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South Korea to Develop Crypto Beach’ Modelled After Switzerland’s Crypto Valley’

South Korea to Develop ‘Crypto Beach’, Modelled After Switzerland’s ‘Crypto Valley’

South Korea has revealed plans to launch a blockchain center

in Busan city modeled on the Swiss Crypto Valley, local news outlet Edaily reported June 14. At a recent blockchain event in Seoul “2018 Global Blockchain Conference,” chairman of the Korea ICT Financial Convergence Association Oh Jung-geun claimed that the organization seeks to build a space similar to the “Crypto Valley” located in the Swiss canton of Zug. "We need a place to concentrate on the cryptographic industry in Korea like the Crypto Valley in Switzerland," Oh said at the event.

The association reportedly plans to launch the “Crypto Beach” space at Haeundae, Busan. Located in eastern Busan, South Korea, Haeundae is an affluent beachfront community that attracts thousands of tourists each summer. The space has also been classified as a commercial development center by the government in recent decades. The Association reportedly plans to discuss the project with Busan authorities on Aug. 30. Oh pointed out that many South Korean companies must launch initial coin offerings (ICOs) overseas due to the government’s current ban on ICOs. Oh expressed concern about the lack of understanding of the new technology and its benefits by local authorities and their strict regulations.

In September 2017, South Korean financial authorities announced a ban on ICOs, claiming they should be strictly controlled and monitored. The government has ostensibly realized the risks associated with banning the practice, such as displacement of talent and investment  overseas, as South Korean lawmakers are reportedly working on legislation that aims to lift the existing ban on ICOs. As Cointelegraph reported earlier, Switzerland is the most blockchain-friendly country in the world. Swiss Crypto Valley, a state-backed blockchain consortium was launched in March 2017 to support the development of blockchain and cryptography-related technologies and businesses. Last week, the city of Zug announced it will trial blockchain-powered municipal voting this summer.

Article Produced By
Helen Partz

Helen is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2017, she joined Cointelegraph as a writer.

https://cointelegraph.com/news/south-korea-to-develop-crypto-beach-modelled-after-switzerland-s-crypto-valley

E. Sue Bennett

Initial Coin Offering ICO

Initial Coin Offering (ICO)

DEFINITION of 'Initial Coin Offering (ICO)'

An unregulated means by which funds are raised for a new cryptocurrency venture. An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.

BREAKING DOWN 'Initial Coin Offering (ICO)'

When a cryptocurrency startup firm wants to raise money through an Initial Coin Offering (ICO), it usually creates a plan on a whitepaper which states what the project is about, what need(s) the project will fulfill upon completion, how much money is needed to undertake the venture, how much of the virtual tokens the pioneers of the project will keep for themselves, what type of money is accepted, and how long the ICO campaign will run for. During the ICO campaign, enthusiasts and supporters of the firm’s initiative buy some of the distributed cryptocoins with fiat or virtual currency. These coins are referred to as tokens and are similar to shares of a company sold to investors in an Initial Public Offering (IPO) transaction. If the money raised does not meet the minimum funds required by the firm, the money is returned to the backers and the ICO is deemed to be unsuccessful. If the funds requirements are met within the specified timeframe, the money raised is used to either initiate the new scheme or to complete it.

[ Initial coin offerings are appealing to traders for the same reason that initial public offerings – they offer a high level of volatility as the market comes up with an appropriate price for the asset. If you're interested in learning how to trade cryptocurrencies, Investopedia's Crypto Trading Course provides a comprehensive overview of the subject taught by a Wall Street veteran. You'll learn cryptocurrency basics, how to setup a wallet, and how technical analysis can be used to identify opportunities. ]

Early investors in the operation are usually motivated to buy the cryptocoins in the hope that the plan becomes successful after it launches which could translate to a higher cryptocoin value than what they purchased it for before the project was initiated. An example of a successful ICO project that was profitable to early investors is the smart contracts platform called Ethereum which has Ethers as its coin tokens. In 2014, the Ethereum project was announced and its ICO raised $18 million in Bitcoins or $0.40 per Ether. The project went live in 2015 and in 2016 had an ether value that went up as high as $14 with a market capitalization of over $1 billion.

ICOs are similar to IPOs and crowdfunding. Like IPOs, a stake of the startup or company is sold to raise money for the entity’s operations during an ICO operation. However, while IPOs deal with investors, ICOs deal with supporters that are keen to invest in a new project much like a crowdfunding event. But ICOs differ from crowdfunding in that the backers of the former are motivated by a prospective return in their investments, while the funds raised in the latter campaign are basically donations. For these reasons, ICOs are referred to as crowdsales.

Although there are successful ICO transactions on record and ICOs are poised to be disruptive innovative tools in the digital era, investors are cautioned to be wary as some ICO or crowdsale campaigns are actually fraudulent. Because these fund-raising operatives are not regulated by financial authorities such as the Securities Exchange Commission (SEC), funds that are lost due to fraudulent initiatives may never be recovered.

The rapid ICO surge in 2017 incurred regulations from a series of governmental and nongovernmental In early September, 2017, the People's Bank of China officially banned ICOs, citing it as disruptive to economic and financial stability. The central bank said tokens cannot be used as currency on the market and banks cannot offer services relating to ICOs. As a result, both Bitcoin and Ethereum tumbled, and it was viewed as a sign that regulations of cryptocurrencies are coming. The ban also penalizes offerings already completed. In early 2018, Facebook, Twitter, and Google all banned ICO advertisements. 

Article Produced By
Investopedia

https://www.investopedia.com/terms/i/initial-coin-offering-ico.asp

 
 

E. Sue Bennett

Upcoming EOS Airdrops in June

Upcoming EOS Airdrops in June

 

June is proving to be a busy month for EOS.

