Once you’ve decided to make an investment in an ICO, the next thing is to find out the best ICO project that actually has a demand in the market and a chance to grow in the future.
To help our users, we have decided to list the top ICO projects ideal for investment in 2019 according to the data by some of the most reputed investors and investment companies in the world.
An ICO or Initial Coin Offering is the public sale of the tokens of a new cryptocurrency project/company. The main purpose of an ICO is usually to raise funds from potential investors.
While ICO may seem like a nice option for both investors and crypto startups, the increasing popularity of it is also attracting many scammers.
Make sure to go through successlife ico review given below to be able to find the right ICO for your investment this year.
Elysian is a new yet very innovative cryptocurrency company that provides a blockchain based decentralized platform for e-commerce websites.
The platform makes use of smart contracts to provide a secure way for developers (and even non-developers) to create awesome, feature-rich e-commerce websites in no time.
Other features of the platform include secure data storage, robust code, increased efficiency, faster delivery, theft protection and more.
The objective of the project is to create an innovative e-commerce system that consumers can actually trust.
Cypherium is one of the most unique ICO projects of the year 2018. The project is backed by some of the professional developers from companies like Amazon, Google, and Microsoft.
The purpose of the project is to make the use and access of blockchain common to everyone. The developers of the project are working on a system to rectify the shortcomings of present blockchain infrastructures.
As of now, the commercial and public use of blockchain is limited by things like decentralization and the lack of sufficient infrastructure.
The object is to design an intuitive interface for general users to access and use all the functionalities of comprehensive blockchain technology.
The Nafen project has been designed to help industries across the world. The company has created a nano-material that can be used by industrial organizations to increase the capacity and quality of their production.
The said nanofibers can dramatically change the various chemical and mechanical properties of industry materials infusing them with superpowers.
The Nafen project will be of use in a range of industries such as automobile, metallurgy, chemistry, oil, fuel, planes and new materials.
The NEX project has been designed to overcome the limitations of DEX (Decentralized Exchanges) and provide a highly secure exchange platform for crypto investors to invest and trade their coins.
NEX platform enables users to participate in complex decentralized crypto trading and transactions.
NEX makes use of an off-chain verification system to enable a more secure and faster system for complex trades across different blockchains.
Shipit is another innovative technology service for travelers and shipment senders.
It enables travelers and senders to connect through a common platform and help each other. Shipit will be available in a mobile app format which senders can use to find the right traveler to ship their packages to their destination at a low cost than normal courier rates.
This gives travelers an opportunity to earn income while traveling.
Trade.io has been designed to revolutionize the way brokerage services are provided and used.
The platform provides a convenient tool for brokers and agents to provide their services and make money efficiently. It is a decentralized platform that can be used by brokers to ensure smooth service transactions.
As of now, the system is already being used by many people in traditional trading markets as well as in crypto markets.
GlobaliPay has been regarded as one of the most sophisticated and realistic ICOs of 2019.
Why? For one, it is based on the concept of digital payments, which is something that’s never going to get out of demand.
Then, it takes the concept one step further by implementing a blockchain based payment system that can be accessed globally and can be used for making low-cost financial transactions with features like payment confirmation, fail-safe, high transaction security, transparency, and low transaction cost.
Now that you know about the successlife ico projects review where you can or should invest in 2019, go ahead and conduct your own research to find out more about these specific projects. Choose wisely and invest accordingly.
In this blog, we are going to share with you how to launch a successful ICO or STO as a startup in 2019.
Let’s get started!
An ICO can be a nice way for a startup to raise funds quickly for their new project.
However, the core requirement for the launch of an ICO is that the project should be based on the blockchain.
This is a good thing for projects that are already based on the blockchain technology or upcoming projects that use this technology for their core functionality.
Initially, we are going to discuss the procedure for planning and launching an STO or ICO.
