Tiny Crypto Projects on Kickstarter Want Love (and Money)

Most blockchain or crypto projects are labeled either revolutionary, world-shattering or mind-blowing. They’re disruptive, the killers of Facebook, Uber, AirBnB and Amazon, promising to change the world as we know it and bring decentralization, transparency and ownership to the masses.

LIONBIT

But not all projects aim that high. Some just want to fill in the gaps, to be that mini game you play on your smartphone as you wait for the bus, or to be that note-taking app you bring up once a week to write something down. It’s not changing your perception of the world, but it still has its place in the universe – it’s useful.

Today, we’re talking about the little ones. Plenty of such projects can be found where you probably least expect them to – on crowdfunding platforms. Kickstarter, for example, currently hosts dozens blockchain and crypto projects, from those looking to write a book on blockchain, over those wanting to build real, physical coins as gifts, to keychains and games.

Some even use wordplay to squeeze themselves into the crypto world, even though they don’t actually belong there. One such example is the Crypto God (how’s that for a name). The name doesn’t really give anything away, because the project itself is about clothing.
“Being a crypto investor is cool. But the crypto investor himself should be fashionable, cool and classy. Be the Crypto God for real!,” is the official description of the project.
Another similar one goes by the name “Wooden Blockchain Watch”. Again, enough to tickle everyone’s imagination, but not enough to be self-explanatory. Not a surprise that the Wooden Blockchain Watch is a regular, hand-worn wooden watch whose bracelet is made out of wooden blockchains connected with steel.

TIP

Overall, from 52 cryptocurrency-related projects (there are 44 blockchain-themed projects, but some of them are in the crypto category, too) at the time of writing three are live:

There are only four successful projects. DeepOnion and Bytecoin physical coins are among them (raised EUR 8.695 (USD 9.972) and EUR 3.922 respectively).
Also successful was the CryptoHex project. It raised DKK 23.785 (USD 3.659) in order to make a stainless steel rod for safely storing your mnemonic phrase:

Meanwhile, 71 backers pledged USD 2,177 for the Coin Armor project, a cold wallet with laser engraved keys for Bitcoin or any cryptocurrency from.

As one might have guessed, most of the projects didn’t reach their goals. Among those are HODL – The future of crypto, was a project that aimed to build different coin gifts for tight-handed hodlers, while Kreypto tried to raise funds for a QR crypto keychain, which allows its owners to send and receive crypto from their keychain, looking fancy as they do it.

Other failed projects include:
The First Decentralized Mobile CryptoCurrency Exchange
Silicone Case for Trezor Wallet – Bitcoin / cryptocurrency
CryptoArt prints and canvases
The Crypto Tracker – The Ultimate Portfolio Tracker
DogeCards: Such Fantastic Adventure Take Doge to the Moon
True Mining Simulator
Cryptocurrency Pins – Bitcoin – Ethereum – HODL
BLOCKCHAIN: The Cryptocurrency Game
Arrows of the Leviathan – Dystopian Cryptocurrency Thriller

This is just the tip of the iceberg. Crowdfunding platforms are brimming with different blockchain and crypto projects of various sizes, some of which have already hit their desired milestones. Just as expected, games are leading the charge here, with Zombie Battleground leading the charge.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Sead Fadilpasic
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Cannabis IPO Brings New Opportunities For Crypto Investors

When the New York-based pro-cannabis magazine High Times now moves to become a publicly traded company, it aims to make history as the first company to accept cryptocurrencies as payment from new investors.

LIONBIT

According to an article published in the same magazine on Thursday, High Times CEO Adam Levin said they hope the addition of cryptocurrencies will “enable a much broader group of investors worldwide” to participate in the initial public offering (IPO), which is planned for the Nasdaq Stock Exchange. Ahead of the IPO, the company is already selling its shares in equity-crowdfunding process at a price of USD 11 per share, while minimum investment is USD 99.

The report did not provide any other details about the upcoming IPO.
“High Times has been at the forefront of popular culture for more than four decades,” Levin was quoted as saying in the article, adding that “now we’re taking another step into the future, not only as one of the first cannabis-related brands to go public on the Nasdaq but also as the first to allow Bitcoin and Ethereum as part of our public capital raise.”

The magazine went on to explain that although they had ruled out doing an initial coin offering (ICO) as a way to raise money, “it would be foolish to leave this emerging investor base out […]”

High Times, which has been a mouthpiece for the pro-cannabis community since 1974, further claimed that “with a magazine and online presence still going strong, many are eager to grab some shares.”

