Investment through Private and Public Sales - Crypto Academy / S4W6 - Homework Post for @fredquantum.
We can get a lot of benefits from this topic if we take advantage of it in the best way, that is why today I have decided to join your excellent class, since I find it very interesting and instructive.
1) What can you say about Crypto Investment and how to correctly use the investment tools available to make the right decisions?
Since millennia, investments have existed so that we can obtain income, whether in the short or long term, then with the passage of time and thanks to the advancement of technology, other types of methods to make investments were emerging. In 2008 with the arrival of Bitcoin, a new era of cryptocurrencies, better known as digital or intangible money, where we could carry out our operations through them without any type of intermediaries, and where decentralization was the main one. objective.
After the cryptocurrency ecosystem developed more and more, many methods emerged with which we could generate income through investment, completely replacing the conventional methods that were available at that time. However, one of the main characteristics of investments in cryptocurrencies is the increase in their volatility in the market, where many times we can benefit from it, but other times they can generate losses.
Investments in cryptocurrencies emerged as a different alternative, where users or investors from all over the world could take advantage of this opportunity to generate income in the short or long term. Currently there are many investment methods that are available, some of them are:
• Holding
• Trading
• Staking
• Yield farming
• Mining pool
• Cross margin trading
• Liquid swap
• ICO
• IEO
Each of these investment methods offer us different ways for us to generate income, but they all meet the same investment objective, be it short or long term. Currently there are many ways to invest through cryptocurrencies, however, not everything is as easy as it seems, because we know that when we make an investment it is important that we find out very well about the subject, since we could be putting our money at great risk .
Investments have always existed, but with the new era of crypto assets, this topic has evolved on a large scale, offering us simpler and more flexible alternatives so that our assets are constantly reproduced. The best advantage of investing in cryptocurrencies is the issue of decentralization, since here there are no intermediaries or government entities that restrict their activities, that is, we ourselves will be solely responsible for our assets.
Currently there are many opportunities that the crypto ecosystem offers us to make investments, therefore, I believe that we must make the most of these opportunities that it offers us, since we can multiply our profits in a safe and reliable way.
🟢 How to correctly use the investment tools available to make the right decisions?
However, I consider that to make an investment through crypto assets, it is important that we take the best tools so that we can make a correct and safe decision, which benefits us at all times. According to my personal criteria, some of the methods that I think we should take into account before investing with cryptos are the following:
• Invest money that we will not need: This is a very important tool that we must take into account, and that many times we forget when making our investment, and that is that we must invest money that we will not need for the moment, since if for some reason we need that money for something else, we would be losing absolutely all our investment.
We must invest money that we will not need in a long period of time.
• Investigate:
The investigation process is extremely important, since there is currently a lot of misinformation about these issues, and if we do not investigate well on which investment method we are going to put our assets, it is very likely that we can obtain losses.
We must weigh the best and worst options that can happen to us, to have a balanced perspective on our investment. We must know our limits and know each one of the operations that this investment offers us.
• Platforms:
Today, the world of DeFi offers us many projects where we can make our investments through cryptocurrencies, that is why we must look for the best platforms for it, to obtain the best contracts and at the same time the best income.
Some of the best platforms that exist in the market to carry out investment methods through crypto assets are:
• Compound
• MakerDAO
• AAve
• Synthetix
• REN
• ALONE
• Exchanges:
Today (DEX) (CEX) exchanges play a really fundamental role for the benefit of our decentralized finances, it is why currently there are many exchanges that offer us the availability to trade our assets and make investments through them, without However, we must choose the best and those that best suit our abilities.
Some of the best exchanges (DEX) (CEX) that are in the market to make this type of investments are:
• Binance
• JustSwap
• Uniswap
• Future Swap, etc.
• Asset pricing and capitalization platforms:
To make an investment with a certain asset, it is important that we first investigate the blockchain that supports it, as well as its team, its equipment, its functionality, etc. But it is also important to monitor that token with which we are going to invest, for example, we must see graphs, market capitalization, price, dominance, circulating supply, indicator services, among other tools that help us know the development of the currency in real time.
That is why there are currently several platforms that offer us this type of service, which I consider to be extremely important so that we can successfully analyze the trajectory of a currency. Among those platforms we can find:
• Coinmarketcap
• Coingecko
• TradingView, etc.
• Be patient: This is one of the tools that all investors must apply and take into account when we put our assets to work, since most do not have patience and quickly despair as they want to obtain income in the short term However, we must know that most of these investments are made in a longer period of time, but with greater efficiency.
