Best Crypto ICOs – Upcoming ICOs Calendar in January 2026

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Last Updated: 16/12/2025

Bitcoin Hyper tops our best crypto ICO watch list in January 2026. It remains speculative, but 650M+ tokens staked signal real interest in Bitcoin Layer 2 experiments. Maxi Doge, a humorous gym-and-leverage meme, is a presale worth watching. PEPENODE is a virtual mining game ICO that will allow users to play and earn through virtual server rooms, once it goes live.

This guide tracks our ICO Calendar picks using a transparent methodology that explains how we score projects, considering project fundamentals, presale traction, on-chain data, and verified community data.

Best Active and Upcoming ICOs to Join in January 2026

1. Bitcoin Hyper (HYPER) – Fastest bitcoin meme coin ICO
2. Maxi Doge (MAXI) – Absurdist dog meme coin ICO
3. PEPENODE (PEPENODE) – Mine-to-Earn staking and meme ICO
4. SUBBD (SUBBD) – Most disruptive ICO
5. Ruvi AI (RUVI) – AI all-in-one app ICO with rewards for users
6. Tapzi (TAPZI) – Skill-based gaming platform ICO
7. Ozak AI (OZAK) – Financial predictions ICO using AI
8. BlockchainFX (BFX) – Multi-asset trading super app ICO
9. Blazpay (BLAZE) – DeFi powered by natural language AI ICO
10. Bullzilla (BZIL) – Meme coin with buy and burn ICO

What Are the Best Crypto ICOs to Watch? – Indepth Analysis

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. Bitcoin Hyper (HYPER) – Fastest Bitcoin Meme Coin ICO

Bitcoin Hyper is a Bitcoin Layer 2 and also a meme coin. According to the team, the goal is to make BTC transaction speeds faster, while lowering fees and making BTCfi possible. This will be achieved through the use of the SolanaSVM to bring smart contracts to Bitcoin. The HYPER token will be used for staking and governance.

Bitcoin Hyper ICO Key Facts

• Why it stands out: Built on Solana Virtual Machine, the L2 market is worth $13B (Snapshot from CoinGecko, December 12, 2025).
• Who it’s for: Bitcoin users, scaling solution investors, meme coin fans.
• Risks and Considerations: The team is anonymous, and while the testnet is accessible, its limitations make the proof of concept as yet intangible.

Visit Bitcoin Hyper

2. Maxi Doge (MAXI) – Absurdist Dog Meme Coin ICO

Maxi Doge is an ERC-20 dog-themed meme coin that merges pomposity with a self-deprecating quality, often found in crypto culture, which may make it one of the best crypto presales of 2026. MAXI holders can earn staking rewards and join contests for top ROI trades.

Maxi Doge ICO Key Facts

• Why it stands out: Linked to top memecoin Dogecoin, MAXI is part of $47.6B memecoin sector (Snapshot from CoinGecko, November 26, 2025).
• Who it’s for: Degens and traders, Doge fans, and high-risk traders.
• Risks and Considerations: High competition with other memes, team’s anonymity, lack of audits.

Visit Maxi Doge

3. PEPENODE (PEPENODE) – Virtual Mining Game with High Staking Rewards

PEPENODE is an Ethereum-based memecoin and virtual mining game where players operate simulated server farms to earn tokens. The roadmap states that the game will go live after the TGE, offering users the ability to build mining rigs, collect rewards, and join airdrops.

Until launch, investors can stake their tokens for a 570% APY.

PEPENODE ICO Key Facts

• Why it stands out: Deflationary burn mechanism and P2E game.
• Who it’s for: Individuals interested in GameFi, “Mine-to-Earn” concepts, Meme coin collectors.
• Risks and Considerations: The game is untested, and the tokenomics may prove unsustainable without enough players.

Visit PEPENODE

4. SUBBD (SUBBD) – Most Disruptive ICO

SUBBD is a SocialFi platform that brings a Web2 creator network into the blockchain and AI ecosystem. It focuses on low fees and streamlined content creation through AI-powered tools.

According to the team, the platform already links 2,000 creators with 250,000 followers. The SUBD token supports the ecosystem and can be staked for 20% APY.

SUBBD ICO Key Facts

• Why it stands out: Combines AI tools with token-based monetization for creators and fans.
• Who it’s for: Digital creators, fan-driven communities, Web3 users.
• Risks and Considerations: The business model relies heavily on the traction created by the creators.

