Steemit Crypto Academy Season 4 Week 6 | Investment through Private and Public Sales By professor fredquantum
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Good evening Steemit. This lecture was on the Investment through public and private sales. This lecture was by professor @fredquantum, and it was detailed.
What can you say about Crypto Investment and how to properly utilize the investment tools available to make the right decisions?
Write on
i. Private Sale in Cryptocurrency.
ii. Presale in Cryptocurrency.
iii. Public Sale in Cryptocurrency.
What are the mediums used for Public/Pre/Public Sales in Cryptocurrency?
Research about any recent (2021) successful ICO or IEO and give detailed information about the project. (Note: BETA token is excluded).
Create an imaginary token. Discuss also the project including its use case. Develop an ICO which includes Private sales (3 stages) and Public sales (1). Note that: You are expected to explain what the funds are intended to be used for, your Private sale should have 3 stages, and specify the initial supply available, and the price you are issuing the token in each stage. Also, specify the price you are issuing the token at the Public sale phase (including the supply).
What are the criteria required for listing a token on CoinMarketCap. Is there a criteria for listing an asset on a Centralized Exchange? If Yes, use an exchange for your explanation in response to the question.
1. What can you say about Crypto Investment and how to properly utilize the investment tools available to make the right decisions?
Crypto can be said to be a new way in which investor's uses to make money by making well predicted or analyzed decisions. As the name implies Crypto which mean secret is unlike other centralized site or application that are controlled by an admin, cryptos are built on a decentralized system, making it users the controller of their account. Important information are hidden from unauthorized users so that the cannot be accessed or stolen by third parties. The growth of a Crypto market all depends on the amount of investor's and their investment. That is the more the investor's the bigger the crypto market grows.
Peer-To-Peer networking:
In the crypto market or in the crypto world, crypto uses the Peer-To-Peer networking instead of the client-server networking, where a single node controls the activities of the user. In the Peer-To-Peer network users communicate with users in the network, no third party can interrupt, see or know what two users / account are doing.
Blockchain
A Blockchain is the combination of multiple blocks that stores data and information, these blocks after created cannot be deleted. It's immutable, reliable and can't be manipulated because what have been saved cannot be unsaved. Crypto is a virtual asset, because it cannot be felt physically or kept in the physical wallet, like other real world assert. It is mostly stored in visual wallet like Binance and Roqqu.
Smart Contact
This is a feature of crypto that allows actions made on the crypto to be made automatically without help of any third party, this feature makes the crypto market safe, easy to use and fast.
Tools available for crypto-investment
Tools in crypto are important equipment, or tool required for a smooth running market. These tools helps prevent lose or reduces lose of crypto asserts, this tools helps users successfully analyze, predict, trade and inform users about the latest crypto market. There are so many tools used in the crypto market for example;
Coinmarketcap
This tool contains numerous coins arranged according to their rank, daily volume, the market price, and other important information about the different coins in the crypto market,
For example: coinmarketcap contains important information like the circulating supply, all-time high and low and daily/52 weeks. Informations about the listed coins and the pairs in which the trades can be done.
Tradingview
Trading view is a technical analysing tool that is used in cryptocurrency trading. It contains real-time chart on which technical analysis can be done with the uses of technical indicators and other analyzing tools, to help minimize risk in trading. It is also used to buy and sell assert at required price. It is also used to make orders of different types for example, limit order, market order, and pending orders. It also contain basic information concerning different asserts in the market.
Coingecko
This is an awesome tool, it's similar to Coinmarketcap. It contains numerous informations about the coins or asserts in the crypto market, in this platform Cryptos are classified into different groups which helps investor's easily chose their desired asserts for example, there can be classified as oracle, exchange coins, defi, stable coins, yield aggregator etc. All assert has basic information about themselves example of information seen are the price of the assert, highest and lowest price of the assert, volume market cap, chart, daily volume, exchanges, circulation supply, etc.
