Tag Archives: Cryptocurrency

What is a Cryptocurrency Airdrop by Cryptocurrency Facts?

What is a Cryptocurrency Airdrop by  Cryptocurrency Facts?

What the Term “Airdrop” Means in Cryptocurrency

In cryptocurrency, the term “airdrop” is used to describe a type of distribution event for a cryptocurrency where tokens are distributed to existing wallets. Or more simply, an event where “free coins” or coins purchased during a pre-sale are “dropped” in existing wallets. In other words, the term “airdrop” describes a distribution event that occurs when a cryptocurrency decides to distribute tokens to users for any reason. For example:

  • A distribution event that occurs after an ICO goes live and the smart contract for the ICO sends new tokens to the existing addresses of users who participated in the pre-sale. For example, one buys into an ethereum-based ICO, then on the airdrop date the token is sent to user’s wallets and they can then “add the token” to their Ethereum wallets (see the KIN and UKG ICOs for example).
  • A distribution event after a hard fork or the creation of a new token which results in existing coin holders getting “free coins,” but where the platform being used requires the distribution of tokens. For example, a fork on the Ethereum network that creates a new token on the Ethereum network or another coin’s network (see fork-airdrop hybrids like the Ethereum Classic Callisto Airdrop and the Loopring Airdrop for example).
  • A distribution event where tokens are given to existing holders as a reward for sticking with the cryptocurrency or as an incentive to get people to hold the cryptocurrency or a related token (see the WAVES Bitcoin Cash airdrop for example).

With the above in mind, we can say then that the term “airdrop” refers to an event where tokens not associated with addresses become associated with them, generally due to a person participating in a pre-sale (like with an ICO) or holding existing coins (like with some forks). However, with the above noted, sometimes the term “airdrop” is used loosely to describe distribution events regardless of the specific mechanics (like in the case with some forks that use the term “airdrop” in their PR).

Since there is a little bit of disconnect between how the term is sometimes used (especially factoring in how it is used on social media) and what the term means in a more pure sense, it is helpful to understand the different definitions. That is the gist.

Airdrop Snapshot Block Height and Airdrop Distribution Date:
An airdrop may include either/or 1. an Airdrop Snapshot Block Height, a block height that one has to hold an existing cryptocurrency during to qualify for the airdrop (a snapshot of the existing ledger is taken at that block height), and 2. an Airdrop Distribution Date, a date upon which the tokens are airdropped to existing wallets. Airdrop snapshot dates would be be used with fork-airdrop hybrids, Airdrop Distribution Dates are common to all airdrops and simply describe the date on which the airdrop occurs.

The Semantics of Airdrop:
Airdrop has become somewhat of a PR term here in 2018 and that has led to some questionable usage of the term. As noted, sometimes the term is used to describe a distribution event that occurs after a hard fork goes live and coins can be claimed… even in cases where nothing is technically being airdropped. In cases like this, the term “airdrop” is being used loosely. The slightly confusing thing here is that, as noted above as well, a fork can have an airdrop. For example, in the case where a snapshot of the ledger is taken, the software is forked, but the distribution after the fork occurs on another coin’s network (like with the Loopring example above).

I think part of the confusion is due to the fact that there is no good word to describe the distribution date after a fork where the whole of the software is forked (and of course, that distribution is the exciting part where people get “free” coins)… Thus, sometimes the term airdrop gets borrowed to describe distribution events that aren’t actually airdrops. The General Meaning of the Term Airdrop: If you want to airdrop a file from your iPhone to another iPhone, you take your file, share it over WiFi or Bluetooth, and then it appears on the other person phone. The person didn’t have the file, now they do. It was “dropped,” through “the air;” “airdrop.”

Article Produced By
CryptoCurrency Facts

https://cryptocurrencyfacts.com/what-is-a-cryptocurrency-airdrop/

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Despite What You Hear The ICO Is Not RIP

Despite What You Hear, The ICO Is Not RIP

The big news in cryptoland in 2017 was the rise of the Initial Coin Offering.

The knowledge that something like this could be possible dates back to the early years of Bitcoin, but the dawning of the reality was quite awesome to behold. Anyone with an entrepreneurial idea could float a token and invite people to invest. The investment vehicle was not a broker or bank but a distributed platform that connect buyers and sellers. What they got in return was not a stock or share in the profits but the rising value of the token itself. It’s a highly liquid stake in a protocol. Small businesses, churches, schools, websites, and charities of all sorts could raise money this way.

Most importantly, the ICO illustrated the hope that anyone could be involved in both soliciting and investing in enterprise while bypassing the hugely regulated, bureaucratized, and impenetrable apparatus of traditional financial markets, including rarified venture capital funding. It seemed like we were watching a beautiful future unfold, the democratization of investment and fundraising. The possibilities are without limit. We’ve never seen anything like it in the history of finance.