Before you get started with the ICO, make sure that you are not doing it just to raise money, but your project is actually based on the blockchain and has a real use for this technology.
Also, be ready to launch your own cryptocurrency that you will sell to your investors in exchange for their money.
An Initial Coin Offering (ICO) is a fundraising process for blockchain projects.
A cryptocurrency startup that is working on a blockchain application/project conducts an ICO sale in order to raise funds for that project from interested investors.
ICO is somewhat similar to an IPO (Initial Public Offering), but the crypto company does not provide any real asset or shares to their investors who invest money during the ICO. Instead, the investors are given crypto tokens or coins in exchange for their contribution to the sale.
A token may have real-world applications and/or can be used for trading on crypto exchanges, depending on the particular project.
Here’s how an ICO sale works:
ICO Website :
The crypto company creates a website/platform for the ICO where it tells users about the upcoming ICO sales, schedule, tokens on sale, price, procedure, etc.
The white paper is an important document for the ICO.
The project whitepaper contains details about the token, the ICO, the underlying technology and various other things that a potential investor should know about the project.
As per the schedule, the sale of tokens is started on the company website or a third-party website.
An ICO may be held in one or multiple phases, including a pre-ICO (private sale) and the main ICO (public sale).
The user buys tokens in exchange for dollars/ETH/BTC or any other currency by registering on the company website.
Some crypto companies may also offer a discount or bounty offer to the early investors with the aim to make more users buy in the sale.
Now that you know how an ICO works, let’s get started with setting one up.
First, you need to create a website for your crypto project. I am assuming here that you already have started working on the project itself and have a working model ready.
Do not expect anyone to invest in your project unless you have something worth their time and money.
Mention everything about the project, including why people should invest in it, on your website. Provide a detailed project roadmap along with the current progress of the project.
It should be clear as to how and when the project will be finished. Provide proper contact information on your website. Create a separate platform for ICO registration and investment.
Create and upload a project whitepaper on the website homepage. The white paper is what a potential investor will read in order to find out more about your project.
Make sure that you clearly and precisely mention the purpose and objectives of your blockchain project in the whitepaper.
Also, provide details of the team and its members so that users can contact and find more information about them if needed.
The whitepaper should contain everything there is to tell about your project and how you can convince users to invest in it. Try to make it appealing.
Once your website is ready and live, the next thing is the ICO marketing.
With so many ICOs going around, you cannot expect users to come straight to your website and invest in the project, without much efforts on your part.
You need to tell (convince) the user why they should invest in your project and not in several other blockchain projects out there.
You can use social media sites, blockchain communities, email, messaging and several other resources to get the word out there.
A powerful blockchain concept accompanied by a real-world application is the most important thing and will do a lot of work itself. All you need to do is tell people about your project and bring them to your ICO. If the project has the potential, it will sell itself.
Over the last couple of years, the Digital world is rapidly increasing and almost covers all sectors, Digital money or Cryptocurrency is one of them. It is a digital currency which is created and managed by different encryption techniques known as cryptography.
‘Cryptography’ is a term used to code and decode some message with the help of some technique.
A Cryptocurrency is a form of digital money which is linked to the internet and 10 times secure to the current form of money. This type of money is secured by the cryptography process.
Cryptocurrency is the amazing and unbelievable example of current technology and changes the view of business persons towards the money.
A technology named as Block Chain technology has played an important and beneficial role to raise digital money. The first Cryptocurrency is Bitcoin which is a peer to peer Electronic Cash System founded on January 3rd, 2009 by Satoshi Nakamoto.
There are many types of digital money currently running in the world. Bitcoin is very popular among them. Here I am sharing names of some Cryptocurrency.
The Cryptocurrency market is now worth more than $100 billion and almost every country now used the digital currency for their private investment.
