At a first glance there are two sources of alpha in ICO flipping:
- ICO selection
- ICO trade execution
ICO selection is being able to pick successful ICOs based on the information the company publishes, with a high probability of success (remember the cost of getting it wrong could be 50-100%). A naive pre-filter for safe ICO selection could be to select only those ICOs which improve blockchain infrastructure, have an existing user base and have an accomplished team behind the product.
ICO trade execution is being able to identify which ICOs will be oversubscribed without knowing anything about the product. This involves monitoring popular websites and forums for recommendations such as tokenmarket’s HOT recommendations, the CoinFund slack channel, reddit ico threads and the individual ICO communication channels themselves.
Combining both of these approaches is likely to result in the highest chance of success which is what this guy Victor Lai does on his page CrushCrypto which can be found here.
Using all of this information plus some extra trade execution alpha we’re going to monitor and develop a strategy for trading the upcoming Tierion token sale. Stay tuned!