Are you looking out for the biggest trends in cryptocurrency? Well, Initial Coin Offering (ICO) is going to be a fine start. Today, we’re going to give you an overview on the ICO.
Initial Coin Offering
The abbreviation of ICO is “Initial Coin Offering” and since 2013, ICOs are frequently used for evolving new cryptocurrencies. When we talk about ICOs, this also means individuals offering investors some units of crypto-token or new cryptocurrency in exchange, contrary to major cryptocurrencies such as; Bitcoin and Ethereum. If there’s a demand for pre-created tokens, then they can be easily traded and sold in all cryptocurrency exchanges.
ICO token could become the shares and securities of tomorrow and with the success of Ethereum, more and more ICOs are being used for funding the crypto project development. ICO has become a tool that doesn’t only reform the currency, but also the entire financial system.
History of ICOs
At the beginning of 2013, around 100 billion XRP tokens were created in the Ripple Labs, as the first cryptocurrency distributed by an ICO was Ripple. The main reason why the company sold these tokens was to fund the development of the Ripple platform.
A layer on top of Bitcoin was promised to be created by Mastercoin, for tokenizing Bitcoin transactions and executing smart contracts. Almost $1 million was received by the developer against the top-cryptocurrency Bitcoin.
ICO has funded numerous other cryptocurrencies like; Lisk, which sold around $5 million coins at the beginning of 2016. The Ethereum Foundation sold ETH against 0.0005 Bitcoin in the mid-2014 respectively. By doing so, around 20 million was received, and it became one of the largest crowdfunding, and now, it serves as the capital base for Ethereum development.
A simple token, which can be transacted on the on the blockchain of Ethereum is one of the simplest applications of Ethereum’s smart contract system and this type of contract was standardized with ERC#20. This is something that made Ethereum host of such an extensive scope of ICO that now you can say that Ethereum has finally found its Killer App.
The token is sold as a digital good, not as a financial asset and this is why it’s sometimes called “crowd-sale”. The legal state of ICO is undefined and in this case, the funding with an ICO is not regulated, making it quite simple and paperless.
ICO – Fundraising Future
The DAO is amongst the most prominent demonstration of Ethereum’s smart contracts. Ether, worth $100 million, fueled the distributed investment company. The idea of funding projects with a token on Ethereum turned out to be a highly successful generation of crowdfunding projects. You’d know that investing in token on top of Ethereum is very easy especially, if you’ve already tried it out. Just transfer ETH and paste the contract in your wallet. You’ll be able to see the token in your account and then you can easily transfer it as you want.
ICOs could be used for completely reconstructing the financial system of securities, shares, and decentralizing, not just money, but trade and stock creation as well.
Do you want to assess Ethereum’s market capitalization? Do not only look at the market cap of Ether but also on the token’s value.
Is it Profitable?
ICO has been a blessing for many investors but, on the other hand, many ICO ends with losses. Many scammers and semi-scammers have used ICO for; promising the greatest cryptocurrency ever or building a sleek website. In addition to that, the successful and largest ICOs, like Iconomi, Melonpost, Lisk, Melonpost, and Augur collected funds and delivered literally nothing.
Let’s find out what’s happening in the market for ICO.
Building a layer on top of Bitcoin was announced by Mastercoin in 2013, and Mastercoin-token were sold to investors. Around 10,000 Bitcoin was received by the developers and had the worth of $1 million at that time. Some investors made hefty profits and later, Mastercoin merged with Omni and Counterparty.
One of the largest ICOs has been made by Ethereum yet, with a pre-sale of almost 60 million ETH and around 31,500 Bitcoin were raised by the Ethereum Foundation. ETH-presale investors also profited immensely.
100 billion XRP-tokens were created in Ripple Labs and serve as an anti-spam mechanism in the Ripple payment network. Ripple Labs are selling XRP but their value doesn’t move in a clear direction. It started with almost 5,000 Satoshi, felt below 1,000 Satoshi, then raised above 7,000.
In 2013, a new gen-cryptocurrency made, Next. Around 1 billion tokens were sold to early investors and the developers only got a double digit’s amount of Bitcoins with the ICO. However, today the NXT token is valued much more and NXT has become a successful and firm cryptocurrency relatively.
Ethereum token ICO:
An Asian platform for decentralized Sportsbet completed the ICO of its token within few seconds and many of them have been purchased by a Chinese exchange.
The aim of Golem project is to create a decentralized supercomputer, through which applicants can earn money by selling its power. The ICO was limited to 820,000,000 tokens, and more than 10,000 BTC were received by the developers. Today, the Golem market share is beyond 50,000 BTC.
