Where Do I Launch An Ico
Geography does play a significant role in setting up an ICO as different countries have different policies toward running ICOs. Countries that appear on the ICO-friendly lists are:
- The British Virgin Islands
- The Cayman Islands
Take a look at Dr. Andreas Glarner, a partner at the MME Crypto Team, as he sums up the ICO regulations in Switzerland:
Its worth mentioning that if you offer tokens to US residents, this automatically makes you subject to the SEC regulations. Double-check that you clearly communicate the purpose of your token. In particular, you might want to avoid calling it security or promise high returns on investment, which flags a token for an inspection right away. Apply a Howey Test to check if your token belongs to securities.
Know The Blockchain Technology
Not only team and product but also the major aspect you need to consider before investing in an ICO is its blockchain technology. You have to seek an answer to several questions: Is the Blockchain technology just utilizing P2P money? Is it functions as a distributive ledger or acts like smart contracts?
Is the Blockchain system is open source or it relies on the proof of stake consensus algorithm? If you know the Blockchain technology behind the project then it will assist you to conclude how much you will get engage with the project in the upcoming time.
What Is An Ico
An initial coin offering is a means of crowdfunding, through the release of a new cryptocurrency or token to fund project development.
There are currently more than 1,000 coins available on different exchanges, with hundreds more in the process of being listed on exchanges.
It’s important to understand that not all cryptocurrencies have their own blockchain, as most are issued on top of another Blockchain.
A good example is ERC-20 tokens, which represents a standard of interoperability within the Ethereum Blockchain. Ethereum is a general purpose blockchain where different tokens can be issued on top of its blockchain without creating their own infrastructure.
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Picking A Sales Model For Your Coin
The next step is to pick a sales model, of which there are several. Which one you choose may depend on several factors, including the location of your headquarters .
There are eight different token sales models that you may use for an ICO.
1. Supply at fixed rate
This model means that a token would go on sale for a fixed price, allowing early adopters to buy an initial number of tokens without the market fluctuations usually associated with the cryptocurrency market. This, in contrast, will only remain at a set price for a certain period of time, after which buyers of the token would purchase it at the market rate.
2. Soft cap
In a soft cap sales model, the creator of the token determines the minimum fundraising amount of the ICO, setting the price accordingly. As such, it requires the selling of a certain number of tokens for a set amount, after which the ICO will continue until the set end date and time. This raises the possibility of the fundraising being successful.
3. Hard cap
Contrary to the soft cap, hard cap means that the token creator sets the maximum amount of capital needed. The ICO ends at this cap or at the end of the ICO period, whichever comes first. This may mean that potential investors miss the opportunity to invest in the ICO, leaving some unlikely to consider investing later on.
4. Hidden cap
5. Dutch auction
6. Reverse Dutch auction
A fairly simple method, this controls the distribution of tokens if there is significant demand for the ICO.
What Is Cryptocurrency And Why Is It Important
Cryptocurrencies are a new thing and are looking for their etymological position still. The term might mean different things for developers, investors, economists, legislators, journalists and for the common public. What seems to be common for the digital assets considered as cryptocurrencies is that they all are built on distributed ledgers and traded openly in various platforms and exchanges. Some parts of the community need to value the traded digital asset and accept it as a payment for service or as a good to be exchanged to another usually digital asset.
The classification of cryptocurrencies, various types of virtual tokens, digital coins, securities and digital assets is not very clear, since the legislation and the definitions for various terms are not yet solidified in the international markets and courts. We can expect more clarity on the definitions in the near future when the developer communities and regulators start publishing official guidelines for the asset classification. Before that the field of cryptocurrencies is an ongoing nearly philosophical debate with plenty of misunderstandings and potentially malicious misinformation.
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Create Your Own Cryptocurrency
When you want to create your own cryptocurrency, it is essential to decide if a separate blockchain is needed. Because this decision drastically changes the creation process. If you want to create your own cryptocurrency, with a separate blockchain requires more funding and time. However, if a separate blockchain is not needed, a token can be created instead. This way, rather than building a separate blockchain, an app is built. This app runs on an existing blockchain like Ethereum or NEO. Main things that needed to be considered before creating a cryptocurrency should be:
How To Buy Into An Ico Using Kin And Unikoingold As Examples
Here is a simple version of the steps youll need to take to go from zero to taking part in the KIN ICO or UnikoinGold ICO. Below that will be some important details:
NOTES: Not every ICO uses the Ethereum blockchain, but KIKs KIN and Unikrns UnikoinGold do. This walkthrough assumes you are buying into an ICO that uses the Ethereum blockchain. Not every state or country will allow ICOs to run in their region .
