Steemit Crypto Academy Contest / S5W5 - Initial Coin Offering in the Crypto Ecosystem
Namaste 🙏 to all of you. My name is Lavanya, and a housewife from India.
This is my entry post for the ongoing contest Initial Coin Offering in the Crypto Space by the #SteemitCryptoAcademy community.
I have Experience with ICO, IEO, and IDOs participation in before, By forming groups with my friends, I try to participate. In my today article, I share my experience.
Let's start
Share details your understanding of the Initial Coin Offering (ICO) and the purpose of event in crypto Market |
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ICOs( Initial Coin Offerings), are a way for startups to raise capital by selling digital tokens. In return for their investment, investors receive a token that can be used on the startup's platform or traded on exchanges.
ICO investing is risky, as there is often no guarantee that the tokens will have any value.
However, if the ICO is successful, investors can make a profit by selling their tokens when the price goes up.
Before investing in an ICO, research the team behind the project, the project's roadmap, and the project's whitepaper. Also, be sure to read the terms and conditions of the ICO carefully.
Investing in an ICO can be a risky proposition, but if done carefully, it can also be a profitable one. Sometimes we can get quick returns of 30 to 50X some times.
An ICO, or initial coin offering, is a new form of crowdfunding that has become popular in the cryptocurrency space.
ICOs are similar to IPOs, or initial public offerings, where a company raises money by selling shares to investors. However, in the case of an ICO, the Company is selling digital tokens instead of shares.
These tokens can be used to access a product or service that the company is offering, or they can be traded on cryptocurrency exchanges.
ICOs have become a popular way for cryptocurrency and blockchain companies to raise money, as they provide a way to sell digital tokens to investors in exchange for financial investment.
However, ICOs have also been associated with a number of scams and frauds, so investors need to be careful when participating in an ICOs.
Initial coin offerings (ICOs) becomes a popular idea to raise funds for new cryptocurrency projects. An ICO is an crypto event in which a new cryptocurrency project sells its cryptocurrency tokens to early investors in exchange for Digital or fiat money.
ICOs are a way for cryptocurrency projects to raise money without having to go through the traditional financial system.
ICOs are usually announced on cryptocurrency forums and websites.
Interested investors may buy the ICO tokens with either fiat currency (USD, EUR, etc.) or another cryptocurrency (BTC, ETH, etc.).
The project team then uses the money raised to develop their project. Once the project is completed, the tokens that were sold during the ICO can be traded on cryptocurrency exchanges.
There are a few things that investors should be aware of before investing in an ICO.
First, it is important to research the team behind the project.
It is also important to make sure that the project actually solves a real problem that people have.
Secondly, it is important to make sure that the project is not a scam.
There are a few ways to do this, including checking to see if the team is registered with the SEC, checking online reviews, and checking to see if the project has a working product.
Finally, another thing to keep in mind when considering an ICO investment is the project's token economics.
Token economics is the study of a project's token supply and how the tokens are used within the project's ecosystem.
A project with a good tokenomics structure will have a limited supply of tokens, and the tokens will have a use case within the project. This use case should be something that adds value to the project and is not just a way to speculate on the price of the token.
A project with a good tokenomics structure is more likely to be a successful investment than a project with a poor tokenomics structure.
So keep all those in mind before participating in ICOs, IDOs, or IEOs.
An ICO event is a key part of the crypto ecosystem because it allows startups to raise capital in a new and innovative way.
The purpose of an ICO event is to give startups a way to raise capital without giving up equity or going through traditional VC channels.
By selling digital tokens, startups can raise funds without giving up any ownership stake in their company.
This makes ICOs an attractive option for startups that are looking to raise money quickly and efficiently.
There have been a number of successful ICOs in the crypto space in recent years, but at the same time, a lot of scam ICO projects have also been seen in the crypto space.
So before I invest,need attention regarding those. because those are high risk investments. Here We may make a profit or lose our hard-earned money too.
Discuss understanding of the Initial Exchange Offering (IEO) and Initial DEX Offering (IDO). Which platform is utilised for IEO? Explain with on example of a platform. |
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Let's talk about IEOs in the crypto market.