This year, matters have been different.

MORE FROM FORBES

  • Only 7% of ICOs from Q2 have been able to secure listings;
  • 55% of all ICOs from this period failed to hit their funding target;
  • 15% of projects already had a working business, versus 6% in Q1, and whether or not this was the case had no effect on fundraising success.

So I decided to take a closer look at the very detailed report being cited here. The actual facts show a different picture that do indeed point to long-run success, even if the markets seem rather stalled at this moment. What we see is a spectacular increase if looked at year-over-year. In 2018, compared with a year earlier, the report finds the that ICO market has more than doubled. Collectively, ICOs of 2018 have already raised $11,690,981,663 of investments, which is 10 times bigger than the cumulative sum of investments from ICOs of Q1-2 2017. Excluding EOS, the cumulative amount of funding received from ICOs of Q1-2 2018 is 6.4 times bigger than the one of Q1-2 2017.

The total amount raised in the second quarter of 2018 is: $8.4 billion dollars. That doesn’t sound like a dead market to me. It’s true that half the new ICOs in the second quarter were unable to raise more than $100K in funding. But this suggests a downgrade in the quality of listings. That is no surprise to anyone who has watched this sector over several years. A market with virtually no barriers to entry for upstarts is going to attract…well, just about anyone. It’s for this reason that only 7% of new tokens have managed to obtain listing on established crypto exchanges. But judging by that standard is an extremely high bar. The exchanges are listing thousands of tokens, and even people who obsessively follow this space have to admit that they can no longer keep up with the volume, variety, and frequency of listings.

It’s too much for anyone.

In that same vein, 55% of all ICOS in Q2 2018 failed to complete crowdfunding. But that is only 5% more than the first quarter, and this is in a period of notable pullback in the markets. And also note that there was an 11% increase in the quantity of projects choosing this funding route.

The report further says:

On average, the top projects for Q2 raised 50 million USD. Only 3 mentioned projects attracted all their funds in the course of 1 day. On average, these projects raised their money within 63 days (the average campaign duration time is the same as in Q1, but there is an evident tendency for an increase, at least by 10%). Compared with Q1, the number of projects offering tokens with service characteristics decreased by 24%. The share of projects that offer security tokens decreased by 8%. The number of projects with utility tokens increased by 32%.

What about geography? Despite all the talk of crypto-utopias being set up in far-away lands, North America is still king of the ICO, with 64.7% of all funding attracted. Second is line is the Singapore, then UK, and then Switzerland. Asia showed an increase in funding but a decrease in the number of new projects. In terms of sheer numbers of business registrations of high-value tokens, the geography is very different: Malta, Gibraltar, and Singapore rank as the top three. “We attribute this to an openness to blockchain projects and the legal changes enacted by financial authorities in Malta and Gibraltar,” says the report.

Keep in mind that all this happened despite true setbacks in the markets as a whole. The median return on tokens in the second quarter was a dismal -55%. The average number of investors per token was 7,871, showing what a truly thin market we are really talking about. The great exceptions to the general pattern were Telegram (a communications platform) and EOS, which sports a new governance model for decentralized applications.

The least successful ICOs were cryptocurrencies. In that sense, Q2 was the quarter of burnout on this asset. We have more than enough monies, markets seem to be saying. The success leaders were service and utility tokens, which is to say protocol assets not designed for monetary exchange but rather assets backed by new services that exist apart from their fundraising potential. What industries are we talking about? “Following Q1 trends, the most popular industries with the largest number of projects were finance, gaming, and infrastructure. The number of gaming projects doubled compared with Q1.”

In general, the report has vastly more information and detail than any normal person would ever need to evaluate this new sector of financial life. What it all points to is precisely what many of us came to believe in 2017. Something truly spectacular is taking place that could change finance, investment, and entrepreneurial innovation forever. So why the long faces? It has something to do with the short-term temperament of the investor community as it developed in 2017. This community became addicted to extremely high returns, fast progress, and the belief that everything was changing much sooner rather than later.

History shows a different reality. Railroads in the 19th century had a long and rough start, and the markets were replete with frauds, mishaps, booms and busts, and hence skepticism. The internal combustion engine for tractors took a whole generation to be widely adopted. Internet commerce experienced a spectacular bust in 1999 that traumatized a generation of investors, and we are only now seeing that anti-digital bias fade from people of a certain age. In the end, crypto markets can’t be about this quarter’s prices, this year’s high-flying coins, or this or that company’s fate. The confidence that one has in crypto traces to a conviction concerning the technology itself and what it can and is doing for the well-being of the human experience.

