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

TP

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/

TP

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

TP

This week Markethive June 06 2018

This week @ Markethive

We produced our first Press Release to primarily get our PR machine up and running in anticipation of Markethive lifting off heading to the moon soon.

We have had immediate effect with media organizations reaching out to us, for articles, radio interviews, and joint ventures. This is incredibly fortuitous for us.

Shortly after the distribution of our first Press Release Markethive enters the race to replace Facebook”, Charlie Hernandez (Senior Account Executive) and Charles Warner (CEO),  of “Innovation and Tech Today” called us. I was on the phone with Doug and intuitively answered the phone with Doug connected to the call. To say fireworks occurred, excitement and chemistry between us would be an understatement.

These guys are going to partner with us, utilizing our Blogging platform, offering writing assistance, future press releases, massive full-page ads, articles, trade shows etc. After the call, Doug and I had to go for walks and sort it out as it was literally mind-blowing.

This Sunday @5pm (central) they will be our special guests on our weekly show. Do not miss this. Markethive is special, unique and positioned to become the next giant of the realm.



Brian Bishop

We have contracted one of the top Bitcoin developers to work for Markethive Bryan Bishop.  Bryan Bishop creates and builds software that is changing the face of modern finance, enabling startups to raise tens of millions of dollars in venture capital and pursue their revenue opportunities at full throttle.

He is also a public speaker and published scholar (Nucleic Acids Research, J. Comp. Inf. Sci. Eng., etc.). “Do-It-Yourself biohacker” with hobby projects involving DNA synthesis using phosphoramidite chemistry, and projects involving genetic engineering and more speculative technology development regarding cryonics, brain scanning and emulation, nootropics, molecular nanotechnology, automation, etc.

And now Brian has contracted with Markethive to build our unique Markethive Universal Income Market Network platform. You can count on Brian appearing often in our Sunday meetup webinars.

https://www.linkedin.com/in/bryan-bishop-3a63978/
 


Major Markethive upgrades will be installed next week. David Hickman General Manager of our engineering partners, Menlo Tech and Doug Yates are overseeing the upgrades. Now folks with literally 300+ engineers now on board you can only imagine the pace we will reach, and projects like our Avatar Webinar system will become a reality very, very, soon.

I will be demonstrating this cutting-edge system most likely next week.


Tip of the Spear.

I will always look to the membership first to find willing talent and skills. We will create a reward system to recognize leaders in Markethive too.

Sue Bennett (Press Secretary) because of her dedication and assistance in leading our Twitter war has Markethive.tv as her personal Markethive blog with full assistance in setting it up with the Social Network Auto Post program giving her the potential sphere of influence into the millions. This is one of the perks.

We are instituting our Twitter offensive and you are invited. Join the Group and follow the blog with your Twitter account. https://markethive.com/group/markethivetwitter

Other team leaders are being sought out for Redditt .  LinkedIn, Facebook, Delicious, Diigo, Pinterest, Instagram, etc.  along the same design. As we move forward we will be hiring contract writers and Journalists to ultimately staff our many traffic portals like allaboutbitco.in

Contact me via Markethive messaging @ Markethive.com/marketing or via Telegram @markethive (https://t.me/markethive

Please join the following channels too:

Telegram Channel
@markethive (https://t.me/markethive)

Twitter channel
@markethive (https://twitter.com/markethive)

Redditt channel
https://www.reddit.com/r/markethive/

See you on the Internet

Thomas Prendergast
Founder

TP

Markethive First Press Release

Markethive enters the race to replace Facebook

The rise of the entrepreneur and the fall of destructive forces in our social platforms are here now.
Markethive is creating a "Universal Income" for entrepreneurs.
Using our state-of-the-art integrated inbound marketing platform, social network, artificial intelligence, business services, ewallet, coin exchange, mining datacenter, incubator and blockchain income platforms for success in the cryptopreneurial and entrepreneurial markets.