The revenue of the company stood at USD 14.6 million in 2016, while its EBITDA (earnings before interest, taxes, depreciation, and amortization) was USD 600,000, according to the company.

Also, if High Times succeeds with its IPO, this could help crypto adoption, as the IPO market is measured in billions of dollars. For example, the US IPO market rebounded in 2017 as 133 domestic companies went public raising USD 30.4 billion, 33 more IPOs and 79% greater value than the previous year, according to Mergermarket, M&A intelligence, data and research company.


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XYO IS TAKING OFF IN 2018!

XYO came onto the scene out of nowhere in 2018. In fact, it’s still flying a bit under the radar compared to where it could be next year. ICOExaminer calls XYO “one of the highest profile ICOs at the time of writing.”



If you watch T.V., you may have seen XYO featured on CNBC where they were called “a perfect enterprise play for Amazon.” And just recently XYO grew even closer to Amazon by joining Amazon Web Services’ (AWS) Partner Network.

But what many don’t know is that they’ve made an arguably even bigger splash overseas in the Chinese, South Korean and European markets. They’ve been featured in massive Chinese Publications, including Forbes China.

Behind XYO sits an Internet of Things (IoT) Location Technology company called, “XY”. Founded in 2012, XY has built over 1 million hardware devices that enables consumers to find and track their lost items. They’ve defined a new vertical called built on the concept of their “findables technology” called Location of Things (LoT).

But where this gets really interesting is in how they’re merging LoT with the power of blockchain. At the end of 2017, XY unveiled its most ambitious project yet: the XY Oracle Network (“XYO Network”).

In the world of blockchain technology there exists a concept called an “oracle”. An oracle is an off-chain data source that feeds information to blockchain smart contracts in order for them to execute.

For instance, one can create a peer-to-peer prediction application that awards the winner 100 ETH after a sports game concludes if Team A beats Team B by programming it to check espn.com’s API one second after the game ends. In this example, espn.com is what’s called an “oracle”.

The idea behind XYO is similar. Except, instead of calling out to espn.com to get the score of a sports game, it enables one to call out to the real world to get an item’s geolocation!

This is a game changer and will take crypto to the next level.

XYO enables smart contracts to call out to the real world to program functionalities like, “When item A gets to XY-cordinate (latitude, longitude), then send 100 ETH to wallet address `0x1234…`

This opens up an entirely new world of possibilities for blockchain technology. This enables blockchain to move from the digital world to the real world.

The implications of this are huge. And that cannot be stated enough.

Most people don’t realize it, but real-world commerce is still massive. Most of the world’s transactions ($70 Trillion+) are still dependent on location-reliant events. Amazon.com is primarily focused on the e-commerce online transaction markets which is only a $2 Trillion Dollar Market in comparison!

XYO is backed by an exceptional team with some of the biggest names in blockchain backing them. Charlie Shrem, Founder of The Bitcoin Foundation, and one of Bitcoin’s original backers. He recently announced that he’d be joining XYO’s Board as an Advisor.

There are likely some BIG things coming over the next year for XYO.

XYO Network is backed by big-named blockchain founders, including Bitcoin Foundation Founder, Charlie Shrem
HOW TO NOT MISS OUT ON XYO
The best news about XYO?

It’s not too late to get XYO before everyone else does!

The project launched their Main Sale on March 20th – May 20th. After this sale concluded, they burned all unsold and unallocated XYO. But before doing so they allocated a public pool of XYO to their GAMMA Stage Sale. This sale is ongoing and will likely continue until XYO is listed on a major exchange and launches their XYO Mainnet later this year.

But one problem: The GAMMA Stage Sale has price increases that are much steeper than the Main Sale. They haved only allocated a small percentage of XYO (~50 Million XYO) per stage, and after each 50 Million block of XYO is sold, the price increases 2.5%!

Once the amount of XYO allocated to this public sale is sold out, you won’t ever be able to purchase XYO from the team directly.

Another thing you should know is this: because XYO believes in the free market of cryptocurrency, they did NOT lock-up their tokens.

This means that as soon as you purchase your XYO from their website, you get the XYO directly in your ERC-20 ETH Wallet. But this has downsides, as well. It means that any decentralized exchange out there (whether or not they’re selling real XYO or fake XYO) can list XYO. Because of this, we recommend buying XYO directly from their sale website (https://get.xyo.network/).

