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#How do you evaluate tokenomics?
arunkblog · 1 month
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Key Metrics to Analyze Before Investing in an IDO
Investing in Initial DEX Offerings (IDOs) can be an exciting opportunity for cryptocurrency enthusiasts and investors looking to capitalize on new projects. However, the rapid growth of the IDO market has also led to an increase in the number of offerings, making it essential for investors to conduct thorough analysis before committing their funds. Understanding key criteria can help you make informed decisions and identify promising projects. In this blog, we will explore the pivotal criteria to analyze before investing in an IDO.
1. Market Capitalization
Market capitalization is one of the first metrics to consider when assessing an IDO. It is calculated by multiplying the total supply of tokens by their price. A higher market cap generally indicates a more established project, while a lower market cap may suggest higher risk but also greater potential for growth.
Why It Matters:
Size and Stability: Projects with larger market caps tend to be more stable and less susceptible to price manipulation.
Growth Potential: Lower market cap projects may offer more significant upside potential, but they also come with increased risk.
2. Tokenomics
Tokenomics refers to the economic model governing the token, including its supply, distribution, and utility. Understanding the tokenomics of a project is essential for assessing its long-term viability.
Key Aspects to Analyze:
Total Supply: What is the maximum number of tokens that will ever be created? A limited supply can create scarcity and drive demand.
Distribution Model: How are tokens allocated among the team, advisors, investors, and the community? A fair distribution model can help prevent excessive price volatility.
Utility: What purpose does the token serve within the project’s ecosystem? Tokens with real utility are more likely to retain value and encourage adoption.
3. Team and Advisors
The success of an IDO often hinges on the expertise and experience of its founding team. Researching the backgrounds of team members and advisors can provide valuable insights into the project’s potential.
Considerations:
Experience: Do team members have a proven track record in the blockchain or tech industry? Experienced teams are better equipped to navigate challenges and execute their vision.
Diversity of Skills: A well-rounded team with diverse skills—such as technology, marketing, and finance—can enhance the project’s chances of success.
4. Community Engagement
A strong and active community can be a good indicator of a project’s potential success. Engaging with the project’s community through social media, forums, and official channels can provide insights into sentiment and support.
What to Look For:
Community Sentiment: Gauge the overall sentiment within the community. Are members enthusiastic and supportive, or are there concerns and complaints?
Transparency: Is the project team responsive to community inquiries? Transparency and open communication can build trust and confidence among investors.
5. Roadmap and Milestones
A well-defined roadmap outlines the project’s goals, milestones, and timelines for development. Analyzing the roadmap can help you assess the project’s commitment to delivering on its promises.
Key Aspects to Evaluate:
Realistic Timelines: Are the timelines for milestones realistic and attainable? Overly ambitious timelines may indicate a lack of planning or understanding of the challenges ahead.
Progress Tracking: Does the project provide regular updates on its progress? Consistent communication about milestones can enhance investor confidence.
6. Market Trends and Competition
Understanding the broader market trends and the competitive landscape is crucial for assessing an IDO’s potential. Analyze the sector in which the project operates and identify its competitors.
Considerations:
Market Demand: Does the project address a growing market need or trend? Projects that align with market demand are more likely to succeed.
Competitive Advantage: What differentiates the project from its competitors? A unique selling proposition can enhance the project’s chances of success.
7. Regulatory Compliance
As the cryptocurrency landscape evolves, regulatory scrutiny is increasing. Assessing a project’s approach to compliance can provide insights into its long-term viability.
Why It Matters:
Legal Framework: Does the project have a clear legal framework in place? Projects that prioritize compliance with regulations are better positioned for success.
Risk Mitigation: Understanding how the project addresses regulatory challenges can help mitigate risks associated with potential legal issues.
Conclusion
Investing in IDOs can offer exciting opportunities, but it requires careful analysis and due diligence. By assessing key criteria such as market capitalization, tokenomics, team expertise, community engagement, roadmap, market trends, and regulatory compliance, investors can make informed decisions and identify promising projects. As the IDO market continues to evolve, staying vigilant and conducting thorough research will be essential for navigating this dynamic space and maximizing investment potential.For more Crypto IDO information visit Cryptolenz.
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crypto-marketing · 1 month
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How to Conduct Effective Cryptocurrency Research
In the fast-paced world of cryptocurrency, making informed investment decisions is crucial for success. With thousands of cryptocurrencies and new projects launching daily, conducting thorough research is essential to understand the potential risks and rewards of each investment. This guide will walk you through the process of conducting effective cryptocurrency research, highlighting key areas to focus on and resources to use.
Why Cryptocurrency Research Matters
Researching cryptocurrencies before investing is vital for several reasons:
Risk Mitigation: The cryptocurrency market is known for its volatility and unpredictability. Thorough research helps you identify potential risks and avoid scams.
Informed Decision-Making: Understanding the fundamentals of a cryptocurrency project enables you to make educated investment choices based on data rather than speculation.
Market Awareness: Staying informed about market trends and developments allows you to adapt your investment strategy accordingly.
Key Areas to Focus on When Conducting Research
Project Fundamentals
Whitepaper Analysis: The whitepaper outlines the project's goals, technology, and tokenomics. Key elements to assess include:
Problem Statement: Does the project address a real-world problem?
Technical Details: Is the technology sound and innovative?
Tokenomics: How is the token structured? What is its utility within the ecosystem?
Team and Advisors: Research the team behind the project.
Experience and Background: Do the founders and team members have relevant experience in blockchain or tech industries?
Advisors: Are there reputable advisors involved? Their expertise can lend credibility to the project.
Market Position and Competition
Market Demand: Evaluate the demand for the project’s solution.
Target Audience: Who will benefit from the project, and how large is the potential user base?
