Crypto Academy Season Two Week 1 Homework Post for @image

in SteemitCryptoAcademy3 years ago

Greeting everyone, I am much grateful to take part in the season 2 of week 1 crypto academy homework task for our noble professor @imagen

With this week we have been assigned to give solutions to some questions after taking us through the lecture.


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ICO (Initial Coin Offering)

An ICO which means Initial Coin Offering is simple the path to raise funds for projects. That’s in the cryptocurrency world, we have what we call the Initial Public Offering (IPO). Therefor with blockchain the ICO is our fund raiser. For instance, let’s say a business company is seeking for ways to raise funds to keep their businesses running be it creation of a coin or something, they will have to launch an ICO in other to be able to raise some monies.

It is a common way of fund raising mainly used by new businesses startups planning to offer good products and services that are crypto and blockchain related.

DIFFERENCES BETWEEN ICO AND IEO

ICOIEO
1. Offers capital for new cryptocurrencies1. Offers cryptocurrency exchange
2. It is superb option when raising funds2. It is not considered as the best option
3. In recent years it has observed an increase3. No trace of booming in recent years
4. It does not involve any intermediary for transactions4. It involves Intermediaries known as middlemen
5. It is less transparent5. It is more Transparent
6. The Gas War idea was founded by ICO6. The lottery idea was founded by IEO

ADVANTAGES OF ICOsDISADVANTAGES OF ICOs
1. With ICO there are no shares of stock in a company but provides a blockchain1. Due to the increasing effect of returns from investors who deal with ICOs, it leads to other people going wayward
2. Managers in ICOs creates tokens according to terms of the ICO2. There are common with scams and frauds as a result of inquisitive investors
3. Investors are usually motivated to trade in more tokens with a positive hope that a plan will succeed after launching an ICO3. The frauds can’t be recovered since they are not regulated by any financial authorities
4. Many investors have become multi-millionaires from ICOs4. They have been criticized with counterproductive to economic stability

From the above table I will like to throw more light on two advantages;

  1. Many Investors have become Multi-Millionaires from ICOs; Due to the booming nature of ICOs, many investors have made huge sums from money. In 2017 for instance, we had about 435 successful ICOs. Each of these raising an amount of a hopping 12.7 million dollars. Wow!!. This brought the total amount to 5.6 billion dollars raised. Also the tokens bought in ICOs brought back an amount which was estimated to be 12 times on the first initial investment. This shows how ICOs makes investors to become one time millionaires.
  1. Managers in ICOs creates tokens according to the terms of ICO; with ICOs, the managers produces tokens according to the instructions of ICO, they receive them and share them according to their personal plan by moving them to individual investors.

From the table above I will like to throw more light on two points of the disadvantages

  1. There are common scams and frauds as a result of inquisitive investors; this is due to the large uncontrolled ICOs we have. They turn to bring about scams. Because they are not also controlled by any financial authorities, funds or investors who fall trap can be recovered.
  1. They have been criticized with counterproductive to economic stability; in 2017, there was an increase of ICOs, this brought about retaliation of series of governments. This even made China to ban ICOs because of how it was bring their economy and finance backwards.


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IOTA

It is an open-source cryptocurrency designed for web. It stores transactions on its’ ledger by using directed acyclic graph. It does not use miners to validate transactions. Transactions with this ICO are issued without fees or any charges.

It was released in 11 July 2016.
It has been accused of unusual design. It is operated by the IOTA foundation and gets consensus through a coordinator.
Since it’s a blockchain and cryptocurrency technology, it has been a target of scamming and hacking attempts which have all ended up in stealing of user tokens.

With the development, the white paper is Popov, Serguei on 3rd April 2016. The website is iota.org.
It is made up of the Tangle, IOTA token Coordinator node, and the Markets. These four characteristics come together to form the IOTA ICO.

The IOTA technology are being developed in the automotive and IoT industry by Jaguar Land Rover, STMicroelectronics and Bosh.

CONCLUSION

ICOs are fund raisers for a businesses involved in crypto currency or blockchain. They seek to help investors to get more funds.

I hope with my view on the assigned topic above, it will be considered by our noble professor @

Thank you.

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Hi @farhmade.

Thank you for participating in the Steemit Crypto Academy Week 1.

I liked your research, you explained well the differences between IEO and ICO, also the advantages and disadvantages of ICOs, however:

The Gas War idea was founded by ICO

The lottery idea was founded by IEO

This is not a solid difference between the IEO and ICO concepts.

Many investors have become multi-millionaires from ICOs

This is a fact, not an advantage.

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By the way my user is @imagen not @image 😅

Rating: 6.85

 3 years ago 

Thank you very much professor @imagen .
Well noted
Sorry for getting your username wrong and Thank you for the correction.

No worries!

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