Review of the initial coin offering (ICO)

ICO is a means of raising funds in unregulated funds for various cryptocurrency companies. This is something that startups use to circumvent the regulated and rigorous capital raising process that banks and venture capitalists require. In such a campaign, a percentage of the cryptocurrency is sold to project supporters very early on for other cryptocurrencies or legal tender.

How is it done

When a company wants to raise money using the initial coin offering, there must be a white paper plan outlining the details of the project. It should outline what the project is for, what the project needs, what it aims to accomplish. He must also indicate the money that will be needed to undertake the whole endeavor and how many pioneers he will have to keep.

The plan should also mention the type of currency adopted and how long it intends to run the campaign. During such a campaign, supporters and enthusiasts of the initiative will buy cryptocurrencies using virtual currency or fiat. Coins are called tokens and are very similar to shares of companies that are sold to investors during an IPO. If the minimum required funds are not reached, then the money is refunded and the entire ICO is then considered a failure. When the requirements are met within a certain period, the funds can be used to initiate the scheme or even to complete it, if it is still progressing.

Investors who participate in the project early are motivated mainly to buy crypto coins in the hope that the plan will be successful and will receive more value from it after launch. There are many successful projects of this kind in different economies and this is one of the main things that motivate investors.

Similarities

ICOs can be compared to crowdfunding and IPOs. Like an IPO, a stake must be sold by a start-up company in order to find funds to support the operations of such a company. The only difference is that IPOs deal with investors, while ICOs work closely with supporters who are very keen on new projects just like the crowdfunding event.

However, ICOs differ from crowdfunding in that ICO supporters are usually motivated by the fact that they can get a high return on investment. The funds raised through crowdfunding are mainly donations. For this reason, ICOS is called sales crowds.

So far, there have been many successful transactions. ICOs are an innovative tool in our digital age. However, it is important for investors to take precautions, as there are some campaigns that can become fraudulent. This is due to the fact that they are highly unregulated. The financial authorities are not involved and if you lose money through such initiatives, it is difficult to take action to obtain compensation.

To this end, there are some regions that do not allow the use of ICOs at all. It is important to buy such currency only from reliable sources to be safe.

Everything you need to know about ICO

What is ICO: Not so long ago, Bitcoin went through the process of emerging and making promises for a potential future, although it is interpreted and understood as a ridiculous step towards digital currency. In the years following the maturation of bitcoins, the cryptocurrency ecosystem exploded. Among the aggravatingly accelerating birth rates of newly issued coins is a type of transaction called ‘Initial Coin Offering’ or ICO. The ICO is a financial support instrument that involves trading in cryptocurrencies destined for the long term in exchange for the expeditious value of current cryptocurrencies. According to The Financial Times, ICOs are not monitored by laws for the supply and distribution of cryptocurrencies, where investors can spend money.

On the other hand, The Economist describes ICOs as digital tokens issued for the ruthless distribution of log files and blockchains.

In conclusion, we can say that ICOs are the new hand catapult that makes way for the nascent crypto.

Laws: Smith + Crown explains that most ICOs are distributed software tokens that refer to the time before they are made available for purchase. To circumvent legal needs, “crowdsale” or “donation” instead of ICO are the languages ​​that are often used now.

Is there a chance that the ICO will be delayed: In this regard, Crypto Hustle writes in a recent article that the ICO hysteria is due to people who took Ethereum first and are now interested in returns. So, it is not possible to predict whether the pleasure pursuit phases will last long or not, but when the corrections come, we will see which cryptocurrencies remain in place.

If ICO is a secure purchase: If you are taking a risk rather than transferring risks without paying attention to the end of capitalism or the fact that this particular item can bury you in the ground without capital, then go ahead, this is your call.

Now that we have gathered information about the ICO, let’s get to the final question.

What is the future of ICO: Following the 2017 survey reports, “about 46% of ICOs have not reached the implementation stage, although they have raised about $ 104 million.”

Reasons:

  • Increased risk of investing in cryptocurrency.

  • Draconian regulations.

  • Heavy racing.

  • Reducing return.

  • Unstable nature of cryptocurrency.