There are many tools that we must take into account to make a successful investment, however, this will depend on the collaboration that the investor has in order to multiply his assets, remember that the information is extremely important, let's not stop asking, investigating , and to analyze about that investment that we are about to make, since it may have great risks that can put us at a disadvantage. But what is true is that the world of DeFi has evolved a lot, therefore, there are currently many ways for us to generate income through investment.
2) Talk at length about the following. Also, highlight the benefits and risks associated with each.
The initial cryptocurrency offering, better known as ICO, is a mechanism that is carried out before a cryptocurrency is launched on the market, in order to collect as many assets as possible to finance the project, while in turn, they give investors the opportunity to earn income from it.
However, the initial cryptocurrency offering consists of three financing stages, which are:
🟢 I. Private Sale in Cryptocurrencies.
The private sale of cryptocurrencies is the first stage that takes place in an initial offering, as its name says, a collection of funds is carried out in a totally private way, only for companies or large investors who want to contribute to the project, while in turn they have the availability to buy the token that has not yet been released at a slightly cheaper price compared to how long it will be when it is available.
We will ask ourselves, Why is the first sale made privately? This in order to give an advantage to thousands of companies that are interested in the project to buy the token a little cheaper, while the project of the currency goes Obtaining the necessary resources to carry out its financing. Once this token is launched on the market, and if the project is successful and its price rises, the buyers of the first private sale would be multiplying their profits and increasing their initial investment.
To carry out this first private sale, it is already necessary that the token project is advanced, that is, that it has enough documentation so that investors can be aware of what they are investing in. That is, your White Paper, your roadmap, all this type of documentation must be available before launching a private sale.
Participation in this private sale is granted by the development team of said token, either for large investors who are interested in the project, for developers, and even for other existing currencies on the market in order to expand its diversity.
• Advantage::
• The first private sale grants buyers exclusivity to obtain the token at a cheaper price before it is put up for sale on the market.
• It promotes the development of the project on a large scale, thanks to the large companies or investors who invest in it.
• Once said token is launched on the market, the existing accumulation of each sale will drive the price of the currency in the market.
• If the price of the currency rises on a large scale since its launch, this would be a great investment method for the people who participated in it, bringing the advantage of multiplying their investment.
• Disadvantages:
• We are investing in a project that we know 100% if it is safe and reliable, therefore, we have the success of the project as a guarantee.
• If the success of the project fails, we would be losing our funds invested in the initial offer.
• Currently this method is very common today to scam people, making them believe in a solid project, while investing their assets and then being stolen. That is why we must take into account very well in which project we are going to invest our funds.
🟢 ii. Presale in Cryptocurrencies.
In the second stage of financing for the initial coin offerings, we have the pre-sale, where it is also a mechanism to collect and obtain funds before its third stage is public. The pre-sale does not differ much from the private sale, however, it is like an ultimatum for investors to still take advantage of the low price and can buy the token.
However, the pre-sale is also a crucial part of the ICO, as here you can make the volume and supply of the token go up a bit more before the public offering is available. In the same way, it is still a good stage to buy tokens at a low price and help the development of the project, where there are still expenses to pay and complete the project structure.
At this stage, the availability is broader for investors and companies that did not take advantage of the private sale, therefore, it is still a good time to acquire the tokens before their offer goes public, since their price is still low.
• Advantage:
• Pre-sale is ideal for increasing the volume and circulation of the token before its public launch.
• There is still the availability of acquiring the token at a lower price, before being launched on the market.
• Pre-sale helps drive development of the project, and to complete the completion of its structure before its operation.
• Disadvantages:
• There is still a great risk of being scammed by malicious people who seek to steal the funds of thousands of people.
• Even in the pre-sale, the project is not 100% solid, which is still a great risk.
🟢 iii. Public Sale in Cryptocurrencies.
The last phase or stage of the initial cryptocurrency offering is the public sale, that is, it is available to the entire community interested in this project and who did not have the opportunity to participate in the first two sales. In this case, as its sale is public, the price of the token is higher than in the previous ones, which is a factor to take into account.
In some cases, the availability of these tokens in the public sale are available in some exchanges, which help and promote the development of the token, and where it should be taken into account that we must enter our personal data, only in some cases .
The public sale is broader and more flexible, but it can also be a little higher, however, at this stage we seek to meet the expectations that were not met in the first two financing stages.
• Advantage:
• The public sale is the last stage that the project has to raise the greatest amount of funds before its launch, therefore, it is the most important stage to determine the exact value of your financing.
• There is a broader level of publicity for the token, therefore, when its launch date arrives there will already be many people interested in it, increasing its development.
• The risk of scam reduces a little compared to the first two stages.