First came their much anticipated mainnet launch and the 20% market growth which accompanied it. Then the mainnet launch stalled, and this was accompanied by the sudden global market dip of ‘Sunday Bloody Sunday’; which saw EOS lose 30% of its value. The mainnet launch attracted a lot of attention over the course of the last month, with much of it being positive. But now the headlines have soured, and questions are being raised about the team’s ability to clean up the hundreds of bugs still plaguing the platform; as well as the failure to reach a consensus among the platform’s block producers.

Regardless of the furore of the last couple of weeks, EOS remains a much hyped blockchain operating system, and it has a host of projects looking to launch themselves to success by starting on the EOS launchpad. EOS is host to 18 projects who have announced airdrops for the month of June alone. Some of these have already passed, while some have gone relatively unnoticed. But there’s still plenty to come, so let’s take a look at some of the tokens are going to be airdropping to EOS holders before the month is out.

Lab Ledger (LAB)

Lab Ledger aims to corner a very specific market – the scientific journal industry. According to Lab Ledger’s problem-statement, they are seeking to redress the imbalances of the peer-review journal industry, which have seen subscription prices rise 251% in under twenty years. At the same time, leading scientific journals have become unbelievably money-makers, and can afford to charge what are unreachable prices for many scientific researchers. This oligopoly which has emerged threatens to shut out serious scientific voices, simply because they can’t stump up the bribe required to have their research seen.

At least this is the picture painted by Ledger Labs, who aim to circumvent the ridiculous pricing of journal industry by moving the process over to the blockchain – in this case, the EOS blockchain. While the idea may seem incredibly niche, this is one of the few attempts to transfer an industry onto the blockchain that actually seems to have some merit. The main obstacle for Lab Ledger will be adoption. How many scientists will publish their papers on a platform which no one knows exists? But that’s the same problem which faces many blockchain services, so Lab Ledger isn’t alone on that front.

LAB airdrop date: June 21st

Atidium (ATD)

Atidium are airdropping 900,000,000 ATD tokens on a 1:1 ratio for EOS holders.This amounts to 60% of their total token allocation, with the rest being split among the team and the marketing department. Atidium aims to provide a cryptocurrency that will help users keep track of their finances, and includes a few unique features to help with general financial management.

One example is the proposed ability to ‘color’ coins – that is, to mark them as being for a very specific use. At the same time, Atidium proposes a shared wallet system, where you could allocate your son a token amount which could only be spent in a certain place. The Atidium roadmap is still a long way from completion, and their level of ambition would require untold amounts of work; both technical and social. For Atidium’s application to be worth anything, it would need to secure adoption by hundreds, if not thousands of real world vendors. It’s not impossible, but certainly ambitious.

ATD airdrop date: June 28th

HorusPay (HORUS)

HorusPay is an upcoming EOS project which aims to provide a platform for payroll services. According to HorusPay’s website, typical payroll vendors charge up to 40% for their services, and HorusPay wants to cut out the middle-man and provide an automated system for the management of payrolls.

Users would presumably benefit from the core blockchain values of security and decentralization, and while the transfer of financial services to the blockchain is a viable idea, there are also many crypto projects looking to invade this space.

Blockchain platforms which focus on purely financial services tend to miss out on much of the typical cryptocurrency hype. The average crypto investor can’t tell the difference between the hundreds of ‘decentralized payment and remittance platforms’ which pop up every year. For HorusPay to make an impact, one would think they’d have to either show up with some kick-ass technology in tow, or ramp up the hype train with some partnerships or similarly promising announcements.

HORUS airdrop date: June 30th

Prospectors (PGL)

Prospectors is what’s known as a Massive Multiplayer Online Real Time Economic Strategy (MMORTES) – a game which focuses resource management and economic strategy. The gameworld models the economic situation of the late 19th / early 20th century, and players must compete in the process of mining for gold.

The game has been alpha-tested for a while now and the team recently announced the transition to beta-testing towards the end of May. Gameplay videos can be found on YouTube, and Prospectors seems like it may have the potential to do well, even among the currently saturated blockchain-gaming ICO market. By all accounts, Prospectors appears to have more going for it than the many CryptoKitties knock-offs that appear on a daily basis. While the game does involve buying assets and selling them on (the entirety of CryptoKitties), it also involves the extra layers of strategy afforded by the requirement that you actually set up a prospecting business.

This means that before you get to the gold mines, you’ll need to get your tools, resources and team all in order. PGL tokens represent said gold and fuel the in-game economy. The marketing materials for the game claim that it operates on free-market principles; with in-game prices being reflective of the supply and demand of its user base. If previous blockchain games are anything to go by, this probably means that game items will be priced exorbitantly upon launch, when there are too few players to make up the economy. However this is speculation, and Prospectors could yet prove to be the blockchain game that bucks the trend.

PGL airdrop date: 30th June

And a few more…

Many EOS airdrops are scheduled for the month of June, but some of them have undefined dates. CETOS, for example, is a blockchain project which aims to become a facilitator for day-to-day healthcare services. They’ve set an airdrop date of ‘June/July’. EOS Cafe aims to airdrop its BEANS tokens to users some time around June, but no clear date has been set. EOS Cafe has the long term goal of setting up EOS-focused coffee-shops and hack-spaces.

Another undefined airdrop date in June belongs to EOX – a proposed global crypto commerce platform where everything can be bought with cryptocurrency. While the ONO Social Network rounds off those airdrops listed for unspecified dates in June, and will release their tokens in a 1:1 ratio against EOS tokens.

