Explain how to find ICO and earn tokens. Initial Coin Offering translated from English as the initial placement of tokens. Often used as an abbreviation for "ICO". This notion implies the release of any private company tokens (digital coupons) and their further sale to interested persons who act as investors. Received payment for tokens is investing in any emerging technology project (startup). At its core, ICO is one of the most popular types of collective funding, or crowdfunding.
Is a direct analogy between ICO and IPO (initial public sale of shares) with the difference that the issue and placement of tokens is not regulated by the government, while the issuance of shares is carried out under strict state control. Another fundamental difference: by purchasing tokens, investors do not receive rights similar to the rights of the shareholders. That is, together with the tokens don't transfer to investors a stake in the company and do not provide the right to influence its activities.
Why should investors buy tokens
Tokens can be sold to investors, and they can be exchanged for Bitcoin and US dollars, and in both cases to Finance to implement their plans. Having its own cryptocurrency in itself contributes to the development of the company and at the same time helps to monetize the project. The use of release tokens is obvious, but a logical question arises: why buy tokens? Among the most common reasons:
receiving financial benefits from the resale of tokens;
obtaining services from the company at a reduced price in the future;
personal interest in the project.
Buying tokens from a company that has good prospects, investors expect that their value will go up, and so resale will bring a certain income. Personal interest in the project may be due to, for example, a commitment to the development of all mankind, the creation of socially useful opportunities. As for services, then common option is to buy disk space, or increase the throughput of the channel width, as is happening in the project Storjcoin X.
ICO risks and ways of their reduction
Buying tokens, the investor is a risk, as there are no laws that would regulate the ICO. Consequently, the transaction is based solely on trust. There is no guarantee that a funded project will be successful and will meet the expectations of the investor. In the worst case, you might encounter with this fraud took place are cases when the ICO is to bring the cryptocurrency, not with the aim of developing a new project.
The head of the company Runa Capital and renowned expert in the field of cryptocurrency Nick Tomino pointed to a paradoxical situation, when dubious projects that do not have real basis, very quickly collected sums amounting to millions of dollars. In his opinion, this situation is due to incompetence on the part of investors. Nick Tomino also explained what features has the prospective project. First of all, it
complete transparency of the activities of the company;
the validity of the issue;
willingness to engage in Frank dialogue with investors;
the possibility of direct hashing;
determining the exact amount of required investment;
at least 10% and not more than 50% of the tokens in the ownership of the company.
Taking the decision to participate in the ICO, investors need to determine how competitive a company they are planning to Finance, are there any benefits of decentralization of a particular service? If these questions can be answered positively, the risk of fraud is minimal.
Search project and conduct ICO
Deciding to make investments in ICO, you first need to find a project with great potential. The easiest way is to use specialized information resources such as ICO or Alert Smith + Crown.
Have good prospects a specialized platform to run ICO on the contract base and the ability to weed out unreliable projects, which increases the security of transactions. One of these sites - from Coinlist Protocol Labs and AngelList.
To buy tokens, the investor must have a wallet with bitcoin, for example, with bitcoins.
ICO to spend for your own project, you need to possess programming or use the designers of ICO, to set clear tasks and goals and have expertise in IT. Etherium, for example, has produced a fixed number of tokens and gave vozmojnostyah them further.
The most acclaimed ICO:
Mastercoin – with the release of these tokens in 2013 began the story of ICO. The project involved the creation of financial services using as the Foundation of bitcoin. Collected $ 5 million.
MaidSafe – the project, launched in 2014. The main idea is to create a decentralised Internet, free from governmental restrictions. The money was collected in bitcoins, so masterkong. Managed to attract more than $ 6 million.
Ethereum - cryptocurrency project 2014. The result is a esters (Ethers), which at first sold for just 30-40 cents. In July 2015, the price was already $ 20, and in 2017 reached $ 200 per unit. Ethers is one of their most popular cryptocurrency. The total capitalization of the esters is second only to bitcoin.
DAO - decentralized Fund, established in 2016 on the technology of Ethereum. Attracted over $ 150 million, of which approximately 40 million stolen by hackers, but later returned due to interference in the system the founders of the project. Some users, dissatisfied with this situation, left the project and created his own cryptocurrency Ethereum Classic.
But not all projects were successful, and in most cases the problems arose after the ICO. These include, for example, PayCoin. Its founder, Josh Garza, failed to fulfill their promises to the investors, and as a result he was accused of fraud, faces prison time.
The popularity of ICO
On the website of Smith + Crown published data on the size of the investment made in the framework of the ICO. In 2016, attracted by the amount of 101 million USD. For the first half of 2017, this amount almost doubled to a record 180 million U.S. dollars. Projected to further increase investment.
In one of the publications CNBC compares the growth in popularity of ICO and the splash on the cryptocurrency markets, with the rise of prices in 1999 the shares of companies operating in the field of the Internet industry and the IPO of the dot-com. On the one hand the similarity I see is that along with fair projects is speculative and, using boom around the ICO with a single purpose - to attract investors ' money without development of the project. Another thing in common – enormous potential that can lead to a fundamentally new global economy.
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