• Disadvantages:
• Despite being the safest stage of the ICO, there is still the risk that this project is not solid and cannot be sustained in the market.
• The price of the token has increased in value in the public offering, it is no longer available as in the first two stages.
3) What are the means used for public / previous / public sales in cryptocurrencies?
For the initial cryptocurrency offerings to be carried out successfully, there must be means in which you can participate in the three stages of sales, some of these means are usually:
• Pages / websites:
Perhaps this is one of the most common methods that may exist for the initial offers of a coin, in this case when the private / pre-sale and public sale are created, a web interface is developed with the intention that these sales are executed through the internet. Most of these web pages are created under the support of their developers and creators.
Days before the sales, the developers give indications of the time and day that the event will take place, as well as another series of guidelines that are essential for this process to be carried out successfully. We must be aware of the social networks of each developer for more indications.
• Exchanges:
Exchanges is also one of the most common ways of participating in the sales of cryptocurrency offers, in this case they would be public, therefore, they have the availability to offer us a wide tool so that we can be participants in the initial offer.
This tool in exchanges is better known as LaunchPad, which is responsible for sending us notifications about the next ICOs that will take place in the market, and where we can also participate in them. We must know that for an exchange to decide to add a token to the ICO list, it must present a series of documents that verify the validity of the token, that is why the last stage of public sale is the safest of all.
• In person:
As its name indicates, this initial coin offering is carried out in person, mostly in the case of the initial offering privately, where a more select group of investors and company developers meet. to discuss the project and acquire its tokens.
As the private sale of coins is more select and closed, in this case this mechanism can be carried out in person, although currently due to a pandemic, some companies stopped doing so.
• Project networks and platforms:
In this case, through the networks and platforms of the project developers, we can also participate in the initial offer sales, mostly in this case they are used in the pre-sales, where it is sought to finish reach a volume level high enough to start the public sale.
However, we must be attentive to each statement and inform us that the developers of the project tell us, to know exactly and for sure where we can participate in the ICO of a certain token. However, the methods mentioned above are the most common.
4) Research any recent (2021) successful ICO or IEO and provide detailed information about the project. (Note: the BETA token is excluded)
🟢 Human Protocol (HMT)
Human Protocol is a decentralized open source project, based on the Ethereum blockchain, where its main objective is to unite technology with human intelligence, ensuring that each user who participates in its network, obtains HMT tokens as a reward. To achieve this, the user must perform labeling tasks that he will achieve with the help of computational machines, that is why human intelligence is united with technology.
This wonderful project was launched on the market this same year, and has an extremely incredible support team, where 17 people are in charge of the proper functioning of the project, such as technology director, financial director, protocol designers, chiefs of operations. , plus its lead developer Alex Newman.
Currently the project works in collaboration with large blockchains on the market, such as Chainlink, Solana and Polkadot.
This project can easily be linked to global technology, so that thousands of people can participate in its network and carry out learning activities for their knowledge, while in turn receive rewards for it. These activities are related to the mechanism that we all know as CAPTCHA, but under the command of the (PoH) algorithm, where human intelligence meets technology to perform work, such as image identification, of videos, etc.
In addition, the union of this project with blockchain such as SOLANA, makes its network very scalable and secure, guaranteeing low-cost transactions and helping the environment in computational expenses.
🟢 Token HMT and ICO
The governance token of this wonderful project is HMT, an ERC-20 standard token, where its first ICO began on June 17, 2021, through the web interface better known as Coinlist .
It had two private sales, a presale and a public sale, which I will detail below:
• Private sales (2):
• The first private sale took place on June 17, 2021, at 17:00 UTC, where the price of its ICO was $ 0.500, with a total of 100,000,000 tokens available.
50,000,000 were collected, where the assets would be kept blocked for a period of 12 months, after their official launch on the market.
• The second private sale took place on June 17 at 23:00 UTC, where the initial offer price was $ 0.750, with a total of $ 20,000,000. tokens available.
15,000,000 were collected.
• Presale:
• In the first presale, the initial offer price was $ 0.0453, with a total of 234,000,000 tokens available, of which 10,600,000 were collected.
• Public sale:
• In the public sale, the initial offer was made for a value of $ 0.100, with a total of 25,000,000 tokens available, and 2,500,000 were collected.
In total they raised $ 100,000,000 for their initial coin offering before it was launched on the market.
Currently the price of HMT is $ 0.9401 according to Coinmarketcap, with a market capitalization of 0.08756 and a market dominance of 0.01%.
You do not have a circulating supply of coins yet, but you do have a maximum supply of 1,000,000,000. coins.