Article Produced By

Jeffrey Tucker

I write about the upheaval in monetary technology in our time. I head editorial at the American Institute for Economic Research founded in 1933. I've written 8 books and speak regularly worldwide on topics of money, trade, and innovation. Disclosure: yes, I have personal investments in the cryptoasset sector.

https://www.forbes.com/sites/jeffreytucker/2018/08/18/despite-what-you-hear-the-ico-is-not-rip/#7da532ed3192

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Top Airdrops You’ll Definitely Want Free Coins From June 2018

Top Airdrops You’ll Definitely Want Free Coins From | June 2018

CoinBundle âœ°âœ°âœ°âœ°âœ°

CoinBundle is a new crypto-investing platform, backed by top Silicon Valley investors, Y-Combinator and recently approved for a strategic partnership with a government of the Philippines. With CoinBundle users will be able to invest into the bundles of cryptocurrencies, that will allow them to minimize the risks. CoinBundle is giving its second airdrop bonus of 100 BNDL for signing up and 100 BNDL for sharing on social-media (200 BNDL total). CoinBundle is also continuing to give away 100 BNDL for every person you refer or invite to sign-up for the platform. This gives you the chance to earn up to 15,200 CoinBundle Tokens. The campaign will end on May, 31.

Entry âœ°âœ°âœ°âœ°âœ°

Entry Money aims to become the people’s bank of blockchain. Entry platform will be about money, exchange, cash, bank and network all together on blockchain. ENTRY is creating an intuitive to use bridge between the old system and the blockchain technology which will revolutionize banking. Entry Money will airdrop from 5 to 50 ENTRY tokens for signing up on website and completing KYC.

DATAVLT âœ°âœ°âœ°âœ°âœ°

DATAVLT is a blockchain data analytics platform – designed to deliver affordable business intelligence to small and medium businesses. DATAVLT employs correlational algorithms to integrate your enterprise data and consumer behavioral data to meet the ever changing requirements of the business landscape. Assisted by Artificial Intelligence and Predictive Learning, DATAVLT platform enables you to tailor the data analysis to your business needs and preferences.

RewardsToken âœ°âœ°âœ°âœ°

BetonChart ($CHART) âœ°âœ°âœ°âœ°

CryptoCoin (C3C) âœ°âœ°âœ°âœ°

Dignity ($DIG) âœ°âœ°âœ°âœ°âœ°

Cryptobontix has a slightly different vision for Unity Ingot. While they are still attempting to continue maintaining the whole legacy asset idea in play for UNY, they have also converted the token into a new token named Dignity (DIG). The amount of smart contract is also being reduced from the huge 10 billion tokens to a bit more acceptable 3 billion. Their main focus is also to ensure that each token is being backed by $1 of Gold.

In addition to the token conversion, Cryptobontix is also planning to roll out 3 additional tokens on Wednesday, February 21st, 2018. The final token breakdown is as follows: one token representing $1 USD in Gold, assumed to be the new DIG token, $2 USD in Silver for the second new token, $3 USD in Platinum for the third new token, and $4 in Palladium for the fourth new token. This is a very interesting idea because now these token will have multiple ways to back their value through the rare metals market.

While the original success of UNY was somewhat stifled by the decline of Bitcoin value, at the same time it introduced a rather interesting way to ensure tokens retain their value and can be passed down to future generations. Reducing the amount of token from the original 10 billion to 3 billion should make a huge difference in the ability of this token to retain its value; we think Cryptobontix is making an excellent decision here. Adding additional token to diversify the value profile is also a great move.

Management

  1. DIG Announces New (World Class) Management Team
  2. DIG is currently on track to have 25,000 mining rigs up and running within six months. Their goal for this time next year is 65,000 mining rigs.
  3. DIG Announces Airdrop! Everyone holding DIG will be airdropped the new tokens for free as a bonus for holding DIG.

To accept the airdrop, you will have to move your DIG tokens to a non-exchange wallet. The “bonus token” will be listed on a minimum of two exchanges to possibly five.

Compatible Third-Party Wallets:

  • Exodus Wallet
  • MyEtherWallet (MEW)
  • Trezor Hard Wallet
  • Ledger Hard Wallet
  • Bread Wallet
  • Mycelium Wallet

DIG tokens can be transferred onto exchanges again, once the airdrop has completed. Do your due diligence and be ready. DIG is literally doubling your holdings at no cost so now you will own two different tokens. With some of the upcoming partnerships and news expected over the next couple of months (according to industry insiders) Dignity (DIG) could do another 500% without breaking a sweat. Making Dignity (DIG) our #1 pick with the highest upside % upside.

