Crypto Academy Week 9 - Homework Post for Professor @imagen

Hello everybody, Hope you all are fine and in good health!

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My this post is a Homework Task assigned by professor @imagen which is about ICO & IEO

I hope that I will get some good grades from professor, wish me best of luck!

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What an ICO is?

Providing funds to any projects that rise in a Blockchain is known as ICO or Initial Coin Offering. The steps are simple: when someone tries to invest or speculate traditional Money or other forms of cryptocurrencies in exchange for tokens for a project. People have found this method as an effective way to earn high returns as it created a significant impact on the mindset of people who are thinking to raise funds.

Hence the promise of ICO to make it accessible to other service and application platforms is an added advantage but just like a coin has two sides to it the results of a study to raise funds through ICO were not encouraging.

Still, I hope the team efforts running the ICO fulfill their promises and exceed the expectations of their customers.

DIFFERENCE BETWEEN IEO AND ICO?

IEO ( Initial Exchange Offering) uses a pre-existing cryptocurrency exchange as a platform for the projects rather than creating awareness at social media which has its benefits compared to ICO.

IEO differs from ICO concerning the hosting methods, which conclude that IEO is only open to the subscribers, whereas ICO provides the opportunity to be available for all the Public.

Furthermore, ICO being not under any government is lawless. Once you are stuck in a scam, you dont have anything to challenge legally as IEO provides you with this opportunity to exchange as an administrator of the sort before allowing any customers to invest hence increasing security.

Moreover, ICO being open for all attracts more Public, whereas IEO being only limited to subscribers limits the allowance of people that are ready to invest.

ICO	IEO
Open to all	Only for exchange users/subscribers
Not under any Government or lawless	Exchnage involves and provides you security
Attracts more public	Attrcat Limited Public
Create Social media campaigns for awareness	Uses a cryptocurrency exchange as a platform for promotion
Chances of scams are higher	Less chances of scams

ADVANTAGES OF ICO:

• ICO helps to raise funds by selling Token with minimal effort if invested in the right place and authentic companies as anyone can buy tokens as is open for all, unlike IPO.

• ICO helps to fund the Money in the long term effect which causes the amplification of the amount, and the Money does not stay dead in the bank hence saving and securing your Cryptocurrency and traditional Money.

• ICO is not registered with any government organization. Therefore, early contributors are at a higher chance of getting more liquidity in new organizations.

• Early Token can help for rapid capital growth; therefore, a safe way if deployed in the right place to earn huge returns of Money with 1000% chances.

DISADVANTAGES OF ICO:

• Due to no decentralization and association with government organizations, they are easy to hack, and the Money can be wasted; hence investors do not have a legal alternative to that.

• There are many scams as people are hungry to earn large amounts in short times but forget to check the credibility of a running ICO; hence funds can be lost quickly if invested in the wrong place.

PROJECT RELATED TO ICO

SpectroCoin is a web-initiated wallet that was created in 2013 to allow the exchange of cryptocurrencies.

Image Source

Spectrocoin provides you with the opportunity of various payment options like original prepaid, visa, and debit card. The company itself is a UK-based company and works best in the EU provides, Dash, Bitcoin, Ripple, and ethereum as supported cryptocurrencies.

Spectrocoin is quite accessible with its mobile app and a web version too. Moreover, it provides the simplest ways to effectively and efficiently buy cryptocurrencies with fewer scams. It also provides the simplicity of interfaces, and you can begin the exchange in a moment of an eye blink.

Till now, it supports 14 Cryptocurrencies. Another notable feature of the Spectrocoin Debit card, which allows you to not only make transactions usually but in cryptocurrencies, as it holds storage for cryptocurrency with it being accessible in over 30 million ATMs over the world.

CONCLUSION:

As we knew that there are some chanches of scams in ICO. So we should be aware of the scams and not go for the shortcuts as many scammers can fool us regarding using the ICO, and we can lose much of our money invested in it. It is an excellent platform to earn, but it can be used for the wrong purpose, too, so we should be constantly aware of that.