Going, Going… Gone!

Many tokens have already dropped this month, with projects such as Tokena, Evolution, EOS Sports Bets, EOS Classic, and EON releasing tokens to registered EOS holders. Several are launching right now, or are due to launch in the next few hours, such as Chaince, Everpedia, KEOS and Scatter.

Article Produced By
Greg Thomson

4.5 stars on average, based on 9 rated posts Greg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.

https://hacked.com/upcoming-eos-airdrops-in-june/

E. Sue Bennett

Gecko Governance aims to make ICOs less slithery and far more tangible

Gecko gets its crypto groove on

with ICO compliance tool and looming ICO. The promise of blockchain has been undermined and the shine taken from cryptocurrencies by questionable initial coin offerings (ICOs) and highly publicised spates of crypto-jacking and coin fraud. But now, a new tool from Irish start-up Gecko Governance could bring them back to the fold in terms of the accountability and the transparency that blockchain is meant

to be all about.

‘The current lack of governance standards within the ICO market is a barrier to the continued growth of the global blockchain ecosystem’
– SHANE BRETT

Gecko has developed a new platform called Gecko Crypto1, which will address the issues of accountability and transparency within the ICO market by allowing companies to manage ICO projects before, during and after the capital raising period. Not only will this ensure continuous compliance with national and international regulation, it will also allow ICOs to be better vetted by investors while providing an independent audit trail for regulators.

Gecko plots its own ICO

Gecko – a previous Siliconrepublic.com Start-up of the Week that is backed by Cosimo Ventures and counts Grant Thornton among its clients – is also planning to embark on its own ICO in the coming months. “2017 saw over $6.8bn raised through token sales, showcasing an incredible potential to finance ambitious products and start-ups,” said Gecko co-founder and CEO Shane Brett.

“However, the current lack of governance standards within the ICO market is a barrier to the continued growth of the global blockchain ecosystem and may even become a point of failure. “Gecko aims to bring transparency, accountability and reliability to the ICO market, facilitating its maturation into a scalable and secure industry in which to do business,” Brett added. The Gecko Crypto1 platform recently received approval from the Isle of Man Financial Services Authority for use by companies and organisations conducting token sales.

“This is a wonderful moment for Gecko as we move in a new direction, bringing the same level of accountability and transparency to the ICO market as we have been providing to the funds compliance industry for years,” Brett continued. “Our ICO will not only allow us to effectively scale our platform to address the requirements of the global blockchain ecosystem, but gives us the opportunity to showcase the best practices which Gecko will bring to the fore in the international token market.”

Article Produced By
John Kennedy

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com

https://www.siliconrepublic.com/start-ups/gecko-ico-regulatory-compliance-tool

E. Sue Bennett

ICO Marketing and airdrops

ICO Marketing and airdrops

ICO Marketing
Before going in details about ICO Marketing, let’s understand what is an ICO?

ICO:
ICO stands for Initial Coin Offering is a way for startups to crowdfund capital via selling their own token in exchange of either Bitcoin or Ethereum. In other words, ICO is primarily a fundraising process for startsups to build cryptocurrency businesses.

ICO Marketing:
ICO Marketing is a strategy used by blockchain startups to create awareness about the new token/coin to the people by using different advertising methods.

Airdrops:
Airdrops is a process of distributing tokens or coins to the current cryptocurrency holders for free.

How marketing is getting is more difficult for ICO?

In the last one year, there are lots of unusual things happened in the cryptocurrency market. Some of the most popular social media platforms such as Twitter and Facebook have banned the Cryptocurrency ads. Apart from this, search engine giant, Google has also banned the Cryptocurrency ads.

A lot of blockchain startups were using social media platforms in order to gain customers. However, as they are banning ads, now ICO marketing is getting difficult. Hence, these ICO’s need a new way of marketing. Apart from this, there are lots of regulations are being placed on the ICO in various countries worldwide. Also, some of the countries have also banned the Cryptocurrency completely.

ICO’s need a new way of marketing

There are still different ways to do ICO Marketing. Here is the list:

  1. Reddit: Build an amazing community on Reddit and engage with the users regularly. As soon as you win the trust of users, it will lead to ICO successes.
  2. Facebook Groups: Even if Facebook has banned the ICO advertising, there are plenty of Groups which are built for people having interest in cryptocurrency, ICO and Blockchain. Hence, you can build a strong community here also.
  3. Twitter: It is one of the fastest growing social media platform and large number of people are using it for advertising. Even if, advertisement are banned, you can still, create an appropriate page on Twitter and post regular updates about the ICO.
  4. Telegram: Another popular social media platform and used by various communities for marketing. On Telegram you can create your own channel and post regular updates about the ICO.
  5. Specialized Forums: Some of the well-known forums are being read by crypto enthusiast regularly. Hence you can list your ICO on various popular forms and gain audience.
  6. Linkedin Groups: There are large number of LinkedIn Groups on Cryptocurrency. Hence, you can provide details about your ICO on all of these groups.
  7. Quora Discussions: Quora is one of the most effective channel for covering ICO. You can post details on special threads meant for ICO.
  8. Email Marketing: You can also send details about the ICO to all of your potential customers via Email Marketing.
  9. SEO Strategy: Build a proper website by considering On-Page and Off-Page SEO Factors. Later, do proper SEO and get listed on various search engines like Google, Bing and Yahoo.
  10. Airdrops: You can also provide free tokens/ coins to the people in the beginning. This is one of the best way to get audience.
    Hence, you can follow all the above mentioned tactics to do appropriate ICO Marketing. By following all the tactics, you will lead your ICO for success.
  1. Bounties: With bounties crypto enthusiast can complete task to earn tokens. Similar to the “Wild West bounty hunter”, where a person had to catch a criminal to earn a bounty. Nowadays in crypto, people complete a job to earn tokens.

