ICO And Crowdfunding: Who’s Who

hands, coin

Do you remember a game for Playstation 2 called Ico, released in 2001? Well, if not, lets talk about another ICO – Initial coin offering. What is ICO, crowdfunding and IPO, how are they different, what is the history of the ICO market and its prospects? Today The Coin Shark will take a look at this issue.

Content:

  1. What is ICO?
  2. What is crowdfunding?
  3. What is the difference between ICO and crowdfunding?
  4. History of ICO campaigns
  5. ICO and IPO
  6. What can happen to ICOs in the future?

1. What is ICO?

Initial coin offering is a form of investment attraction, when a company issues digital tokens and offers users to purchase them in exchange for a certain service that is provided with this token, or in exchange for future growth of token exchange rate. Funds collected during the ICO are used to develop or launch a project, and their distribution, as a rule, is mentioned in the technical documentation of the project – white paper.

2. What is crowdfunding?

Crowdfunding is a model of attracting collective investments. It appeared much earlier than initial coin offerings. In fact raising money from the public for an implementation of a particular significant project has been known since ancient times. The very idea of ​​such financing is based on decentralization of participation in the project, combining efforts of many people to achieve the commonly needed result. Just imagine, for example, that a certain non-governmental organization wants to build an animal shelter. To get enough money, project managers can look for large investors or, if appropriate mechanisms are available, take the advantage of crowdfunding. It will enable the project to receive contributions (let it be even small ones) from a large number of people and the total amount of attracted funds will be enough to implement the project. The key issue here is the availability of these mechanisms or even their existence. In fact, it is rather difficult to collect contributions from thousands or even millions of those who want to back a particular project. That’s why crowdfunding is today closely associated with the World Wide Web, that indeed helps bring people together at least in a digital space and provides effective mechanism to easily raise funds from all over the world.

3. What is the difference between ICO and crowdfunding?

Although ICO and crowdfunding are quite often used as synonyms, we can say that crowdfunding is basically a more broad term and ICO can be considered a specific type of crowdfunding. Initial coin offering, however, provides different mechanism for such a funding, as it operates on the blockchain technology – a distributed database, where the information about transactions is recorded in ledger of connected blocks. ICO is also based on the issue of project`s digital tokens or cryptocurrency. ICO-campaigns aim to provide more efficient, fast and secure tools to raise money from any kind of investors all over the world.

4. History of ICO campaigns

The very first ICO was held by the project called Mastercoin (today known as Omni) back in 2013. The developers managed to collect about 5 million US dollars. The peak of ICO campaigns was in 2016 and especially in 2017. As the crypto-boom of those years, the ICO-boom was largely inspired by the previous initial coin offering of Ethereum. When this blockchain platform appeared it became easier to launch decentralized blockchain-based applications. Moreover, projects that decided to hold ICOs were already able to use smart contracts. Soon special platforms (Ethereum, Waves, NEM, NXT. etc.) appeared, where users could issue their digital tokens and run their ICO campaigns. In summer, 2017, the project called EOS raised $185 million US dollars in the first few days of its ICO campaign.

In 2018, we have been observing changes on the ICO market. Most of the projects did not manage to reach their hard cap (maximum amount of investment that the developers plan to collect), users began to show less activity, and many companies started targeting large investors.

5. ICO and IPO

IPO is an initial public offering of shares, carried out by stock companies when they enter equity market. ICO is, in fact, its digital analogue. ICO does not use shares, as their issue and circulation is strictly regulated by the state. So, instead of shares there are fairly unregulated and easy-to-launch virtual tokens and currencies. A token holder, just like a shareholder, has certain rights. At this point, the US Securities and Exchange Commission, in its struggle to regulate the cryptocurrency market and ICOs, adopted provisions, stating that if tokens confirmed rights to receive goods or services (utility tokens similar to ordinary discount coupons), they were not subject to stock market regulations. However, if tokens provided rights to participate in the distribution of company’s profits or could be traded on cryptocurrency exchanges in order to get profits, SEC treated them as securities, and therefore, state regulation of stock market applied. ICO uses tools similar to IPO, but on the blockchain technology, which is supposed to make this process more accessible, open and secure. However, the actual lack of regulation can increase the risk of fraud.

6. What can happen to ICOs in the future?

Today a successful ICO requires huge investments in development, marketing and advertising, legal support, etc. When the crypto-euphoria of the first years of ICO-campaigns passed, the companies began to wonder, whether they really need an ICO to attract investment. One of notable examples is a sensational “ICO” of Telegram. In fact, it is probably better to use a neutral term “tokensale”, as this is not actually a classic ICO. The sale of tokens is private and general public has no opportunity to join it. Telegram aims to collect large investments from large investors instead.

Anyway, the ICO market is not the same as it used to be in 2016-2017. Obviously, it will continue to change. There won’t be hundreds of different projects holding their initial coin offerings, ICO-campaigns will become more regulated and companies will try to advance their campaigns in terms of legal framework and mechanisms of collective investment so as to make it really transparent. The market in general is likely to reduce in size and become more professional.