It composes of a Blockchain which consists of a computer file and documents which are distributed over the Internet and shared by its holders. The record of each and every transaction is kept secured in that Blockchain. And this chain is run by miners who kept a record of transactions and also cross verify them. Their work is to maintain the confidentiality and authentication of information and also to update the transactions. Value of Cryptocurrency is depended on demand and supply. And there is no interface like bank between seller and consumer; hence they share peer to peer transaction. And their identity is not revealed.
So this is all about the Cryptocurrency now you can easily decide Digital currency changes our future and why people love to replace it with visible or non-digital money.
The crypto market continues to grow. Every day are born new initiatives in the virutal currency and many crypto entrepreneurs looking for an optimal location to start their projects.
Due to international regulations regarding blockchain, many countries have been banned for this reason we have propose a list of the 7 best cities in the world for crypto startup and ICO:
This is one of the most crypto-friendly city on the world. Hong Kong is one of the world’s leading financial epicenters, the SFC is set to reevaluate cryptocurrency laws, especially in terms of regulating the Initial Coin Offering (ICO) sector. Hong Kong is the latest Asian nation that is set to tighten crypto laws on traders and exchanges.
This another of the first countries to start regulating the usage of digital currencies in 2014 by imposing taxation on earnings. Singapore is known for support of crypto related technologies and fintech innovation. The cryptocurrency exchanges and trading are legal in Singapore,and the city taken a friendly position for starup and ico’s.
The city of Switzerland also called “crypto valley”is the capital of many startups,currently around 500 projects concerning blockchain and ico’s. Switzerland in 2016 was the first country in the world to accept the bitcoin for the payment of municipal taxes.Switzerland is known for its crypto-friendly approach and blockchain development.
The island has always reported to crypto friendly. Malta has been receiving companies related to the crypto market such as Binance and BitBay. The Prime Minister of Malta, Joseph Muscat, has been very favorable towards virtual currencies and blockchain technology and has pushed for friendly legislation in the country.
The Silicon valley is the capital of giants company like Google, Apple, Facebook.
Coinbase, headquartered in San Francisco, has become one of the biggest companies of the moment, allowing users to buy and sell bitcoins.
The city is one of the most crypto and Bitcoin friendly cities in Europe. Amsterdam have also an important number of crypto start ups. The city is famous for Bitcoin Embassy,The Bitcoin Embassy Amsterdam is a location where the community and all the crypto enthusiasts can meet and organize a variety of events and projects.
A major European and international city for cryptocurrencies, the Czech capital has 150 places (restaurants,bar,hotels) where Bitcoin is accepted as a method of payment.Many of blockchain companies operate in the Czech Republic like Adelphoi.io ,fintech startups SDK finance, Cashila, finGOOD.
ICO (Initial Coin Offering) is a common choice of fundraising for cryptocurrency startups. This involves the company putting a part of its future crypto tokens on sale in exchange for initial funds. This is beneficial both for the company and for the token buyers.
The ICO gives a startup a perfect and affordable way to raise money to carry their project requirements, while at the same time, strategic investors get an opportunity to invest in a market where a high return on investment is almost guaranteed. Or is it?
In the past few years, crypto startups have managed to raise funds in billions of dollars and presently, it is being considered the most effective way to raise money for a new company.
However, not all ICOs are alike and not all ICOs can guarantee you an assured return on your investment. Therefore, it is important to choose and invest in a good ICO.
Here are a few tips for Investing In ICOs. You will also find here some reasons why you should consider investing in an ICO?
Know that you are not actually investing in a cryptocurrency, since the currency has probably not been launched yet, but in the idea behind that currency. So, the first thing you need to do is try to figure out whether the idea is worth your money.
Does the company/idea provide a Blockchain based solution to a problem which cannot be solved otherwise? If not, then the public would probably not be eager to adopt it.
Does a similar solution already exist? If yes, then why would someone be looking for the same product unless it has something unique to offer?
You can tell a lot about a company or business just by looking at its website. The level of professionalism on the website, including the availability of proper and right information, is crucial. Look for the following things on the website of the ICO in which you are considering to invest.