Trusted sources for Airdrops & Bounties are:

  • AirdropAlert
  • AirdropAlert Twitter
  • AirdropAlert TelegramBountiesAlert
  • Cryptocoin.news

  Article Produced By

Front Page » Business » ICO Marketing and airdrops
augustafreepress2@gmail.com

https://augustafreepress.com/ico-marketing-and-airdrops/

E. Sue Bennett

Inside the Meteoric Rise of ICOs

Inside the Meteoric Rise of ICOs

Initial Coin Offerings ("ICOs") have quickly grown

to account for more startup funding in blockchain-based companies than all of Venture Capital. Nearly $2.3 billion has been raised to date in ICOs, with the large majority of that taking place in the first half of 2017. In 2015 there was a smaller market for ICOs, where a million dollar sale was a rarity. Only a few of the most visible projects were raising sums in the millions.

Then in 2016 the DAO raised over $150M in a few days, though it was later plagued with security issues and determined to be in violation of securities laws by the SEC. However, the size and speed of the funds raised for the DAO helped bring further attention to ICOs as a sale/funding model. Fast forward to 2017 and we’ve seen a meteoric rise in the amount of funding raised monthly in ICOs. April was $103M. May $232M. June hit $462M. July $574M.

How ICOs Work

Rather than looking to traditional angel or venture investors to place capital as an equity investment, companies developing new blockchain-based products and services have turned to the cryptocurrency community to crowdsource the purchase and usage of their token in an ICO. ICOs are similar in some ways to a crowdfunding campaign, but instead of offering a copy of a product like on Kickstarter, or shares of equity in a startup like on Crowdfunder, what is being offered are digital “tokens.” This process of selling new cryptocurrency tokens in an ICO results in funding received via cryptocurrency, most commonly in Bitcoin or Ether.

But there's more to it…

Utility Tokens

Most ICOs being done today aren't intended to be securities offerings, as they don't offer equity or ownership in the underlying company the way traditional angel or venture investments do. Rather, a large majority of ICOs are intended as “utility tokens" which allow buyers of the token to access and pay for usage of a blockchain-based software service.

One example of a utility token in use today is the Ether token, as it relates to the Ethereum computing platform. Ethereum is the blockchain-based platform where the large majority of the current ICO’s have been developed. When using the Ethereum network, there are costs associated with the processing of blockchain-based transactions. These costs are paid in the form of the tokens used on Ethereum, called Ether. These transaction fees paid in Ether are called "gas" in the Ethereum network. In this way, the Ether token provides access to, and payment for, the computing and transactional functions of Ethereum. But beyond its transactional usage, Ether is also a cryptocurrency that is bought, sold, and traded on the open markets.

And while some tokens may not be considered a securities offering (utility tokens), the recent SEC release put out in July warned investors about the potential for fraud with ICOs as unregulated sales. Specifically, the release outlined details of the SEC investigation into the DAO which raised over $150M in its own ICO, and reiterated its ongoing concerns that some ICOs may constitute securities offerings, like the DAO, while not being treated as such. No formal new rulings or restrictions on ICOs have been issued recently by the SEC, though China recently banned ICOs altogether.

Are Securities Tokens The New Equity Crowdfunding?

In contrast to utility tokens, some ICOs are already being done as registered securities offerings.  One example is longtime Bitcoin and cryptocurrency investor and entrepreneur Brock Pierce, who sees a bright future in ICOs with registered securities – meaning they may include equity or some form of an investment return in connection with the tokens sold in the offering. Pierce is arguably a pioneer of the ICO space as an investor in Mastercoin, the first ICO, in 2013. More recently, his venture capital firm Blockchain Capital did the first ever ICO for a token as a security (BCAP token), selling participation in their venture capital fund as a liquid cryptocurrency.

As we saw with the JOBS Act and equity crowdfunding laws, broader regulation can help open up a new market while protecting investors with regulated processes. But regulations can also introduce overly-burdensome requirements that hamper innovation and capital formation, as has seemed to be the case with the weak adoption by startups of Title III of the JOBS Act.

What’s Driving the Growth of ICOs

With an understanding of what ICOs are, and an overview of how they work, there is still the question of what’s behind their incredible growth. Here are several of the likely contributors to the growth of this market, along with thoughts on each from leaders in the cryptocurrency and venture investing space…

1. The Massive increase in the Value of Cryptocurrencies

The market capitalization of all Cryptocurrency has risen from $7 billion in January of 2016 to over $130 billion as of now in September 2017. Bitcoin has appreciated nearly 30X since September of 2013 ($135 USD per Bitcoin), reaching over $4,000 per Bitcoin in September of 2017. In part, this is due to Bitcoin’s role as the most widely known, used, and accepted cryptocurrency for payments. Ether has appreciated more than 100X since August of 2015 ($2.83 USD), reaching over $300 in September of 2017. In part, this has been due to Ether’s role as the core utility token of Ethereum – the most widely used blockchain-based computing platform for ICO’s / token sales.

The early cryptocurrency buyers and holders have experienced massive gains and are now sitting on hundreds of millions, or even billions, in cryptocurrency value. ICOs are a way for some of these early cryptocurrency holders to diversify their holdings using the cryptocurrency itself, without taking their money out into fiat currency (offline bank-based dollars). Sam Englebardt, Managing Director of Private Investments at Galaxy Investment Partners, the family office of billionaire and large cryptocurrency investor Mike Novogratz, said…

It would be naive not to acknowledge that there’s something very bubbly about what’s going on here with ICOs, but it’s also the easy answer. While bubbles are sometimes fueled by nothing more than pure speculative mania and greed, most are actually rooted in something very real. Railroads were that way. The internet was obviously like that; the excitement was built on a legitimately transformative innovation and, when the dust settled, that innovation ultimately met and exceeded the initial speculators’ wildest expectations.