The best exchanges to trade HMT currently are:
• Gate.io
• FTX
• Bitmart
• Coinlist PRO
5) Create an imaginary tile. Write about the project, including its use case. Develop an ICO that includes Private Sales (3 stages) and Public Sales (1). Please note: You are expected to explain what the funds are intended for, your private sale should have 3 stages and specify the initial supply available and the price at which you are issuing the token at each stage. Also, specify the price at which you are issuing the token in the public sale phase (including supply) .
🟢 Pets evolution (PET) Token
Today the care of animals is as important as the care of our children, pets also deserve to have a safe and complete life, where they can have an excellent quality of life that gives them the best life opportunities. That is why the Pets evolution project is a Blockchain created with the purpose of offering animes around the world a more careful and organized life, thanks to the distributed and secure decentralization system.
Just as the health sector is also joining blockchain technology, animals also deserve to have the best options for a healthier and more complete life. Its network is under the control of the (DPoS) algorithm, better known as Delegated Proof of Stake, which is a third generation algorithm that seeks to improve the problems that other blockchains currently present, such as scalability and security issues on your network.
Pets evolution is a global project that seeks to offer pet owners special and unique care for their animals, where multiple services are available for the life and use of pets, some of them would be:
• Food distribution according to the diet of each animal.
• Medicines,
• Play
• And even the best veterinary centers for the care of our animals.
All this and more can be found in this incredible blockchain that seeks to expand the care of each pet in the world, but under the level of decentralization. Also Pets evolution seeks the unification with IOT (Internet of things) so that humans can have a broader control over the data of our pets, as well as another series of tools that IOT offers us.
This platform is multifunctional and very flexible so that our pets can lead an adequate and safe life. Thanks to the implementation of blockchain technology, now animal care will be a more revolutionized and suitable stage in the industry for the benefit of our animals.
As expected, this blockchain is backed under the PET token, a utility token that is under the control of the ERC-1155 standard and which is the main engine for proper operation within the network, where each node that works through DPos receives PET tokens as a reward for their participation and good performance. As we know, ERC-1155 tokens are multi-functional, therefore the best qualities of tokens like ERC-721 and ERC-20 can be joined together, making the structure of this blockchain very broad.
The estimated time for creating a block through this blockchain takes around 0.5 seconds, which indicates that it is a very fast and highly scalable network. Thanks to the implementation of its third generation algorithm (DPoS), it allows us to carry out transactions and operations quickly with a completely simple and comprehensive structure.
It has a highly trained team for the proper functioning of this project, in total there would be around 30 people who are in charge of ensuring that the structure of this project is fully carried out. Its CEO Alex Montoya is the main person in charge of this ambitious project that comes to revolutionize the animal industry.
Currently the acceptance of tokens such as BTC, ETH, EOS, SOL, USDT is allowed on the Pets evolution network.
🟢 ICO de (PET)
However, before its launch, the PET token had an ICO with three private and one public sales, in order to collect the necessary resources for the project to be launched on the market with total success. The money raised in its ICO served to finish completing some details and a tool for the proper functioning of Pets evolution.
The maximum supply of this token was 50,000,000, of which 50% will be collected for its ICO, which would be 25,000,000 that will be distributed in the first private and public sales.
🟢 First private sale:
• Date: September 13, 2021
• Launch location: Developers website
• Price: $ 0.15
• Percentage of 50%: 12,500,000. of available tokens.
• Funds raised: $ 1,875,000
🟢 Second private sale:
• Date: September 15, 2021
• Launch location: Developers website.
• Price: $ 0.25
• Percentage of 50%: 12,500,000. of available tokens.
• Funds raised: $ 3,125,000
🟢 Third private sale;
Date: September 17, 2021
• Launch location: Developers website.
• Price: $ 0.35
• Percentage of 50%: 12,500,000. of available tokens.
• Funds raised: $ 4,375,000
🟢 Public sale:
• Date: September 20, 2021
• Launch Location: Binance Launchpad.
• Price: 0.45 $
• Percentage of 50%: 12,500,000. of available tokens.
• Funds obtained: $ 5,625,000
In total we can say that the Pets evolution project obtained in its initial offers (Private and public) a total of $ 15,000,000 to finish completing its project and being able to launch its token on the market.
Let's remember that pets deserve the best, therefore Pets evolution is the solution!
6) What are the necessary criteria to include a token in CoinMarketCap? Are there any criteria for listing an asset on a centralized exchange? If yes, please use an exchange for your explanation in response to the question.
Coinmarketcap is an incredible marketing platform, where we can obtain real-time information on the prices of an asset, as well as its capitalization, its dominance, its circulation, among other tools that are important to us to obtain the value of an asset. token, in addition to showing us in detail the graph of a certain asset.
