Steemit Crypto Academy | Season 2 Week 1 Homework Post for @imagen - ICO

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What is Initial Coin Offering(ICO)?

ICO (Initial Coin Offering) is a term derived from IPO. The project of a project team is called the fundraising process.
These two processes are similar, but there are some differences between them. In IPO, a company must make a profit and reach a certain size before the process. For IPO, a company has to follow some procedures. In the country where the company is headquartered, it needs to get approval from some institutions. If everything is ok, it can initiate the IPO process. This is how we can explain the operation of the IPO process in the simplest way. Unlike IPO, there is no institution to protect you during the ICO process. Therefore, it is necessary to be very careful during the ICO process. The team behind the project should be well researched.

What should be considered in ICO?

Ethereum is a coin that emerged with ICO. People participating in Ethereum's ICO process have profited thousands of times. That's why people can be very enthusiastic for ICOs. However, the vast majority of every 10 ICO either fail or the team behind them turns out to be fraudulent. As I mentioned above, there is no institution behind you to protect your money in ICOs. We can say that ICO is the most dangerous stage of investment. The main things to do are:

• The first thing to do is to read the WhitePaper. (Never mess with projects without WhitePaper, run!)
• Projects must have GitHub pages. You should check the update of the project on the GitHub page.
• Who is the project team, their education level, previous projects, if any, the supporters of the project, etc. a good research should be done.
• Following the community on platforms such as bitcointalk, reddit

Advantages and disadvantages of ICO

The biggest advantage of ICO is that we can make high profits. If you do good research and invest in a successful project, you can make a very good profit. In ICO, pre-sales are made at much cheaper prices. Also, many people, including me, don't want to share their credentials. Because when our credentials are stolen, we may encounter any fraud cases. The lack of KYC requirement is also an advantage for investors.

The biggest disadvantage of the ICO is the possibility of the project getting scam. There are a lot of abusers nowadays. It's like you're on a ship in the middle of the ocean. If the ship sinks, there is no power to save you. The same is the case with the ICO. When you come across a fake project, there is nothing you can do to save your money. Because there is no institution or organization to which it is affiliated.

Differences between ICO and IEO

1. In the ICO, the project team performs the sales on their own websites. There is a different situation in IEO. Pre-sale is carried out on the website of the exchange. Due to the frauds made in the ICO, today IEO is more preferred than ICO because it is more secure.
2. In the ICO, the project team decides on which country citizens the pre-sale will be made. In the IEO, the exchange that will sell this decides. In addition, since the exchange manages the process in IEO, it has a chance to reach a wider audience.
3. After the pre-sale process is completed, IEO seems to be more advantageous in the process of listing in the crypto exchange. Because the ICO team has to agree with exchanges to list the token. However, in IEO, it is listed directly on the stock market after the sale.

QTUM

QTUM Website
Whitepaper

The purpose of QTUM, which takes its name from the quantum, is to make the best use of ethereum smart contracts with bitcoin source code. Therefore, changes in bitcoin also affect QTUM. Another purpose of QTUM is to convert the asset in the wallet into money in the fastest way.

QTUM is one of the most successful ICOs. The ICO of QTUM was held between 14 March and 19 March 2017. 1 QTUM was sold for $ 0.292. The project team was able to raise a large amount of $ 15 million for the capital. Investors did not regret it and made a good profit.

QTUM CoinMarketCap
The current market value of QTUM is 15.68$. 98,295,181 QTUM is circulating supply in the market. The Market Cap is worth 1,540,909,901$. It ranks 76th among all coins. Its volume is in good condition and attracts investors. If you had invested in the ICO, your profit would have been 50x as of April 18. QTUM has been affected by the general market decline that started on April 18, 2021.