The Top Exchanges

#1 Binance

Binance is the #1 exchange in our opinion. If you don’t have an account with Binance and you plan to trade crypto.. you’ll want one.

#2 Kucoin

Join Kucoin for some of the small/mid cap cryptocurrencies that may not be listed on Binance yet. Fess of KuCoin are really competitive. It charges a flat fee of 0.1% per trade, while the average in the secctor is around 0.20% – 0.25%. Besides, for those who hold KuCoin Shares, there are attractive discounts.

LiveCoin

Small/Micro cap cryptocurrencies.

=======================================================================================

Disclaimer:

The information provided on this website does not constitute investment advice, financial advice, trading advice or any other sort of advice and you should not treat any of the website’s content as such. CryptoClarified does not recommend that any cryptocurrency, game or token should be bought, sold or held by you and nothing on this website should be taken as an offer to buy, sell or hold a cryptocurrency, token, game or anything similar. Do conduct your own due diligence and consult your financial advisory before making any investment decision.

Accuracy of Information:

CryptoCurrency Clarified will strive to ensure accuracy of information listed on this website although it will not hold any responsibility for any missing or wrong information. You understand that you are using any and all information available here AT YOUR OWN RISK.

Price Risk:

The price of Bitcoin and other cryptocurrencies are highly volatile. It is common for prices to increase or decrease by over 20–100% in some coins in a single day. Although this could mean the potential for huge profits, this also means the potential for huge losses. The same goes for CryptoCollectible games which can be wildly speculative. DO NOT INVEST ALL YOUR MONEY IN CRYPTOCURRENCIES. Only invest money which you are willing to lose. Cryptocurrency trading may not be suitable for all users of this website. Anyone looking to invest in cryptocurrencies should consult a fully qualified independent professional financial advisor.

Article Produced By
CryptoCurrencyClarified

https://cryptoclarified.com/2018/05/30/top-3-airdrops-youll-definitely-want-free-coins-from-june-2018/

 

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How The ICO Has Totally Changed In 2018

By establishing a direct connection between the everyday investor and entrepreneurs,

initial coin offerings (ICOs) were supposed to revolutionize fundraising for startups. As things have turned out, however, that revolution can wait. Per the latest statistics, ICOs have become vehicles for accredited investors to make bets in the market for blockchain and cryptocurrency startups. A significant portion of the $18 billion raised by blockchain startups this year has gone to “blockbuster sales” aimed at accredited investors rather than mom-and-pop investors. (See also: The Rise Of Initial Coin Offerings.)

According to data from Coinschedule, an ICO listing and cryptocurrency portal, the top five such private sales accounted for $2.6 billion of the total amount raised. The portal also found that 18% of overall ICO sales are through private sales and 37% were exclusively through private presales. Those numbers have come down from earlier this year, but they are still further confirmation of the increasing hold private players have on ICO blockchain projects. Earlier this year, research firm Token Data revealed that approximately 58% of all ICOs had raised their full fundraising amount through presale rounds, which is to say, by approaching private investors for funding instead of doing a public sale of their tokens. (See also: What Crackdown? ICOs Have Raised $2 Billion This Year.)

Why Are ICOs Becoming Private? 

The answer to that question lies in a single word: regulation. Regulatory scrutiny, whether in the form of pronouncements by SEC and Fed officials or a crackdown by law enforcement authorities, has spooked entrepreneurs. Previously, the rapidly-proliferating ICO landscape was a free-for-all ecosystem, where talented engineers and scammers set up shop. However, the constant media spotlight on cryptocurrencies has attracted the attention of regulatory authorities. The SEC has already issued multiple warnings against ICOs and cracked down on dubious offerings, even those that were endorsed by high profile individuals. 

The overall effect of increased scrutiny by authorities has been to multiply regulatory hoops for entrepreneurs wishing to do a public offering. For example, there has been considerable controversy over the status of utility tokens, which require fewer disclosure forms and checks from the SEC and which are favored by most startups opting for an ICO. But SEC chief Jay Clayton sounded a warning to startups when he asserted that most ICO tokens he had seen were security tokens, or ones that require greater disclosure. His statement introduced uncertainty in cryptocurrency markets as the agency has not clarified its stance regarding ICOs. (See also: SEC Chair Warns Cryptocurrency Investors To Beware.)

Lex Sokolin, global director of fintech strategy at Autonomous Research, told Bloomberg that the (cryptocurrency) space went from three things to think about (before an ICO) to 30 things to think about, and those 30 things are very analogous to traditional finance. Uriel Peled, co-founder of Orbs, raised $120 million from private investors earlier this year and told Bloomberg that private sales are the best kind of ROI because they come with the least uncertainty and least risk for regulations. Preparing for a security token sale is also costlier and takes more time as compared to an ICO for utility tokens. Sokolin estimates an average cost of $1 million to $3 million for a security token sale.  

