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February 14, 2018, 10:20:27 PM |
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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.
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