I'm Curious what's the main essence of ICO

[Amphenomenon]

This question do prick me, recently I do wonder the main essence of ICO because there are often times where this is just used for scamming, based on this report:

At Least 12 Solana Meme Coin Abandoned in Just One Month
On Monday, April 21, ZachXBT, a well-known blockchain investigator, uncovered that at least 12 meme coin projects on Solana were abandoned over the past month. These projects cumulatively raised about $26.7 million from investors before developers took off with the money.

We know there are other blockchain used aside the Solana blockchain, that's the overall scam rate will be higher than this monthly.
Questions
What are the need for ICO?
Also, why are there tendency for the price to be lower than the presale?

[Charles-Tim]

What are the need for ICO?

If you check the price history of some solana tokens, you will understand. The one I could remember are WIF, Bonk and Bome. Also is Popcat. Also are the recent ones like Goat and Grass. These coins so much increased in price before dumping. Some like Popcat got to ATH many times like even recently. Goat and Grass was listed recently. Goat pumped 10 times before dumping. Grass has not dumped yet but with little pump yet.

So people wants to use it to make money.

Also, why are there tendency for the price to be lower than the presale?

It is very possible but some increased in price and people make money. What I can just say is that people should use the money that they can afford to lose on these coins. They can buy it when the token already has been listed on an exchange.

Solana memes are what that is the talk among people when talking about meme coins, definitely scammers will go there to scam.

Be careful of the bear market. These coins will dump far further.

[PX-Z]

What are the need for ICO?
Also, why are there tendency for the price to be lower than the presale?

Investment fund for the project they were working that can be shown in the project roads map. And the price, that depends on different factors like the number of initial investors, number of tokens created, etc. Idk why still ask about ICO but this is mostly available data in google.

[LogitechMouse]

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Questions
What are the need for ICO?
Also, why are there tendency for the price to be lower than the presale?

The main purpose of launching an ICO for the project is to gather funds so that the company will have something to use to develop their project. In short terms, you as an investor will give some money to the company in exchange of their native token. You are the one risking it all because the token doesn't have any value at that time while you're giving away your money already.

As for the 2nd question, it can go both ways depending on the project, but most of the time, the price tends to go lower than the presale. TBH, I didn't expect that ICOs are still being used to get some funds for the project because the last time that this has been used was in 2017-2018 when it's on hype.

[bitterguy28]

Questions
What are the need for ICO?

it is for promoting the project to accumulate investors and potentially funds as well for development of the project it also helps to build community even before it launches which allows for higher chances of the project to be successful once it eventually launches

its purpose is not to scam however some people have taken advantage of the system to take people’s money

Also, why are there tendency for the price to be lower than the presale?

the hype sometimes only occurs during presale because of speculation then the interest dwindles down as it is launched

[albon]

If you want to know about ICO then directly collect data from google, even you will understand by reading some articles from this forum. When the main objective of launching a project is to collect funds, it means creating an investment community. So that they can manage the development activities of that project in the future with this fund. You once again reminded that almost all ico projects were successful in 2017. But nowadays people put it in the scam bank. Again, after the ico hype was over, the ieo, ido trend came where many projects were successful in the beginning. Currently the most popular is telegram tap gaming and many bad projects are getting success by using this hype.

[taufik123]

Now it may not be popular Projects that are still hosting ICOs and that was only happening in the past when memecoins were not as aggressive as they are now.
ICOs were a popular token sale event at the time and I even got a whitelist for some projects and some were very successful and some didn't get any returns.

When the ICO price is very cheap even below the presale price, those who enter at the low price are those who are still in private sale or only for certain people with special requirements such as capital groups that have a lot of money to support the project

It is already a common practice in ICOs and of course there are some rules about distribution and how long it will be locked or divided in the form of vesting.

[libert19]

Questions
What are the need for ICO?
Also, why are there tendency for the price to be lower than the presale?

1. Genuine projects do ICOs to raise funds. Ethereum is most successful ICO project till date.

2. I guess it is due to the fact that people have lost faith in ICOs. Back in 2017-'18, people would pay much more than ICO price, not that projects were any good, it's just that ICOs had hype back then.

[joniboini]

Do meme tokens really do ICO, though? At the very least, I remember projects wrote a whitepaper and had a sale window when they were doing an ICO and printing the token after the money was collected. Based on what I see so far, most meme tokens already print their supply and rely on social media or hype to encourage people to buy their supply. It doesn't help that some people like to overhype them, going as far as saying meme tokens are better than Bitcoin for the future. They buy PR news on many websites too. CMIIW.

[Baofeng]

To raise money for the said project, however, in the last 4-5 years, there have been a lot of rug pulling from a lot of projects and it continue up to his day. And unfortunately, there are still individuals who blindly invest on such scam projects, thus, losing big money.

As what we have said, crypto is like a wild wild west, to each it's own. So it's better to look after yourself. And if you are going to invest then you should treat your money as if you have lose it already.

[Findingnemo]

First I would like to say what's ICO which is Intial Coin Offering just same as IPO in stock market just to raise funds from the investors and to build a community support for the project to grow further by pitching their utility and Roadmap.

Which was popular until 2018 and after that almost 99.9% ICOs are meant for scam.

[bayu7adi]

ICO has nothing to do with the developer who ran away... maybe what you mean is the MEME token sale period when it was first released to get investors...

During the new token sale period, developers usually need some funding to continue the project. The investment model in cryptocurrency is known to be very free, so we can buy in any amount we want. So the main point of ICO is funding.

For memecoin scams, it has happened many times, when developers get money, they run away... this type of scam is actually not new anymore.. but maybe it just surprised you now. And it is also important to note that currently the ICO funding method is no longer very popular.

[ABCbits]

Questions
What are the need for ICO?

It's one of many ways to raise money. ICO usually release whitepaper or statement which describe how will they use the received money. But obviously you need to trust them not to misusing the money.

Also, why are there tendency for the price to be lower than the presale?

I agree with other member about reduction of the hype or anticipation. Although on some cases, i believe some ICO overestimate value of their coin or token.

[Amphenomenon]

Also, why are there tendency for the price to be lower than the presale?

I agree with other member about reduction of the hype or anticipation. Although on some cases, i believe some ICO overestimate value of their coin or token.

I think this is because all they want is the money, no matter the utility of the tokens, the dev teams often have to think of the profit at first.

Blockchain advancement has not been on the right track and will likely decline because of this because many thinks of it as a way making profits and not really solving any real world problems. Becoming creative just to make the next big coin or token and then after getting their money there's little to nothing in their mind than to think of another way for more profits and get bigger investors.

[Rikafip]

Which was popular until 2018 and after that almost 99.9% ICOs are meant for scam.

It was popular later on as well, its just that it kept changing names.

After ICO we got STO (when security tokens got more popular) and after that we got IDO (Initial Dex Offerings) which was popular until recently, but with alts still underperforming they are nowhere as popular as they used to be few years ago, back in 2021.