Visit SUBBD

5. Ruvi AI (RUVI) – Advanced AI Rewarding Users with Tokens

The presale seeks to create an ‘AI everything app’ and put it on the blockchain. The idea is to make it easier than ever for people to generate all kinds of AI content (text, voiceovers, images) with various templates at the ready.

At the same time, they reward the humans who are training the model with RUVI tokens. RUVI holders will get other perks.

Ruvi AI ICO Key Facts

• Why it stands out: Rewarding AI users for model training.
• Who it’s for: AI plays, machine learning.
• Risks and Considerations: We weren’t able to test the beta version of Ruvi AI, despite apparently having unlimited credits, though we could access the interface.

6. Tapzi (TAPZI) – Compete Against Other Players to Win Prizes

The presale concept is a gaming studio where players can play skill-based games, such as chess, against other players. Tapzi will use the blockchain to verify the fairness of each match. They plan to offer players competitions and prize pools with rewards in TAPZI.

TAPZI holders can earn from staking and participate in games with larger prize pools.

TAPZI ICO Key Facts

• Why it stands out: Game studio offering various skill-based games for people to play and earn, rather than a single game based on luck
• Who it’s for: GameFi fans, gaming platform fans
• Risks and Considerations: While a decent amount (20%) has been allocated for liquidity, only 20% is allocated for the presale, which is low in comparison to most presales.

7. Ozak AI (OZAK) – Agentic AI for Financial Predictions

The presale is for a platform with AI agents that specialize in financial predictions. The AIs will analyze a large amount of data to help people make investment and trading decisions. Ozak is releasing a dashboard that will provide a simple UI for people to use the financial data Ozak collects and analyzes.

The project states that users will be able to train their own AIs and also publish their own AI-assisted signals for OZ rewards.

Our view (Julia Sakovich): Despite fears of a bubble, AI isn’t going anywhere, though only the best projects will survive. I haven’t seen an agentic platform that specializes in financial predictions, and I wonder if it can really be accurate enough to be profitable. Currently, the beta is on a waitlist. If Ozak can actually deliver, this could be a big deal.

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Ozak AI ICO Key Facts

• Why it stands out: Could revolutionize trading through its AI algorithms and dashboard.
• Who it’s for: AI fans, traders, high-risk traders.
• Risks and Considerations: Making financial predictions is difficult, even for AI, and as yet, the platform has not been tested.

8. BlockchainFX (BFX) – All-in-One Trading Platform ICO

BlockchainFX is a multi-asset trading platform that combines crypto, stocks, forex, and commodities into a single unified system. The BFX token powers the platform’s fee-sharing system, staking rewards, and unlocks premium features, including Visa debit cards for real-world spending.

​​BlockchainFX redistributes up to 70% of trading fees directly to token holders in USDT, creating passive income streams with daily returns of 4-7% and APYs reaching 90%. The platform offers access to over 500 assets across multiple markets, so you won’t need separate trading accounts.

BlockchainFX ICO Key Facts

• Why it stands out: Live trading app with over 10,000 daily users, fully KYC-compliant.
• Who it’s for: Traders seeking unified crypto and traditional markets, DeFi users wanting passive income, Visa cardholders.
• Risks and Considerations: Platform is still in beta; success depends on user adoption and competition with established platforms.

9. Blazpay – Making DeFi Simpler through Natural Language AI

The mission of Blazpay, according to its founder, is to make DeFi simpler to use by deep integration with AI. What that looks like in practice is AI algorithms running everything from DEX routing to get the best swap and bridge routes and prices, to financial guidance.

The project is in presale and offers bonuses for referrals, believing in organic growth over excessive advertising.

Blazpay ICO Key Facts

• Why it stands out: Deep AI integration rather than an add-on, doxxed team.
• Who it’s for: AI plays, web3 mass adoption advocates.
• Risks and Considerations: They have a platform in beta, but the BlazAI natural language commands didn’t work for us. We suggest using a test wallet to try it.

10. BullZilla (BZIL) – Memecoin with Deflationary Tokenomics and Staking

This ERC-20 memecoin features a cute dragon mascot, with a distinct approach to presale funding rounds. Every 48 hours or per $100k of token sold, the price goes up, and if any tokens are unsold, they are burnt to increase scarcity and hopefully, long-term value.

Holders can also earn by staking and referring friends, which may be helpful for community building.

BullZilla ICO Key Facts

• Why it stands out: Memecoin with cute anime-style mascot and deflationary tokenomics.
• Who it’s for: Meme coin hunters, community-driven coin plays, high-risk/reward traders.
• Risks and Considerations: The roadmap states that the project will go live in Q1 2026, but at present, it has a low follower count. More will be needed for this to go viral.

