, this is a fraught designation as there is currently no legal consensus for what makes a specific crypto token a security.

During the Biden administration, the Securities and Exchange Commission (SEC) broadly defined most crypto tokens as securities and thus made most ICOs illegal as unregistered security offerings. Many ICOs have language indicating that US residents are not able to join, although, unless KYC checks are required, there are no barriers to buying tokens in the US.

Under the Trump administration, this has changed significantly. Most legal action against crypto projects and exchanges has been dropped, and there is increasing confidence that ICOs will not be challenged. Upcoming crypto legislation could provide more clarity on what tokens are securities and whether ICOs are fully legal.

EU Regulatory Landscape

In the EU, most ICOs are legal as long as they comply with the Markets in Crypto-Assets Regulation (MiCA) legislation. MiCA provides a framework for registering new tokens, and projects must go through this process if their token meets specific registration requirements. Projects that are required to register under MiCA but do not can face penalties.

Asia Regulatory Landscape

There is no single regulatory framework for crypto ICOs in Asia. Each country has its own process, and they can vary considerably. For example, in Japan, crypto ICOs are legal, but tokens are subject to heavy regulation. In China, ICOs are banned completely. In Malaysia, ICOs are legal, but cryptocurrencies are regulated as securities. So, new offerings must have approval from the Securities Commission Malaysia.

What Returns Can I Make Investing in ICOs?

Most investors are interested in joining ICOs because of their potential for high returns compared to investing in established cryptocurrencies. So, what kind of returns can you actually make?

Historical Success and ROI Examples

An analysis of more than 1,600 ICOs from 2017-2022 provides an in-depth look at the historical performance of new tokens. According to that analysis, the vast majority of tokens provided a positive return on investment (ROI) at their all-time high. However, while a subset of tokens provided gains from 100% to 10,000%, most successful tokens offered a return of 10% to 70% at their all-time high.

Importantly, not all investors will have the opportunity to sell at the all-time high. And if you miss this opportunity, the data suggests that many fewer ICOs produce returns. Nearly all of the ICOs had a negative ROI at the time of the analysis, although it’s worth noting this was up to five years after the token’s ICO. Several tokens offered long-term returns of 1,000% or more; however, returns exceeding 100% were relatively rare.

More recent examples have demonstrated that ICOs continue to exhibit explosive potential after their launch. Here is how three tokens performed at different intervals after launch.

This shows that while life-changing gains are possible, returns of a few hundred percent from launch are more likely for most ICOs. However, these gains often take place very quickly — often within a few days of launch — so investors can earn much higher annualized gains compared to investing in established cryptocurrencies.

Risk vs Reward Analysis

One way to estimate the potential ROI from a crypto ICO is to conduct a risk vs. reward analysis.

This analysis should take into account not just a project’s potential for long-term growth, but also trading metrics like volatility and liquidity. It should also consider market sentiment, since this can significantly impact how an ICO token performs in the days immediately after launch, when its growth potential is highest.

Since ICO tokens have not yet traded on public markets, investors should consider similar tokens that are already trading on exchanges. Investors can also look at trends in the broader market to identify bullish periods when ICOs are more likely to be successful.

How Often Do New Crypto ICOs Take Place?

New crypto ICOs occur frequently. There are usually several ICOs going on during any given week in the crypto market, and new ICOs launch as often as a few times per week.

That said, ICOs aren’t as common as new direct-to-exchange launches like IDOs. That’s because meme coins are the most common type of new crypto launch, and the majority of them go straight to listing on decentralized exchanges. There can be hundreds or even thousands of new IDOs every day, although most of these tokens attract less attention and investment than new ICOs.

Market Cycle Insight

Importantly, new crypto ICOs don’t take place at a constant, steady pace. Instead, the frequency of new token sales rises and falls with the fortunes of the crypto market.

When the crypto market is going through a bull run, ICOs are more frequent, and they tend to raise more money ahead of launch. When the crypto market is bearish, ICOs are less frequent. Presale stages also tend to last longer, and projects raise less investment overall before they are listed.

Frequency of Launches by Category

Another factor to consider is that ICO frequency and fundraising can vary significantly across different sectors of the crypto market at different times. Typically, trending sectors tend to see a higher number of token launches (as ICOs, IDOs, and IEOs) and larger raises from investors.

Examples of hot categories that have seen surges in ICO activity in the past include DeFi, NFTs, and metaverse tokens. Most recently, the AI agent token category experienced a massive boom in ICOs.

FAQ

References

1. History of Crypto: The ICO Boom and Ethereum’s Evolution (Cointelegraph)
2. Crypto Investors Lost Over $500M in Memecoin Rug Pulls and Scams in 2024 (CoinDesk)
3. Trump’s SEC Is Ending Crypto Lawsuits and Investigations — These Are the Biggest (Decrypt)