The decentralized prediction market uses REP-token to choose the outcome of events in which 80% of these tokens have been sold for funding the development and got around $5 million. Today all these tokens are worth more than $100 million.
Well, Iconomi is a platform for managing the virtual assets and the ICN token is like shares on the platform. 85,000,000 tokens were sold by the developers and more than 17,000 BTC were received for it. Today, it has a market cap of almost 40,000 BTC.
SingularDTV with the ICO raised more than 12,000 BTC and today, tokens as a whole are worth about 40,000 BTC.
The above ICO tokens can be easily purchased and traded on exchanges but some extra ICOs have just completed some time ago and are now preparing to release the newly created token on the Ethereum Blockchain.
This is the following projects:
Melonport’s aim is to advance a platform for managing the blockchain assets made on Ethereum. The MLN token that the developers sold were around more than 2,000 BTC.
Dfinity aims to build a decentralized platform for cloud computing and has raised more than 3,000 Bitcoin in its ICO.
The main aim of this project is to build a platform for the easy formation and blockchain based smart contracts and could raise more than 14,000 Bitcoin in an ICO for this mission.
You can currently invest in ICOs like:
- Humaniq (a wallet for the unbanked)
- Aeternity (“scalable smart contracts interfacing with real-world data”)
- Internet of Coins (a distributed environment for several blockchains)
- Cosmos (similar: “a network of distributed ledgers”)
ICO Blockchain Capital allows everybody to contribute to its investment rounds. But, not every ICO is worth your money.
17 July 2017, Phishkingz details the method of the stealing Bitcoin in his recent interview. He has generated $1 million during the time period of 14 months.
By stealing bitcoins Phishkingz generates $1 million during a year. Phishkingz claims that he has traded almost 500 bitcoins on Localbitcoin in last 14 months. Accordingly, most of them were generated through the process of phishing.
Phishkingz is the vendor of the dark market and his decision to start phishing was made the discovery of an error on Alphabay’s forum. In addition, that error is “that allowed [Phishkingz] to see new members the second they joined.” The hacker has the ability to make direct contact with new members of the platform, “send [ing[ them to my link with a verification process.” Then, “able to obtain the login details syncing, and the mnemonic phrases, as well as any PGP private key and password and pin code.”
Accordingly, “save a bookmark using blockchain.info… [and] highlight 50 [addresses] at a time every 20 minutes checking for deposits.” A huge number of extractions would be treated manually, despite initial experimentation with bots.
Are admins really caring about their customers?
In his interview, Phishkingz describes that Alphabay’s moderators are providing little support to his victims. “The admins didn’t really care about their customers, and it only took opening a support ticket with a problem to learn this. BM (Big Muscles – an Alphabay moderator) especially is a stupid one. He would let me into accounts for 50% if I provided mnemonic phrase knowing I had phished the account in the first place.”
He also claims to, “have moved to Dream Market and already made 4 BTC since yesterday launching the new site.”
The phisher’s number of hacking Bitcoin is increasing rapidly. Tezos ICO attracts the phisher’s attention. While other hackers are creating websites with fake ICOs, victim’s computers through downloading nasty software masked as project white paper. In addition, Bitcoin and other cryptocurrencies seeing unprecedented media exposure. While increasing numbers of the hackers and scammers indicate an unfortunate and predictable consequence of digital currencies’ acceptance.
Bitcoin’s cost is measured by fiat money, for example, American Dollars, Euro, etc. Bitcoin, therefore, appears similar to any symbol traded on trade markets.
Unlike fiat, however, there is no official Bitcoin cost; just different averages in light of price feeds from worldwide exchanges. Bitcoin Average and CoinDesk are two such names detailing the average cost. It’s typical for Bitcoin to trade at a price marginally different to the normal price.
But inconsistencies aside, what factors determine the price of bitcoins? well, the main factor is supply and demand. The fact that bitcoin is limited in nature leaves the currency mainly at the mercy of supply and demand. When the Bitcoin demand is high, supply drops, and the price goes up and vice versa.
Bitcoin price history is very interesting. In 2009, which was its first year it was just $0.39 per bitcoin. now it is valued at more than $7,000.00 per BTC. Stunning isn’t it.
Here is a Bitcoin value graph giving you an idea of how its price has moved over the years:
Looking at this Bitcoin value graph, it can be easily determined that Bitcoin value has been on a constant rise over the last couple of years, and the trend is expected to continue in the future as well.