Let us remember that cryptocurrencies are structured in a list, depending on the greater amount of dominance that this currency has, that is why at first we can see BTC, since it is currently the currency with the greatest dominance in the market.
However, listing a coin in its rating range requires a number of steps to follow, as Coinmarketcap specializes very well in offering the best tools to all users today. That is why after reading your document on token enlistment in detail, I can say that:
• The only page that is available to list a token is through the official Coinmarketcap page, there is no other platform or other web interface for this:
The process is carried out through a form provided by the platform.
• You must have a solid and well structured project of the token that will be included in the Coinmarketcap list, as well as show legal and verified evidence about the structure of that project. It has to be matched, otherwise it will be rejected.
• A project website must be included, as well as its social networks, showing evidence and evidence in this regard.
• The token must have a high volume in the market when it is included in the list.
• The project methodology must have consistency and credibility, therefore, you must be specific and sincere when submitting the form.
• Relevant information about the token project must be presented, such as the use of technology, the consensus algorithm with which it works, smart contracts, block explorers, and legal evidence to verify such information.
• The token to include must have at least one contract or upcoming negotiations with an exchange in which it is listed in Coinmarketcap.
• The token project must have a highly trained group that supports its entire structure, no developer must have a history or any type of brand that stains its history. Or else that could harm the token from being listed on Coinmarketcap.
• It should be taken into account that the project must have a reliable representative with whom Coinmarketcap can contact in case of any problem.
The Coinmarketcap page specifies very well that there is no other method for the listing process, it must be through a form that they send you, otherwise you would be prone to a scam.
🟢 Are there any criteria for listing an asset on a centralized exchange?
Yes, of course, since otherwise an organized and distributed control would not be kept over the tokens that are in your list, since we know that there are currently many thefts and scams, therefore, each centralized exchange asks for a series of parameters to include a new token in your list. Each exchange is different, not all of them will ask us the same requirements, therefore, we must do a little research about it.
In this case, I will talk about the criteria requested by the Huobi Global exchange to include a currency in its list:
• Huobi Global:
Huobi is a centralized exchange, which was born in 2013 by its developer Léon Li in the country of China, today it is one of the best exchanges for us to trade our assets, it also has a wide tool where we can make our investments, such as Staking, Trading, Primepool, Perpetual Swap, etc. It currently has a market volume of $ 25,881,409,549.00 according to Coinmarketcap.
And it has an extensive list of tokens that are at our disposal so that we can trade our assets. But Huobi also offers us a comprehensive and detailed list so that we can add a token to its list, some of these parameters are:
• Huobi Global created a special autonomous platform for this type of case, where only the inclusion of tokens was exclusive, this platform is called Autonomous Application Token where it has two sections to be able to include a token in its list:
1) Huobi Main: This section includes the most relevant tokens in the market, with the highest volume, etc.
2) Huobi Next: In this section the tokens with less relevance in the market are categorized.
In the same way, this distributed system helps to have a better organization when choosing a token to list it on your exchange.
• Then an extensive list of the project for that token should be sent to either of the two previous sections, such as:
✓ White Paper
✓ Roadmap
✓ Developers
✓ Technology that applies
✓ Credentialing of the project
✓ Website
✓ Structure and objective of the project
• The exchange will take its time to evaluate that the data sent is correct.
• Huobi Global works strictly, therefore, if the project fails to meet any risk, it will be prone to removing it from its list. Some of them are usually:
✓ If the project does not deliver a weekly report on the movement of the token.
✓ If any suspicious money laundering and fraud activity is detected.
✓ Sudden changes in the token backup equipment, among other parameters that may put the token exclusion at risk.
Huobi Global maintains a very organized structure regarding the inclusion of a token, that is why it is currently one of the best exchanges to trade, ranking number seven on Coinmarketcap.
Conclusion
We have reached the end of our task, and we were able to see the main factors of investing in cryptocurrencies, the risks that it entails and the advantages that it gives us. Currently there are many options that we have in the market to start investing, however, we must take the best precautions to avoid losses.
Thanks to evolution and development, the world of crypto can offer us endless opportunities to generate income, we just have to know how to make the most of it and be aware of the risks that this can entail. Today there are many reliable platforms that offer us these types of advantages.
We were also able to learn exactly each stage of the initial offerings of a ICO coin, as well as the risks and advantages that this entails, that is why we were able to understand the great importance of this event for the proper development and operation of the token. before being launched on the market.
I thank professor @fredquantum for this incredible conference, where I once again learned about a different topic, I am sure it was very useful. It was an honor to participate, until next time.