Private sales to accredited investors also shift costs of conducting a public ICO. Entrepreneurs have increasingly begun issuing a bonus (or discount) on their tokens to private investors. A pop in the token’s price upon listing at a cryptocurrency exchange enables these investors to exit their position at a profit. It also helps bankroll the increased costs for compliance and operations at the startup to conduct a security token sale. In some cases, private sales are also a method for venture capitalists and institutional players to invest in the startup. As such, they may not exit their position during a public token sale.

Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns small amounts of bitcoin and litecoin. 

Article Produced By
Rakesh Sharma

Rakesh Sharma is a freelance journalist interested in the intersection between business and technology. An alumnus of the Medill School of Journalism at Northwestern University, he has written for Active Trader, India Abroad, InvestorPlace, and Forbes. 

https://www.investopedia.com/news/how-ico-has-totally-changed-2018/

 

TP

Beginner’s Guide to Cryptocurrency Airdrops

Beginner’s Guide to Cryptocurrency Airdrops

As you’ve delved into the world of cryptocurrency,

you may have come across the term “airdrop” a couple of times. No, this isn’t the file transferring feature that comes with Apple devices. In cryptocurrency, airdrops mean free money. Seriously.

What Is an Airdrop?

It seems that every day a company launches an Initial Coin Offering (ICO). It is much harder to stand out with how many are out there. Instead of ruthlessly promoting themselves all over the internet, the team behind the new ICO will look at the blockchain of an already established token and gather up every person who has that coin in their wallets. They will then distribute an amount of their token in proportion to the amount that you hold. A fork of an existing coin can also grant you an equal amount of the new coin, a recent example is when BitCoin Cash was created and all holders of Bitcoin received the same amount in Bitcoin Cash.

Why Would A Company Give Me Free Tokens?

As mentioned, the market for ICOs is over-saturated beyond belief. Most people are more likely to roll their eyes when they see a new cryptocurrency rather than invest. That said, if the team behind that new currency gives out free tokens for attention, they are much more likely to get it. In marketing, first impressions are incredibly important. How could you not think highly of a company that pays you upon meeting?

If a company sends some of their token to your wallet and you notice it, it might prompt you to look into their project more and if you like what you see you might decide to invest in them. It’s free marketing for the token sale or coin launch really, it costs the company nothing to provide these tokens to you but could help them with brand recognition. Another reason companies give out free tokens, is to help decentralization of their currency. A recent example of this was Omise Go who airdropped large numbers of their tokens to Ethereum holders shortly after their successful ICO,

Stating :

At OmiseGO, we believe that tokens are most useful when they are as widely distributed as possible. In the case of a permissionless proof-of-stake (PoS) network, especially one running a very economically valuable decentralized exchange trading both cryptocurrency and real-world money, a wide distribution is also critically important for network security.

How Can I Learn About Future Airdrops?

Airdrops aren’t always a surprise. Some companies announce their intentions via press release, while others will “reward” you for joining their social following within a limited time frame. These teams are more selective as to who gets their free currency, rather than giving it out to the whole blockchain.

Various groups on Telegram or Facebook keep track of upcoming ICO’s and announce any relevant airdrops. Websites like airdropalert.com are always tracking new giveaways as well. Some companies will use an airdrop to promote their wallet or application, stating that the first 50,000 downloads will receive the respective currency. Other projects will even ask you to promote them on a forum or website in exchange for tokens. There are no “official” rules on how an airdrop should occur. Everyone does it their own way, and it’s up to you to decide if you want to get involved.

Staying Safe in the World of Airdrops

Sometimes you may see a currency that asks for your private key or to send them funds before they initiate the airdrop. Do not do this. No proper airdrop will ever need that information from you, let alone ask you for money in exchange. The cryptocurrency industry prides itself on being unregulated, don’t let it get the best of you as their are scammers who will hear about an upcoming airdrop and try to take advantage by creating fake “phishing” websites designed to take your cryptocurrency keys.

To be clear :

Never Give out Your Private Key for Airdrops

Of course, just because an airdrop is legit, that does not mean you’ll make money off of it. Most airdrops are done when a currency is at a low value in hopes that people will invest. The chances are high that these tokens will never raise enough be worth anything. You never can know for sure, so it’s always in your best interest to research any coins you receive before making a decision. Scope out a dev teams social media pages. Are they interacting with their fans and answering questions? They’re probably legit. If an airdrop is real, someone somewhere will have reported on it.

Do I Need a Specific Wallet?