It’s really simple to use a Bitcoin mining calculator. There are only two main instructions that you need to follow:
- Enter the hash rate
- Click to mining revenue
Do these and you will have your desired calculations with an accurate result while using a Bitcoin calculator. However, there is one important thing to remember while performing calculations: The revenue will be in USD, based on current exchange rate. The exchange rate varies from time to time and so does the revenue difficulty.
Some other points to remember are:
You Have to Calculate Profitability:
Bitcoin mining has secured the bitcoin world. Without miners, you would not be able to do any transaction happily. In that sense, miners pay for their services and mine the blocks. If miner successfully mined a block, there is a reward on each block in the form of Bitcoin.
Easily run a profitable mining farm.
While going to purchase bitcoin mining hardware you must look the at metrics called hash rate. If a hash rate is high, it means your miner is more powerful. To calculate the amount of hash power per month, you can use the mining calculator. However, it may be costly for a new mining farm.
Just like you want to earn more, the hardware will become more expensive. Antminer S7 mines $200 bitcoins per month and costs $629. And this is just the hardware cost. The costs of electricity and equipment are not included.
For profitable mining operation with low W/GH with good hash, power is the better option for your profitability. Antminer S7 is also considered the most efficient miner with 0.25 W/GH.
During the mining process, the miners emit large amounts of heat, so you will need cooling fans and power supplies to keep the temperature under control.
Mining operation completely depends on electricity. 60% of Bitcoin network’s hashing power is located in China because of cheap electricity.
Miners in cold areas are more profitable because there is no extra need for cooling fans. It removes the heating cost and keeps the houses warm during winter.
Hash Power and Difficulties:
It is difficult to know about the difficulty months in advance. Network and hash power are external factors and vary from time to time.
Instead of stressing out, concentrate and give complete attention to understanding the more efficient idea of mining technology and the hash rate.
Block Reward and Price:
Bitcoin price is a factor you can’t control. Price fluctuation is important so keep yourself up to date and prepared for these fluctuations.
On the other hand, the reward is a predictable factor. It started from 50 bitcoins per block, then 25 BTC per block, and in July 2016, it was halved to 12.5 bitcoins per block. The reward takes place every four years. This means the halving will be taking place in 2020.
Use of bitcoin profit calculator keeps you updated with hardware and electricity costs. This will give you the better idea how to decrease the possibilities of mining difficulty and Bitcoin price.
Wishing you good luck!
Bitcoin’s price has rebounded to $11,997 with a 4.9% gain after falling to $10,000 recently and is now affecting the whole market with its momentum.
Bitcoin Once Again Hits its All-Time-High:
The daily trading volume of the cryptocurrency market including the top-cryptocurrency (bitcoin) has been comparatively strong over the past 24-hours. The daily trading volume of the top-cryptocurrency remained strong across all major cryptocurrency exchanges including; Bithumb, Binance and UpBit, which demonstrates signs of another recovery towards $13,000, as many experts have highlighted it.
The daily trading volume of bitcoin has hit a monthly high in South Korea, as around about 80,000 bitcoins were traded within a single day. South Korea’s largest mainstream media outlet “HanKyoReh” reported, that for the first time since January, the demand for bitcoin is rapidly growing.
Multiple investors have started to invest in the bitcoin market out of the fear of missing out, as the top-cryptocurrency has continued its rising momentum throughout the past few days. Another South Korea’s mainstream media outlet “Chosun” highlighted that bitcoin has built flexibility just within a month, as a lot of investors have started to enter the cryptocurrency market once again.
According to Chosun, strong cryptocurrency (bitcoin) remains above $10,000 mark even though it has been through many adverse issues, criticisms, and huge corrections. At this time, the crypto-market is seeing similar prices as it has seen only two months back, preceding to bitcoin’s enormous bull run that permitted the top-cryptocurrency to achieve its all-time high at $19,000.
CEO of venture capital firm Pantera Capital, Dan Morehead said last week, that the price of bitcoin would be expected to surge by the following week after it recovers from the bear market. He highlighted that most bear markets have a tendency to last 71-days and from now, bitcoin would be in a perfect position to see an upsurge in its price in the coming week.
He added, the past doesn’t predict the future, however, it looks like this is the right correction. It had been on a 71-day bear market so, it looks like within few weeks, everything will go back to normal.
Other major cryptocurrencies (including Ethereum) with ICO tokens have been following the trend of bitcoin for the past 2 weeks, however, it just dropped to $945 on February 20th. Just few cryptocurrencies have been able to exceed the gains of the top-cryptocurrency bitcoin, and most cryptocurrencies have recorded declines in their worth. Ethereum has declined by 2% against Bitcoin. However, it is also essential to perceive that Ethereum is only down by 0.52% over the past 24 hours.