Crypto Academy week 1 - Homework Post for [@imagen]

Greetings to Everyone,
It’s a great honor to be able to do @imagen’s homework task. Without losing precious time, let’s get into it!

What is an ICO?

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ICO is the shortcut for initial coin offering. The term ICO was gotten from a finance term initial public offering (IPO). An IPO is used to express the get going of a present day firm on a stock trade, also referred to as the ‘going public’. The main idea of an IPO is to trade stocks of the firm with the aim to raise money from the general public. ICOs, contrastingly, trade cryptographic coins(tokens) as a manner to finance a specific project.

What is an IEO?

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In simple words, IEO is an appeal for fund method in which a crypto trade undergoes the management for estimating the project, ruling the distribution of tokens and bring around investors.

The major differences between an ICO and IEO

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There are many notable differences between the two(2) charity scale methods. These include the following;

1. Tokens are recorded on the giving-and-taking platform in just a number days after tokens are being sold. On top of an ICO, tokens are often not recorded on the cryptocurrency trade instantly, but rather appearing months after the token sale terminates. In certain situations, the recording will not take place, and the project subsides.

2. Seeing that the trade of tokens for an IEO takes place through a crypto trade, only customers who own an account on the platform and have been validated or verified can emerge as investors.

3. In parallel with ICO, producers manage a trading campaign. This can be done by using financed promotion, social networks and forums. On the other with an IEO, the trade takes charge of this role.

4. ICO is decentralized while IEO is centralized

5. With ICO there’s a risk of high frauding activities while IEO has a lower risk of fraud.

ICOs have both ups and downs in the crypto space. Let us dig into the advantages and disadvantages related to ICOs.

Advantages of ICOs

1. ICOs aid in funding decentralized open-source projects; the open-source action here is all about creating software at zero cost and also ready for use for anyone at all. Developers are free to change the open-source code, which can result to much quicker technological change. Open-source programs prone to be safe since it has a lot of regards examining the code. This makes sure that not a single soul can put dangerous code in the software.

2. Shareholders split both the dangers and the enjoyment of their labor with the investors.

3. ICOs can be a good source of making money for investors; Members of ICOs possess the ability to make a sum of good money on this platform. Throughout the Ethereum ICO many investors collect more than 1100 Ethereum for 1 btc. Those who traded Ethereum at its summit would’ve gained a give back of not less than 36 btcs.

4. Uncover from major cryptocurrencies through to altcoins.

Disadvantages of ICOs

1. Several ICOs are cheat; the crypto space is widespread with altcoin frauds. There exists some ICOs that vows to be loyal and end up running away be with everyone’s money. It’s viable to set up an ICO unknown with no reporting at all to the users. In the world of crypto people can make vast profits or losses at the same time. Extra care must be taken when investing!

2. Beginners utilizing ICO can launch or set of projects which are bound to failure.

3. Developers can make amendments to the rules at any time leading to failure in the near future.

Example of ICO

There are many types of ICOs that are getting started with, or even still in development. MillionCoin(MON) is one of the popular coin that is still in development. MillionCoin has develped a trading system found on the trading of products for cryptocurrencies attainable to the general public. This blockchain-based project targets to make the trading of goods and services much cheaper than we can imagine while at the same moment function as a selling grounds for firms with goods for selling. Immediately MillionCoin is set-in-motion, it’ll promote survey and clarify choice for both customers and traders and great tagging or tracking. MillionCoin and its ICO are open-sources.

Thanks!