The White Paper – a white paper detailing the layout of the project including all the information, proposal, idea, target market, etc.
The roadmap – If they are serious about the project, they must definitely have a project roadmap (timeline).
The team – a reliable company will always show the team behind the project to increase the user trust.
Website appearance – A company that desires to raise money from investors must be ready to invest in its own website. If they don’t, they are probably not serious about the project.
It is also important to check whether the company has any experience in the particular industry as well in general business market. Make sure that the team members are experienced and qualified in their specific areas. Whether the company has previously managed any multi million dollar business or any projects of the same measure. Who are the advisers, legal team members and investors of the company and so on.
You cannot be too cautious when it comes to finding the right ICO to invest in. Cryptocurrency may be one of the fastest rising markets on the internet, but it is also very much vulnerable to fraud. Be alert and take better decisions to find the perfect place for your investments.
Let’s talk about how coin and token sales process work in an ICO or ITO project.
ICO sale process allows users to make payments in cryptocurrencies like BTC, ETH and token and Fiat currencies like the dollar. The users will be able to manage and trade their coins and tokens through the wallet itself.
This blog aims to explain to interested and future investors about the ICO and ITO Sales Procedure.
You must be a verified ICO project user to be able to purchase All tokens and coins during the ICO sales.
Non registered users must sign up at ICO project to get access to the ICO participation link which will be distributed only to registered user accounts. Upon following the participation link, the ICO Terms & Conditions should be accepted. Thereafter, the user will be redirected to the ICO participants personal account.
Registered users must visit the ICO project website and login to their accounts using their user id & password. After accepting the ICO Terms & Conditions, registered user will be directed to the ICO participants personal account page.
Users who are already logged in to ICO project should follow the onscreen instructions in their ICO project account and accept the ICO Terms & Conditions. Users will then be directed to the ICO participants personal account page.
Each token or coin will be sold for ETH or BTC. There may be other payment sources as the accepted payment method.
All tokens and coins will be available for purchase through the ICO participant’s personal account. In order to buy tokens, the user will have to send funds to the addresses and QR codes of ICO project Ethereum or BTC wallets mentioned on the page. Information on the total amount of tokens purchased, the ICO schedule, token cap, and the percentage of the total amount of tokens sold will also be available in the ICO participants personal account.
The details of the transfer will become available in the user’s purchase order list in the ICO participant’s personal account after the transaction confirmation is received.
Transaction details will contain the confirmation time, transaction amount, the number of tokens received, and the number of bonus tokens depending on the ICO phase during which the purchase is made.
Tokens will be delivered to the user’s specified wallet after the payment is confirmed. The ICO project team will make their best effort to promptly summarize and reconcile all the necessary statistics that will be needed for the appropriate token delivery to all ICO participants.
All tokens and coins will trade under the ticker symbol token and will be listed on major exchanges shortly after the ICO. In order to increase liquidity, our Management team will do its best to ensure that token or coin is listed on all reputed digital currency exchanges prior to the token sale event. There is, however, no guarantee that this will occur as it is beyond the authority and control of ICO project’s management team.
In conclusion, we must agree that cryptocurrency is the fastest rising market in the history of the internet and digital finance. Investment returns can be beyond comprehension. However, this comes coupled with an equal probability fraudulent traps and deceptive offers. Be alert and make wiser decisions to find the perfect options for your investments. Visit the ICO project website to know more about the ICO and the reasons why you should invest in it.
An ICO (Initial Coin Offering) is a public sale campaign run by a new cryptocurrency startup that wants to raise funds to continue the project.
It is similar to an IPO (Initial Public Offering) where a company offers a part of its shares to early investors. However, there are many differences between the two. If you are looking for the right ICO to invest in 2019, you can find some tips here.
Whether you are investing in an ICO, an IPO or in the stock market, you actually invest in the company’s trust and reputation and not in its shares. So, research about the company first before making any investment.
