Steemit Crypto Academy Week 1 Season Two Task By @fadil1:Initial Coin Offering(ICO)
Good day everyone,am very grateful for this being my first time of joining steemit crypto academy.I will like to thank our own professor @imagen for this wonderful lecture and I will like to emphasize on Initial Coin Offering(ICO) because that is what we have been asked to answer on.
EXPLAIN WHAT IS MEANT BY INITIAL COIN OFFERING?
The full meaning of ICO is Initial Coin Offering which is used in raising funds when it comes to crypto currencies .It is term as the new token sales to boost up the community. In an ICO, a quantity of crowd funded crypto currency is registering with investors in a form of tokens. These tokens pickup functional units crypto currencies when the ICOs funding and the project launches. The first tokens where held in July 2013 and they started raising the selling of tokens in 2014.It is one of the risky investment in the world.
In ICOs, investors also buy coins of the companies which can appreciate the value of the business successful. These coins are sometimes pre mined, eliminating the need for prove of works. They are meant for self funding projects by selling future access to service as such they can be seen as an extension of the crowd funding process but different in point ways.
DIFFERENTIATE BETWEEN ICO AND IEO
Although the ICO and the IEO looks alike but there are some certain differences I will like to talk about. Below are some of the differences listed
Purchasing into the IEO is very easier and simpler more than the ICO because they are some distinct procedures you need to use when buying into the ICO.
With the IEO buying of tokens can only be swapped by only members but with the ICO anyone capable can be engaged in.
Partners exchange tokens in the IEO but rather in the ICO investors do so.
Immediately after trading tokens can be exchange in IEO but in ICO it takes some time.
INITIAL COIN OFFERING (ICO) ADVANTAGES
On the bases of block chain, these are some of the advantages I think an Initial Coin Offering will have. Below are:
Crypto currencies in Initial Coin Offerings are very secures when invested.
Everyone is qualified to purchase tokens depending on your capital.
Buying and selling is so easier because there is no intermediate to come between traders.
Its also an easier and simple method for companies when dealing with the right currency to purchase.
INITIAL COIN OFFERING (ICO) DISADVANTAGES
These are some of the disadvantages stated below:
The security level in ICO is so lower in such a matter that hackers find it easier to hack into their system.
You need to also take risk when investing into this because capitals in ICO gets lost because the fraudsters are many.
Results in ICOs are mostly unsuccessful and that makes investors sometimes not sure of getting profit.
4)Tasks and process involved in registering this is not easy.
IOTA
It is marketed as the third generation crypto currency which is fast and has no fees for transactions. One of its technological change is that it doesn’t use block chain. I uses a technology dev elopements usually call tangle which its design is separates IOTA from any other crypto currency.
Within the design we also have the removal of minus without sacrificing decentralization as I said earlier on and its free to use. This is because everyone plays an equal role in the network and anytime transaction is made and they need to help authenticate to previous transaction. This works are usually done behind the scenes.
Ultimately with IOTA the more people uses the network, the faster it becomes. Block chain with crypto currency face a lot today and there are these two faces which gives rise to IOTAs purpose which is to support and facilitate the machine to machine economy and to be implemented as the underline protocol behind the internet of things.
CONCLUTION
To conclude with this, I can vividly say this ICO is one of the investments than can make one rich faster if only you can take the risk because investors truly raise a lot funds.
This lecture has been an awesome and a great one.
I will like to thank our own professor @imagen and am hoping my work will be considered.