TIP: Essentially, you really do have to sign up for the ICO, Coinbase, and MyEtherWallet .
NOTE: Here are some important warnings, tips, and tricks.
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What Is An Sto
An STO is, basically, a token offering by virtue of crowdfunding. Tokens can be underpinned by company assets , dividend right, or voting right. A security token allows its holder to vote and is being regulated by the SEC. This limits the range of potential investors that are eligible to sponsor the instrument.
Blockchain Cryptocurrency And Ico
In order to get a better understanding of ICOs, it is important that relevant fundamental concepts related to this topic, including blockchain and cryptocurrency, are understood in the context of further discussion. This section of the paper is dedicated to conveying a basic explanation of these terms, without delving into unnecessarily complex technical details.
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Set Aside Funds For Payment
Next, youll need to prepare to actually invest when youre ready to put some money up. This means having money set aside in order to facilitate the investment.
Youll need to have either fiat currency, such as dollars, or some other crypto ready to make an exchange, as needed . Youll also need to have money and or crypto standing by in a digital wallet so that you can make the trade.
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And finally, be sure that youve joined the appropriate or correct crypto exchange for the ICO. Some exchanges only allow investors to trade certain cryptos. Youll want to be sure the ICO youre targeting is listed on the exchange youre working on.
How To List Your Cryptocurrency On An Exchange
On one hand, this is an ambiguous question and mainly based on human factors. After all, the owners of the exchanges are other humans with their own needs and desires. Nevertheless, there are many types of cryptocurrency exchanges such as admin-base exchanges, peer-to-peer trading exchanges, and margin trading exchanges. All of them can be further divided into 3 types: large, medium and small.
Requirements and criteria for each type vary at times. However, the minimum for small exchanges is your cryptocurrency or token should be open source. The exchange team will also analyze your currency for vulnerabilities and security concerns. If the results are satisfactory, they will gladly list your precious coins. Still, if your coin does not meet their daily / monthly trading volume or other requirements, exchanges reserve the right to de-list your coin at their discretion.
How to Launch an ICO or STO and Create Your Own Cryptocurrency or Security Token key takeaways:
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Google Facebook Mailchimp Initial Coin Offering Ban
Like LinkedIn, paid ads are still banned, but cryptocurrency communities still exist. Engaging with these communities could open up like-minded cryptocurrency/blockchain enthusiasts into backing your project. Other channels like Telegram, which allows users to create groups with up to 100 thousand members and offer instant messaging have been significant in the cryptocurrency community.
Moreover, actively participating in Reddit discussions can provide a project to one of the biggest audiences in the world. In conclusion, the social media ban has affected the cryptocurrency market in one way or another. However, Facebook or Twitter are not the places where most of the cryptocurrency enthusiasts hang-out, these were more used to target new customers.
What Is The Upcoming Ico List
In the upcoming ICO listing you will find all the quality upcoming coins that will be launching soon. The Upcoming ICO status means you will not be able to invest on their token sale yet, but that they are creating hype and a community for their pre sale and official token sale.
If the one or more of the upcoming cryptocurrency ICOs looks interesting to you, join their telegram group and whitelist in order to ensure you place in their ICO. By joining the whitelist you will be notified of the token sales .
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Types Of Initial Coin Offerings
The two types of initial coin offerings are listed below:
1. Private ICO
In private initial coin offerings, only a limited number of investors can participate in the process. Generally, only accredited investors can participate in private ICOs, and a company can choose to set a minimum investment amount.
2. Public ICOs
Public initial coin offerings are a form of crowdfunding that targets the general public. The public offering is a democratized form of investing because almost anyone can become an investor. However, due to regulatory concerns, private ICOs are becoming a more viable option relative to public offerings.
The rise of cryptocurrencies and blockchain technology is helping boost the popularity of ICOs. In 2017, more than $7 billion was raised using ICOs. In 2018, the figure almost doubled. The largest ICO to date was executed by Telegram, an instant messaging services provider. During a private ICO, the UK-registered company raised over $1.7 billion.
