Crypto Academy Season 2 Week 1 : Homework Post for @imagen, ICO (Initial Coin Offering)

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What is an ICO?

ICO stands for the word (Initial Coin Offering). The company running their ICO wants to raise funds in the form of coin issuance. These coins will later be exchanged for fiat currency, now this fiat currency is legally valid, such as; dollars, ponsterling, and so on, or maybe with pre-existing cryptocurrencies like Bitcoin and Ethereum. So they usually do an ICO to carry out their next project, because we both know that startups jump from one point to another where they are trying to find measurable funds, where they are looking for funds, one of which is by doing an ICO Project.

Usually the team conducting the ICO has a group of people working behind the scenes, the teams behind the scenes work to prepare a white paper or rot map, this is a term that can be said to monitor funds or a projection made by a team that going to do an ICO, the point is to predict what the future projection will look like and how it will be, for example what they will achieve in those years. Maybe the explanation in this paragraph is a bit complicated and difficult for you to understand, so I draw a more detailed basic conclusion, a white paper or rot map is like a presentation in designing and planning something for the future to be more measurable.

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Difference between ICO and IEO

In language we can interpret ICO as (Initial Coin Offering), while IEO is (Initial Exchange Offering). Many people think that IEO is a substitute for ICO itself, very much we find people arguing that because ICO is already a scam then its name is changed to IEO, this is a wrong opinion, but in reality it is not like that. Of course, these two have very clear differences, one of which is that ICOs are much simpler to carry out a registration process, considering that the registration process is easier for an ICO, which certainly has a high risk compared to IEO itself, when steemians make an investment.

IEO cannot register arbitrarily, for example if you are a private company that wants to be made public you must first be verified by a third party, now the third party in this case is Exchange, meaning if you have a coin or have a project that you want to launch have a third party verify your project. After this project is verified, you will get confidence that this project is falid and who the people behind it are clear, the target is clear, everything is clear, then they can enter the path of the exchange. Exchange will ensure that you enter a place that is accurate and not scaming, hopefully so.

You find an ICO at a cheap price, then you immediately confirm your fate on the rise and fall of the ICO coin price, - whereas an IEO is different, once an IEO promotes something, it no longer depends on a defeloper who will destroy the price when it goes up. , because as we know Exchange is very broad, the market that determines it, is not a defeloper, this is usually called the protection contributor.

IEO has branding, whereas ICO marketing is unpredictable, so it cannot sustain itself at a high price for long enough. The main essence of the difference between the two is; ICO depends on fluctuating prices, whereas IEO does not, so when the IEO price goes up and the price goes down, it will not affect the performance of the defender.

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The advantages and disadvantages of ICO

Generally, these ICOs offer one very tantalizing thing, namely they offer an ICO that starts at a very, very cheap price, so that someone will be interested in seeing it, then immediately buy it at that cheap price in the hope that later an ICO will go up at a price that is very cheap. very high.

To make it easier for friends to understand it, I will give an example in this explanation, for example I have the desire to make a coin or then I want to create a project I am looking for funds by selling these coins at low prices on a market, as I explained in the meaning of ICO above, so the point is that ICOs are more suitable or more likely to be taken by speculators who really intend to buy cheap coins and sell them when the coins go up, that's the main target.

The advantages and disadvantages I will summarize through the short story below, the most basic convenience of ICO is easy registration, but it should also be noted that ICO does not have the term transparency, we do not know for sure, even when ICO was originally cheap and when it was almost The listing price can go up greatly, after listing the price will go down again because of panic selling, usually like that. So that this ICO failed and in the end it was called a SCAM. Here, in this case we also try to involve the defeloper, as we know defeloper is looking for money from rising prices, for example, we make a project, the defeloper holds millions of coins, after that it is promoted, then the price increases and goes up, from no price. altogether, then sold by the defeloper to fund their project, this is what is happening out there. Because this happened, the term ICO Scam emerged.

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Where can we find an ICO?

If steemian friends are curious and start to wonder where we can find an ICO in a company, now I will start by discussing previous times, where if we want to find information to get an ICO it is a bit more difficult, because it used to be to looking for an ICO friend of steemians, you must first enter into a platform called Bitcoin Talk, here will be released about who and how much funds will be needed for the ICO of a company. However, the world of crypto is increasingly sophisticated and easy, where currently there are so many people who distribute information through advertisements, be it on Facebook, YouTube, and social media or other websites. If you are aware and careful when you start learning about Bitcoin or Blockchain on a site, usually one of the advertisements will appear about things related to ICOs that we are discussing in my writing at this time. here I raise an ICO called Clover

• Clover

Here I invite you to know about clover. Okay, first I will discuss first about where you can access clover, you can access clover on the Coinlist web, you can register first using your email address.

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Then you will find on the dashboard page as shown below

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Maybe in this paragraph I will quote a little on the clover web page itself, as well as stopping about clover, simulation technology and some of the data contained therein. on that page I cite a few basic definitions.

Clover will later present an experience on DeFi that promises smoothness and sophistication for its users. Clover also uses SPV chain simulation technology, this technology is to achieve a new level of interoperability, a simulation technology on the SPV chain which will later be useful for simplifying cross-chain communication so that it becomes a seamless communication.

Here I also invite friends of steemians to be able to see the history of fundraising from clover

Fundraising History	Amount	Price
Early Backers (May 2020 - March 2021)	6 million	Averange $0.06 each
Private Sale (April)	5 million	$0.2 each

If you want to join or want to buy this clover token, you can choose it through 3 options :

Clover	Community Round	Round 2	Round 3
Sale Dates	April 20 17:00 UTC - April 24 00:00 UTC	April 21 17:00 UTC - April 24;00 UTC	April 21 20:00 UTC - April 24 00:00 UTC
Lockup	12 months	6 months	40 days
Release	6-month monthly release period beginning on 04/24/2022	6-month monthly release period beginning on October/24/2021	Freely trading 40 days from 04/24/2021
Purchase Limits	$100 min, $1,000 max	$20,000 min, $200,000 max*	$100 min, $2,000 max*
% of Total Supply	7.5%	4.0%	3.5%
Num of Tokens	75M	40M	35M
Price per Token	$0.20	$0.29	$0.35

Data Source

It should also be noted that clover has exempt countries, including residents of the US, Canada, China, and other unsupported jurisdictions.

Token Economisc

• Expected Allocation of Initial Distribution
  
  Image Source

	Viven Kirby	Cofounder & Project Lead
	Norelle Ng	Cofounder & Operations Lead
	Burak Keçeli	Cofounder & Technical Lead

image source

Here I also list strategic partners:

image source

Conclusion

Okay, after reading this article, maybe friends already understand a little about what an ICO is, and the difference between an ICO and an IEO, then I will discuss the conclusions that we can take from my explanation above, including whether an ICO is a good investment to make? So here I advise that you must study thoroughly before investing, both in ICO and in IEO, where here you have to really see whether the company and its team are a solid team or not and what about their rot map is enough good for increasing the value of the ICO coin that you will get. This is all I can say about ICOs and IEOs, I apologize if there are ambiguous and wrong explanations in this post, considering that I am also still learning, and still need to learn a lot about this.
Good morning, my best regards to all of you.
Thank you to all friends for reading my post.

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Professor @imagen, this is my entry for homework about Steemit Crypto Academy Week 1 | ICO. (Initial Coin Offering)

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Support source :

• Coinlist

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