Estimates potential profits from investing in ICOs, factoring launch price, target price, and circulating supply. Calculate tokens received, future value, and ROI.
Amount you plan to invest in the ICO
Token price during ICO/presale
Expected token price after launch
Additional tokens from bonus or allocation
An Initial Coin Offering (ICO) is a fundraising method where new cryptocurrency projects sell tokens to early investors before public listing. Similar to IPOs in traditional finance, ICOs offer tokens at a discount to early supporters, who hope the token price rises after launch.
ICO (Initial Coin Offering): Public token sale. Presale: Earlier private sale with bigger discounts for select investors. Token Launch: The public listing on exchanges. This calculator works for all three by comparing purchase price to target price.
Projects set an ICO price typically 30-70% below expected listing price to incentivize early investment. Earlier rounds (seed, private, presale) get better prices. Public ICO is usually the final round before exchange listing. The difference between ICO price and listing price is your immediate return.
Many ICOs offer bonuses: extra tokens based on investment size or timing. Early bird bonuses (10-30% extra), large purchase bonuses (5-20% extra), or referral bonuses. These increase your token count and potential returns. Always factor bonuses into calculations.
ICOs are high-risk, high-reward. Successful ICOs can return 10-100x (rare). However, 70-80% of ICOs fail or underperform. Risks include: team abandoning project, smart contract bugs, regulatory issues, market crashes, competition. Only invest what you can afford to lose completely.
Public ICO participants often get immediate tokens. However, team/advisor tokens usually vest over 1-4 years to prevent dumping. Check vesting schedules: if 40% of supply unlocks at month 6, expect price pressure. Gradual vesting (2-4 years) is healthier for price stability.
Enter the USD amount you plan to invest. Example: $1,000, $5,000, or $10,000. Consider this a high-risk allocation - only invest what you can afford to lose completely. Experts recommend limiting ICO investments to 5-10% of your crypto portfolio.
The price per token during the ICO/presale. Find this in the project's whitepaper or ICO announcement. Example: $0.10, $0.50, $1.00. If there are multiple rounds with different prices, use the price tier you're eligible for. Include any bonuses by calculating effective price.
Your expected token price after launch or at a future date. Research similar projects' market caps, calculate implied valuations, and set realistic targets. Conservative: 2-3x ICO price. Moderate: 5-10x. Aggressive: 20x+. Most ICOs achieve 0-5x; few exceed 10x.
Additional tokens from bonuses, airdrops, or special allocations. If you get a 20% bonus on 10,000 tokens, enter 2,000. If no bonuses, leave at 0. This field adds to your total tokens beyond what your investment directly purchases.
You'll see: Tokens Received (how many tokens your investment buys), Future Value (worth at target price),Profit (future value minus investment), ROI % (return on investment percentage), and Multiplier (how many times the price increases).
Research comparable projects: similar function, market cap, user base. If competitors trade at $50M-200M market cap, calculate what token price would give similar valuation. Factor in total supply, circulating supply at launch, and vesting schedules. Be conservative - most ICOs underperform expectations.
Invest $5,000 in ICO at $0.25 per token, target price $2.00:
Result: $40,000 future value, $35,000 profit, 700% ROI
Tokens = Investment Amount ÷ ICO Price
Example: $1,000 ÷ $0.10 = 10,000 tokens
Future Value = Tokens Received × Target Price
Example: 10,000 × $1.00 = $10,000
Profit = Future Value - Investment Amount
Example: $10,000 - $1,000 = $9,000 profit
ROI = (Profit ÷ Investment) × 100
Example: ($9,000 ÷ $1,000) × 100 = 900%
Multiplier = Target Price ÷ ICO Price
Example: $1.00 ÷ $0.10 = 10x multiplier
Total Tokens = (Investment ÷ ICO Price) + Bonus Tokens
Example: 10,000 + 2,000 bonus = 12,000 total
Investment: $5,000 | ICO Price: $0.25 | Target Price: $2.50 | Bonus: 20%
Research team on LinkedIn, GitHub, Twitter. Look for: previous successful projects, relevant experience, technical expertise. Red flags: anonymous team, fake LinkedIn profiles, no GitHub activity, unrealistic bios. A strong team is the #1 predictor of success.
Does a working product exist? Testnet, MVP, or prototype? Or just a whitepaper with promises? Check GitHub for code commits, developer activity, and code quality. Projects with working products before ICO are much more likely to succeed. Ideas alone fail.
What problem does this solve? Is it a real problem people pay to solve? What's the market size? How many potential users? Niche problems ($10M-100M market) rarely justify high valuations. Broad markets ($1B+) offer 10x+ potential but face intense competition.
Review token distribution: 30-40% public sale (good), 20-30% team (acceptable if 2-4 year vesting), 10-15% advisors, 20-30% ecosystem/treasury. Red flags: >50% team allocation, no vesting, excessive private sale allocation at huge discounts that will dump on public.
Has the contract been audited by reputable firms? CertiK, Trail of Bits, OpenZeppelin, Quantstamp are gold standard. Read audit reports: Critical/High severity issues must be fixed. Medium issues should be addressed. No audit = huge risk; code could be exploited post-launch.
Real communities ask questions, discuss tech, and challenge assumptions. Fake communities only shill and ban critics. Check: Are Telegram/Discord members real or bots? Twitter followers genuine? Are there early users/waitlist? Partnerships verified (not just "in discussions")?