China has banned the ICO, and Russia has brought to light a completely different set of ICO rules and regulations with the promise that investors can sell their tokens back. ICO promotions on Google and Facebook are difficult, and Twitter has deliberately banned fraudulent crypto accounts. Senior officials believe the blockchain has a living future, but the ICO? His future rots inside his own skin of struggle to cross this extra bridge to prove his worth.

So yes. The death of an ICO is indeed looming in the air, and before we know it, it could merge and disappear like it never existed in the economy. But there are still some coins that can appeal to the next bitcoins, so you should be on the lookout for the best ICOs.

Survival beyond FOMO – How to choose a winning ICO project for long-term value

In a world ruled by super and FOMO [Fear Of Missing Out], it is becoming increasingly clear every day that the diligent crypto enthusiast must have a litmus test to choose a token to support in a world where it is difficult to find truly viable projects, and good projects with long-term prospects are even more difficult to distinguish from money grabbing “shitcoins”.

With recent events, with most new cryptocurrencies reaching record lows and new ICO projects not meeting their hype after Crowdsale, it is now common for frustrated “investors” to go around blaming ICO promoters on social media instead of blaming themselves. that they did not make the proper due diligence to select the most likely winner after the crowdsale before purchasing a token during the ICO.

From my extensive observation, it turned out that most crypto buyers simply buy coins during the FOMO-based ICO (Fear of Leakage), created by the masters of the fuss behind these coins. Many simply bought without understanding the purpose of the coin after the ICO or what the token had to do after Crowdsale. When nothing happened after the ICO, as often happens now for many ICOs, they would jump on social media to scream a bloody murder.

Recently, my team and I just completed a tour of Africa and parts of the United States to promote the Nollycoin ICO. We organized and sponsored various conferences, held live meetings for the AMA press (Ask Me Anything) and held many individual meetings with crypto whales, small investors and crypto millionaires of all colors.

Through all of this, one thing that amazed me beyond anything else was that the POWERFUL TOKEN OWNERS DIDN’T HAVE A DISK for the core business or project behind the token sales they were involved in.

Even stranger than my observation was the astonishing fact that many could not tell you the value of the project, its goals or the company’s plan to distort the market and grab some buyers in their industry. They just bought the ICO because a few telegrams or Facebook pages they visited kept telling them, “Buy. Hodl and buy more. “Most simply acted on the herd’s instincts, not on objective discussion.

Now, if most of the people I met were just teenagers or uneducated, I wouldn’t be so surprised by the level of ignorance of many of the crypto “investors” I met. On the contrary, many of those I met had graduated from college and people by some means. Yet less than 10% of them could easily articulate why they bought a coin in anticipation that it would grow over time. Wherever I went, very few in the crowd could tell me the name, experience, and capabilities of the corporate managers of the company that sold the coins.

The only thing most of them might note is that the coins are recommended by “respected” influential people when the facts prove that most of them received a frightening thrill to create a FOMO and respect for otherwise useless shitcoins.

Apart from the so-called fake influencers, all many crypto buyers knew that the names of the team leaders were Russian, Chinese or Korean, although they knew absolutely nothing about them. As if all you need to have a successful ICO was to list the names of people from Korea, China, or Russia that no one can even verify with a simple Google search.

While I agree, there are certainly many things to consider when deciding whether a project’s tokens will increase over time, I think the acid test and the most immediate evaluation criteria should be the usefulness of the coin itself beyond what would happen in crypto exchanges.

Although most crypto token owners I met didn’t even know it, the reality is that if you bought a token from most ICOs, you didn’t actually invest in that company. You will not buy shares of the company and you have not bought any collateral from the company.

And at best, what you did when you bought tokens during most ICOs was “donate” a project in exchange for a token or utility coin that had no legal value outside the business ecosystem controlled by the issuing company. .

In short, other than your hope that the price of the tokens will “lunar” or rise to make you a millionaire, there is nothing you can do with the token other than enjoy the utility attached to it by ICO, If someone.

Because no one could really predict with certainty how Crypto would perform on the crypto exchange when it finally got there, and recent experience shows that the prices of most tokens are likely to dive in the first few weeks of hitting the stock market (due to big sell-offs from speculators), it would make sense to look at what other value or utility you could derive from your token, beyond the expected “luning” of the stock market.

