Steem cryptoacademy season 2 week 1:- home work post for professor @imagen

Hey there all. This is @prakhar9675 this side. And this post is against the Home work given by professor @imagen. And In this post I will try to Answer all the questions asked by @imagen

Explain in your own words what an ICO is.

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The term ICO stands for initial coin offering and it is used to raise fund for any coin. It is counterpart of initial public offering or popularly known as IPO in stock market. As we know that in today World there are many entrepreneurs that doesn't hold much money for their business. So to make their company run, they tell people their plan and that company issue its share at a fixed price and interested people buy those share and in that form they buy share in company's profit. And all the account of that company is publicly available.

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Similarly in the crypto world, there are many people who wants to make a coin that may prevail over many existing problem with many coins. But they may not have funds to do that.
For example if I am capable of making a coin that will be much faster and secure than any other existing coin but I don't have fund. So I can list my idea through ICO and can raise funds.

But there are risks linked with this. Many people uses it for scam. They uses this to raise fund and then just ran away with the idea. And there is a possibility that there idea may be fake.

So to protect yourself from this type of risk, white paper of that coin should be read.

What is white paper

In white paper, all the information including objectives, how to achieve that, technology which is going to be used to run that coin (as every coin usee different technology) and other important information

Mention the differences between ICO and IEO

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IEO stands for initial exchange offering and the main difference between ICO and IEO is that it is released by exchange.

1. Risk ICO is released by any individual and thus the risk of fraud are higher. On the other hand in IEO, all the information regarding that coin is checked by that exchange on which that coin is going to be released. So the risk of fraud are much lesser than ICO.

2. In ICO intermediaries are needed to meet your counterpart.
   Investor needs them to find project holder and project holder needs them to meet investor. But it is not needed in case of IEO.

3. While investing in ICO one need to read all the information regarding that coin while this is not necessary while investing in IEO. So the time is less consumed in IEO.

4. Many times many coins aren't released on any exchange, and the money invested by any investor may be at stack. But this isn't possible in case of IEO as it is offered by exchange.
   
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5. After investing in ICO, one has to wait till the coin is released on exchange. While you can make any move in case of IEO as it is already available on exchange.

What are the advantages and disadvantages of ICOs?

Advantages of ICO are given below

1. Any person can issue ICO but IEO can only be issued by any exchange.

2. Using ICO, one person with idea but less financial support can turn ones idea into reality. This this helps in finding more talent

3. In this both parties are benefitted (in case of profit).

Disadvantages of ICO

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1. One of the biggest disadvantages of ICO is high risk and possibility of scam. One needs to be very concerned while investing.

2. Intermediaries are required while investing.

3. One has to wait to make Trade till that coin is listed on any exchange and many time coin is not listed on any exchange at all.

List at least 1 ICO that is starting, is in development, or has ended. Explain the development team project and add information of interest

Today there are many ICO. By clicking on this link you can see a whole list of ICO. But I did some research on collateral pay and my identity coin.

Collateral pay
The objective of this coin is to make crypto payment faster than ever as well as safer than ever. There are many other coins that want the same thing.
It's ICO will start on April 16 2021 and will end on 17 Apr 2021. And its aim is to raise 300,000 USD.

My identity coin

Its World first tagging and wrapping technology and the benefit of this is that it reduces the threat of being scammed. Tagging and wrapping means that it will use KYC more efficiently and will your more security while transferring coin.

This is already available and using ethereum blockchain to function. And now 100 billion coin are in circulation. Source
But due to limitations of ethereum blockchain, it will soon be using its own blockchain to function more properly.

So that's all from my side.

Cc
@imagen