The most popular blockchain for airdrops by far is Ethereum, and many of the tokens created with be ERC-20 tokens. The Waves platform also has a lot of airdrops of new tokens so to make sure you have the highest opportunity to receive free airdrops you should create wallets for both and hold some coins in there.

You’ll see most airdrops require an “ERC-20” compatible wallet, which means any wallet that supports the Ethereum blockchain that you own the private keys for. If you use an exchange to hold your tokens ( which we dont advise ) then you will need to withdraw them to a your own wallet to receive airdrops. You can also use a Hardware wallet such as the Trezor or Ledger which interacts with the MyEtherWallet website, this is the safest way to store your cryptocurrency as your private keys are never exposed to your own computer which means even if you are infected with a virus or malware, they are unable to steal your keys.

Conclusion

Before interacting with any new cryptocurrency, it is always essential that you do your research and believe in the vision behind the technology. Keep an eye out for scams and remember that a legitimate project has no reason to ask for your private information. Airdrops can be an exciting way to learn more about a project, and may even be your next big investment. Just make sure to be smart about your involvements, and always go the extra mile to keep your data safe. And we will repeat one last time …   ""Never Give out Your Private Key for Airdrops""

Article Produced By
Max Moeller

I'm a freelance writer with experience in the games and technology industries. Now I'm breaking my way into cryptocurrency.

https://blockonomi.com/airdrops-guide/

TP

What to do with your ICO Funds

What to do with your ICO Funds

Among the considerations when planning the launch of your ICO

is where your target raise figure should be set. Too many startups do not approach this question with enough thoroughness, instead of establishing a fairly arbitrary figure that leaves them either over-leveraged or high and dry when it comes time to pay operating costs.

The Rhyme and Reason of Setting a Target Raise Figure

Whittling down a target raise amount that is both justified and sensible should be a levelheaded process. Those motivated by greed or grandiose visions of what their post-ICO operations will look like are liable to set their target too high. Buyers and investors must feel that they are getting strong value for the money they put forth in exchange for a token, regardless of whether it is a security or a utility token. Establishing a soft cap and correlating target raise figure that does not reflect the company’s value is unlikely to attract the token buyers necessary to get the project off the ground.

Conversely, being too conservative in setting the fundraising target for an ICO is futile. Failing to raise the sum that will be necessary to fulfil daily operating costs defeats the purpose for which the ICO was established. In other words, taking restraint to an extreme can be just as harmful as showing not enough restraint. For these reasons, thoughtfully outlining your future costs and nailing down a vision that is neither grandiose nor spartan is a must before launching an ICO.

What is the Purpose of Your ICO?

Have a clear vision of what the purpose of your ICO is. Remember, it shouldn’t be to pay yourself or to renovate the company’s office space unless that is going to lead to a tangible payoff in terms of token value. Making the difficult decisions regarding what ventures are worth funding via an ICO — perhaps it’s marketing, advertising, strategic expansion/relocation, strengthening a blockchain, improving functionality, or something else — is an initial step toward setting a sensible target fundraising goal.

Establishing the Hard Cap

The hard cap, the term for the dollar amount needed to completely launch your project, should be seen as a first-phase investment, considering that setting this figure too high can scare off potential buyers. However, the hard cap represents the figure you will need to deliver an ideal version of the project, so giving yourself some leeway for expenses is important. Setting this figure appropriately requires detailed foresight into the various costs that will be required to complete the project, and complete it right.

Establishing the Soft Cap

The soft cap represents the minimum amount of fundraising that will need to be raised from the ICO in order for the most basic acceptable version of your project to be delivered. Far from ideal, you must still set your soft cap in a range that is high enough to deliver the Minimum Viable Product (MVP) without cutting critical features or compromising the integrity of the project. However, this figure must also be set reasonably low as to be attractive to investors seeking a good deal.

How to Proceed Post-ICO

Again, it’s important to note that the hard and soft caps are determined by what you plan to do with your ICO funds. Justifying the fundraising to potential investors by convincing them that you won’t be using their money to take upper management on a cruise, but instead will use it in a way that effectively grows the company, is critical to establishing trust and attracting buyers. So establish how you’ll use those funds before you begin establishing targets, and then once you have those funds, do as you say. Trustworthy companies are able to establish more funding rounds in the future, so it’s important to remain within the parameters of the project at hand so that you can set yourself up for even more success.

Article Produced By

Adrian Guttridge

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All You Need to Know About Airdrops

All You Need to Know About Airdrops

Everybody likes free things, although we are usually suspicious of them.