As the crypto revolution continues to evolve, transform and adapt to different market developments, the only way to ensure that your money is not thrown into the ditch is to make sure you can still use these tokens to get excellent value and benefits even if you can sell it for a profit right on the exchange.

In making this determination, you need to ask yourself this basic question: What is the value, product, or service that the token company generates that will give me enough value for my money to make this purchase cost me?

In a world of token price crashes on different exchanges, the more opportunities you have to extract real token usage beyond the expected listing of the crypto exchange, the better the chances of not being disappointed or blocked tokens that you useless.

So, you have to ask again and again: IF this coin was never traded on the stock exchange, would I still be happy to support the vision? If this token loses 70% of its value on the stock exchange, can I still use it and get value for my money elsewhere with it?

If you could not answer these questions in the affirmative after reviewing WHITEPAPER and investing the company’s claims, then you should think twice before buying this coin.

A recent case

Take the current ICO as Nollycoin, which is the symbol that powers the Blockchain-activated movie distribution ecosystem. Coin promoters have created various utility scenarios for coin buyers to ensure that no matter what happens to Nollycoin on the cryptocurrency exchange, their supporters and hackers will continue to smile.

Includes some of the great useful applications attached to the Nollycoin symbol in the Nollytainment ecosystem

• Ability to use Nollycoin tokens to watch exclusive movies in cinemas and cinemas

• Ability to use Nollycoin tokens to access thousands of movies in their Netflix-on-steroids blockchain Movie distribution.

• Ability to use Nollycoin tokens to purchase products and services at NollyMall, which is Amazon’s platform for entertainment-based products.

• Ability to use Nollycoin tokens to pay school fees in the NOLLY Academy platform and partner companies

As you can see, beyond the normal expectation that tokens can be listed on a cryptocurrency platform, you need to look beyond the ico’s hip to the immediate and promising usefulness of the token and the viability of the underlying project behind it.

What is an ICO and how does it work?

ICO has proven to be a revolutionary way to raise money for many companies and projects. ICO can be said as a combination of conventional methods and advanced techniques. The main thing to keep in mind here is that investors investing in ICOs will be 100% risk free due to the technology used.

So far, most of the ICO funds have been raised through bitcoins (BTC) or Ether (ETH). While running the ICO, the project creates a Bitcoin or Ethereum address to receive funds and then displays it on the appropriate web page. The procedure is the same as opening a bank account and then presenting it on a specific website to people so that they can send money.

The initial coin offering (ICO) is essentially an illegal way of raising crowdfunding through various cryptocurrencies (fiat currencies in several cases) and is operated by cryptocurrency organizations to obtain the capital needed to implement the project. In the ICO, a certain part of the recently issued cryptocurrency is sold to investors in exchange for a legalized auction or other cryptocurrency. It can be said as selling symbols or selling to a crowd, which involves taking an investment amount from investors and providing some features related to the project that will be launched.

IPO, i.e. Initial public offering is a process related in some way to ICO, in which investors receive shares owned by the company. While at ICO, investors buy coins from the company, which can increase in value if the business grows stronger.

The first sale of symbols, ie. ICO, was conducted by Mastercoin in July 2013. Ethereum raised money through ICO in 2014. ICO has adopted an entirely new definition in recent years. In May 2017, there were about 20 offers, and Brave’s recent web browser ICO generated about $ 35 million in just 30 seconds. By the end of August 2017, a total of 89 sales of ICO coins worth $ 1.1 billion had been made as of January 2017.

Investors send Bitcoin, Ethereum or another cryptocurrency to the given address and then in return receive new tokens, which can bring them great benefits if the project is hit.

  • ICO is mainly conducted for cryptocurrency-based projects that rely on decentralized technology. So, naturally, such projects would force only those investors who have a great interest in the concept of cryptocurrency and are friendly to the technology used.
  • The document that belongs to an investor really remains in the form of a web page, a white paper or a web publication. Some of these documents show exact details of the project, whether or not some others are literally falsifying its features to mislead stakeholders. So before you rely on any white paper or electronic document, you better go through a quality check.

