Investment through Private and Public Sales - Crypto Academy Season 4 week 6 - Homework Post for @fredquantum.

in SteemitCryptoAcademy3 years ago (edited)

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What can you say about Crypto Investment and how to properly utilize the investment tools available to make the right decisions?

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Blockchain technology has proven to be the new decentralized financial tool that has been used for over a decade now to take advantage of the centralized financial sector it has brought about several investment tools where users around the world can make seamless transactions without the need for any intermediate layer to complete such transactions, with the use of blockchain cryptography which has also been a leading technology providing users and firms with maximum security have also been leveraged by different sectors and organizations as means of providing privacy and security in different organizations in the world with blockchain artist have taken the next wild step of owning their artistic works without fear of piracy/duplication of their works with the help of blockchain NFTs this has been an achievable goal, developers and game loves have not been left out as well various blockchain-based games have been developed and wildly known by millions of users earning and playing for fun.

Generally, we can describe crypto investment as the 21st century/new generation means of making passive income through decentralized systems using digital decentralized currencies. with the above-mentioned blockchain use cases like the NFTs, blockchain games, and peer-to-peer transactions among users today we can say the blockchain-based cryptocurrency has become a bridge for users globally to make investments in various sections through cryptocurrency investment platforms.

How to properly utilize the investment tools available to make the right decisions?

Due to the rapid increase in blockchain technology, we have seen multiple investment platforms been launched on daily basis, with such platforms being launched it's hard for new users/old users to filter which platform is a scam-free investment platform.

Therefore to properly utilize investment tools and make the right decision when making investments in crypto a user need to follow these set-out rules or guide

  • Finding upcoming investment ICOs

Finding the investment platform keeps an investor to stay ready ahead of time there are sites where users get information on upcoming ICO to get to know about the pre-sale price of an upcoming ICO token and other important information like the token use case business profile and developers by so doing a user can make proper research on such project and decide if investing in such ICO can be profitable or not.

  • Make adequate proper research on any crypto-investment platform

Knowing about an ICO or any investment platform is the first step which will prepare an investor ahead of time, next is to make appropriate research about the newly found platform this includes knowing about the brains behind such platform ( CEO, developer profile ) check out how transparent the platform is, know about the platform roadmap and business strategy and future use case, by making such research an investor would know what they are venturing into before buying or investing on any platform.

With the above-outlined process, investors would be able to utilize proper investment strategies such as the maximum/minimum amount they would like to invest when such ICO would be launch, the duration they would be holding such platform token would all depend on the research they carry out.

Talk extensively about the following. Also, highlight the benefits and risks associated with each.

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Private Sale in Cryptocurrency.
Presale in Cryptocurrency.
Public Sale in Cryptocurrency.

Private Sale in Cryptocurrency.

As the name implies private sale of crypto tokens involves sales of specific blockchain tokens to a particular group of investors or companies without making this sale known to the general public.

Here the goal is to capture a special group of individuals who are willing to invest a high amount of capital to which can be used to boost such newly launched blockchain tokens also these special investors must have seen the good future potential of such tokens before embarking on buying such token.

Advantages of private sale

  • Early investors receive a solid discount on the purchase of a newly launched blockchain token.

  • Investors who bought early with a good discount get a chance of making a high profit when such token is listed on trading exchange platforms.

  • Early investors help boost the newly launched blockchain project by buying the new token.

Disadvantages of private sale

  • Early investors could easily fall victim to buying unrecognized/fake blockchain tokens.

  • Average investors are left out making the rich richer.

Presale in Cryptocurrency.

Presale in crypto prepares a new blockchain project to sell their tokens to targeted investors who buy such tokens ahead of ICOs launch time.

This also allows the blockchain project to raise funds that are used to boost the project financially special/specific investors are informed about such token who will be buying at a very discounted price.

Advantages of presale

  • It allows projects to raise funds and prepare them ahead of ICOs launch.

  • Gives investors a high return profit when they buy at a discounted price.

Disadvantage of presale

  • A project might go wrong which will leave investors with a huge loss.

  • Early investors tend to dump tokens which can lead to price devaluation.

Public Sale in Cryptocurrency.

The public sale is the final stage/state where a project token gets to be publicly available for the general public to make purchases.

In this stage, the blockchain project token is available or listed in various exchanges such as a decentralized or centralized exchange, website like coinmarketcap where customers get to access important information about such tokens and buy from exchanges.

Here, all customers can easily buy the project tokens trade them, and hold them for the future price value.

Advantages of public sale

  • The general public has access to buy such tokens.

  • Early adopters can also make considerable profits

  • Value of token seems to appreciate rapidly.