An IEO is an "initial exchange offering" and is a new method of crowdfunding for blockchain projects.
An IEO allows a blockchain project to raise funds by selling its tokens to investors through an Exchange.
The exchange acts as a middleman and provides the platform for the sale, while the project team provides the tokens. The investor buys the tokens with fiat currency or cryptocurrency.
The main difference between an IEO and an IDO is that with an IEO, the project does not have to worry about marketing its tokens, as the exchange will do that for them. The downside of an IEO is that it can be expensive to list on an exchange.
The most popular platform for IEOs are Binance, Kucoin and Bybit Exchanges.
Binance offers a platform for projects to list their tokens as well as a wallet for investors to store their tokens.
The main advantage of an IEO is that it provides a level of safety and security for both investors and the company raising funds. This is because the exchange acts as a middleman and is responsible for conducting due diligence on the project.
In addition, the exchange also provides a platform for the token sale and manages the distribution of the tokens.
Another advantage of an IEO is that it typically results in a higher level of interest and engagement from the crypto community. This is because when an exchange lists a token, it is seen as a vote of confidence in the project. This can help attract more investors and increase the price of the token.
There are some disadvantages to an IEO, however.
One is that the company raising funds will have to pay a listing fee to the exchange. This can be quite expensive, and it is not always clear if the benefits of an IEO outweigh the costs.
In addition, there is always the risk that the exchange could delist the token if the project does not meet its expectations.
Like those advantages and disadvantages, we have with the initial exchange offering (IEO),
An initial DEX offering, or IDO, is a type of coin offering that is conducted on a Decentralized exchanges.
Unlike an Initial Exchange Offering, or IEO, which is conducted on a ***Decentralized exchange, *** an IDO allows investors to buy and sell tokens directly from the comfort of their own wallets.
This type of offering is becoming increasingly popular as it allows for a more democratic and transparent coin offering process.
Some popular platforms that are utilised for IDOs are the Ethereum blockchain, Binance Smart Chain, KAI, and many more.
Because those blockchains allow for the creation of smart contracts, which can be used to automate the sale of tokens,Additionally, those blockchains already have a large and active community of developers, which can help promote and support a successful IDO.
Another advantage of IDOs is that they tend to be more accessible to a wider range of investors. This is due to the fact that there is no need to go through a centralised exchange in order to participate and need any KYC for participation.
This means that even those who do not have a lot of experience in the cryptocurrency space can still invest in an IDO.
But it involved high risk and required proper research before participating in IDOs.
An IEO, or initial exchange offering, is a type of crowdfunding that allows startups to raise funds by selling their tokens to investors in exchange for cryptocurrency.
This is usually done through a crypto exchange, which acts as a middleman between the startup and the investors.
The exchange will list the startup's token and allow investors to buy it with their own cryptocurrency.
Investors get security on their investments here. because trusted projects are only listed by exchanges.
An IDO is an initial DEX offering and is a type of crowdfunding that allows startups to raise funds by selling their tokens to investors in exchange for cryptocurrency.
This is usually done through a decentralised exchange, which allows for a direct connection between the startup and the investors.
The decentralised exchange will list the startup's token and allow investors to buy it with their own cryptocurrency.
However, because our investments are in decentralized,so no one will be held accountable for your loss or gain,need proper reach before participating here.
An initial exchange offering (IEO) is a new type of cryptocurrency offering that allows projects to raise funds by selling tokens directly to users of a particular cryptocurrency exchange.
An IEO can be conducted by either a single exchange or a group of exchanges working together. The exchange or exchanges will list the project's token and provide a platform for users to buy the tokens with the exchange's native currency.
In return, the exchange will typically charge the project a listing fee.
The main benefits of an IEO for a project are that it can help build trust and credibility as the project is being endorsed by a reputable exchange.
Additionally, an IEO can help to increase the visibility of a project and attract more users.
There are also some risks associated with IEOs.
