ICO Pool — A Whale of a Time for Small ICO Contributors

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The Right ICO

6 min readApr 22, 2018

What is an ICO Pool? If you have been part of the Cryptocurrency ecosystem for at least a few months, you’ll probably be aware of the new ICO craze taking the crypto world by storm. There are literally dozens of new ICOs. Also called Token Sales, ICOs are springing up every day on almost all of the popular platforms. Lately, many ICO teams promote and incentivize token sales by offering hefty discounts and bonuses based on the sum of capital contributors are willing to invest. This privilege is usually reserved for the wealthy and a few ICO pools.

The Inner Circle

There’s been much heated debate over whether or not it’s acceptable for ICOs to offer bonuses based on volumes purchased and money spent. This is largely due to the fact that this model heavily favors wealthier investors, leaving much less ROI for the less wealthy. But even if we continue to bury our heads in the sand, the wealthy will certainly keep making fat cuts.

Even more worrying to ordinary investors is when digital currency starts borrowing from the ‘Pump & Dump’ schemes. However, due to the negative connotations of pump and dump, we sometimes forget that it can also have a positive outlook. It could produce a profitable flipside as well.

Whales (investors who hold large amounts of a coin) will often use secure messaging apps such as Telegram to orchestrate Pump & Dump schemes.The usual strategy is to suddenly inflate the price of a token by coordinating a number of buyers to act after the token sale has ended and the tokens have been distributed. Once the price inflates, they will then encourage other, unwitting investors to buy into the price momentum. The “pumpers” then quickly sell the coin, making themselves a tidy profit, leaving the second wave of investors with losses.

Setting up bait for the smaller fish

Startups often announce, with bells and whistles, that certain funds and big-name investors have participated in their presale. What they won’t tell you is that the early investors — and, possibly, even the startup founders — are often able to cash out right after the ICO, unlike the second wave investors. Moreover, even if all investors can sell at the same time, the whale’s buying entry point was initially more attractive. In turn, it puts them in a better position to profit or minimize the risk/lose if the token price will drop.

Obviously, there are those who will benefit greatly from these low standards due to the fact that so many funds get controlled by people using pump and dump. Even in the case of the price of a token slumping by around 20%, these investors will still rake in profits having bought tokens at rock bottom price.

Enter the ICO Pool Emulating Angel Investors

So, how can you make sure the whales does not swallow you? It’s pretty much guaranteed that volume-based discounts and bonuses won’t go away any soon. So, how can the smaller fish get their share of such bonuses and incentives if they’re unable or unwilling to raise the minimum that the ICO team is demanding?

An ICO Pool is a unique platform which enables small ICO investors to join forces and pool funds with other crypto buyers in order to increase the contribution amounts.

An ICO pool empowers its member’s administrators to negotiate and access exclusive deals usually reserved for the bigger players. You may have tried a form of pooling with friends, but there’s a way to get even more purchase power by joining a bigger pool!

Reaching the unreachable

Investing in ICOs pools is fast becoming the sensible way of maximizing profits. The concept of collective investment is not a new one, in fact; it goes all the way back to the concept of crowdfunding but this way is new. An ICO Pool is guaranteed to give you exclusive access to ICO Presale Deals which might otherwise be without reach.

The core objective of the project is to bring together small investors in their own personal pool; specifically, investors who want to participate in private presales with decent bonuses. This will give its members an edge over a market that the big investors have enjoyed exclusively for too long. Now that’s what we call leveling the playing field.

Who can join?

Although the introduction of KYC (“Know Your Customer”) policies put off some crypto-investors, some ICO pools offer the option of investing after undergoing KYC procedures. We believe that the absence of KYC in ICO pools will sooner or later lead to an investigation and legal consequences.

So, how can we collaboratively invest in an ICO without having to rely on others? With a smart contract, that’s how it’s done!

The Smart Contracts

There are smart contracts which will allow several investors to contribute to it; invest in the selected ICO that meet some pre-conditions; and, finally, distribute from it the tokens purchased. This smart contract would essentially be a middleman to collect the funds from several accounts and then forward the collated funds to an ICO contract in one transaction, in order to get access to the volume-based bonuses offered by the team. Members would then buy tokens by the contract, thus allowing the participating contributors to withdraw them into their own accounts.

Hefty rewards, not without risks

It’s no secret that crypto Whales get allocation for top-tier crypto projects and discounts. Crypto Whales secure these incredible deals by satisfying a few set requirements, usually regarding net worth and asset size.

The aim should be snatching the excellent deals in private presales before ICOs gets released- just as the whales do.

Early token investors often receive preferential discounts and improved terms. Instead of speculating on bitcoin, the whales have figured out that one of the surest ways to get rich quickly is ICOs Presales. Getting cryptocurrencies early on the initial coin offerings presents bigger chances of profit. It’s a little underhand and a lot unfair.

For instance, several crypto giants together contributed $50 million in a Kik presale before the actual ICO. Consequently, they received a 30% discount on their tokens, which will then be put back into commerce within Kik. They are able to sell 50 percent of their holdings on their own volition. As a result, they could rake in profits even should the price drop. If the prices of a token continue to increase, their profits will exceed regular investors’ upon cash out. This is exactly what a Poll is looking to offer its members.

Beware of risks

Nevertheless, in theory, an ICO Pool is fairly straightforward but, in practice, it can be complex and problematic.You would have to trust the person who is receiving everyone’s ether to deliver, which is, in itself, a risk. What if the admin disappears with the money? And if he forgets or loses the private key or it gets stolen? What if he makes a mistake and sends the money to an incorrect address? There are so many things that can — and do — go wrong. ICO pools remain risky for investors because the pools themselves are in a regulatory grey area.

Finally, my firm belief is that ICOs won’t go anywhere any soon. Even after regulator negotiations around the world are complete, ICOs will remain a viable option for startups seeking seed funding. Experts have said a lot about how ICOs could replace or take over venture capital; however, most experts feel that this is extremely doubtful. Hence, an ICO pool can be indispensable to ‘small investors’ in the long run.