This is because we have been used to thinking that free things serve as a bait to hook you on to something else. So, people would usually shy away from free things particularly free money. But in the cryptocurrency world, there is actually free money and it is referred to as ‘Airdrop’

What are Airdrops

Airdrops refers to a process whereby a  cryptocurrency enterprise distributes its  tokens to a user’s wallet, completely free of charge. Usually, airdrops are done by start-ups, although, established companies or platforms can do them as well. The airdropped coins usually are fairly low in value or used within the ecosystem of a particular platform, but they definitely have the potential to grow. Airdrops are like marketing campaigns organised by a cryptocurrency startup to raise awareness about their services or products. That way, they can generate more interest and exposure for their products. As information about the Airdrop and that particular token spreads among the community, raising the awareness, which in turn increases the trading volume of a particular coin when it gets listed on an exchange. There are basically two types of airdrops. The surprise ones and the ones that are announced prior to the time it is airdropped.

Airdrops are different from Initial Coin Offerings. While ICOs involve a private sale where investors purchase tokens in a private sale often followed by a public sale round where small investors purchase tokens. However, airdrops do not involve any purchasing and are just token giveaways.

How to get free coins

Now that we have established that airdrops are just giveaways, you need to know how to participate in one, in these simple steps. First, you sign up for an Airdrop by filling out a form. Next, you give out your wallet’s address for receiving coins, and free tokens land in your wallet at the speculated time. You can also sign up for online services that provide information about airdrops. These online services will send you an alert when there is an airdrop. Such as   Airdropalert.com or Airdropaddict.com. Also, there are telegram groups and twitter account of coins that announce new airdrops.

Beware of Airdrop Scams

There are many scammer out there ready to take advantage of every situation.  The cryptocurrency industry is not left out. It is still largely unregulated and still growing. For this reason, many scammers set up crypto projects for the purpose of scamming users out of their money. So one has to be very careful. Some airdrops are setup to hack into the wallets of unsuspecting users thereby stealing their private key. You should ensure that the airdrop is authentic before participating in it. You can also store your crypto in cold storage to prevent them from being stolen.

Article Produced By

Rebecca Asseh

I am a blockchain and cryptocurrency journalist fascinated with sharing the knowledge of this wonderful technology in the simplest language possible.

https://cryptotvplus.com/all-you-need-to-know-about-airdrops/

 

 

TP

Beyond the ICO Part 2: Regulation Breeds Specialization

Beyond the ICO Part 2: Regulation Breeds Specialization

Fraudulent ICOs have stolen billions in investor capital,

damaging market sentiment and capturing negative attention from strong-handed regulators around the world. There’s no doubt that the shape of ICOs is changing–but what role will regulators play in the future development of the ICO model? As market participants begin to adapt to exit scams, a set of de facto requirements have emerged that ICOs must follow to succeed—rules that government regulators have begun to adopt while a legal scaffold is quickly constructed around the out-of-control ICO industry. In this three-part series, CryptoSlate will assess the current state of the ICO ecosystem, analyze the regulatory shift that is making the “traditional” ICO model untenable and take a look beyond the ICO at the future of a decentralized capital generation.

The ICO is Dead. Long Live the ICO

The hand that will drive the final nail into the coffin of the traditional ICO model is directly attached to the arm of regulation. Upcoming regulatory changes to the definition of what constitutes a security will see scores of the ICO ecosystem fall to the tyranny of financial watchdogs–which is, in some cases, necessary. The core appeal of the ICO model, which democratizes access to growth capital, is how it opens up participation in the market of ideas to anyone, anywhere–free from restrictions such as the U.S. SEC’s limitation on pre-IPO sales to “accredited investors.” A small oversight, however, is arguably necessary to safeguard the interests of ICO investors.

ICO regulation hinges on the separation of the sale of utility tokens, which provide investors with access to future products or services, and security tokens, which represent ownership of an asset, with functionally equivalent to equity or debt. The SEC’s position on ICOs, however, appears to place all tokens sold in ICOs in the latter category and, therefore, under the jurisdiction of the SEC.

As expressed by SEC Chairman Jay Clayton in April:

“I believe every ICO I’ve seen is a security”

Regulators are Stepping in—and Why That’s a Good Thing

If the SEC does not step in to “stop the fraudsters,” states Clayton, there is a serious risk that the regulatory response to fraudulent platforms will be so severe that they will restrict the capacity of the entire crypto asset class. The SEC, it appears, will no longer tolerate the “wild west” environment of the ICO ecosystem. While the SEC has recently softened its stance on ICOs, it’s clear that the classification and regulation of ICOs are soon to change. At the Yahoo Finance All Market Summit: Crypto in San Francisco, June 14, the SEC’s corporate finance division head, William Hinman, admitted that it’s possible for a token sold as a security offering, as defined by the SEC,

to be reclassified:

“Can a digital asset originally sold in a securities offering eventually be sold in something other than a security? How about cases when there’s no longer a company? I believe in those cases answer is a qualified yes.”