Detailed, realistic roadmap with specific milestones. Red flags: vague timelines ("Q4: Launch product"), over-ambitious (mainnet in 2 months), or no roadmap. Good roadmaps: specific features, testnet dates, audit schedules, partnership timelines. Past milestone completion shows execution ability.
🚨 Anonymous team | No working product | Unrealistic promises | Excessive marketing/hype | No audit | Unfair token distribution | Copycat of existing project | Unclear use case | Locked liquidity warnings | Team tokens unlocked at launch | Pressure tactics ("FOMO", "Last chance")
Bugs or exploits can drain all funds. Even audited contracts have vulnerabilities (see: countless DeFi hacks). Once funds are sent to ICO contract, they're at risk. Only participate if contract is audited by multiple reputable firms and has undergone extensive testing.
70-80% of crypto projects fail or abandon development within 18 months. Teams underestimate complexity, run out of funding, lose motivation, or were never serious. Past success doesn't guarantee future success, but no track record significantly increases failure probability.
ICOs launching in bear markets often underperform regardless of fundamentals. If market crashes 50% between ICO and listing, your token likely follows. Best ICO returns happen in bull markets with high liquidity and speculation. Current market conditions matter enormously.
Can you sell post-launch? Some tokens have vesting (even for public ICO participants). Low initial liquidity means high slippage - your $10,000 of tokens might only fetch $7,000 if you sell into thin order books. Confirm listing exchanges, expected liquidity, and any lock-up periods.
ICOs face regulatory uncertainty. SEC considers many ICOs as unregistered securities, leading to fines, delisting, or project shutdown. Geographic restrictions change unpredictably. Exchanges may delist tokens deemed securities. Ensure project has legal counsel and clear compliance strategy.
ICO price might already reflect aggressive valuation, leaving little upside. If ICO values project at $500M (fully diluted), reaching $5B (10x) requires becoming a top-50 crypto - extremely difficult. Calculate implied market cap at various prices. Consider if that valuation is realistic vs. competitors.
Outright scams where team takes ICO funds and disappears. "Rug pulls" where team dumps their allocation immediately post-launch, crashing the price. Warning signs: anonymous team, no audit, locked social media, heavy marketing but no product, unrealistic promises. If it sounds too good, it's probably a scam.
Funds locked in ICO can't be deployed elsewhere. If BTC or ETH 3x during ICO vesting period while your token underperforms, you've lost opportunity. ICOs also tie up capital with no liquidity - you can't sell until listing (days, weeks, or months later). Consider if established tokens offer better risk-return.
Spend 10-20 hours researching: Read whitepaper cover-to-cover, review code on GitHub, verify team credentials, check audit reports, analyze tokenomics, assess competitors, evaluate market need. Use checklist: team (20%), product (20%), market (20%), tokenomics (20%), community (10%), audit (10%).
Limit ICO investments to 5-10% of total crypto portfolio. Diversify across 3-5 ICOs rather than concentrating. Don't use money needed for rent, emergencies, or short-term goals. ICOs are speculative - treat them as venture capital with expected 70% failure rate. Plan for total loss.
Scammers create fake websites, Telegram groups, and social media. Verify official channels on project's main website. Double-check contract addresses on multiple sources. Never click links in DMs or emails. Bookmark official site. Confirm team members on LinkedIn directly (don't just trust project website).
Decide before launch: at 2x sell 25%, at 5x sell 50%, at 10x sell 25%, hold 25% long-term. Or: take out initial investment at 2x, let rest ride. Set stop losses: if drops 50% from ATH, consider exiting. Emotions cloud judgment post-launch - predecide strategy and stick to it.
Track GitHub commits, roadmap progress, community updates, partnership announcements. Red flags: radio silence for weeks, missed milestones without explanation, team members leaving, declining community engagement. If project shows signs of abandonment or mismanagement, exit even at a loss - losses will likely worsen.
ICO purchases may be taxable events. Track purchase date, price, quantity. Selling tokens creates capital gains/losses. Rules vary by country - US treats crypto as property, requiring reporting for every sale. Use crypto tax software (Koinly, CoinTracker). Consult tax professional for large investments. Non-compliance risks audits and penalties.
ICO investments and token sales have complex tax implications that vary significantly by jurisdiction. In many countries, purchasing ICO tokens, receiving them, and selling them all trigger different taxable events. Consult with a crypto-specialized tax professional to ensure compliance and optimize your tax strategy.
United States: IRS treats crypto as property. ICO purchases with USD typically use USD amount as cost basis. Purchases with crypto (e.g., ETH) trigger taxable event for the crypto used. Short-term gains (<1 year) taxed as ordinary income; long-term gains (>1 year) get preferential rates (0%, 15%, or 20%).
European Union: VAT rules vary by country. Some exempt crypto-to-crypto trades; others don't. Capital gains tax rates range from 0% (Belgium, long-term) to 42% (Finland). Germany exempts gains if held 1+ year.
Other Regions: Rules vary wildly. Some countries (Portugal, Singapore, Belarus) have crypto-friendly tax regimes. Others (India, South Korea) impose high taxes or restrictions. Research your specific jurisdiction before investing.
ICO taxation is extremely complex and evolving. Regulatory agencies (IRS, HMRC, etc.) are actively developing guidance and increasing enforcement. Mistakes can result in significant penalties, interest, and back taxes. The cost of a crypto tax professional ($200-2,000) is far less than potential tax liabilities or penalties. Don't risk it - get professional advice before investing large amounts.