For example, if the exchange or exchanges conducting the IEO are not well-established, there is a risk that the IEO could be cancelled or the tokens could be delisted after the sale.
Additionally, there is always a risk that the project could be a scam.
For this reason, it is important to do your own research before participating in any IEO. But like those incidents, they are very few compared to IDOs.
Initial exchange offerings (IEOs) have become a popular method for blockchain projects to raise funds and gain exposure.
An IEO is conducted by a cryptocurrency exchange on behalf of a blockchain project.
The exchange provides a platform for the IEO, helping to promote the sale and ensuring the project meets certain standards. The most popular platform for IEOs is Binance Launchpad.
Binance Launchpad is the exclusive IEO platform of Binance, one of the world’s largest cryptocurrency exchanges. Binance Launchpad has helped launch some of the most successful IEOs, including BitTorrent, Fetch.AI, and Celer Network.
Other popular IEO platforms include OKEx, Huobi Global, Kucoin, Bybit, and Bitfinex.
First, IEOs provide projects with access to a larger pool of potential investors.
Second, IEOs provide greater visibility for projects, as they are often featured on the exchange’s website and in marketing materials.
Third, IEOs often come with built-in community support, as the exchange’s users are typically more familiar with the cryptocurrency space and are more likely to be supportive of new projects.
An IEO, or initial exchange offering, is a type of crowdfunding that uses cryptocurrencies as a means of raising capital.
It is similar to an IPO in the traditional stock market. However, in an IEO, the fundraising is done through a cryptocurrency exchange.
The most common platform for IEOs is the Binance Launchpad.
Binance is a world-renowned cryptocurrency exchange. The way that the Binance Launchpad works is that projects that want to do an IEO must first go through a rigorous vetting process.
Once a project is approved, they are then given a date to launch their IEO on the Binance Launchpad.
Investors that want to participate in an IEO must first purchase Binance Coin (BNB), which is the native cryptocurrency of the Binance exchange.
Once they have BNB, they can then use this to purchase the tokens of the project that is doing the IEO.
But now they changed the mechanism: first, for qualification, we need to hold their native coins for a specific period, then afterwards we need to submit those on their launch pad page. It will remain locked until the IEO tokens are distributed in full.
Then, the system calculates our allocation based on all users' subscription amounts.
Then, according to price, they release new IEO tokens to our wallet by deducting BNB from our subscription amount equivalent to new IEO tokens.
After final distribution, our remaining locked amount was also added to our wallet.
Once trading begins, we may begin trading those new tokens on those exchanges.
The user is not required to do much work in this case; all distribution is done automatically and transparently.
However, we receive a very little allocation and require large sums of money to invest for good allocation.
Normal retail users do not get that much profit. Only $5 to $50 can be obtained. Because our investment is not bigger, our rewards are not bigger.
However, it is possible to obtain some free money; there is no risk, so anyone can try.
Lastly, on October 16, they carried out the ESNC Projectvia their Bybit Launchpad.
For participation, we need to follow those rules.
Need KYC 1-verified account in the Bybit Exchange.
Then need to hold their native $bit coin, as well as the stablecoin $USDT (Opportunity).
There is a snapshot period of up to one week before this event IEO occurs.
As a result, we must hold their native token during the snapshot period. Based on our holding, they allocate new tokens to us.
- Once it is finished, the subscription period may start. It may be active for up to 24 hours. So in those periods, we need to stake our $bit tokens on their launch pad event page.
If you stake your $bit coins on bybit exchange, you must withdraw them there and subscribe here. Then only,we get those IEO tokens based on our subscription.
Here we may also mention that you are holding $USDT too. It's another facility here, like those we don't see at any other exchanges.
If you do not want to take the risk of purchasing their native token, simply completing KYC, by holding stable coins ($usdt) will allow you to participate.
Based on your holdings and subscribed amount, you may get an allocation.
However, USDT subscriptions are based on a lottery mechanism, whereas $bit subscriptions are guaranteed.
Keep that in mind as you participate in IEO's on Bybit Exchange.
When the subscription period ends, the next distribution period begins.
