[Investment through Private and Public Sales] - Crypto Academy / S4W6 - Homework Post for @fredquantum.
1. What can you say about Crypto Investment and how to properly utilize the investment tools available to make the right decisions?
Crypto Investment
Before talking about cryptocurrency investment, lets first understand about the term investment. So basically in the financial ecosystem, investment refers to placement of capital in assets and equities in the expectation to earn profit from the staked capital.
There are different types of investments which are totally depend on the investors. The first one is High-risk management in which the investors take high risk to get a potentially high reward. Second is the medium risk management in which the investors take medium risk to get potential medium reward. The third one is the Low-risk management in which the investors have very low risk and take higher profit. This is basically used for long-term investment.
Now, lets move to the term "Cryptocurrency investment". The Crypto Investment refers to the processes which involved the purchasing and keeping the cryptocurrencies for a certain time period and earn profit when the value of cryptocurrency increases. Similar to investment, the crypto investment are also of long-term and short-term.
The short-term investment involves the buying and selling the crypto in a short time period and taking profits in current price. The long-term investment involves the buying and selling of crypto for a long time period and aims to get higher profit from crypto assets.
Investment tools
• Charts:
Screenshot from tradingview
Thr charting tools are much beneficial in technical analysis. They helps the investors to predict the future price action of the assets by using indicators and different tools. An example of the charting tool tradingview platform and Screenshot of which is given above.
• Market Data tools:
Screenshot from coinmarketcap
The market data tools are the platforms which give information about the market data of any cryptocurrency asset such as its market cap, circulating supply, trading volume in 24 hrs etc. An example of Polygon is shown in the screenshot above. The examples of market data tools platforms are coinmarketcap, CoinGecko. At the time of investment, the market data tools proves much beneficial as they give in-depth analysis of the crypto.
• Trading tools:
The trading and exchanging platforms allows the users to trade in any crypto asset or exchange any crypto asset. There are thousands of assets available in the trading platforms and the investors can buy and sell any crypto asset and do trading. Some of the examples of trading tools are Binance, bittrex, Kucoin etc.
All these crypto investment tools helps the investors to understand the current and future state of market by which the investors can maintain their invested assets and can make good profit from them.
2. Talk extensively about the following. Also, highlight the benefits and risks associated with each - (i). Private Sale in Cryptocurrency, (ii). Presale in Cryptocurrency, (iii). Public Sale in Cryptocurrency.
(i) Private Sale in Cryptocurrency:
There is a period of ICO pre-sale is the process in which those tokens are sold which are not yet announced to investors or open to the public. We can consider the private sale as the first phase of an ICO and as the name suggest, the private sale is the sale of tokens to specific early investors. The private sales are kept private and these are not announced in revealed in the general public.
Investors receive Cryptocurrency prices which are highly discounted in comparison to public sales.
If the token purchased at discount is sold at the ICO price at the time of beginning of token trading, then there is an ability to get quick return.
Investors can gett more chances to buy tokens in comparison to crowd sales and public sales as a private sale focuses upon institutional investors.
Companies can get significant funding from institutional level investors .
There is a high risk because of the unpredictable nature of presales.
If the ICO does not hit soft cap during presale, then there is no possibility of money return.
Locking period are possible for tokens or bonuses.
(ii) Presale in Cryptocurrency:
In the case of Initial Coin Offering, the presale is the second phase. It has more publicity as compared to private sale which invites more investors to participate. This phase is carried out before the actual crowdsale. It is advertised on different social media platforms and websites. Presale offers a good possibility to get higher discounts as compared to a public sale. By this, the investors can exchange their assets for a new token.
Investors get more beneficial discounts on tokens in comparison to public sales.
There is an ability to buy more tokens as ICO sale focuses on big investors.
If the tokens bought at discount are sold on ICO price, then people can get a quick return.
Presale involes a high risk of immature company or product.