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)

• Blockchain FX reached over $12M raised and announced the final token listing price will be $0.05.
• Ozak AI announced that it is in the final stage of its presale with over $4.9M raised.

New Presale Launches

• Bulzilla memecoin went live, hoping to grow a community through high staking APYs and deflationary presale tokenomics.
• PEPENODE is a virtual miner game in presale, with staking APYs at 570%.

Community Growth Highlights

• Little Pepe reached 24.5K followers on X for the first time.
• SUBBD grew its waitlist and creator onboarding funnel after its demo release.

Exchange Listing Announcements

• Bitcoin Hyper is rumored to be in pre-listing talks with Tier 1 exchanges.
• Maxi Doge is talking with Tier 2 and 3 exchanges.

Major Milestones & Project Updates

• SUBBD completed the first AI creator test cycle with successful gated content trials.
• Bitcoin Hyper surpassed 1 billion tokens staked, demonstrating strong early validator participation in its Layer 2 ecosystem.

Top Performing Past ICOs Tracker

To predict future successes, it’s helpful to look at what made previous ICOs successful. Here’s a list of some factors consistent in recent top ICOs.

What Drives High-Performing ICOs?

Analysis of the top ICOs of 2025 so far reveals five important themes that affect ICO performance.

Memorable branding or concept

With many ICOs on the market, those that stand out have a unique concept and utility, or memeable branding that is on trend, such as meme appeal. Both attract attention from influencers and traders.

Community comes first

Presales that do well usually grow their Telegram and X communities considerably before and during the ICO. They may engage users through competitions, airdrops, or early participation in the project.

Clear and fair tokenomics

Projects with low allocations for the public sale, such as $TRUMP, often do badly. Conversely, presales without much private funding and a clear token distributions across sectors (team, marketing, development, rewards, exchange listings, and similar) gives investors confidence and may assist in maintaining price growth by avoiding insider trading.

Narrative alignment

ICOs that tap into current trends do well. Projects like Bitcoin Hyper that include Bitcoin scaling, or AI utility, perps DEXs, and trending meme coins are all popular metas right now. Investors tend to flock to concepts that are getting a lot of attention.

Post-launch utility

Launching the token is just the start; then it’s time to implement features to grow the price. These can be things like incentivized staking, rewards, or special access for token holders, or ecosystem utility tokens. Some projects may offer bonuses for OG holders, such as limited-edition NFTs.

What Is an ICO?

An ICO, or initial coin offering, is a token sale where a crypto project offers its new coin directly to public investors, before it lists on CEXs or DEXs. It is also known as a crypto presale.

ICOs serve as a method for new projects to raise funds. The project uses these funds for development and startup costs. In 2025, the average amount raised per ICO is $5.4 million.

Anyone with a crypto wallet in a legal jurisdiction can participate. They connect to the ICO and swap an established coin like ETH, BNB, USDT, or SOL for the project token. This reserves the token until it is ready to launch.

Investors receive their coins after the Token Generation Event (TGE). In 2026, many ICOs, like Bitcoin Hyper, allow for staking from purchase, but the rewards are also received after TGE.

Historical Context

ICOs have been popular for many years, dating 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.

However, there are risks to consider. Only 8% of ICOs launched in 2017 achieved a CEX listing. And, according to a report from 2021, 50% of all ICOs fail to reach their fundraising goals, and subsequently shut down.

In the wake of the ICO boom, new token offerings have continued at a rapid pace. The number of crypto ICOs and their value have risen 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.

Why ICOs Are So 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 the number of tokens they can offer for sale, whereas in an IEO or IDO, they are limited by the number of tokens an exchange will buy. Coinbase acquired ICO fundraising platform Echo for $375 million in October 2025, with Echo having raised over $200 million across 300 deals.
• Community-building: Because of their grassroots nature, ICOs offer teams the opportunity to build connections with their investors. This could be through community activities, encouraging people to create memes, or even building/testing project betas. These users often become the core supporters who are vital to sustaining long-term usage after the presale concludes.
• 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.
• CEX listings: Crypto exchanges monitor ICOs. Projects that raise a large amount of money or attract many investors are more likely to be listed on major centralized exchanges, like an upcoming Binance listing or a new Coinbase listing.

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 (vesting) that prevent them from selling a portion of the tokens 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, or via an airdrop. 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. For example, Certik has approved Bitcoin Hyper’s smart contract.

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 has a good chance at success.