2
i. Private Sale in Cryptocurrency.
ii. Presale in Cryptocurrency.
iii. Public Sale in Cryptocurrency
PRIVATE SALE IN CRYPTOCURRENCY
This can also be defined as a kick off or starting point for all upcoming coins or tokens project, it could be in a means of airdrop or a reward given to users for referring new users or account to the platform or any awesome idea to attract more users to their platform for example, Ecoins, VNDC and pi network. Here the tokens or coins are sold at a very cheap amount, with an assurance or that their profit will be large when the coin is finally listed, the fund from sales are used to settle further expenses in improving the project.
Benefits:
Large Profits:
Due to the fact that their tokens are sold at very cheap price, when the project becomes a success and start having nice values in the market, the price of the assert is expected to increase and if there is an increase in price the investor's who bought the coins or tokens at cheaper price end up having Larger profit from selling their token. For Example: A Tokens sold at $0.15 might increase to the worth of $173.
Source of income :
The fund realized from the token sale will be used to sponsor the project, thereby helped to reduce the cost of developing the project.
Risks involved
It is a risky venture, though the developers have good plans to improve and make their projects successful, their projects might end up not becoming successful, making the investor's lose all their investment.
PRESALE IN CRYPTOCURRENCY
This the second stages to be encountered when developing a token or coins, in this stage token are sold at higher price with a reduced discount, this will also improve the spirit or mindset of the investor's of the Private sales, that there is hope for the future, in this stage they are more investor and registered account, meaning the project is becoming a success.
Benefit
Large Profits:
There is profit from buying successful tokens at this stage because the buy price would be lower than the eventual sell price (If the token becomes successfully). The profit from presale are not as much as that from the private sale.
Lesser Risk than private Sale:
There is lesser risk involved in the sense that there are higher chances of survival for a token that has reach this stage, than a token in private sale.
Risks involved
Even though a token has survived to this stage the token, still have chances of falling, due to foreseen circumstances. This would result to lose of investor's capital used for buying the token.
PUBLIC SALE IN CRYPTOCURRENCY
This is know as the final stage involved in development of token projects, this involves awareness creating or project promotion, to inform the pubic of their projects. This is a very important stage because is the last stages for rising fund, and the price of token is higher in this stage than previous two stages.
The public now got involved since more awareness is created about the token. The issuers of the tokens are making one last move to raise funds and increase the token's growing list of users. It is also an avenue to sell the tokens at a higher price.
The price at which the assets is been sold during public sale is higher than in the private sale and presale. The discount is further reduced from that of presale, making public sale have the lowest discount in fundraising phases. The good thing is that despite that more users are expected to adopt the token as the reach of public sale is widest, including the entire public.
Benefit
Bigger Profits:
Despite the fact that the price of the token is higher than the other two stages, the profit gotten at this stage is higher than profit gotten by investor's buying after the token has been listed
Risk involved
Cryptocurrency is always a volatile market, which implies that it's always a risky business and in the price at this stage are higher. So therefore if the project falls the investor's at this stage are entitled to have higher loses but on a normal circumstances the risk of falling of the project are less.
Increase in Community: At public sale, the token's community members increases. The entire world will now know of a token that has gone through previous rounds of sale and is about to be listed on exchanges. Most people begin to find out how to acquire the tokens before its listing, so the can benefit from the early profit which is usually very sure.
3. What are the mediums used for Public/Pre/Public Sales in Cryptocurrency?
Issuer's website
As the name implies, issuers websites are website of the project owners or issuer, for the purpose of generating funds for the token project. Here investor's are expected to trade or exchange a certain crypto assest to buy a new token
Crypto Launchpads
Crypto launchpad can be defined as a platform for seeking and sourcing fund or money required to work or develop a new token project. It is used by some offerings to perform public sales for the new token about to be listed for exchange and trading. It's a site used for exchange and trading for the public sale, most especially, it helps to reduce scam or fake transactions with public investor's.