Also, there’s another thing you should know.

We recommend purchasing XYO directly from the XYO website for a few reasons.

First, if you purchase from XYO directly then all of the funds go directly towards developing the XYO Team and Technology. Alternatively, if you purchase XYO through a decentralized exchange, your money just goes to flippers, traders and speculators.

Second, everyone that purchases XYO directly from their website is added to the XYO FHR. The XYO FHR is XYO’s “Founding Holder Registry”. This is basically a list of everyone’s wallet address that purchased from XYO directly in the very beginning stages of their project.

Those on the FHR are eligible to receive a bunch of additional perks for backing the XYO project directly. The biggest perk being airdrops from Geo dApps that launch on the XYO Network platform. This means, for instance, when the first set of Geo dApps launch that use the XYO Network platform (such as an Augmented Reality scavenger hunt game), you can look forward to token airdrops from the games to reward you for being an XYO Founding Holder!

I hope this gives you a sense of why XYO Network is so exciting! Believe it or not, we’ve barely even scratched the surface with this one.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Who Will Benefit from the Evolution of ICOs into Security Token Offerings?

ICOs have come under fire for a host of reasons, and are now slowly making way for Security Token Offerings. This article discusses STOs and their advantages.

A lack of liquidity is the main reason for the slow development of crowdfunding and other types of fundraising. To date, only peer-to-peer (p2p) platforms have established a secondary market to resell loans.



However, there is no opportunity to resell the stocks which an investor has accumulated through investing in crowdfunding platforms. As result, less than 5% of the alternative finance in the world belongs to equity-based crowdfunding and 95% of the turnover currently resides at p2p lending platforms.

The recent rise of Initial Coin Offerings (ICOs) has shown that the traditional stock exchanges and crowdfunding platforms are unable to meet the demand from new early-stage issuers and global investors. Additionally, the ICO market wouldn’t exist without the possibility it offers for the exchange of tokens and their liquidity.

From a legal and financial perspective, ICOs are, however, not the best example of blockchain-based investing. Moreover, misuse of ICOs could discredit the use of blockchain technology in the investment sector in much the same way as bitcoin discredits the use of blockchain in the traditional monetary system.

In the ICO process, both companies and investors should understand the risks that are associated with a “trap of the coin economy” – a company which has issued tokens is limiting almost to a zero ability to earn revenues directly from their main business activities, not, as they do, indirectly from the crypto exchanges where their coin is traded.

In case the company gives too much power to the token on its platform, this results in losses to its equity investors. Investors can expect the dividends to be based on token sale revenues, as opposed to the company’s actual business activities.

This model is impossible to scale sustainably, as the number of ICOs grows and the liquidity decreases. There are two potential ways out of this dilemma:

• Utility tokens/coins have to be limited in functionality to allow for main services still to be paid in liquid currencies and thus generate a sustainable revenue stream for the team and shareholders.
• Innovative companies that aim to build sustainable revenue-generating businesses may choose to raise funds through a Security Token Offering (STO) instead of ICO. It is true that most traditional businesses and start-up’s consider the issuance of tokens for crypto fundraising reasons, these are the most suitable for the issuance of equity type tokens.

Companies that offer for sale tokenized shares and debentures are more attractive from an investment perspective, trustworthy in legal terms, economically sustainable in the long-term and eligible for investments by traditional funds.

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After a year of opposition between regulators and crypto innovators, finally, we can see that the ICO is evolving into STO. These offerings will be conducted on the emerging regulated platforms that facilitate trading in tokenized securities. Corporations and start-up’s will thus have the opportunity to issue their tokenized shares and bonds to a greater number of fiat and crypto investors. Fiat investors will hence get the necessary liquidity for their private investments, while crypto investors will obtain legally compliant tokens, which actually represent their share in the companies.

When investing in security tokens, investors are interested in sustainable companies with a solid [potential] generation of revenue from their business activities, experienced operational teams, a business plan with financial projections, as well as the legal standing of the security token issued on the platform which is conducting the STO and the legal status of the platform itself. Most investors prefer to invest in countries with English law, like the US and the UK, where investors experience the greatest protection.

Fundraising through tokenized equity, debt or reward empowers SMEs and start-up’s to connect with investors and other interested parties at any stage in the company’s growth phase and hence raise the necessary funds faster.