I think the same is true with the blockchain — the underlying potential of the blockchain to touch and disrupt so many different aspects of our lives, on a global scale, is becoming apparent. Ideas spread fast these days and crowdfunding did a lot of the groundwork to make those ideas actionable. It can’t go up like this forever, but I’d say we have a long way to go before we hit the top."

2. The Power of Blockchain, Tokenization, and Decentralization

In the last year we’ve seen an incredible move by startups and founders towards use of blockchain technology and tokenized models. Rather than building new products on centralized architectures and database structures, an incredible wave of new development and innovation is happening on blockchain technology to kick off new decentralized services and models. There’s a deep technical community running full speed towards a blockchain-based future, with experienced technology company founders jumping in to the fray with blockchain. A majority of the ICOs you’re seeing today are for new companies, who are yet to launch their products to the market.

That said, with the tremendous interest and adoption from leading technologists and founders, it’s no surprise that we’re also starting to see a growing list of more traditional VC investors putting money into decentralized applications and blockchain-based approaches to traditional and existing businesses. We’re also starting to see the ICO and tokenization model start to catch up with more mature and established companies. Erick Miller, CEO of CoinCircle and investor at his venture capital firm Hyperspeed Ventures, said…

The invention of true peer-to-peer digital money was first just an experiment that has grown into a revolution. This digital money, which pairs blockchain technology with cryptocurrency, enables an unprecedented transformation in how we store and transmit value. We are now in the next phase of the experiment and it is one of the most simple but incredibly fundamental paradigm shifts in the history of currency. Today, we have peer-to-peer programmable money, decentralized protocols utilizing their own coins, and coins that execute unstoppable decentralized logic all creating an entirely new economic system. I believe what is happening in the space today will bring about an era of new technological connectivity.

3. Token Sale ROI

Another reason for the rise in ICOs are the incredible returns that some tokens have provided to early buyers. For example, here are some top ICO performers according to ICOstats.com (as of September 22nd, 2017):

Ethereum: 84,720% ROI since ICO – Stratis: 54,038% ROI since ICO – Augur: 2,720% ROI values since ICO

With this, it’s incredibly important to understand that price appreciation of a token in the short term might have little, if any, bearing on the medium and long-term sustainability of the token and the underlying company or project for which the token was created.

Cooper Maruyama the founder of ICOstats.com shared…

I think there’s sort of a snowball effect kicked off by the success of Bitcoin and Ether. I think people see this all under the umbrella of “crypto” and want to be in on the next thing that will bring large returns. So they throw ETH/BTC at new tokens – which ideologically falls under that same umbrella of “crypto” – with the expectation of the same returns. Whether that will be the case is yet to be seen, but according to the data, buying more ETH on the same day of each ICO has seen better returns over time."

4. Token Sales As Community Acquisition

Great ICOs aren't just for the money. New services that leverage blockchain technology and incorporate token-based models do so to use tokens as a mechanism for the exchange of information and value within their product. Which is why, the more buyers and holders of a token, the greater the potential for the usage of the token, and thus demand. In this way, a token sale represents a new model of crowdsourcing or crowdfunding, where the line between buyers and customers are blurred.

As an example, imagine if 1,000 new participants sign up and buy tokens in an ICO. This not only provides funding for futher development and expansion, it also jumpstarts the underlying service with a community of users as token holders. One example of this was the Bancor ICO, which took in over $153M at the time, while the sale also resulted in thousands of token-buyers. These early and first buyers of the Bancor token are the most likely future users and adopters of the core protocol and services that Bancor provides.

"We had one of the largest bounty programs in history with thousands of active participants working towards the success of the token launch, directly through our software's alpha demo," Galia Benartzi, CoFounder and VP of Business Development at Bancor explained.

"While we ourselves were a small team, we had ambassadors all over the world translating, explaining and creating great content about the Bancor protocol. These contributors remain more motivated than ever to see the project succeed, as they own a piece of the open source network via their tokens. Rather than paying marketing or PR firms, we can share these resources directly with end-users in a distributed and still orchestrated way. The reach is a step function larger and also feels much more authentically aligned. This is inline with blockchain's promise to decentralize every aspect of business, including growth itself."

What’s Next In The Market

The majority of ICOs launched to date have been for relatively new and upstart companies with little or no existing growth or revenue. However, we’re starting to see ICOs come to market from more established VC-backed companies who are tokenizing their businesses. One example is Unikrn and their UnikoinGold token sale, the first token sale backed by Mark Cuban. The company is a post-Series A and VC-backed company, and a leader in the esports industry with a growing online community.

"We won’t be taking the funds from our sale and trying build something from scratch, hoping to attract users and get adoption,” said Rahul Sood CEO of Unikrn in his Medium post about UnikoinGold. "This isn’t an investment; it’s a purchase of a product that we developed that has utility on our platform and ours users love and demand. We already have users and adoption, and now the UnikoinGold token will unlock even more functionality and value for our community.

Expect more mature startups and large existing businesses to continue to explore the ICO space. With serious tech Founders and deep pocketed VCs and Crypto investors moving full-steam ahead, Blockchain and tokenization is emerging as one of the most powerful new technological and economic movements we’ve seen since the birth of the Internet. The hype and the astronomical returns can't last forever, but the underlying innovations are transformative and here to stay.