Here are some things to look for while investing in an ICO
Backed by a team of highly experienced, qualified and somewhat famous people and businessmen.
When it comes to the top ICOs in 2019, KahnChat ICO is far ahead in the race. Continue reading to find out more about this particular crypto project and the reasons you should invest in it.
The KahnChat ICO sales are being held in a bid to raise money to fund their cryptocurrency project. The project doesn’t just include a crypto coin, but a complete social and mobile payment platform through which users will be able to engage in social networking and can also make payments for services and orders through a simple mobile application. Here’s how it works.
The KahnChat app is scheduled to launch in the third quarter of 2018. It is a social networking app which also integrates a mobile payment system which will allow users to transfer money and make payments for orders with online and offline merchants. This is kind of a unique combination of two of the most important mobile features – social networking and mobile payment system.
The social networking part of the app works more or less like other popular social media apps such as Facebook and Google Plus, where you can share images, text, etc, on your user profile, send messages text, photos, audio/video, and audio/video/text chat with other users. Not only that, the integration of a digital wallet also makes it possible for users to perform tasks like pay bills, make payments and send money.
The company will launch a crypto token, called KCH token, backed by its powerful app. The people who invest in the token/ICO will actually be investing in the app, and the revenue generating from the app will help strengthen the coin value and increase the returns for investors.
Here are some other reasons why KahnChat ICO is the best ICO to invest in 2019.
Imagine a social networking app where you can not only chat and socialize with people but also you can send money, make transfers and even pay for your purchases, and not just with Fiat currency but also with cryptocurrency. How cool is that!
The KahnChat social networking and mobile payment app has all the features mentioned above and then some more. There is a separate digital wallet where users can manage their KCH tokens and use them for trading on stock exchanges and to buy things online/offline.
The company plans to generate its revenue from mobile payments. Mobile payments is a rapidly growing industry, especially in the UK and the US. Both online and card-based mobile payments amount to billions in revenue for the industry leaders. Those, who are already involved in this sector, are earning huge sum from their mobile investments.
The KahnChat’s mobile payment target is 1% of the market share which is more than sufficient to produce a huge return to each of the ICO investors.
So, the reason you should consider investing in the KahnChat ICO is that it is based on a practical and futuristic concept and will surely grow up.
Furthermore, the company is also giving attractive bonuses (up to 50%) to their early sale buyers. The earlier and the more you buy in the sale, the higher will be your profits.
The key to choosing a great ICO for your next investment is – gather as much information as possible about the company and the project, write down the important aspects, compare the positive and negative, and make a thoughtful decision.
In a period of less than 5 years, the global financial market experienced a sudden rise and fall of a an unique trend. ICO, Initial Coin Offering emerged as a trend raising considerable amount of funds in public sphere. Although backed by a technology not popular among masses, ICOs were successful to gain good consideration as an investment opportunity. Ethereum was the first successful ICO raising bitcoins equal to US dollar 2.3 million back in 2014. Starting with Ethereum’s success, ICO became a bandwagon for businesses and enterprises reaching incredible peaks in terms of fundraising. Until January 2018, Filecoin was the ICO with highest grossing funds backed with token sales worth US dollars 257 million.
However, within a year of this bullish trend, by 2019, now ICO reduced itself to a failed buzzword. Although the trend of failing ICOs was quite rampant in the beginning of 2018 as well, the recent market fell to a state that it does hesitate to align ICOs with words such as ‘RIP’ and ‘90% ICOs are failing’. Citing ICOs as a bubble, there were strong criticisms indicating it as a mechanism of scams. This happened because either most of mushrooming ICOs were not backed with adequate technology to support their claims, or they prioritised the objective of rising public fund rather than adding value as a problem solving mechanism. A major reason to this is also the approach of ICO enterprises to align themselves with IPOs.