Everything You Need To Know About Icos
Below we walk you through investing in an ICO . Before we get to that, lets briefly discuss what an ICO is and go over a few important warnings.
UPDATE: A lot has changed since 2017 when I wrote this. Today you might use Binance Smart Chain and PancakeSwap or use UniSwap and MetaMask instead of EtherDelta MyEtherWallet when doing ICOs . Nothing much else has changed. These are still sales of cryptocurrency tokens with the same risks they have always had. With that said, the SEC made it pretty clear it considers ICOs as unregistered securities already, so do consider that additional legal risk when doing an ICO. You wont get in trouble with the law, but people running the sale might, and that likely will drop the token value to zero. The rest of the risks are more obvious, like fake or failed projects, or paying higher prices in late rounds, and then getting dumped on by devs and early investors, etc.
Bottom line: An ICO is similar to a mix between an IPO and Online Crowdfunding, but for Cryptocurrency. You contribute X amount of an existing coin/token/cryptocurrency like Ethereums Ether you get Y amount of a new token like KIN at a date set by the issuer of the token.
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Remember You Can’t Take Profits
To become a crypto millionaire, most paths require that you can’t take profits. If you invest $50,000 into a small-cap crypto, and it doubles or triples, the responsible thing to do would be to de-risk the investment and take out your original cost basis. But taking anything out sabotages your potential returns. For example, if your $50,000 goes to $100,000 and you take half out, then you still need a 20x to become a millionaire . That’s why most people won’t ever get there: they’re not reckless enough! And that’s a good thing. Most people are better off aiming to be disciplined and reasonably successful than reckless and potentially wealthy.
Initial Coin Offering Vs Initial Public Offering
For traditional companies, there are a few ways of going about raising the funds necessary for development and expansion. A company can start small and grow as its profits allow, remaining beholden only to company owners. However, this also means they may have to wait a long time for funds to build up. Alternately, companies can look to outside investors for early support, providing them a quick influx of cashbut typically coming with the trade-off of giving away a portion of ownership stake. Another method is to go public, earning funds from individual investors by selling shares through an IPO.
While IPOs deal purely with investors, ICOs may 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 ICOs are motivated by a prospective return on their investments while the funds raised in crowdfunding campaigns are basically donations. For these reasons, ICOs are referred to as crowdsales.
ICOs also retain at least two important structural differences from IPOs. First, ICOs are largely unregulated, meaning that government organizations like the Securities and Exchange Commission do not oversee them. Secondly, due to their decentralization and lack of regulation, ICOs are much freer in terms of structure than IPOs.
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How To Get Involved With Crypto: The First Step Into Blockchain Industry
The cryptocurrency industry has grown immensely in the years since it began. Following Bitcoins launch in 2009, an entire industry has sprung up and flourished around the innovative asset and its underlying blockchain technology. People have created thousands of crypto projects, numerous different blockchains and a number of different blockchain technological specifications and variants.
With such a deep and vast industry, how do you know where to start if you want to get involved? Start with your interests and talents.
The cryptocurrency and blockchain industry has branched out into a number of specific niches in which you can participate in various capacities. The factions of these industries explained in this article are not an exhaustive list, but provide a few examples of different niches within the space.
The niches mentioned are also not particularly coined or accepted industry-wide and may be grouped differently or classified differently, depending on who you talk to or what source you investigate. Some niches can also overlap with other niches within the overall industry.
How To Review And Analyse An Ico
Evaluating the viability of the ICOs is in many ways very similar to traditional venture capital investing. The project contributor needs to evaluate many traditional aspects of the project and its team. On top of that a risk aware investor studies in great depth the token economics model viability of the project. Since the price of the tokens are usually defined by the supply and demand on the token markets, the teams marketing skills and efforts may play a big role in the project rating as well.
One of the most important things in any development project is the expertise and commitment level of the team. We recommend only investing in ICOs that work transparently by introducing their team and their skills. Even though many great projects such as Bitcoin have emerged from anonymous teams, the risk of an exit scam in an ICO with an anonymous team has actualized so many times during the recent year that for example us will not be listing any projects that are not revealing at least their project management team. The presented team should have relevant study or work experience, good networks, colleague or client endorsements and they should indicate clear commitment to the presented ICO project. The whole team should have diverse skills represented, and a decent size for project implementation.
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