Steemit Crypto Academy | Season 2: Initial Coin Offering (ICO) | Homework task for @imagen

Today I'm going to make my Steemit Crypto Academy Homework task by professor @imagen that talking about ICO (Initial Coin Offering). Very interesting lessons. Actually I have very little knowledge about this, but I will try to discuss it to improve my writing skills. On this occasion I will try to discuss about Initial Coin Offering (ICO) following 4 points.

What is Initial Coin Offering (ICO)

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Initial Coin Offering (ICO) is a strategy or method created by the project team to get initial funds to carry out the project. In this case the project team will issue a coin that will be launched into the cryptocurrency market with the hope of developing the coin in the blockchain system. The project team will sell some of the coins to investors in the form of fiat currency or crypto such as Bitcoin. The goal is to receive an injection of funds so they can develop the project in a wider range in the future.

Whitepaper is concrete evidence that must be prepared by the project team with all its excellence. To attract investors' interest, of course, the whitepaper that will be given to investors must have a strong foundation and high potential for the success of the coin as a future project.

Whitepaper must contain data and all matters related to the ICO. Reason the coin is needed in the crypto market, technology and advantages of the coin, percentage of coins sold during the ICO period, and what to do with the remaining coins to develop. In addition, the procedures for project activities during the ICO period must also be considered. Time and schedule management, target coin sales, and the amount of funds needed for the project to be completed. Minimum limit of funds required must be set by the project team. Because if the minimum funds are not met, the project can be considered a failure and the funds that have been collected can be returned.

Difference Between Initial Coin Offering (ICO) And Initial Exchange Offering (IEO)

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ICO	IEO
ICO offer coins directly to investors	IEO offer coins through an exchange that acts as an intermediary
ICO gives freedom to anyone who wants to invest without any restrictions	IEO only provides investment for exchange members
ICO does not issue coins directly to the crypto market after investing, but must wait for the project to be completed	IEO launch coins immediately on the crypto market after investing
ICO gives access to coins in the wallet at any time	IEO does not give access to coins in the wallet for a certain period of time because they are locked
ICO can provide capital to cryptocurrency coins	IEO only exchange cryptocurrencies

Advantages Of Initial Coin Offering (ICO)

• If this coin launch project is successful and the price of the coin goes up, the project team and investors will get a big profit.
• This project is open to the public so during the ICO period anyone can become an investor.
• The launch of new coins on the crypto market allows investors to start investing in a variety of coins instead of just one coin.
• The presence of daaps on the blockchain system invites many users because the system is easy and fast.

Disdvantages Of Initial Coin Offering (ICO)

• The risk of investing in this project is very high because of the prevalence of fraud.
• Losses of funds that have been invested can occur because many individuals have committed crimes in this area.
• By giving anyone the ability to invest, the control of this project is very minimum and cannot be taken legal action if there is a problem.
• Coin production may not have occurred and unclear even though the whitepaper the project team has produced is very good.

Initial Coin Offering (ICO) Of EOS

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Initial Coin Offering (ICO) EOS began raising funds from investors on June 26, 2017. The final fundraising period was June 1, 2018. EOS was the longest in carrying out ICO activities which lasted 350 days. According to internet data, for 350 days EOS managed to raise around $ 4.2 billion in funds.

EOS managed to launch 70% of the coin availability or equal to 700 million coins during the ICO period. Daniel Larimer is the person who controls this project so that by using this ICO the business moves globally. The ease of participation was the point that made this project a success. Many investors are starting to be interested and join where they can see the results of their investment firsthand. All data and related matters are transparent and disclosed to the public. As investors they can make the best decisions on their investment for the sustainability of the project.

Thank you for reading my blog, hope it will be useful for all of you.

CC:
@imagen
@steemcurator02