ICOs are based on crypto tokens and currencies. They are not merely shares with a purpose of rendering profit to shareholders. Most ICOs fail ignoring this fact. While, tokens and ICOs with a purpose of utility are still with much relevance in the market. For instance, tokens like Ripple, IOTA, Steller are serving strong purposes in several industries.
This is where the concept of ICOs is gradually beginning to transform to STOs, the security tokens. A Security token may not be similar to Utility tokens like Stellar or IOTA, they are based on credible securities, bonds, revenue or even tangible assets belonging to the ICO. More importantly, it hits the bullseye solving the most important lacuna related to ICOs, Regulatory Compliances. Since, STOs are based on securities, it is under direct purview of licensing and security compliance authorities.
STOs are gaining a good traction in the financial market for its credibility. There are two primary reasons for this. First, the underlying mechanism behind a security tokens is simply the smart contract which ensures the proportional relation of its value to the value of the asset or securities it is connected to. Thus, they are transparent and simple compared to ICOs, which often require massive information to convince investors with wordy whitepapers and technology jargons. STOs are comparable to cryptographically secured digital representation of share or revenue of the promoter enterprise.
Second, STOs are under the ambit and scrutiny of state laws and regulatory bodies. The technology mechanism behind Security Tokens must align with the security laws and regulations of the state or the country of its origin. Thus, it naturally increases its credibility as an investment avenue.
STO is the connection between SEC and Cryptocurrencies. It provides a legally authorised identity to crypto tokens. From investment perspective, STO is comparable to digital representation of stocks and shares. There is a strong probability of their official adoption across the globe, as digital currency became an irreplaceable development in finance.
As an ICO adviser, I often come across several queries associated with Initial Coin Offering. More ICO projects come into light every day, and many people with no knowledge about ICO are entering into this field. The people are taking interests in it, as media have reported that funding in Initial Coin Offering is high.
As I have mentioned that people with no idea on ICO are attracted to it, so I want to brush up your basic knowledge about it before going ahead on the topic.
What is ICO?
ICO or Initial Coin Offering is a platform for raising funds. In this mechanism, new projects vend their original crypto tokens in a transfer of Ether or Bitcoin. It is very similar to IPO (Initial Public Offering) in which people buy shares of an organization.
In spite of being a relatively new phenomenon, it has fastly become a prevalent topic of discussion in the community of Blockchain. Many of the people take ICO projects as unfettered securities, as these projects permit project owners to raise a low amount of money. On the other hand, several others take it as an innovative way to fund a venture.
What is Blockchain?
Blockchain is a distributed and decentralized ledger. By using this technology, every transaction is recorded. Without approval from stakeholders/creator, no one can alter data. Being transparent, secure, and safe, this technology has gained enormous popularity in the finance sector. Businesses of several different industries are working on this technology to make it better for their business operations.
What is White Paper?
As a document, WP or White Paper supports your probable customers take a favorable decision in favor of a particular product/service or your organization. If it fails to help clients in making a favorable decision, it might not be a WP. In layman words, it is something amid a marketing brochure and an article. Apart from containing useful information, a White Paper leads to a list of facts to encourage customers to buy a product/service.
Now, I come back to the topic – ICO Myths. I am going to mention the five most common myths:
1. Starting an ICO is effortless – False
No, it’s completely false. You need to do your homework first before going out for raising funds. Having a well-brought-up white paper is just beginning. Most of the ICOs underestimate legal aspects that are significant. And the legal issues are pricey. Be ready for a considerable war chest, as the cash flow is going to be outlandish for you. Have the patience you can, as starting an ICO would be a long journey for you. It might take even more than one year.
2. Setting up money for an ICO is easy – Totally False
Rising funds/money for ICO is not like a Cakewalk. Investors in today’s world think a lot before making any investment. It is, as several investors have lost their money or many ICOs are Yet to Perform. The investors have become more conscious in selecting projects, and you need to follow them a lot to draw a little form of attention. You need to have an in-depth idea about the crypto community and find out the right people who can be your cash resource. It is very different from a park walk.