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Dragonglass: Mine Crypto Quicky, Easily and Profitably

Mining is currently the main and most frequently used method of getting hold of digital assets. Despite the high level of popularity, mining is still relatively new, which means that there is much to be improved. What are the main shortcomings these days? Firstly, it is a very difficult process which requires profound fintech knowledge. This limits the range of people who can use it to minimum. Secondly, mining equipment and electricity fees are extremely expensive, so not everybody can afford it. Other disadvantages include harm to the environment, duration etc. How to fix there problems?

What is Dragonglass?

Dragonglass is a unique solution that will turn boring mining into an enjoyable experience. The project developers have created a special Dragonglass app that will let you play a game and mine DGS tokens at the same time. Getting started is super simple: you send ETH to the TGE address of Dragonglass, then download the iOS or Android app, transfer the purchased DGS tokens there and start playing and mining. With each completed level of the game, the amount of tokens will increase proportionally. There are 10 levels in the game, that means that you can increase your profits by up to 10 times. Moreover, you can keep playing even after Level 10.

Why should you choose Dragonglass?

  • it has a game-like infrastructure
  • it does not use resources of your device
  • it is much more efficient than conventional mining
  • it is affordable
  • it is simple and user-friendly
  • it is safe for environment
  • it is fun!

TGE details

The token of the project that you mine in the app called DGS. Since the app is free itself, DSG is required for mining. Its price is 0.000027 ETH. The token is created according to the ERC20 standard on Ethereum blockchain. The project has a hard cap of 30 thousand ETH with a minimum investment amount of 0.05 ETH. Dragonglass is currently running the token offering.

If you need more details on Dragonglass or you are ready to dive into the world of fun mining, go ahead and visit the official website.

The project is going to hold a special Christmas airdrop. You can participate here.

The Coin Shark does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any actions. The Coin Shark is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the article.

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Cryptocurrency Prices Today, December 14: Cryptocurrencies Are in the Red Zone Again

crypto prices

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coingecko, Bitcoin (BTC) lost 3.4% over the past 24 hours. The price at the time of writing is $3298 per coin.

Cryptocurrencies moved to the red zone:

Bitcoin Cash lost 11.17% over the past 24 hours and costs $82 per coin;

Ripple fell by 1.89% and is $0.29 in price;

EOS minus 4.67%, and its cost is $1.88;

Litecoin decreased by 2.35%, and its price is $23;

Cardano lost 4.17%, and its value is $0.028;

Stellar dropped by 6.46% and costs $0.10;

IOTA minus 4.53%, and its cost is $0.24;

Dash lost 4.67%, and its price is $61;

Monero became cheaper by 1.61% and costs $42.

Over the past 24 hours, Ethereum lost 3.95% and continues to decline. The coin exchange rate is $85, according to Coin 360.

The total market capitalization fell to $104 billion. Bitcoin accounts for 55% of the total volume. In monetary terms, this is $57 billion.

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Saudi Arabia and United Arab Emirates Will Release a Joint Cryptocurrency

As reported by the local news media, the Saudi Arabian Monetary Authority is cooperating with the Central Bank of UAE in order to develop their own blockchain, which will be the basis for the joint digital coin. The new currency will be used for cross-border transactions between these two states.

This is probably the first time ever that witnesses the cooperation of monetary authorities from different countries on this topic and we hope that this achievement will foster similar collaboration in our region,” said an Abu Dhabi official.

The cooperation is currently ongoing, no specific dates as to when the development will be finished have not been released so far. The innovations in the financial sector will involve only banks and institutional investors, not the regular customers.

We remind you:

Ripple Technology Will Soon Be Implemented in the Biggest Bank of Saudi Arabia

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Cryptocurrency Prices Today, December 13: BTC and Other Cryptocurrencies Remain Stable

crypto prices

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coingecko, Bitcoin (BTC) remained stable over the past 24 hours and slightly increased in price – by 0.2%. The price at the time of writing is $3415 per coin.

Cryptocurrencies changed in price very slightly:

Bitcoin Cash lost 2% over the past 24 hours and costs $96 per coin;

Ripple dropped by 0.78% and is $0.30 in price;

EOS added 1.91%, and its price is $2.01;

Litecoin minus 2.04%, and its cost is $24;

Cardano grew by 0.06%, and its value is $0.030;

Stellar lost 1.81% and costs $0.11;

IOTA dropped by 0.53%, and its cost is $0.24;

Dash fell by 1.06%, and its price is $65;

Monero decreased by 2.06%, and its rate is $43.

Over the past 24 hours, Ethereum lost 0.56%. The coin price is $90, according to Coin 360.

The total market capitalization is $109 billion. Bitcoin accounts for 54.9% of the total volume. In monetary terms, it is $59 billion.

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How Is a Schoolboy Millionaire Doing: A Story About the Youngest Bitcoin Richer

Erik Finman’s life is like a dream. He is the youngest Bitcoin millionaire in the world. His digital wallet stores more than 400 BTC, which at the rate of $20 thousand per one coin was equal to $8 million.