There is a risk of cryptocurrency reappreciation which devalue your tokens.
minimum investment is higher in comparison to crowd sales.
Some ICOs are at an early stage of development.
(ii) Public Sale in Cryptocurrency:
A Public sale or crowd sale is the last phase of the initial coin offering (ICO) and it is also the most important stage in the entire path of ICO. This sale is advertised much wider than the presale. It provides less bonuses and discounts in comparison to private and presales and the discounts here are also based upon quickness of investors to contribute.
ICO public sales do not require verification documents at the point of purchase.
There is low risk as the product is more developed.
The minimum purchase amount is lower in comparison to presale.
As, the time to trade the token is less and that's why the tokens have greater liquidity.
KYC is easier.
If the tokens are sold out during the presale, then the crowd sale can be cancelled.
There is possibility of token dumping when it bought at a discount.
Discounts are lower than Private and Presales.
3. What are the mediums used for Public/Pre/Public Sales in Cryptocurrency?
There are many mediums in Public/Pre/Private sales which are discussed below:
• Use of social media handles of Issuer.
The handle accounts of social media of issuers has proven to be a delivery point for many of the peoples at a time aside from the use issuer's website in the spreading of information. This social media medium is also found to use in cheap rate at the time of private sale and presale phases where the issuers are also depending on the approaches which encourage large coverage and reduce cost.
• Use of Issuer's website
There is a case in which many of the designated users utilize a website for fundraising process. The investors purchase a new token of certain amount in this case and exchange their existing cryptocurrency assets such as Bitcoin, Eth etc. The amount of new tokens which are credited to the account of the investors is depend on the sale phase of the price of the token.
• Launchpad
The use of launchpad is dated usually in the public sale phase of Initial Coin Offering. It is observed that this method is available in those exchanges which are calved out for some specifically new projects. There are many launchpads available for example Binance launchpad, Redkite launchpad, trustswap launchpad which are built on various types of Blockchains such as BSC, TRC , solana.
4. Research about any recent (2021) successful ICO or IEO and give detailed information about the project. (Note: BETA token is excluded).
Don-Key token ICO
The Don-Key token finance is built on Ethereum blockchain. It is a yield farming De-fi project which is reducing the entry barrier for the liquidity providers as well as for farmers. It has recently held an ICO which from the sales of the native token of their projects named DON raised over $2.2 Million.
The Don-Key token an a ERC20 type token and the price of 1 DON is equals to 0.12 USD. The sale of DON was held on 14th May 2021 to 15th may 2021. The fundraising goal of the Don-Key token is 1,500,000 token.
The donkey token was listed and tracked and listed on Coinmarketcap exchange. At the time of coin offering, the base currency was Ethereum where the investors had exchanged their Ether for DON. On 15th May 2021, the DON token has peaked at $2.9834, after a day just the ICO of the token was launched.
On the Coinmarketcap exchange, the Don-Key token was moving at the current price of $0.4704. It is currently ranked #1048. The market Capitalization of the token is $8,788,025 and fully diluted market cap of it is $47,038,465. The traded volume in the last 24 hours is $132,761 and it has the circulating supply of 18,682,635.17 DON.
The IEO has an allocation that 15,00,000 DON tokens are purchased at the price of $0.12 the the basis of first come first serve and the investors that purchased the token at $0.12 are in a high profit of around 250 %.
5. 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).
APNA TOKEN (APN)
The Apna token is necessarily designed for the purpose of solving the issues and problems related to scalability and transactions. The name of the native coin of the Apna token is APN and it is developed on phantom blockchain. APN was created to aim to solve the scalability problems, reward the upcoming artists and provide a complete ecosystem for the transaction throughput.
Proof-of-History: APNA token is a defi platform which has adopted the PoH (Proof-of-history) consensus mechanism which is well known for its great transaction speed and scalability for validating and verifying the transactions carried out in its protocol. The APN token would would be invariably native token which is used in the APNA blockchain to reward the validators and also to pay the fees at the time of transaction.