In this platform investor's gain shares in the public sale according to the investment or subscriptions percentage.
Calculations
Using Binance exchange as example:-
(Eberechi10 committed BNB will be / by the Total committed BNB by all participants in the launchpad) * Total tokens to be sold.
If 100,000,000 tokens are to be offered. Eberechi10 commits 5,000 BNB and 9 other participants committed 100,000 BNB, which will now be 105,000 in total
Eberechi10 would receive a ratio of 5,000 BNB / 105,000 BNB, *100,000,000, which should be 4.76% of the tokens to be offered (4,761,905 token) this information is fromBinance launchpad.
4. Research about any recent (2021) successful ICO or IEO and give detailed information about the project. (Note: BETA token is excluded).
The one of the most recent and famous token project is the "C98" token on Binance Launchpad.
About C98 token
Source
C98 is also said to be a gateway between DeFi service across different blockchain and different DeFi project. A total of 50 millon C98 token were available for sales with approximately 5432983 BNB committed. The price of C98 token was equivalent to 0.00025042 BNB. In other to achieve success the the developers also included the innovation of decentralized products, such as Space gate, Coin98 exchange and Coins 98 wallet. At first, they developers launched Coin98 wallet in the year 2020 afterwards the launched Coin98 DEX in the year 2021.
To accomplish this, C98 (which is short for Coin98) employs a robust suite of decentralized crypto products. They are Coin98 Exchange, Coin98 Wallet, and Space Gate. Source
Space Gate: This is a cross-chain transfer crypto service. That users Uses to swap between multiple networks in the crypto world and also credible transfers. For example SPL tokens, ERC-20 tokens, BEP20 tokens, etc.
Coin98 Wallet:
Coin98 Wallet is a decentralized web wallet that help to store and supports multiple token, this wallet enable users send or receive crypto assest.
Coin98 Exchange: Coin98 Exchange is a decentralized exchange application that is use to perform exchange, lending, earning, staking, swapping between different crypto assest.
Coin98 where sold for 0.00025041 BNB at the public sale on Binance Launchpad. At the end of the public sale, the token was listed on Binance exchange. Let's see how it goes.
At listing, it was worth 0.00026 BNB then it later grew to of 0.0145 BNB.
I did calculate how much profit it generated.
((0.0145 - 0.00026)/0.00026) x 100
= (0.01424/0.00026) x 100
= 54.7692 x 100
The profit = 5476.92% Source
Coin98 at public sale gave a profit of roughly 5476.92%. If i had join in the commitment with $ 10 at the pubic sale i would generate roughly
$54,769.2.
| Parameter | Value |
|---|---|
| Total addresses | 732,345 |
| Total users | 284,498 |
| Transactions | 488,181 |
| Total downloads | 332,290 |
| Total volume | $216.86 M |
| Daily active users | 6000 |
| Total blockchain supported | 23 |
5
Starr Help Coin (SHC)
Starr Help Coin is designed to help the poor ones in the community, it's more like a charity token, it was developed to help the poor in our environment. This coin was built on the Starr Blockchain.
Aim
The developer has always care and felt for the poor ones and less privileged in our communities that why i decided to develop this token. The token was designed to develop our environment, by eradicating or reducing poverty in our communities, making live happier and easier for the less privileged.
About
Starr Help Coin is a defi site which aim to provide services on Starr blockchain. We are always committed to provide a complete ecosystem for decentralized support. Starr Help Coin will soon be launching it's Wallet (Starr help wallet) and also be launching it's exchange
(Starr help Exchange).
Starr Help Wallet:
Starr Help Wallet will support Starr blockchain and will allow users to manage and store all their crypto assest. It will also permit users to send and receive, and connect to numerous decentralized dapps. The Wallet can be accessible on platforms such as android phones, iphones, tablets, Samsung's, laptops etc .