Article Produced By
Chance Barnett

Entrepreneur, Investor, Adventurer. CoFounder CoinCircle. Founder & Chairman, Crowdfunder. Catalyst in equity crowdfunding legislation & JOBS Act.

https://www.forbes.com/sites/chancebarnett/2017/09/23/inside-the-meteoric-rise-of-icos/#49be45075670

E. Sue Bennett

Around a Dozen Airdrops are Coming to EOS Holders

Around a Dozen Airdrops are Coming to EOS Holders

The coming months will be crucial for all cryptocurrencies.

So far, the markets are not looking all that impressive, with little to no improvements in sight. At the same time, there is some good news for EOS holders. Various airdrops are coming to holders in the next few weeks and months.

The EOS Airdrops are Coming

One of the unusual benefits of holding specific cryptocurrencies is how one can be entitled to an airdrop. This issuance of “free coins or tokens” usually affects the major cryptocurrencies. In the past, Bitcoin and Ethereum users have seen their fair share of such tokens appearing out of nowhere. It now seems EOS holders will go through a similar phase. Raising awareness for new blockchain projects requires a unique approach.

Rather than raising money through an ICO, these projects are giving away value. It is a conscious decision which benefits all parties involved. EOS holders receive these tokens for exciting projects, and the project creators issue tokens to themselves as well. Later on, some of those tokens are sold across exchanges for additional project funding. It is a tried and tested business model which usually works out pretty well.

As such, the EOS user base will see a fair few new tokens make their way to the ecosystem. The list is growing steadily, with the first airdrops to occur in the coming weeks. Chaince will be the first project to do so, with 900 million of the 2 billion tokens being airdropped on June 15th. Having an active “stake” in a new asset trading platform for EOS projects will certainly appeal to some users.

The Value of Aidropped Tokens

One thing worth taking note of is how these EOS airdrops work. Most projects issue 1 token per user in exchange for every EOS in their portfolio. For “whales”, this means a lot of free money will be heading their way in the coming weeks. All of these tokens will still need to achieve some form of monetary value on their own accord. That will not be easy, albeit some of these airdrops are seemingly in a rather advanced stage of development.

With nearly a dozen airdrops on the horizon for EOS users, an interesting future lies ahead. It further confirms developers are building new products and services on top of this ecosystem. More competition is a good thing in this regard. As of right now, most people tend to focus on the Ethereum blockchain for such purposes. Additionally, NEO is also gaining some traction in this regard.

The big question is whether or not these airdrops bring additional value to EOS. The projects they represent seemingly are on the right track to success. However, they are all in an unfinished state, and without initial excitement, their chances of success will diminish quickly. An interesting year lies ahead for EOS at this rate. Airdrops will continue to be a big part of the cryptocurrency ecosystem moving forward.

Article Produced By
JP Buntinx

https://www.newsbtc.com/2018/05/28/around-dozen-airdrops-coming-eos-holders/

E. Sue Bennett

The Moscow Exchange Prepares Infrastructure to Conduct ICOs

The Moscow Exchange Prepares Infrastructure to Conduct ICOs

The Moscow Exchange (MOEX) is preparing infrastructure

that will allow companies to conduct initial coin offerings (ICOs), which it expects to launch this year, Reuters reported June 8. The exchange is reportedly working on the development of basic infrastructure for companies to participate in ICOs and publish token sale data. According to Moscow Exchange CEO Alexander Afanasiev, the exchange will not list tokens, but provide information about the responsibilities of token issuers, in addition to descriptions of certain tokens and ICOs to investors.

He added:

“Right now we’re looking at this from the point of view of fiat currencies, because cryptocurrencies don’t have the status of a legally protected asset. If they obtain that status, we will place them in our system as well.”

Additionally, the exchange is looking to issue futures contracts for ICOs, provided there is sufficient demand from investors. Afanasiev said that currently the exchange is conducting marketing research on potential interest in the products and what type futures specification it might be. The Moscow Exchange is the main liquidity and price discovery center for Russian financial instruments. It trades in equities, bonds, derivatives, currencies, money market instruments, and commodities, with a total trading volume around $1.1 trillion, as of May 2018.

In May, the Russian State Duma approved the first reading of new laws regulating the cryptocurrency industry. The laws define cryptocurrencies and tokens as property, and lay out specifications for interacting with crypto and blockchain-related technologies. Sberbank CIB, the investment banking arm of major Russian bank Sberbank, and the National Settlement Depository, which is part of the Moscow Stock Exchange Group, announced plans to pilot the country’s first official ICO last month. The possible launch of the project is scheduled for the end of summer 2018.

Article Produced By
Ana Alexandre

Total change in her career took Anastasia into the world of analytics and business information as a researcher and translator in 2010. Some time later she got into FinTech, a dynamically developing segment at the intersection of the financial services and technology. Ana joined Cointelegraph in September 2017.

https://cointelegraph.com/news/the-moscow-exchange-prepares-infrastructure-to-conduct-icos

E. Sue Bennett

What is a cryptocurrency airdrop?

What is a cryptocurrency airdrop?

What is a crypto airdrop?

A​ ​crypto airdrop​ ​is​ ​when​ ​a​ ​blockchain project distribute​s ​free​ ​tokens or​ ​coins ​to​ ​the​ crypto ​community. To​ ​be​ ​a​ ​recipient​ ​of​ ​an​ crypto ​airdrop often​ ​the​ ​only​ ​requirement​ ​is​ ​that​ ​you​ ​have​ ​coins from the relevant blockchain stored​ ​in​ ​your​ ​wallet. Examples of this format of airdrops are Byteball, Stellar lumens and OmiseGo. These airdrops required you to proof you were the owner of Bitcoins or Ethereums at a certain time ( snapshot) of the blockchain.