SHELL, Wyo. – June 6, 2018 – PRLog — Markethive, a "Market Network" (Markethive.com), announced today that it has officially entered the "Open Book Challenge" in which a group of angel investors are offering a significant investment fund to build an alternative to the Facebook system.

Markethive's Market Network (an advanced social network) is an alternative to Facebook as well as LinkedIn.  Markethive founders know privacy and collaboration are the keys to the future.


 

"Markethive was built on the foundation of 20 years of proprietary technology and has been running live with 1000s of subscribers in beta for nearly 4 years," said Thomas Prendergast, Markethive's CEO.  "Markethive's mission is to create a universal income for entrepreneurs, using our multiple platforms built for the entrepreneurial markets."

Douglas Yates, CTO and co-founder, added, "When we became aware of the #deletefacebook campaign led by Elon Musk of Tesla, I knew Markethive is the solution."

Markethive is the leading Market Network in the industry.  Market networks are the logical evolution of the aging social networks.  Market Networks like Markethive integrated SaaS and commerce platforms with the social network. Markethive also adds additional revenue-producing systems to fund the Universal Income for entrepreneur's aspects within the realm.

About Markethive ( https://markethive.com ) Markethive is a Facebook-like system, that has integrated SaaS (Inbound Marketing Systems), a Facebook-similar social network, an Avatar-injected webinar system, a faucet-type rewards program with their own coin, a proprietary coin exchange and a commerce platform similar to freelancer. Running in BETA with 1000s of subscribers, Markethive is about to launch her first Airdrop to introduce the Market Network to the world.

About Open Book Challenge ( https://www.openbookchallenge.com );  Angel investor Jason Calacanis will be making the investments and will syndicate these investments to JasonsSyndicate.com at the founder's discretion.  Open Book Challenge is looking to fund seven purpose-driven teams that want to build a billion-user social network to replace Facebook — while protecting consumer privacy. OPC wants to invest in replacements that don't manipulate people and that protect our democracy from bad actors looking to spread misinformation.

And that folks is Markethive, ready to rise up and take leadership in the first real social network Market Network that supports collaboration and delivers universal income to the entrepreneur.

 

Thomas Prendergast
Douglas Yates
Annette Schwindt

The Founders

 

Originating Press Release found here
https://www.prlog.org/12711984-markethive-enters-the-race-to-replace-facebook.html

TP

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

TP

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

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Crypto Firms Turn to Airdrops to Boost Blockchain Projects

Crypto Firms Turn to "Airdrops" to Boost Blockchain Projects

Nothing in life is free. Or is it?

A blockchain project called Dfinity last week announced it will give away $35 million worth of digital tokens. The recipients can wait to use the tokens on Dfinity’s network—which the company is touting as a “Cloud 3.0″—or, as many will do, they can slip them to speculators and cash out in real money.

Welcome to the age of “airdrops,” where entrepreneurs disperse crypto coins to prospective users for no cost. The tactic has come to be seen as the most viable way for blockchain projects to get off the ground. They’re like the Initial Coin Offerings that were all the rage last year but, instead of selling digital tokens, the project’s masterminds simply give them away. In addition to Dfinity, there are murmurs the journalism-on-a-blockchain project Civil and Everipedia, a would-be competitor to Wikipedia, will soon conduct airdrops of their own.

It’s not hard to see the strategy here. In the wake of the fraud-a-palooza that accompanied many of last year’s ICOs, regulators are set to pounce on any outfit that starts selling tokens to the good people of the Internet. That’s why just giving the tokens away feels like a safer strategy. While it doesn’t bring the same cash windfall, it creates an opportunity to sell reserve tokens on the secondary market. Of equal importance, airdrops offer a way for blockchain projects to distribute tokens far and wide, and build up the network effects that are essential for success.