Starr Help Exchange :
Starr Help Exchange will be used to perform exchange activities such as lending, swapping, staking, earning and with low Slippage.
Starr Help ICO
After analysing the project white paper created by Starr team. The project cost will be analyzed and the token will be offered through private sale that will take place in 3 stages, so as to raise funds for the establishment of the project.
We decided to create total of 100 million tokens and out of that 40% (i.e. 40,000,000) will be Shared to investors through private sale in three different stages. Initially at first private sale coins will be sold at $ 0.5 and 2nd and third sale the coins will be offered $0.55 and $0.60 respectively.
The Phase 1 private sale ICO
Date - 1st May 2021
Sale through - Official website
SHC token price = $0.50
Token Supply = 4,500,000 SHC
Fund raised = $2,250,000
The fund raised will be used to develop the blockchain and platform website, setting up the office, and develop the wallet.
Phase 2 Private sale
Date - 15st June 2021
Sale through - Official website
SHC token price = $0.55
Token supply 4,500,000 SHC
Fund raised 2,475,000
The fund raised in this phase will be used to develop DEX and other regular expences such as staff salaries etc.
Phase 3 Private sale
Date - 15th July 2022
Sale through - Official website
SHC token price = $0.60
Token supply 3,500,000 SHC
Fund raised 2,100,000
Fund raised will be used for testing, listing process on various exchanges, media campaign for public sale.
After successful private sale in 3 phases total $6,825,000 has bees raised by offering 12.5 million FFC. Now company has no plan for presale and will directly go for public ICO.
Public sale
The public sale is opened for 3 days
Medium - Through official website
Date - 1st September 2021 to 3rd October 2021
SHC token price $0.75
Token supply 7,500,000 SHC
Fund raised $5,625,000
After completion of private and public sale total 20 million SHC has been sold for $12,450,000
6. What are the criteria required for listing a token on CoinMarketCap. Is there a criteria for listing an asset on a Centralized Exchange? If Yes, use an exchange for your explanation in response to the question.
- Credibility:
First of all before a token can be accepted into Coinmarketcap, the token and it's users is expected to be credible enough before it's acceptable to be listed.
- Verification:
The token is expected to have a excellent verification system that won't easily fall, that it is expected to have a working consensus algorithm like the POW and POS etc.
Token reliability:
The token in question must have to be always reliable despite any circumstances, to avoid investor's from losing their investment.Trading volume:
For an asset to be successful listed in Coinmarketcap the token is expected to have higher or a reasonable amount of trading volume, the trading volume also inform traders of the strength and future of the assets.
Categories of listing
- Unverified Listing
- Inactive Listing
- Untracked Listing
Inactive Listing:
Tokens listed under this type of listing as the name implies are not actively trading on any Coinmarketcap exchange.
Unverified Listing Assets: Tokens listed under this type of listing as the name implies are not yet verified for trading on any Coinmarketcap exchange.
Untracked Listing:
Tokens listed under this type of listing as the name implies are tokens that have not met Coinmarketcap listing requirements.
BINANCE EXCHANGE
Listing on Binance involves three steps that can be thoroughly read by anyone who wishes to list a coin. The method is provided on the official binance website.
For a token to be listed on Binance exchange, three(3) basic steps has to be followed.
1. APPLICATION
As the names implies it's the process of applying, at this stage you are expected to fill your application, which should contain your full details such as the Email, desired Token name, token symbol, etc
- DETAILED INFORMATION
This is the process the platform gives you full information of the step you are about to carry out, it's the break down about what is expected from the token and it's users.
After going through the document and answering the required questions, move to the next phase.
- SUBMISSION
As the name implies it's the stage where you submit all details filled on the application form, so it could be reviewed.
CONCLUSION
The Private/Pre/Public phases as very fundamental because the developers use it as a tool to raise funds in the process of supporting their ICO. Which goes a long way in assist them in the process of developing their crypto assets before listing on an exchange platforms.
Cc
@fredquantum