The​ ​format​ ​of​ ​these​ crypto ​giveaways​ ​is​ ​usually​ ​like​ ​this:​ ​At​ ​a​ ​pre-announced​ ​time​ ​the​ ​project​ ​behind the​ ​event​ ​will​ ​take​ ​a​ ​”snapshot” ​of​ ​the​ ​blockchain,​ ​​ anyone​ ​holding​ ​Ethereum or Bitcoin​ ​at​ ​that​ ​point​ ​will​ ​receive​ ​a certain number​ ​of​ ​free​ ​e-tokens.​ ​This can also be done on other blockchains, but Ethereum and Bitcoin are the most used for this airdrop format.

Other (often smaller) airdrops require social media posts or you need to contact a member of the team on the Bitcointalk forum. This form is gaining more popularity since September 2017. It's currently a hype to just fill in a google form with your email, telegram, twitter & wallet address to get free tokens. This format is often used for new crypto projects that are using airdrops as a marketing campaign. Another possible way to get free e-coins is a faucet. This means you get a small amount of free crypto for a longer period of time. Some wallets, crypto casino's or crypto promotion sites run this type of airdrop.

You might wonder, why would anybody give away free cryptocurrency?
                                   I have wondered the same and my thoughts on this are the following;

To offer coins for free the people are the product. With doing an airdrop the project creates awareness about their ICO or token. It brings people to the project that otherwise would not have owned or heard about it. It could lead to token price appreciation, since people value a token they own higher then a token they don't own. This is called the endowment effect: "In psychology and behavioral economics, the endowment effect (also known as divestiture aversion and related to the mere ownership effect in social psychology) is the hypothesis that people ascribe more value to things merely because they own them." In addition to that I think people are more likely to buy a token that they previously owned or still own, since they are already familiar with it.

A crypto airdrop would create a community/network of people who own the tokens. If you would list the token distribution after an ICO in a pie graph, a large part of the pie is still owned by the Dev's or project. Another large part is owned by people who joined a pre-sale. And a reasonable part is owned by people who invested in the ICO. An airdrop adds a extra slice to the pie and that slice will have the most people in it. Decred still shows a pie-graph like this example on their homepage

An crypto airdrop also plants a seed. When you look at coinmarketcap you will see a list of thousand coins. Just on page one you can see 100 coins listed. However if you have or had a coin that name is still in your brain. The seed is planted and whenever you check coinmarketcap and scroll down, the name of the free e-Coin will jump out and people will check how it is doing. If they see an article that the free e-Token is doing well or bad, they are more likely to click it if they own it or previously have owned it. It's just like advertising!

Aren't there free e-Tokens worthless?

NO they are not! Byteball is distributing airdrops to Bitcoin holders every month. The price of Byteball surged to over $900 per Byteball in mid july 2017. OmiseGo gave away free OMG tokens to Ethereum Holders, the price of OMG tokens surged to $ 12 in September 2017. Most recent eBTC airdropped 2500 eBTC tokens per applicant, on day 1 of hitting the exchange the price rose to $0.80 cents per token, which means the airdrop was worth 2000$ ! The only requirement for this airdrop was to sign up with your email and wallet address. The easiest $2000 I ever made!

Of course the airdrops I mention above are the ones that stand out. Most of the crypto airdrops I apply to are worth between 1-50$. However this is all free money. You can either sell these tokens to collect more Ethereum & Bitcoin, or you hold them and hope for a price surge.

Article Produced By
Pokernomad

https://steemit.com/free/@pokernomad/what-is-a-cryptocurrency-airdrop

E. Sue Bennett

What Initial Coin Offerings Are and Why VC Firms Care

What Initial Coin Offerings Are, and Why VC Firms Care

The venture capital industry is beginning to take a good, hard look

at a new financial instrument coming out of the bitcoin community — Initial Coin Offerings, or ICOs. Also known as “token sales,” this new fundraising phenomenon is being fueled by a convergence of blockchain technology, new wealth, clever entrepreneurs, and crypto-investors who are backing blockchain-fueled ideas. ICOs present both benefits and disadvantages, as well as threats and opportunities, to the traditional venture capital business model.

Here’s how an ICO typically works: A new cryptocurrency is created on a protocol such as Counterparty, Ethereum, or Openledger, and a value is arbitrarily determined by the startup team behind the ICO based on what they think the network is worth at its current stage. Then, via price dynamics determined by market supply and demand, the value is settled on by the network of participants, rather than by a central authority or government.

Venture capitalists, who generally have been standoffish to the ICO phenomenon, are now becoming more interested in it for a number of reasons. One is profits — cryptocurrency investors made some massive returns in 2016, with cryptocurrencies from Blockchain startups Monero and NEM both seeing 2,000% increases in value. For example, the cryptocurrency used for the Ethereum network, called Ether, saw its value double in just a few days in March 2017. Yes, in three days, people who invested in Ether doubled their investment. Those investors can opt to cash out to a fiat-backed currency, or wait for the cryptocurrency to continue to rise (or fall). Volatility is a two-way street. While the price of Ether has been rising, Bitcoin has dropped 20% to $1,000 dollars from a record $1,290 on March 3, 2017.

The second reason VCs are becoming more interested in ICOs is because of the liquidity of cryptocurrencies. Rather than tying up vast amounts of funds in a unicorn startup and waiting for the long play — an IPO or an acquisition — investors can see gains more quickly, and can pull profits out more easily, via ICOs. They simply need to convert their cryptocurrency profits into Bitcoin or Ether on any of the cryptocurrency exchanges that carry it, and then it’s easily converted to fiat currency via online services such as Coinsbank or Coinbase.