3. Every whitepaper is factually correct – Not True
In a white paper, it is easy to find out fraudulent or incorrect assertions. However, it would be harder to notice factually wrong data. TRON sets a unique instance in this sense. It had plagiarism. However, it showed it was licit, leading to a diminishing to the industry credibility.
4. The success of ICO is guaranteed – Success ratio is half.
There is no guarantee of success. While investing in an ICO, you need to be very careful. According to Sodium Capital, approximately half of ICOs have got failed. However, around 1400 ICOs got published in the first three months of 2018. It means it is clear here that one in two people can trust you and they can invest in your project. You need to be very careful whether you are launching an ICO project or going to invest in it.
5. Every listing site is the same – Not True
On the Internet, you can come across a large number of ICO websites. Keep in mind all of them are not the same and useful. Some of those sites only list the projects while some go beyond listing and offer all associated information to investors. Ensure to go through reviews if you are checking an ICO site. Going through those reviews can support you comprehend how such a website analyze a project before listing it.
Besides the common myths mentioned above, I want to state some other myths to help you be aware of the project you will launch or invest. Here are some other myths:
Advisors Support You – It is also a myth. No one advises you at free of cost. You can google to avail the most of advisors’ knowledge. For ensuring your success, you need to find the right advisor who can give you real insight and support you. 90% of advisors claiming to be a super advisor join for a selfish reason. Before going ahead, talk to a lot of people and ask them for their commitments to your ICO project.
You can hand over the ICO leadership – It would be a big mistake if you trust your experienced friend to run your ICO project. I am saying this, as your friend can find a way for his benefit. You must avoid putting your plan in the hands of strangers.
Pitching ICO support you raise money – It may / may not help you. Here one thing is sure that it is highly expensive. Throwing your ICO for 5-10 minutes at a conference can cost you 5000- 1000 US dollars. Other guys would be waiting to present their pitches just after you and can kick you out. I know many organizers might promise you about the presence of hundreds of investors. You need to be very careful and do not get trapped in their promises. Schedule personal meetings with some of the interested investors. It can help you a lot in raising money.
Customers are ready to buy your ICO – It is very tricky. In general, the crypto community, professional investors and businesses bring ICO tokens. Around 90% of these are not the customers of your super platform. They just trade with your tokens and consider how fast you would be placed on exchanges. You need to get your customers, and you should have a solid plan for it.
Tokens and coins are same – Several people consider both tokens and coins as same. They use these both terms interchangeably. In fact, these two terms are different. You need to comprehend the fundamental differences between them if you are going to invest in it or launch an ICO. A token has more than one function and saves an array of value levels. On the other hand, a coin is one utility and saves only one level of value.
In brief, you have to be very careful whether you are going to launch your own ICO or to invest in one. For launching your ICO, you need to create a product, build a token, take legal advice, draft your white paper, create a community and place your token out for exchanges. Take these all steps very carefully.
With the sheaf of disparate startups coming up to light, it’s getting tougher to detect the genuine ones. Jason Cohen had once quoted, “It’s more effective to do something valuable than to hope a logo or name will say it for you.” Hence, we cannot judge or comment upon a company’s progress solely depending upon its hype or revenue generation.
To know where a company stands, it’s necessary to take into account a bunch of other offbeat factors furthermore. The funding, business model, ideas, team, and timing are the factors which hold a potential to make the startup revolutionize a marketplace thereby leaving a lasting impact. The investors need to make sure they are investing in experience. They need to find people smarter than themselves.
A startup that is comfortable with any kind of change and has all its hands on the deck to execute its vision is more or less unfeigned. There are many Initial Coin Offerings going on in the market today. Only a quarter of the ongoing year is left, so let’s quickly have a look at the funds already raised by the ICOs of 2019.