Disadvantages of public sale

  • Early dumping from investors will affect the price of the token.

What are the mediums used for Public/Pre/Public Sales in Cryptocurrency?

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Generally, we have different methods adopted by a blockchain project to sell their newly launched crypto token.

Medium used for public sales

  • Decentralized/centralized exchange listing; since public sales of cryptocurrency involve the general public participation in the buying of specified crypto-asset exchange listing is an important medium used for selling crypto tokens to the general public.

Before a project token will be added on any exchange let's say binance an announcement will be made to the general public, normally it would be displayed on the platform announcement page to interested users who will be participating in buying such project token, traders/investors who will be buying on the launch date will be prepared to buy immediately the count down time buy is opened.

For a coin to get listed on an exchange it's has passed the private and presale stage which means such a project coin is likely known by some certain group of individuals.

The decentralized exchange like PankcakeSwap is also an important medium used by a new project to sell tokens to the general public here traders or investors can use the token smart contract address to purchase these new token using Bep20 all that is required is for a user to connect his wallet to any decentralized exchange and buy the new project token.

  • CoinmarketCap/Coingecko listing; these are another interesting medium that can be used by a new project to make their newly launched token known to the general public by listing a new project token on either CoinmarketCap or Coingecko investors/traders will be confident to invest/trade with such token.

Medium used for private/pre-sales

  • Crowd sale; this method is used by a new project platform to raise funds which can be used to support the development of a project this includes generating funds that help to pay software developers, marketing budget, and more in crow sales other coins like altcoins can be used for financing these new projects.

Here, the number of interested investors will determine if the project token will be a success or not.

  • Private invitation; private invitation in sales of cryptocurrency is carried out where selected users will be provided with the newly launched token roadmap, future use case, and expected future price value with such initiative from the blockchain project investors will therefore see a need why they should buy and hold such project token, this initiative will help provide the mentioned blockchain project with financial support which will be used for further development of the blockchain project growth.

Research about any recent (2021) successful ICO or IEO and give detailed information about the project. (Note: BETA token is excluded).

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ICO listing online allows users to list their upcoming ICO projects so that interested users can know about the new ICO and participate in buying a listed project token.

QUARASHI NETWORK (QUA)

QUARASHI NETWORK is a utility blockchain network that focuses on users' privacy it provides a use case for users where information such as chats, wallets, exchanges are anonymously handled by users.

The project aims to provide users a transparent platform where everyone can confidentially handle/control their information without worrying about getting their sensitive information/data expose to third parties.

Just like a decentralized wallet where users' phrase keys are only accessible by them, the QUARASHI NETWORK chat platform will allow users to control their chats using cryptographic keys this also applies to the project wallets and exchange platforms which will be launched under the QUARASHI NETWORK blockchain.

QUARASHI NETWORK empowers decentralized blockchain utility platforms by providing users with privacy the platform native token QUA will be used for conducting/completing transactions on the platform using multi-wallet mobile application and exchange where users can store buy, sell send and receive different crypto assets using the QUARASHI NETWORK wallet and exchange users can also make payments using Visa and MasterCard.

QUARASHI NETWORK Roadmap

Below are screenshots of the QUARASHI NETWORK Roadmap which are scheduled to be completed in 2022.

QUARASHI NETWORK Team

Alexandru Petre is the co-founder and CEO of QUARASHI NETWORK a crypto analyst and advisor and a crypto investor.

Victor Antohe is a senior graphic developer.

Madalina Antohe Head marketing division

QUARASHI NETWORK ICO start date and information

The project ICO first stage

ICO Start

01.08.2021

ICO End

31.10.2021

Token

QUA

Price Per Token

$ 0.018

Soft Cap

5.000.000

Hard Cap

5.000.000

Platform

Ethereum

Buy With

BTC, ETH, USDT

The information presented above shows QUARASHI NETWORK first stage ICO which started and ended at the enclosed date above we also saw the number of tokens that can b used to buy the project token with the initial price for the first stage launch the number of tokens that will be sold on stage one is also presented above.

Create an imaginary token. Write about the project including its use case. Develop an ICO which includes Private sales (3 stages) and Public sales (1). Note that: You are expected to explain what the funds are intended to be used for, your Private sale should have 3 stages, and specify the initial supply available, and the price you are issuing the token in each stage. Also, specify the price you are issuing the token at the Public sale phase (including the supply).

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Create an imaginary token

Token name FMCT token

Blockchain Bep20 binance smart chain token.

Total maximize supply 2million FMCT tokens.

Write about the project including its use case.