What is an ICO in cryptocurrency?

ICO stands for Initial Coin Supply. When launching a new cryptocurrency or crypto-token, developers offer investors a limited number of units in exchange for other major cryptocurrencies such as Bitcoin or Ethereum.

ICOs are amazing tools for rapidly pouring development funds in support of new cryptocurrencies. Tokens offered during the ICO can be sold and traded on cryptocurrency exchanges if there is sufficient demand for them.

Ethereum’s ICO is one of the most notable successes, and the popularity of the initial coin offerings is growing as we speak.

A brief history of the ICO

Ripple is probably the first cryptocurrency to be distributed through ICO. In early 2013, Ripple Labs began developing the Ripple payment system and generated approximately 100 billion XRP tokens. They were sold through ICO to fund the development of the Ripple platform.

Mastercoin is another cryptocurrency that sold several million Bitcoin tokens during the ICO, also in 2013. Mastercoin aims to tokenize Bitcoin transactions and execute smart contracts by creating a new layer on the existing Bitcoin code.

Of course, there are other cryptocurrencies that have been successfully funded through the ICO. As early as 2016, Lisk raised about $ 5 million during their initial coin offering.

Nevertheless, Ethereum’s ICO, which took place in 2014, is perhaps the most famous so far. During its ICO, the Ethereum Foundation sold ETH for 0.0005 bitcoins each, raising nearly $ 20 million. Using the power of Ethereum’s smart contracts, he paved the way for the next generation of initial coin offerings.

Ethereum ICO, a recipe for success

Ethereum’s smart contract system has implemented the ERC20 protocol standard, which sets out the basic rules for creating other compatible tokens that can be transitioned to the Ethereum blockchain. This allowed others to create their own ERC20 compliant tokens that could be traded for ETH directly on the Ethereum network.

DAO is a remarkable example of the successful use of Ethereum’s smart contracts. The investment company raised $ 100 million in ETH, and investors received DAO tokens in return, allowing them to participate in the management of the platform. Unfortunately, DAO failed after being hacked.

Ethereum’s ICO and their ERC20 protocol outlined the latest generation of crowdfunding projects based on blockchain through Initial Coin Offerings.

Also facilitate investment in other ERC20 tokens. Simply transfer ETH, place the contract in your wallet and the new symbols will appear in your account so you can use them as you wish.

Obviously, not all cryptocurrencies have ERC20 tokens living in the Ethereum network, but almost any new blockchain-based project can launch an initial coin offering.

The legal status of the ICO

As for the legality of the ICO, there is a bit of a jungle. In theory, tokens are sold as digital goods, not as financial assets. Most jurisdictions have not yet regulated the ICO, so assuming that the founders have an experienced lawyer on their team, the whole process should be paperless.

However, some jurisdictions are already aware of the ICO and are already working to regulate it in a manner similar to the sale of shares and securities.

As early as December 2017, the US Securities and Exchange Commission (SEC) classified ICO tokens as securities. In other words, the SEC was preparing to stop ICOs, which they consider misleading investors.

There are some cases where the token is just a useful marker. This means that the owner can simply use it to access a particular network or protocol, in which case they may not be defined as a financial guarantee. Nevertheless, capital tokens, which are intended to be valued, are quite close to the concept of security. The truth is that most symbol purchases are made specifically for investment purposes.

Despite the efforts of regulators, ICOs remain in the gray legal area and until a clearer set of regulations is imposed, entrepreneurs will try to take advantage of the initial coin proposals.

It is also worth mentioning that once regulations are finalized, the costs and effort required to comply with them may make ICOs less attractive than conventional funding opportunities.

Concluding remarks

For now, ICOs remain an amazing way to fund new crypto-related projects, and there are many successful ones yet to come.

Keep in mind, however, that everyone is starting an ICO these days, and many of these projects are scams or lack the solid foundation they need to thrive and deserve an investment. For this reason, you should definitely do an in-depth study and research the team and history of any crypto project you would like to invest in. There are several websites that list ICOs, just do a Google search and you will find some options.