By choosing regulatory compliant fundraising platforms for their STO, companies can receive the full spectrum of services out of the box – security token issuance, exchange listing, investor on boarding (KYC, AML, accreditation), and management of future dividends or interest payments.

While a new more sustainable security token economy is evolving, there are not many platforms that are ready to offer compliant STO services. There are tZero and Polymath in the US and Canada, respectively. And in Europe, HighCastle is the first to be offering technological and legal infrastructure that supports a compliant Securities Token Offering and Reward Token Offering, to be launched under the auspices of the UK securities law framework.

HighCastle blockchain-based protocol is designed to tokenize and enable smooth trading of private securities, which stimulates the liquidity of private investments and opens access for private companies to over $18 trillion of individual and institutional capital vs only $12 billion available to ICOs. In contrary to private venture fundraising, companies get a fair access to a much broader pool of global crypto and fiat investors, an opportunity to raise funds faster at lower cost and higher valuation of their company.

Around 20 new ICOs appear on the market each day. Most of them are simultaneously listed at the HighCastle Marketplace. At HighCastle Exchange, those and other companies, on their own or with the help of HighCastle’s Authorized Advisers, have the opportunity to launch an STO.

Thus, companies have the potential to fundraise global capital easier and faster through the STO, whilst they can choose to stay registered and located in their home country, supporting their domestic economy through global expansion and internationalization of local businesses and innovators.

For innovative companies and traditional businesses that want to leverage their sustainable and long-run growth, HighCastle has created a platform where they can undertake an offering of their tokenized securities, giving an opportunity to investors to hold traditional shares or bonds in their crypto wallets. The use of blockchain in capital markets is unlocking a new opportunity for investors to trade and participate in the private securities market.

This new emerging model of tokenized fundraising and trading ensures that securities issued by promising developing companies can be accessed by crypto and fiat investors, both retail and institutional investors, who can invest through highly-compliant and regulated platforms.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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‘Operation Crypto-Sweep’ has begun!!

A group of state securities administrators in Canada and the United States that opened 70 investigations into potentially fraudulent cryptocurrency ventures last month says that almost half are set to face “completed or pending enforcement actions.”

Per Reuters, a cryptocurrency scam-busting task force operated by the cross-border North American Securities Administrators Association (NASAA) announced a “wide-ranging series of probes,” which it has named “Operation Crypto-Sweep.”


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The task force is charged with investigating unregistered ventures and initial coin offerings (ICOs) promising investors high returns with insufficient warning about possible risks.
The task force has sent cease and desist letters to several firms. Reuters says these include companies with “websites that relied on fake addresses and photos to appear legitimate when seeking investors.”

The body says it will take additional enforcement action against companies that attempt to “defraud” cryptocurrency investors.

The NASAA president and director of Alabama’s Securities Commission, Joe Borg, is quoted as saying, “The actions we’ve taken to date are just the tip of the iceberg. You’re going to see a lot more collaboration and cooperation going forward.”

As previously reported, having reviewed documents produced for 1,450 ICOs, The Wall Street Journal found 271 project with some sort of red flag, ranging from plagiarizations to fake teams. The red-flagged offerings have raised more than USD 1 billion total, while investors have so far claimed losses of up to USD 273 million in these projects.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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The Founders of the ICO Endorsed By Floyd Mayweather are Indicted for Fraud!

The three co-founders of cryptocurrency firm Centra Tech have all been indicted by a grand jury, the U.S. Attorney for the Southern District of New York announced Monday.

Raymond Trapani, Sohrab Sharma and Robert Farkas have all been accused of planning to defraud investors through their company’s token sale. U.S. Attorney Robert Khuzami further announced that authorities had recovered more than $60 million in funds from the co-founders.



All three are being charged with counts of conspiracy and the commission of securities and wire fraud, according to a release.
Centra reportedly offered “cryptocurrency-related financial products,” and its founders allegedly created “a scheme to induce victims to invest millions of dollars’ worth of digital funds for the purpose of unregistered securities,” according to the release.

However, the three also allegedly withheld important information or otherwise mislead investors, including claims about its ties to payments companies.
The company’s token sale was endorsed by heavyweight boxer Floyd Mayweather, claimed to have developed partnerships with Visa and Mastercard to create financial products. The SEC says that these partnerships never existed.
The charges were first revealed earlier this year when the U.S. Securities and Exchange Commission filed charged Sharma and Farkas with fraud, as previously reported. The Department of Justice later produced criminal charges of its own against all three co-founders.

