Topic: What is the dependence between ICO size and its profitability? (Read 31 times)

That's hard to answer. If the ICO doesn't raise enough funds to cover marketing and development it could die and reduce your profits to ashes. On the other hand, if it raises too much then the multiplier will be smaller.

Basically, there's a sweet spot in which an ICO raises the perfect amount of money to turn into a successful company while granting the maximum possible profits to early investors. However, this optimum is not known by anybody and can only be estimated.

For example, if a company would be worth $1 Billion if it reached its full potential but the ICO raised over $100m, then the maximum possible multiplier would be 10x. If the same company raised only $10m during its ICO, you could earn a 100x return on your investment. But if the company only raised $1m during its ICO, there's a chance that it would not even be able to cover its cost and then turn your investment to 0.

But since every ICO is different you can't put any exact number on this, since some companies would be fine with even a $50k investment while others need much more. The potential market valuation of a company after its growth phase also varies from product to product and from market to market, as well as from company to company. So while some companies are lucky to be worth a few million USD, others can be worth hundreds of billions.

Figuring this kind of stuff out is a process that is called fundamental analysis.

Long-term - absolutely zero correlation.
Short-term - you need small caps and a lot of interest. This way, people continue buying on exchanges and price goes up. But this is money game. If you are here just to waste your time making money, then you can research it and find it interesting.

Definitely we should expect a positive correlation between the size of an investment and profit especially when that investment break-even. With this, the larger the size of ICO, the greater the profit on the condition that the ICO is able to compete favourably in the market.

If project is very good and hard cap is very little, so it does not represent project's real value, then when it is listed on the market, it can skyrocket and you can make lots of profit.

There is an opinion that if the target of project is big then this project is better and there are chances that in the future it will gain profit during aftermarket trading.
What do you think about this?