A harder question is whether the airdrops are legal. The answer, according to attorneys familiar with securities law, can be summed up as “not really.” Under the first prong of the legal test for determining whether something is a security (and must be registered with the SEC), regulators will look at whether there has been an investment of money—a term that is much broader than just cash.

“There’s a line of cases saying it’s not limited to money. It can be something of value, or goods or services. From the SEC’s perspective, the [token recipient] might be giving the issuer something of value by becoming part of network,” said Sam Waldon, an attorney with the firm Proskauer. And according to Blake Estes of Alston & Bird, the SEC has frowned in the past on companies’ attempts to juice investor interest through giveaways. In 1999, for instance, the agency cracked down on firms offering “free stock” as a way to attract investors to Internet ventures. The SEC itself hasn’t specifically addressed airdrops but, based on recent comments from the agency’s Chairman Jay Clayton, any U.S. venture dabbling in tokens had better tread carefully.

All of this puts blockchain projects in a bind: If they can’t sell or even give away their tokens, how can they get any traction? In the case of Dfinity, the company found a workaround by firmly excluding U.S. citizens from its airdrop. But excluding Americans may not be a viable option for the likes of Civil, whose blockchain journalism project is focused squarely on U.S. towns and cities. The project now faces a dilemma: Tokens are essential to its success and, for now, the group has no easy way to distribute those tokens to its target audience.

The upshot is the SEC’s recent crackdown is helping to shield gullible investors from token scams, but it could also hurt U.S. blockchain innovation if legitimate projects have no way of getting off the ground. Here’s hoping the agency’s gnomes are hard at work creating a safe harbor of sorts that will let U.S. companies and consumers join the age of airdrops. Or else that precious cargo will only end up in foreign hands.

Article Produced By
fortune

A version of this article originally appeared in the The Ledger,

http://fortune.com/2018/06/04/blockchain-airdrops/

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SEC Chairman Jay Clayton Says Bitcoin Not a Security Most ICOs Likely Are

SEC Chairman Jay Clayton Says Bitcoin Not a Security, Most ICOs Likely Are

 

 

Jay Clayton, the chair of the US Securities and Exchange Commission (SEC),

believes that Bitcoin (BTC) is not a security since it acts as a replacement for sovereign currencies, CNBC reports today, June 6. Clayton, when speaking about the “incredible promise” of distributed ledger technologies driving efficiencies in markets, clarified during today’s CNBC interview his thoughts on cryptocurrencies that are “replacements for

sovereign currencies:”

“Replace the dollar, the yen, the euro with Bitcoin. That type of currency is not a security.”

While Clayton did not comment on specific assets besides Bitcoin about their status as securities, he went on to explain that what he considers to be securities are tokens that act as

digital assets:

“Where I give you my money and you go off and make a venture […] and in return for me giving you my money, you say, ‘You know what, I’m going to give you a return.’ That is a security, and we regulate that. We regulate the offering of that security, and we regulate the trading of that security.”

When asked to make clear his statement on whether Initial Coin Offerings (ICO) are securities, Clayton told the interviewers, CNBC’s Bob Pisani, “Bob, I just did.” Clayton added that the SEC won’t support changing the definition of a security to support the ICO community, as they are not “going to do any violence to the traditional definition of a security which has worked well for a long time.”

The SEC chair had previously praised distributed ledger tech, blockchain as an example, during February’s SEC and Commodity Futures Trading Commission (CFTC) cryptocurrency hearing. At the time, Clayton had noted that every ICO that the SEC had seen so far would be considered a security. Altcoins Ethereum (ETH) and Ripple (XRP) have come up in the cryptocurrency security question, with Joseph Lubin of Ethereum emphatically denying that ETH was ever a security, and Ripple similarly rejecting a security classification. Ripple is now facing a class action lawsuit from a disgruntled investor claiming that the sale of XRP is the sale of an unregistered security, with a former SEC chair recently appointed to represent Ripple in court.