FMCT is a blockchain-based token developed under binance smart chain contract the project aims to provide, users with a more scalable token for completing instant block transactions in microseconds the project integrates an advanced lighting network with micro timer processing tools.

The main reason behind the FMCT project is for users/crypto enthusiasts to experience the true potential of the lighting network the blockchain is capable of completing 10,000 transactions per second this is considered as the fastest blockchain processing blockchain.

The project integrated the use of Proof of Stake ( PoS ) where validators can be able to stake FMCT tokens and earn.

Project use case

  • scalability this has been a major limitation in blockchain technology with the FMCT blockchain initiative of micro timer processor and PoS integration users can be able to complete 10,000s of transactions in seconds without experiencing network congestion.

  • interoperability the project design a system where alternative blockchain can integrate their service on FMCT blockchain and experience a seamless fast transaction processing time.

  • security using advanced cryptographic service the project provides users with a secure avenue where the transaction is immutable, and irreversible with users' privacy taken as the main priority.

Private sales stage one

ICO Start

01.03.2021

ICO End

31.4.2021

Token

FMCT

Price Per Token

$ 0.5

First stage total token to be sold/supply

100,000 FMCT tokens

Platform

Private website

Buy With

BTC, ETH, USDT and, BNB.

Private sales stage two

ICO Start

01.08.2021

ICO End

31.9.2021

Token

FMCT

Price Per Token

$ 1

Second stage total token to be sold/supply

100,000 FMCT tokens

Platform

Private website

Buy With

BTC, ETH, USDT and, BNB.

Private sales stage three

ICO Start

01.12.2021

ICO End

31.1.2022

Token

FMCT

Price Per Token

$ 2

Third stage total token to be sold/supply

100,000 FMCT tokens

Platform

Private website

Buy With

BTC, ETH, USDT and, BNB.

The total amount of FMCT tokens sold in the first three private stage sales was 300,000 thousand FMCT tokens this shows out of 2 million total supply we will be left with 1.7 million FMCT tokens.

It can also be seen the value price tag for each sale stage was increasing due to demand from investors.

Funds generated during these private sales will be used for managing the project such as paying off debt, paying developers, and software engineers, maintenance of platform website financing marketing department, and sorting out future financial needs that arise in the course of the project.

Public sale stage one

ICO Start

01.03.2022

ICO End

Continually

Token

FMCT

Price Per Token

$ 2.5

First stage total token to be sold/supply

1million FMCT tokens

Platform

Kucoin exchange

Buy With

BTC, ETH, USDT and, BNB.

For the public sale, it will be done on a centralized exchange kucoin exchange with 1 million units of FMCT token sold at $2.5.

Total FMCT tokens sold at private and public sales were a total of 1.3 million units of FMCT tokens the remaining 700,000 units of FMCT token will be redistributed among teams.

What are the criteria required for listing a token on CoinMarketCap. Is there a criterion for listing an asset on a Centralized Exchange? If Yes, use an exchange for your explanation in response to the question.

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What are the criteria required for listing a token on CoinMarketCap.

Before a token will be listed on coinMarketCap the following criteria should be met.

  • Security of such token will be critically looked into this includes cryptographic functionality of such token will the token provide security for its users.

  • Decentralized applications; these provide tokens with several use cases some decentralized apps can be used for providing liquidity, staking all these can be used for earning extra income using the available token.

  • Smart contracts; with a valid smart contract address it will be impossible for investors or traders to purchase the wrong crypto token smart contract address provide security for users when buying tokens

  • medium of exchange; the listed token need to be traded or exchanged in one more centralized or decentralized exchange.

  • Functional website; this will help investors and traders to easily access vital information about the token platform.

  • the token should have a representative with a transparent record who will stand as a representative.

Is there a criterion for listing an asset on a Centralized Exchange? If Yes, use an exchange for your explanation in response to the question.

Using binance to illustrate the above question before a token will get listed on a centralized exchange certain criteria need to be met.

  • the said token that needs to be listed on binance would need to constantly update their progress with the binance community.

  • The said token would have probably incorporated BNB during their ICO fundraising.

  • The said token would have in one time supported binance community.

Conclusion

Every business has a strategic business plan for raising funds used for boosting their business in a decentralized ecosystem ICOs are one of the interesting methods used by blockchain projects to fundraise capital used for financing their projects.

Before a user will be investing in any upcoming ICO it is required for such user to make adequate research about such project to avoid losing funds.

Private/pre/public sales have their limitations and users will be advised to critically study both methods before involving in buying such tokens.

Certain criteria need to be met before any token will be listed on an exchange or coinmarketcap.

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