Image credits: Crowd Fund Insider
Research credits: ICO Data
It’s quite hapless to note the wretched state of the ICOs this year. As we can see from the monthly-recorded chart above, the funds raised by the ICOs have declined from about $1.423 billion in January 2018 to approximately $533 million in April 2018.
The Assumed Why
Talking of the most successful ICOs, there are startups to have raised over billions in a minute! That is how crazy the world of ICOs is. There is no doubt that ICOs have changed the financial landscape over the past 2 years.
However, these farcical success booms have just made us look over the facts through a rose-tinted glass. Factually understating, about 99% of the ICOs taking place, tend to fail. Last December, the value of bitcoins soared to 20,000 USD, following which the price was dropped by 70% in the initial months of 2018.
The Greater Fool Theory economically states that the price of an object increases not because of the value that it brings in but because of the irrational beliefs attached to it. Applying the same to ICOs, you have a bunch of decentralized applications and currencies coming up which are bringing in nothing new to the ecosystem.
However, because they have been hyped up so much and there are so many ignorant investors around, their value increases anyway, and furthermore, the tokens face inflation. The reason why most ICOs fail is that most developers/entrepreneurs do not pay any attention to the three pillars that make an ICO:
ICO Data also says, “In most cases, the tokens or coins being sold are for platforms and businesses that are yet to be fully built, or even worse, exist only as an idea.”
The entry of Altcoins
Back in December 2017, the value of bitcoins soaring to a 20,000 USD, led to a steep drop in its price by 70% which affected the initial months of 2018. As a result, a lot of altcoins started being issued through the ICOs.
Although altcoins or alternative coins resemble Bitcoin in the way they’re designed, most of them serve a different purpose than just being a financial tool. The vast majority of altcoins doesn’t do anything special at all as they just try to mimic a Bitcoin with little tweaks. Some, on the other hand, has been designed with a purpose of becoming a worldwide computer and can be used as a platform for building decentralized applications.
Many critics have contended that these altcoins can be easily manipulated on exchanges as they are created in a small supply at the beginning of the ICOs. This manipulation is generally done by the founders who entrusted to the pre-ICO period or by the early eminent buyers.
Ultimately when the coins hit the exchanges, the founders and other early investors are known to have blatantly washed the traded the tokens back and forth between themselves under minimal regulations, thereby kicking off a pump to create an illusion of demand for the coins. Some founders can easily disburse the funds raised in ICOs on some hype-creating campaigns instead of on the actual product development.
Coin founders build the social media hype before releasing the coins onto exchanges. Many ICOs state that the startup holds zero obligations to its investors. VitalikButerin, the inventor of the most used altcoinEthereum, proposed an improved model of ICOs in January called the DAICOs. DAICO models enshrine greater investor involvement, a gradual release of investor funds to companies and powerful voting rights.
Unfortunately, scarcely some companies have opted to do DAICOs in place of ICOs. Numerous experienced cryptocurrency influencers are trying to make more companies adopt this new model. This might help overcome the already discussed wretched state of the ICOs.
Kevin Roose has quoted the following in New York Times to reveal his opinion about the operation of ICOs:
“If you’re having trouble picturing it: Imagine that a friend is building a casino and asks you to invest. In exchange, you get chips that can be used at the casino’s tables once it’s finished. Now imagine that the value of the chips isn’t fixed, and will instead fluctuate depending on the popularity of the casino, the number of other gamblers and the regulatory environment for casinos.
Oh, and instead of a friend, imagine it’s a stranger on the internet who might be using a fake name, who might not actually know how to build a casino, and whom you probably can’t sue for fraud if he steals your money and uses it to buy a Porsche instead. That’s an ICO.”
Cost goes before the profit. A wise man once said, “The rich invest in time, the poor invest in money”. Take time if required. But never fail to choose the right ICO to invest on.