What traditional investors don’t like about any of this is the regulatory uncertainty; the high valuations and over-capitalization; the lack of control over financials, strategy, and operations; and the lack of business use-cases. And like any industry, the ICO arena has had its fair share of outright scams, pump and dumps, and blatant Ponzi schemes. However, much of the criminal activity is now being mitigated by self-organized, crowdsourced due diligence in the community, as well as by external parties such as Smith and Crown, a research group focused on cryptofinance, and ICO Rating, a ratings agency that issues independent analytical research on blockchain-based companies. At least one VC firm is moving into cryptocurrencies. Blockchain Capital is set to raise its third fund via a digital token offering in the first-ever liquidity-enhanced venture capital fund (where people can invest without locking their money up for years on end) via a digital token called BCAP.

ICOs are the Wild West of financing — they sit in a grey zone where the U.S. Securities and Exchange Commission (SEC) and many other regulatory bodies are still investigating them. The main problem is, though, that most ICO’s don’t actually offer equity in start-up ventures; instead, they only offer discounts on cryptocurrencies before they hit the exchanges. Therefore, they don’t fit into the current definition of a security, and are technically outside of traditional legal frameworks. Secondly, they are global instruments — not national ones — and they are funded using bitcoin, ether and other cryptocurrencies that are not controlled by any central authority or bank. Anyone can invest, and they can even do so pseudo-anonymously (it’s not impossible to find out who people are, but it’s not easy, either). Currently, there’s no Anti-Money Laundering (AML) law or Know Your Customer (KYC) framework, though some companies are working on that. One example is Tokenmarket, a marketplace for tokens, digital assets and blockchain-based investing, that has teamed up with the Stock Market of Gibraltar to offer KYC- and AML-compliant ICOs.

Detractors of these new funding schemes scream for structure and protection, point out the scams, demand more control, and say that without equity, investors don’t have enough skin in the game. Meanwhile, proponents retort that there’s a real need for freedom to invest outside the accredited system, which sees the wealthy getting wealthier. They argue that the door needs to close on the domination of Sand Hill Road in Silicon Valley and other VCs and investors in the tech industry who have been making massive returns on the backs of entrepreneurs for far too long.

How Blockchain Works

For blockchain startups, ICOs are a win-win — they allow startups to raise funds without having equity stakeholders breathing down their necks on spending, prioritizing financial returns over the general good of the product or service itself. And there are many in the blockchain community who feel that ICOs are a long-awaited solution for non-profit foundations that want to build open-source software to raise capital. Non-profits usually hold about 10-20% of the total cryptocurrency they issue; as Ethereum did in their ICO in 2014, with 20% going to the development fund and the remaining going to the Ethereum Foundation. This is so they have a vested interest in building more value, as well as having reserves for growth in the future. (As of March 2017, the market capitalization of the ether token was more than $4 billion.)

The market cap for bitcoin is now close to $20 billion, and half of that is allegedly owned by less than one thousand people, who are called “bitcoin whales.” Many of them are in China, but there are also hedge funds and bitcoin investment funds who hold massive amounts of bitcoin. Most made their money early on by buying or mining bitcoin when it was still under $10 (in the early days of 2011-2013). It’s now worth approximately $1,120 per bitcoin. These “bitcoin whales” are currently the ones who make or break many of the ICOs. Some of the enormous profits they have made in bitcoin are being channeled back into innovation, as many of them seek to diversify holdings, as well as support the ecosystem in general.

More than $270 million has been raised in ICOs since 2013, according to Smith and Crown (not including the $150 million raised in The DAO scandal, which was returned to investors). Since 2013, there’s been about $2 billion invested in blockchain and bitcoin startups from the VC community. ICOs are becoming more and more popular for startups seeking to get out of self-funding, bootstrapping starvation mode and avoid being locked in by venture capitalists, watching their own equity drown in a sea of financing rounds. ICOs are dominating the overall crowdfunding charts in terms of funds raised, with half of the top 20 raises coming from the crypto-community. In a recent conversation, MIT scientist and author John Clippinger described the vast potential of this new movement to me

as such:

One way of thinking about a crypto-asset is as a security in a startup, which begins with a $10 million valuation and becomes a $10 billion dollar entity. Instead of stock splits, the founding crypto-asset gets denominated in smaller and smaller units; in this case 1,000 to one. Here, everyone in the network is an equity holder who has an incentive to increase the value of the network. All of this depends upon how well the initial crypto-asset and its governance contract are designed and protected. In this instance, good governance, e.g. oversight, yields predictability, security, and effectiveness, which in turn creates value for all token holders.

Just as venture capitalists are taking a hard look at this new phenomenon, so should we all. It’s not just about the money that can be made; it’s also about funding blockchain projects and, in the near future, other startups and even networks, as Clippinger noted. We now have a way to easily fund open source software, housed under foundations rather than corporations, that can truly drive faster innovation. Right now, blockchain technology is at the stage where the internet was in 1992, and it’s opening up a wealth of new possibilities that have the promise to add value to numerous industries, including finance, health, education, music, art, government, and more.

Article Produced By
Richard Kastelein

Richard Kastelein is the publisher of Blockchain News, Founder of Blockchain Partners and interim Chief Marketing Officer of Humaniq, a blockchain startup focusing on banking for the bankless. He’s also on the steering committee of the Blockchain Ecosystem Network and is organizing the CryptoFinancing 2017 event.

https://hbr.org/2017/03/what-initial-coin-offerings-are-and-why-vc-firms-care

E. Sue Bennett