According to SEC, cryptocurrencies that lack a centralized governing body and operate in a similar manner to commodities like Ethereum or Bitcoin are definitely not securities. Tokens sold in crowdsales that function as investments, however, unequivocally are. If a decentralized blockchain-based growth capital generation is to continue to thrive, a paradigm shift in the structure and execution of ICOs is essential.

Article Produced By
Sam Town

About Sam

Samuel is a freelance journalist, digital nomad, and crypto enthusiast based out of Bangkok, Thailand. As an avid observer of the rapidly evolving blockchain ecosystem he specializes in the FinTech sector, and when not writing explores the technological landscape of Southeast Asia.

https://cryptoslate.com/beyond-the-ico-part-2-regulation-breeds-specialization/

TP

Beyond the ICO Part 1: Adapt or Die

Beyond the ICO Part 1: Adapt or Die

The intoxicating, late 2017 cryptocurrency market run-up fired blockchain technology

and digital currencies directly into the nucleus of the global financial ecosystem–demanding the attention of regulators, speculators and innovators. The culmination of the blockchain led to the widespread realization that virtually everything could be decentralized including the creation and funding of blockchain platforms themselves.

Thus, the year of the initial coin offering (ICO) was born, catalyzing a gold rush of ICOs that cumulatively generated more than $5.6 billion, an exponential increase over the mere $240 million raised the year prior. A loose regulatory environment paired with quixotic market sentiment led to a frenzy of token sales, spawning more than 900 individual offerings that ranged from highly successful to outright scams.

In this three-part series, CryptoSlate will assess the current state of the ICO ecosystem, analyze the regulatory shift that is making the “traditional” ICO model untenable and take a look beyond the ICO at the future of a decentralized capital generation.

The End of the ‘Wild West’

The rapid development of blockchain-based crowdfunding has resulted in a series of successful platforms such as NEO, Storj and even Ethereum; however, the speed in which ICOs propelled into the international crypto market has made it nearly impossible for regulators to create nuanced, regulatory frameworks that are able to protect investors from scammers and fraudsters. The total lack of oversight within the ICO ecosystem has resulted in swift and furious action from regulatory bodies around the world, and with research hinting toward prolific fraud in the ICO market, countries like China and South Korea have completely banned ICOs. However, despite regulatory crackdowns and dwindling investor trust, ICOs have already generated $6.3 billion in 2018.

Statistics released by TokenData, however, reveal that 46 percent of the ICOs launched in 2017 have failed–suffering from economic asphyxiation, exit scams or condemned to development hell. With the SEC hinting toward further crackdowns on the ICO model, it’s becoming apparent that the window of opportunity in which entrepreneurs are able to generate hundreds of millions in unregulated startup capital is rapidly drawing to a close.

Exit Scams Keep Happening

Data published in July by ICO advisory firm SATIS Group also reveals high levels of fraud present in the ICO industry. In addition, the Wall Street Journal has previously reported statistics that indicate up to 20 percent of all ICOs are fraudulent in nature; however, STATIS maintains that nearly 80 percent of ICOs can be classified as “scams.” In 2018 alone, the cryptocurrency community has been rocked by a score of ICO exit scams that have separated investors from more than half a billion dollars in invested capital. For example, the Vietnamese cryptocurrency platform Modern Tech launched an ICO called “Pincoin” that defrauded investors of nearly $660 million in April.

More recently, the ACChain project allegedly executed an exit scam, vacating offices and taking off with more than $60 million in investor capital. With investors warier than ever before, and regulators poised to take drastic action, the ICO model as it existed in 2017 is dying. However, the future of decentralized startup capital generation is, indeed, bright. In part two of CryptoSlate’s “Beyond the ICO” series, we’ll examine the regulatory response to the ICO crisis and how regulators plan to address growing concerns regarding unregulated crowdfunding events.

Article Produced By
Sam Town

About Sam

Samuel is a freelance journalist, digital nomad, and crypto enthusiast based out of Bangkok, Thailand. As an avid observer of the rapidly evolving blockchain ecosystem he specializes in the FinTech sector, and when not writing explores the technological landscape of Southeast Asia.

https://cryptoslate.com/beyond-the-ico-part-1-adapt-or-die/

TP

The Ledger: Free Money in the Age of Airdrops

The Ledger: Free Money in the Age of Airdrops

 

 

Nothing in life is free. Or is it?

A blockchain project called Dfinity this 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
Robert Hackett
Jeff John Roberts
Jen Wieczner

http://fortune.com/2018/06/01/crypto-free-money-airdrops/

TP