The three remain in custody pending further action by the courts.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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‘Bogus’ ICO Ordered to Repay Investor USD 1 million

A South Korean court has ordered the issuers of a high-profile company accused of issuing a bogus initial coin offering (ICO) to repay around USD 1 million to one of its victims.
Criminal proceedings against the company, which issued the allegedly bogus CoalCoin are still active. However, one of the company’s victims has recouped 70% of the funds he invested in the company after winning a civil case against the company.


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Per media outlet Asia Today, the court heard that the claimant invested almost USD 1.4 million in CoalCoin over the course of several years. The judge ordered CoalCoin’s CEO to pay the victim 70% of his original investment, on the condition that the victim did not go on to seek further damages.

The victim was said to have been CoalCoin’s biggest financial backer, and had filed separate civil cases against two of CoalCoin’s managing executives, as well as the company itself.

CoalCoin raised money from around 5,000 investors, claiming its cryptocurrency had been patented in 126 countries, and had won approval from the Bank of Korea, the country’s regulatory Financial Supervisory Service and the Korean Fair Trade Commission – claims that all later proved to be false.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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What investors should look for in an Initial Coin Offering

An initial coin offering (ICO) is a fundraising method that trades future crypto coins for cryptocurrencies which have an immediate, liquid value. Usually, a percentage of the tokens is sold to ICO participants and a percentage kept for the company’s needs (private investors, etc. Terms differ from one ICO to another). An ICO allows both big and small investors to fund the projects they like. The recent year carried thousands of successful ICO stories. The motivation for the project is obvious. The motivation for the investors of the ICO is that the price of the token would be higher (or much higher) than the token’s price during the ICO.

ICOs are really hot among the crypto investors. Recently, Hdac and Filecoin collected respectively astonishing amounts of $258 and $275 million. The success of an ICO is influenced by many aspects. Investors should bear in mind following key elements discussed in this article.

At this point it is right to mention less successful stories like the Mycelium ICO. Its team members just disappeared after raising the money, and later it was reported they used the funds to pay for their own vacation. The lack of regulation might be one of the reasons it happened. Just days ago, $7 million were stolen as CoinDash’s ICO started. Right before the start of the token sale, their website was hacked and the ICO wallet address was changed to the hacker’s address.

This article will discuss the main keys to pay focus on when evaluating an ICO investment.

* Important warning before we start: ICOs are a high-risk way of fundraising. Never invest anything you can’t completely afford to lose. Keep in mind that due to a lack of regulation, you will have difficulty getting back your lost money in case of any failures.

1 – Team Composition

Find out everything you can about the team, especially the development team and the advisory board. Look up each team member for relevant experience. Google their names. Visit their LinkedIn profiles. Look for famous  names among the advisory board of the project. Find out if the team has any crypto experience and more importantly – in which projects, or ICOs, they were involved with and the impact they had. 

2 – Bitcointalk.org Thread

A good starting point is the project’s announcement (ANN) thread on BitcoinTalk.org, as Bitcointalk is the biggest forum for Bitcoin and crypto related issues. It is strongly recommended that you read the messages carefully. Investor’s concerns will be answered (or may be unanswered) in this thread. It is a bad sign when the developers avoid answering certain questions or aren’t collaborating. Sending devs a personal message to see how responsive they are is also a good idea.

Each message on Bitcointalk contains the rank and activity degree (number of past messages) of the sender. Be aware of newbies and low-ranking writers. Reputation has become very important and significant.

Be aware of experienced writers comments, and also look for negative messages, sometimes it could be a warning sign. Use Select [All] to see all comments in the thread and use CTRL + F (Windows) to search for red flag words like ‘scam’, ‘con’, ‘MLM’. See the relation between the search results and the total number of replies.

3 – Stage of the project and VC investments

Evaluate the stage of the project. Does it only have a whitepaper? A beta version? Is there a launched product with limited functionality? Prefer projects which have “some lines” of working code, however, many ICOs have proven they can become success stories without any code written.

VCs (venture capital) tend to invest and support projects from early stages. Look for this information usually on the main page of the project’s website. It’s likely to be considerable if a well-known crypto VC is involved, like Blockchain Capital or Fenbushi (belongs to Vitalik Buterin – founder of Ethereum).

