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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New Video Player Technology That Rewards Users for Their Attention

Genesis player

Genesis player promotes the latest blockchain projects and rewards viewers with tokens directly through the player. The tool, which can be easily embedded across the web has been quickly adopted by multiple crypto projects looking to build their community and reach investors through the power of video.

With close to 100,000 existing user accounts, crypto enthusiasts and investors can learn about new projects by watching promotional videos. Users can earn between $3 and $5 each view, from an airdrop completed directly through the player. These videos are syndicated across the web, and available on CryptoNow.tv. Users can visit cryptonow.tv and browse featured videos to earn tokens. There is a total of $400k worth of tokens available in total from over 10 promising projects.

You can earn 5 iCash tokens worth $5 by watching all of the video above and signing up for GenesisPlayer. Simple!

Users can also earn an additional 10% through an inbuilt referral programme by sharing the video once they have signed up and claimed tokens. The system is backed by ‘Proof of View’ technology which stops any cheating and users skipping.

Some of the current projects using the Genesis player technology to power their community include iCash, Vreo, Smartree, CoinAnalyst, Autobay, INDX and Fanfare.

GenesisPlayer was built on the Verasity Protocol and was developed out of a successful ICO and the Verasity team understanding the importance of projects needing to build an engaged community and the power video has in selling the potential of a project. Find out more at Verasity.io

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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BTCC Opens Its HQ in South Korea

BTCC Opens Its HQ in South Korea (alien, space)

Crypto exchange BTCC decided to expand its services worldwide, launching its business in South Korea. The platform will set a beta-version on October 31 this year, and the debut appointed in November.

The exchange stated that it will provide not only the trading, buying/selling services, but also a possibility to create own a wallet, a mining pool and a consumer payments service. There is still no information about the coins listed on exchange.

A person, called Lee Jae-beom, will be a head of BTCC’s operations in Korea. He claimed that BTCC Korea planed to demonstrate a new vision of cryptocurrencies.

BTCC is a Chinese cryptocurrency exchange which was formerly expelled from mainland China due to inconsistency with the rules. Then it was moved to Hong Kong, where it support trading of five cryptocurrencies. We remind you

Bitcoin Is in Danger: Chinese Hegemony Over the Industry

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Dollar-Pegged Stablecoins Exceeded the Price Point of $1

Stablecoins (cosmonaut)

Although the main feature of stablecoins should be their unchanged price (namely, 1 unit of the currency they are backed up by), it seems like cryptocurrency is just not meant to stay stable.

Here is the chart of how much the major US-tied stablecoins are currently worth:


Source: CoinDesk

As we can see, all of the stablecoins went up the actual 1-dollar price limit, only Tether dropped a little bit.

Given the fact, that stablecoins are influenced by many factors, including volume in circulation, it seems like they will never be able to be fixed at one particular price. Thus, Roger Ver was right in his assumptions.  

We remind you:

Roger Ver: Stablecoins Aren’t Stable

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Cryptocurrency Prices Today, October 17: Cryptocurrencies Are Relatively Stable

Cryptocurrency Prices Today (pumpkin)

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

According to the Coin360 online platform, Bitcoin (BTC) lost 0.71% over the past 24 hours. The price at the time of writing is $6580 per coin.

Cryptocurrencies stay both in the red and green zones:

Bitcoin Cash lost 1.59% over the past 24 hours and costs $455 per coin;

Ripple added 3.68% and is $0.47 in price;

EOS lost 0.54%, and its cost is $5.43;

Litecoin dropped by 2.43%, and its price is $53;

Cardano added 0.83%, and its value is $0.076;

Stellar grew by 2.93% and costs $0.23;

IOTA lost 0.48%, and its cost is $0.50;

Dash fell by 0.84%, and its price is $163;

Monero decreased by 1% and costs $106.

Over the past 24 hours, Ethereum lost 0.57%. The cost of the coin is $209.

The total market capitalization is $212 billion. Bitcoin accounts for 53.7% of the total. In monetary terms, it is $114 billion.

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BitPay Has Added Two Stablecoins to the Listing

The service, which provides payment processing services for Bitcoin and Bitcoin Cash, BitPay reported on its official Twitter that it now supports USDBin Coin (USDC), which was created by the blockchain-based startup company Circle and Gemini Dollar (GUSD) launched by the Winklevoss brothers.

The value of each of these coins is pegged to the value of the US dollar at a 1:1 ratio, so there’s no risk of value change or price volatility for holders. Holders can redeem these “stable coins” directly for US dollars via Gemini (for GUSD) or Circle (for USDC) exchange accounts,” said BitPay representatives in their blog.

We remind you that on September 15, OKEx added four stablecoin to its listing: TrueUSD (TUSD), Gemini Dollar (GUSD), USD Coin (USDC) and Paxos Standard Token (PAX).

OKEx Adds 4 Stablebcoins To Its Listing

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Cryptocurrencies Prices Today, October 16: Cryptocurrencies Are on the Border of the Red and Green Zones

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

According to the Coin360 online platform, Bitcoin (BTC) lost 1.21% over the past 24 hours. The price at the time of writing is $6632 per coin.

Cryptocurrencies demonstrate both growth and decline:

Bitcoin Cash lost 1.02% over the past 24 hours and costs $463 per coin;

Ripple added 0.85% and costs $0.45;

EOS dropped by 0.97%, and its price is $5.43;

Litecoin decreased by 0.45%, and its cost is $55;

Cardano added 0.47% and its value is $0.075;

Stellar gained 0.06% and costs $0.22;

IOTA lost 1.79% and its cost is $0.50;

Dash fell by 0.87% and its price is $164;

Monero grew by 0.47% and costs $107.

Over the past 24 hours, Ethereum lost 1.59%. The cost of the coin is $210.

The total market capitalization is $211 billion. Bitcoin accounts for 54.1% of the total. In monetary terms, it is $114 billion.

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