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 their recent performance.

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, because of its use of MPC for enhanced security. 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

If you don’t have the crypto you need or require gas tokens, you can buy them with fiat through a CEX like Binance or Coinbase, then send them to your Web3 wallet.

Some presales let you buy tokens directly with fiat, but will still require a decentralized wallet to determine where to send your tokens at TGE / or what wallet address is allowed to claim.

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. Ensure you have the correct website, and not a scam copycat. 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 can lock in the lowest token prices and the highest staking rewards. So, for maximum potential returns (but also higher risk), it’s important 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.

Launchpads, like the one within the Best Wallet app, sometimes offer early ICO funding rounds, only available for their token holders.

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

To identify legitimate ICOs, focus on six core factors: KYC compliance, third-party smart contract audits, reasonable tokenomics, a detailed whitepaper, a doxxed development team, and legal compliance.

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, taking 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 best way to invest in ICOs safely is by doing thorough 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 their past projects and whether they have a good reputation.
• Legal compliance: Projects should always comply with legal requirements, which can vary depending on the country where the 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.
• Copycat websites: Scammers sometimes mimic genuine ICOs and copy their websites to trick people into sending funds or draining their wallets. This happens with ICO social media accounts, too. Always check that you are on the official website.

Are ICOs Legal? The Global Regulatory View

ICOs are generally legal, although there are various rules and nuances across different jurisdictions.

Legality of ICOs in the US

In the US, ICOs are legal as long as the underlying tokens are not deemed securities. While the SEC previously suggested that many cryptocurrencies were unregistered securities, the CLARITY Act, which passed the House of Representatives, indicates that as long as a cryptocurrency is sufficiently decentralized, it will not be classified as a security.

Legality of ICOs in the EU

In the EU, most ICOs are legal as long as they comply with the Markets in Crypto-Assets Regulation (MiCA) legislation. It establishes a clear and unified framework across all EU member states. ICO projects must publish a detailed whitepaper with clear risk disclosure.

Legality of ICOs in the UK

The Financial Conduct Authority (FCA) does not permit UK members to join ICOs. However, things may change in the future, as the UK government is bringing in new regulations to align the crypto sector with TradFi, aiming to protect consumers while encouraging innovation.

Legality of ICOs in Asia

Here are some of the largest Asian countries in terms of population and/or crypto adoption, along with their regulations.

• China: ICOs in China have been banned since 2017.
• Hong Kong: ICOs are legal but must comply with the Securities and Futures Commission (SFC).
• Japan: Crypto ICOs are legal, but tokens are subject to regulation under the Financial Services Agency (FSA).
• India: Crypto is mainly unregulated, so people are able to participate in ICOs.

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.

Searching for the next 1000x crypto is a part of ICO investing, though it can be challenging. Bitcoin is an example of a coin that has achieved this. $100 invested at $0.10 would now be worth well over $100,000.

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 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 launch. 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.

Wall Street Pepe was a successful presale that is now live on CEXs and DEXs, up 384% from its all-time low. The team continues to do marketing pushes and is expanding onto the Solana blockchain, showing that in the long term, presales and memes with a roadmap, community, and a good team can continue delivering returns to investors.

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.

Are ICO Investments Taxable?

Yes, ICO investments are taxable in most jurisdictions, because tokens acquired through ICOs are treated like other crypto assets, property, not currency, for tax purposes.

How ico token sales are treated by tax authorities

• U.S. Short-term profits (held under 1 year) are taxed as ordinary income (10–37%), based on Federal Income Tax rates Federal Income Tax Rates and Brackets. Long-term profits (held over 1 year) qualify for lower Capital Gains rates. Brokers must report sales on the new Form 1099-DA starting in 2025.
• U.K. Profits from selling, trading, spending, and gifting are subject to Capital Gains Tax (18–24%). A £3,000 annual CGT exemption applies for the 2024/2025 tax year.
• E.U. Each country has its own regulations; however, Capital Gains Tax (CGT) rates apply and range from 0% to over 40%, depending on the country and holding period. For example, some countries’ laws mean you are exempt from CGT if the crypto has been held for over a year.

Reporting ICO Tokens on Your Taxes

It’s essential to keep good records. Here’s what you need to track:

• The date and cost of your ICO tokens (in fiat)
• Any fees associated with the purchase
• The date you sell or exchange the tokens
• The fair market value when sold

Remember that if you fail to report your crypto transactions accurately, you can face consequences, including severe financial penalties and even criminal tax investigations.

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 several times a 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 over time. 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.

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