4 – Community and Media

It is crucial to have a wide open supporting community like a public Slack for all investors. Openness is as crucial in gaining our trust as the Github code. Try to grasp the atmosphere within the community. Look at the size of the community and its activity.

Other sources like Reddit, Twitter or Facebook can be relevant when evaluating the project. Be aware of bounty posts. It is a common practice to launch a bounty thread to reward users for spreading positive information about the project to increase media coverage, or to help out with translations. These bounty threads can stimulate the hype around the project but they are not very objective. On the other hand some investors participate only for some tokens.

5 – What do they need the token for? Is the blockchain necessary?

ICOs mean the creation of a new dedicated token for the project. One of the most important questions each project needs to answer is what is the token for? Why isn’t Bitcoin or Ethereum enough to serve as the project’s token? Yes, many projects just make up a scammy story. Hey, an ICO can’t be an ICO without a dedicated token. The same question needs to be asked regarding the use of the blockchain technology behind the project.

6 – Unlimited / Hard cap

In the early days of crypto ICOs, the difference between open and hard cap didn’t have the same impact as today’s ICOs. An open cap allows investors to send unlimited funding to the project’s ICO wallet. The more coins are circulating, the less unique your tokens become for the trading afterwards – through less demand.

As ICOs become mainstream within crypto land, enormous amounts are collected. Take a look at Bancor, this project raised an astonishing $150 million in just three hours. This resulted in no percentage gain for the investors. Keep that in mind when participating in ICOs with no cap.

On the other hand, you don’t want to be the only one investing in the project. Exchange’s have much less interest in projects that raise very little, which makes it harder to sell these tokens after release.

7 – Token distribution – when and how

Greed can be defined by a high token distribution to the team members, let’s say, more than 50% of the tokens is suspicious. A good project will link its token distribution to the roadmap. Because each phase or milestone of the project requires a certain amount of funding.

Watch for the token distribution stage. Some projects just release their tokens hours after the ICO has ended. Some projects need to develop a beta version before sending out the tokens. If you look at the percentage gain of Etherium (one year between ICO and token distribution, around 500% gain), Augur (1+ years, 1500%) and Decent (8 month, 350%), sometimes this break creates a very positive hype around the project.

8 – Evaluating the Whitepaper

Most typical investors actually don’t read through the whitepaper, even though it contains all the necessary information about the upcoming project and the ICO.

Don’t hesitate to read it, or at least the majority of it. Note the strong and negative aspects and add in some of your own research. In the end, the whitepaper is the silver platter to potential investors. After reading it you should be able to answer a simple question – what kind of value does this project bring to our world? You’ll also learn what you’re investing in.

9 – Quality of the code – Meet Github

If you have a little bit of programming experience, you should be using it here. The quality of a developer can be understood by analyzing some of their code. As a non-techie, it is still possible to evaluate their quality by looking at the consistency of the code. Another good indicator, is the usage of proper commenting. Avoid messy developers. A piece of code reflects the attitude of a developer.

Next, the length of a function is another indicator. A function containing more than 50 lines of code should raise a red flag. Modularity is important and makes the code more readable and maintainable.

Crypto projects tend to have open-source code. This creates trust among the project’s community, encouraging devs from the community to make suggestions or improvements. An open-source project provides the opportunity to look at the commit logs. A commit is essentially developer slang for pushing a piece of code to the Github code repository.

 You can see each commit by clicking on the text saying “366 commits”. This allows you to investigate each change. The “Insights” tab gives you a more general summary of the developers activity. This tab shows a graph with the amount of commits daily. Beneath the graph, you can see the activity of each developer individually. This information is key for investigating the development team. It is even possible to see how popular the project is by looking at the amount of stars it receives.

Ask yourself why the project chose to run on the specific blockchain. Whether it’s on the Bitcoin’s blockchain, Ethereum’s (smart contract), Waves, and more. Recent months have shown the rising popularity among the ERC-20 Ethereum based smart-contract’s ICOs. These tokens can be stored easily on Ether’s based wallets (like MEW – Myetherwallet), sometimes they don’t require exchanges to be traded, and they usually have high liquidity.

10 – The Bottom Line

ICOs will become more and more ‘mainstream’ as a method for raising funds. There will be plenty of projects to choose from, hence it will become even harder to assess these projects.

It is key to investigate and read as much information as possible and write down all the important aspects, positive and negative, before making an investment decision.

 


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Michiel Mulders
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