APN is built on a multi-chain token protocol which is also going to launch its wallet and exchange. With the help of our different apps, the users can send, store and receive their cryptocurrency assets via their pc or mobile phone.
By the help of Apna Exchange, the users can borrow, swap and earn crypto in the best rates. Users can also pay the fees for getting different services by using APN token.
There will be total of 30 million tokens created and out of the 30 million, 35 percent tokens will be offered to the investors through 3 different stages of private sales which have varying price values for the tokens and one stage of Public sales.
First Phase Private Sales:
Date of ICO - 20th Oct 2021 to 22nd Oct 2021
Medium of sale - Website
APN Token Price - $0.20
Circuating Supply - 4,000,000 APN
Fund Raised - $2,100,000
Second Phase Private Sales:
Date of ICO - 23rd Oct 2021 to 25th Oct 2021
Medium of sale - Website
APN Token Price - $0.25
Circuating Supply - 4,000,000 APN
Fund Raised - $2,350,000
Third Phase Private Sales:
Date of ICO - 26th Oct 2021 to 28th Oct 2021
Medium of sale - Website
APN Token Price - $0.30
Circulating Supply - 3,000,000 APN
Fund Raised - $2,200,000
In the successful private sales of three phases, a total fund of $6,650,000 has raised. Now we will go to Public sales directly.
Public Sales:
Date of ICO - 1st dec 2021 to 5th dec 2021
Medium of sale - official Website
APN Token Price - $0.40
Circulating Supply - 6,500,000 APN
Fund Raised - $5,125,000
Now, after the completion of 3 private sales and one public sales, the total APN has sold for a fund raise of $11,775,000.
6. What are the criteria required for listing a token on CoinMarketCap? Is there a criteria for listing an asset on a Centralized Exchange? If Yes, use an exchange for your explanation in response to the question.
Token listing criteria on Coinmarketcap
To list a token on the platform of coinmarketcap, some of the requirements are there which have to meet. The requirements are listed below:
The cryptocurrency assets must function as a store of value, decentralised application and medium of exchange and they also have leveraged cryptography .
As, the crypto token can track the transactions and see the details of block, so they must have a blockchain explorer and a functional website to do it.
The cryptocurrency asset must be on at least one exchange publicly and actively along with the material volume which has a tracked listing status.
A representatiive is must which provided by the token with whom there can be established open lines of communication for any clarifications by the coinmarketcap.
If the projects do not meet up the required criteria, then they may be placed on the untracked listings which includes some of the house rules which has to be followed. The first rule include that the forms can be submitted by online medium only. The requests which are repeated or scammed are frowned at as they creates a delay in attending requests. The fees payment is not acceptable as the listing is free which is the third rule.
Criteria for listing on centralized exchange
For a token to be listed on centralised Exchange (CEX), there are certain requirements which need to be followed and the criteria of each exchange is different. The binance criteria is used here for token listing. To get your project listed on Binance, you need to do the following:
(Information is taken from binance).
Update your progress of project to the community and us monthly or weekly. It is mainly required even after listing on Binance;
In your ecosystem ecosystem, Incorporate the BNB/BUSD and/or raise BNB/BUSD during your fundraising phase;
Support Binance exchange in your community.
Now, to list a coin of binance exchange the founders of the token will need to submit the information which is shown below:
• On the binance exchange, in step 1 fill the basic informations about the token in which you have fill the name of project, token/coin full name, token symbol and email. After filling, click on next button.
Screenshot from binance
On step 2, check the boxes and click on next button.
At last step, you will get the page of application submitted successfully.
Conclusion
The cryptocurrency investment involved the buying of a particular token and then keeping it for some time and selling it when its price increased. There are three types of ICO stages; Private/Pre/Public sales which are done by the developers to give a chance to investors to get assets before listing on exchanges.
The investment tools like charts allow the users to make better and more informed investment decisions and to get good predictions for getting good profit in future.
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