- If you subscribe to Bit Pool, based on your subscription amount with respect to the total pooling amount, and IEO token weight, we get our allocation.
Our bit coins will be exchanged for new tokens at their IEO price, then the remaining balances withdraw to our wallets automatically.
- If you participate in the USDT pool and win their lottery, you will receive your new tokens based on your allocation size.
It's a lottery machine, but if we win here, we get a fixed allocation. It must be bigger than Bit pool.
But it depends on our luck. Here there is a maximum limit too, so anyone holding a $bit token in your wallet must try; we may get some additional bucks from participating.
- Following the distribution, trading will begin on the Bybit exchange. So we may book our profit there.
Like that, IEOs held on the Bybit Exchange launch pad.
Have you ever participated in an ICO, IEO, or IDO? If yes, what's your experience? Discuss a project that performed a successful ICO before and your results |
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I have experience with ICOs, IEOs, and IDOs, but I am not currently participating in any of them due to market conditions.
However, my crypto journey began earlier in 2021 by participating in a pancake swap with IDOs.We need to make large investments for good returns, that's why I usually pool money with my friends for IDO needs.
Lastly, I invested 1.59 BNB in the Binance Launchpad IEO project Safepal for which I received only 7.8 SFP tokens. Those details may be checked here.
I don't even make $20 from this, but I'm satisfied with what I get.
This IEO took place on Binance on August 2nd. For participation, we need to follow these rules.
You must have KYC1 verified Binance account.
Must keep their native token $bnb from 02-02-2021 to 08-02-2021 during their snapshot period.
They took random snapshots during that period. Based on the average of our holdings, they decide how much allocation we need to subscribe to in their pool.
This means that those who have large amounts of $bnb on Binance Exchange will receive large allocations.
- After finishing the snapshot period, the subscribed period will start. It is open 24 hours.
During this time, we need to stake our $bnb in their launchpad pool.
- Then, once the calculation period has begun, the team will compute our $bnb weights in relation to the total staked $bnb.
After calculating all those, they issue that $SFP token based on our weight.
- The last phase is the Distribution stage, before trading begins, they deposit the newly launched token $sfp into our wallet.
For my 1.59 BNB contribution, I get a 0.011 BNB allocation. That means I get only 7 coins.
They are offering 1sfp = 0.0014 bnb in this sale.
We get 10 to 20 times the profit when listing time, but the allocation is very small.
As a result, I no longer participate in any IEOs on Binance.
Small investors like us don't get any profit here. Only whales play a game. But it gives instant and risk-free profits compared to IDOs.
On IDOs, we have locking periods, and we get tokens 30 minutes after trading starts on Dex.
However, in IEO, they distribute before trading begins, allowing you to book good profits.
The only problem is that participating in IEOs requires a huge investment.
What are the merits and demerits of an initial coin offering? |
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ICOs have become a popular way for startups to raise capital, as they offer a way to raise funds without giving up equity in the company.
But it is looking like a good method to raise funds from interested investors for developing their project.Here we have some advantages but also some disadvantages in this process.
Let's discuss those.
An ICO allows a company to sell digital tokens in exchange for investment, typically in the form of cryptocurrency.
There are a few key benefits of an ICO that make it an attractive option for startups.
First, an ICO can provide a startup with a quick and easy way to raise capital. In most cases, a company can raise more money through an ICO than it could through a traditional venture capital round.
This is because ICOs are open to a wider range of investors, including both accredited and non-accredited investors.
Second, an ICO can give early investors a chance to get in on the ground floor of a potentially successful company.
By investing in a startup through an ICO, investors can get in on the company at an early stage and potentially see a higher return on investment down the line.
Finally, an ICO can help a startup reach a global audience of potential investors.
Because ICOs are open to anyone with an internet connection, a company can theoretically reach a larger pool of potential investors than it could through a traditional equity offering.
Despite these benefits, there are also some risks associated with investing in an ICOs.Let's discuss those.