From a schoolboy to a Bitcoin Millionaire

The story of Erik Finman began in 2011, when he was 12 years old. Young man received from his grandmother $1 thousand for college. However, the guy decided to invest them not in education, but in Bitcoin. He was confident that the digital currency has a great future and therefore he will have it, if he buys BTC. A schoolboy purchased Bitcoin on all the money that his grandmother gave him, with the rate of $12 per one coin.

The first million Erik earned at 15 years. Before that, the future millionaire, argued with his parents that he would not go to college if he earned his first million before the age of 18. When the Bitcoin rate first increased in the summer of 2017, Finman became a millionaire. After that, he went into business.

In 2013, Erik’s capital was valued at more than $100 thousand. This fortune pushed the guy to drop out from high school, in order to start his own business. Moreover, the young man was convinced that the secondary school provides with low-quality education.

“I had these teachers that were all kind of negative. One teacher told me to drop out and work at McDonald’s because that was all I would amount to for the rest of my life. I guess I did the dropout part.”  – said Erik in CNBC interview.

The young entrepreneur founded his own online educational platform Botangle, which helped the young people to find suitable teachers for class via video chat sessions.

January 2015 has been a remarkable for the guy. He sold Botangle for 300 BTC, whose rate at that time was $ 200 per coin. The buyer also offered the guy $100 thousand in exchange for the business. However, Erik was convinced that it was much more promising to make a deal with cryptocurrency.

“My parents asked ‘Why don’t you take the more cash? But I thought of it more of an investment.” –  Finman explained.

You may ask, what’s the catch? And the catch really is. After all, the guy for $100 thousand could buy 500 BTC instead of 300 BTC. But he chose cryptocurrency, because the official transaction is accompanied by certain difficulties with which, the underage wouldn’t not cope.

Today, December 2018, Erik has about 400 BTC at his disposal, and the Bitcoin rate varies within $4,000 per coin. That is, Erik’s fortune does not exceed $2 million. Despite the fact that experts like Warren Buffett are confident that the cryptocurrency is a bubble that is about to burst, the young man says:

“Personally I think bitcoin is going to be worth a couple hundred thousand to a million dollars a coin”

Some believe that the young millionaire suffers from paranoid syndrome. After an increase of popularity and capital, Erik is obsessed with the security of his assets. For example, he divides his capital into various super secured wallets.

Bitcoin millionaire lifestyle

Erik bought a house in West Hollywood, where he neighbors with young YouTube stars and IT elites. Well, and as usual it happens, the guy had his head turned by his fortune. The first evidence that Finman “went off the rails” was the reusable rental of Lamborghini sports cars.

The insanity did not last long. During this dizzying period, the guy did not insert the diamond teeth, did not fill the wardrobe to the full with clothing. By the way it is half empty. The millionaire dresses very inconspicuously: T-shirts, shorts and jeans.

Erik hated the school so much, that when he bought a car, it was indicative that he chose a number with his average grade of school certificate – 2.1GPA.

All of Erik’s relatives have a higher education, so they really want their children to get a higher education. But, a bet’s a bet,and besides, the guy is not going to college under any circumstances:

“The purpose of that would be to get another education level and get a job. I had to learn through running a business. Instead of writing essays for English class, I had to write emails to important people.” – said Erik. “The way the education system is structured now, I wouldn’t recommend it,It doesn’t work for anyone. I would recommend the internet, which is all free. You can learn a million times more off YouTube and Wikipedia.”

The young millionaire eats at Polo Lounge, In-N-Out Burger and other restaurants, depending on his mood. In his free time from work, the guy travels. He likes to have a rest on distant continents, especially Dubai.

Source: https://www.inverse.com

Now Finman is in charge of managing his own and family Bitcoin investments.

The young millionaire’s view of the future of cryptocurrency

The world’s first cryptocurrency by capitalization is not the only digital currency that makes up the capital of the millionaire. Litecoin and Ethereum are also in reserve.

If the young man believes in the future of Bitcoin, the future of Vitalik Buterin’s creation he doubts though. Erik believes that Ethereum’s growth depends on speculation on the crypto market.

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Cryptocurrency Prices Today, December 12: Cryptocurrencies Are Relatively Stable

crypto prices

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coingecko, Bitcoin (BTC) remained stable over the past 24 hours. The price at the time of writing is $3412 per coin.

Cryptocurrencies are both in the red and in the green zone:

Bitcoin Cash lost 4% over the past 24 hours and costs $95 per coin;

Ripple added 0.52% and costs $0.30;

EOS grew by 0.04%, and its price is $1.91;

Litecoin dropped by 0.91%, and its rate is $24;

Cardano increased by 0.32%, and its value is $0.029;

Stellar lost 2.76% and costs $0.11;

IOTA fell by 7.31%, and its cost is $0.24;

Dash decreased by 4.83%, and its price is $65;

Monero became cheaper by 1.40% and costs $43.

Over the past 24 hours, Ethereum lost 1.59%. The coin rate is $89, according to Coin 360.

The total market capitalization is $109 billion. Bitcoin accounts for 54.9% of the total volume. In monetary terms, it is $60 billion.

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