Article Produced By
Molly Jane Zuckerman
Molly Jane is a Russian Literature major from California with a background in writing. She joins Cointelegraph after working as a freelance journalist and blogger..

https://cointelegraph.com/news/sec-chairman-jay-clayton-says-bitcoin-not-a-security-most-icos-likely-are

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Top 5 Airdrops You Must Participate of in June 2018

Top 5 Airdrops You Must Participate of in June 2018

June comes full of interesting Airdrops that is worth to participate in.

But which are those projects that are offering this possibility? If you want to be part of them, we will tell you everything in this article.

Morpheus Network (MORPH)

Morpheus.Network will be one of those projects that will be giving tokens to the community. So as to participate, the company explains that they will ne giving away MORPH tokens to MORPH token holders. But they explain: ‘the more MORPH tokens you hold and the longer you hold them, the more MORPH tokens you will earn during the airdrop.’ There will be 1,800,000 MORPH tokens airdropped between June 2018 and July 2016. This June, 360,000 tokens will be given to the community. The longer you hold them, the more bonuses there will be. If you move the tokens between airdrops, then you will not be eligible to receive an additional 5% bonus. So as to participate it is necessary to be registered and inform the wallet address. Additionally, it is a must to keep the MORPH tokens in the registered wallet.

Cashaa (CAS)

The second airdrop that we are mentioning now is Cashaa, that calls itself the ‘next generation banking platform.’ It will be distributing 192 million CAS that were not sold during the ICO. The airdrop will take place on June the 5th based on Proof of Stake (PoS). CAS is an utility token that will work on the Cashaa product that is going to be released during the last quarter of 2018. Those who have been staking CAS tokens will be rewarded with these tokens. Any CAS holders who will be able to prove their stake will be awarded tokens in the ratio of 0.7 CAS for each 1 CAS in their ERC 20 address. The information provided must be based on the balance as on the 5th of June, 12 noon BST.

STORM Token (STORM)

Another interesting airdrop that will take place this month is the one that STORM Token is planning. In a blog post uploaded by the company, they explain that they will be carrying out an airdrop with the unsold tokens. In this way, they will be rewarding both earlier investors and the most active supporters. All Storm Players who signed up with a STORM Wallet Address by December the 7th, download Storm Play and set up a STORM wallet address in the app, will be eligible for the airdrop. STORM Token crowdsale participants that have STORM Tokens in the same original wallet address will also be eligible. It is important to mention that if the STORM Tokens have been transferred out of the original wallet address, then it will not be possible to participate of the STORM drop.

The next airdrops are going to take place on June and December the 7th this year and the next one.

Metro (MTR)

The fourth airdrop will be the one that the decentralized exchange Metro is promoting. Metro is a blockchain based decentralized autonomous corporation (DAC) that provides cross-chain cryptocurrency exchange services to clients and crypto income for stakeholders. The airdrop will take place on June the 22nd and 10% of the total supply will be distributed to NXT holders on start. 100,000,000 NXT tokens are the ones that will be distributed.

So as to participate in the airdrop it will be important to download the NXT client and create a wallet. Then, buy NXT tokens on any exchange, and place the NXT tokens in the wallet and wait for the snapshot block. For every 10 NXT on your wallet you receive 1 MTR with the same passphrase on Metro blockchain. The snapshot block number is 1894000.

Pundi X (NPXS)

The last important airdrop this month is related to Pundi X. Pundi X is unlocking 7.316% of the token balance for the NPXS holders every single month. Those who hold 1 lakh NPXS will get 7136 tokens. All of the Pundi X token holders are eligible for airdrop till January 2021. Pundi X aims to empower blockchain developers and token holders to sell cryptocurrency and services on any physical stores in the world.

Article Produced By
Carlos Terenzi
          of
Cryptocurrency News

https://usethebitcoin.com/top-5-airdrops-you-must-participate-of-in-june-2018/

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