There are a few risks associated with initial coin offerings (ICOs), as with any other type of investment. These risks include:
The possibility of fraud: Given the lack of regulation surrounding ICOs, there is a greater possibility for fraud. Investors should be aware of scams, such as fake ICOs, where fraudsters try to solicit funds by promising high returns with little or no risk.
The possibility of theft: Since ICOs involve the transfer of digital assets, there is a risk that funds may be stolen by hackers. This risk can be mitigated by investing in ICOs that have strong security measures in place.
The possibility of price manipulation: Due to the lack of regulation, there is a possibility that ICO prices may be manipulated by bad actors. This may result in investors losing money.
The possibility of a regulatory crackdown: There is a possibility that governments may crack down on ICOs in the future, which could lead to the loss of funds for investors.
The possibility of poor governance: Some ICOs may be poorly governed, which could lead to problems down the road.
For example, if an ICO does not have a clear plan for how funds will be used, it could lead to the mismanagement of funds.
Despite these risks, ICOs can still be a viable investment option for those who are willing to take on the risks. When investing in ICOs, it is important to do your research and only invest in projects that you believe in.
Conclusion |
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ICOs offer a number of advantages and disadvantages that should be considered before undertaking one.
The advantages include the potential for high returns, the ability to raise funds without giving up equity, and the lack of regulation.
The disadvantages include the high risk of failure, the lack of liquidity, and the potential for fraud.
So by keeping all those in mind, invest money in ICOs.Because those are highly risky investments.
I would like to invite my friends to participate in this contest: @ikmalhariamuna, @ripon0630, @ternuritajessi, @shohana1, @simonnwigwe, @chiabertrand, @nevlu123, and @harferri.
Thank you so much for reading my post!.
You are very knowledgeable about crypto and I really appreciate your knowledge sharing via blogs. Next time if steemit team look for crypto professor then you should apply for that dear. For now good luck for this awesome entry. Have a nice day 💝💗💖
Thank you very much for for compliment. Its giving more energy to work more here.
I'm honored if my words motivate you to work more for steemit. 💖💗💝
Your words always boost me a lot dear.
Your post is very well presented. Best wishes to you.Thank you for sharing your beautiful post with us.
Thank you my friend.
Great explanation, i got some information from your post,thanks much dear friend.
I am glade ,you learn some from my publication. So happy on hearing those words from you.
Lot of thnaks for the feedback of my reply..
This post is quite deatailed and comprehensive. I don't need to be told that you put so much effort into this piece.
You're right,this here is key Investors all around the world can buy into the idea of ICO as there are no form of restriction, the primary goal is to raise fund for the infant project seeking to gain ground in the market.
Thanks for the compliment. I've been working on my publication for the past three days.
I prepared it part by part and successfully published it today.
Thanks for the compliment.
We support quality posts anywhere and any tags.
Curated by : @lhorgic
Thank you very much for your great support @lhorgic
I cant get enough of this information, haha, you seem to have experiences with public offerings. I remember getting into one because of the hype and not actually doing my research, I learned the hard way to always DYOR.
Yes dear i having experience on ICOs in crypto market.
Those are risky investments.But possible to convert our investment into multiple X in short period.
Thanks for valuable feed back.
Thank you, friend!
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Initial coin offering is one of the popular program that happens in the crypto space to present a new token to the community when it does not necessarily have any value. Its purpose is to raise funds for the project and this also allow investors to get on the project early.
This is very true about ICOs because some don't have any good intention before starting the ICO but the aim to steal away from the investors.
Furthermore, I prefer Initial Exchange Offering because the platform must have confirmed the originality of the project before allowing it on their Launchpad. I'm happy to see your participation in SafePal IEO, I have also participated in LOKA IEO on Binance too.
Yes dear. Thanks for stopping and leaving valuable comment.
You have a solid cryptographic knowledge friend. Thank you very much for sharing them with all the steemians, especially with those who are starting in this world.
Your publication is very well detailed and very complete. Thank you for taking some of your time to educate us.
I wish you a great night. 🌺
God bless you
Thanks for valuable feedback.
🙏👍🌺