Use Cases: Are there clear and practical use cases for the technology?
Competitive Analysis: Identify competitors in the space.
Similar Projects: What other projects are addressing the same problem? How does this project differentiate itself?
Market Share: What is the current market share of the project compared to its competitors?
Community Engagement
Social Media and Forums: Engage with the community to gauge sentiment.
Social Media Presence: Follow the project on platforms like Twitter, Telegram, and Reddit. An active and engaged community can indicate strong support.
Community Feedback: Read conversations and feedback from users. Positive sentiment and constructive criticism can provide insights into the project’s credibility.
Developer Activity: Monitor the project’s development activity.
GitHub Repositories: Check the project’s GitHub for updates, commits, and overall activity. Regular updates can indicate an active and committed development team.
Utilizing Research Tools and Resources
Cryptocurrency Data Aggregators
Platforms like CoinMarketCap and CoinGecko provide comprehensive data on cryptocurrencies.
Market Data: Track price movements, trading volumes, and market capitalization.
Historical Data: Analyze historical performance to identify trends.
News Outlets and Research Platforms
Crypto News Websites: Follow sites like CoinDesk and The Block for the latest news and analysis.
Research Reports: Use platforms like Messari for in-depth research reports and insights on specific projects.
Community Platforms
Engage with cryptocurrency communities on platforms like Reddit and Discord.
Subreddits: Participate in discussions on relevant subreddits to gain insights and share knowledge.
Discord Channels: Join project-specific Discord servers for real-time updates and community interaction.
Conclusion
Conducting thorough cryptocurrency research is essential for making informed investment decisions in a highly unpredictable market. By focusing on project fundamentals, market position, community engagement, and utilizing the right tools and resources, you can enhance your understanding of potential investments. As the cryptocurrency landscape continues to evolve, staying informed and active in your research will empower you to navigate this exciting and dynamic space with confidence. For more Cryptocurrency information visit Cryptolenz.
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kezexofficial · 4 months
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How to Find New Cryptocurrencies for Investment
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The cryptocurrency market is continuously changing, and new tokens emerge regularly. Identifying promising new cryptocurrencies can be a difficult but lucrative task for investors seeking to diversify their portfolios and perhaps profit from early-stage growth. This article will walk you through the process of discovering and analyzing new cryptotokens with the potential for significant returns. 
As the future of digital tokens unfolds, experienced investors can benefit from staying ahead of the curve and picking the finest cryptocurrency for 2024. Whether you want to invest in decentralized cryptotoken projects or investigate the use of blockchain in cryptotoken technology, this comprehensive guide will help you navigate the volatile cryptocurrency landscape and find the best cryptotoken to invest in today, including the best cheap crypto to buy right now.
Key Takeaways
The cryptocurrency market is continuously changing, and new tokens emerge regularly.
Identifying promising new cryptocurrencies can be a difficult yet profitable undertaking for investors.
A thorough investigation into the project team and the token's underlying economics (tokenomics) is critical.
Monitoring market trends and assessing the demand for new cryptocurrencies is critical for spotting investment opportunities.
Diversifying your cryptocurrency portfolio with new tokens can be an effective strategy for capitalizing on early-stage development, but it must be done in a balanced and prudent manner. 
Identifying Promising New Cryptotoken Projects
When looking for new cryptocurrency projects with investment potential, it's critical to do extensive research on the project team and the token's underlying economics (tokenomics). Look for experienced and trustworthy developers, consultants, and leaders with a track record of successful new-token launches and decentralized cryptotoken initiatives.
Researching the Team and Tokenomics
Examine the token's supply, distribution, and tokenomics to determine the project's long-term viability and potential for growth. Pay special attention to the finest cryptotoken to invest in right now, as well as how the token's economics are structured to generate value and acceptance over time.
Evaluating the Project's Utility and Use Case
Assess the new cryptotoken project's real-world applicability and use cases. Look for the best crypto for 2024 projects with a clear and compelling value proposition that addresses real market needs. Examine how the token's blockchain technology and features will help the project's long-term success and the future of digital tokens.
Analyzing the Market Trends and New Cryptotoken Demand
As the digital asset ecosystem evolves, keeping up with the latest market trends and assessing the demand for new cryptocurrencies is critical for spotting attractive investment opportunities. Investors can acquire significant insights into the crypto market by staying up to date on dynamic movements.
Monitoring Social Media and Community Engagement
Monitoring social media channels and online forums is an excellent technique to evaluate interest and excitement for new cryptotoken ventures. Keep an eye on the degree of interaction, conversation, and sentiment in these communities, as they can provide vital information about the viability and growth potential of a newly listed cryptocurrency. Look for significant community support, active involvement, and favorable mood, since they can indicate a decentralized cryptotoken that is resonating with the larger crypto ecosystem.
Tracking Listing on Major Exchanges
Another crucial element when assessing market trends and demand for new digital tokens is to keep track of their listings on major cryptocurrency exchanges. When a top cryptocurrency for 2024 is listed on a major exchange, it can indicate improved visibility, liquidity, and accessibility for investors. Keep a watch on exchanges that are adding new blockchain-based cryptotoken projects, since this can be a good indicator of market interest and the project's potential for growth and adoption. Tracking these best cryptotokens to invest in today allows you to remain ahead of the curve and uncover the best inexpensive crypto to buy now and the best token to invest in today.
Diversifying Your Crypto Portfolio with New Tokens
As the cryptocurrency market evolves, investing in new cryptotokens can be a sensible approach to diversify your portfolio while also potentially capitalizing on early-stage growth prospects. However, to manage the inherent risks of new and speculative digital assets, this strategy must be approached with a balanced and careful perspective.
Understanding Risk Management Strategies
When adding additional cryptocurrencies to your portfolio, you must use appropriate risk management measures to preserve your investments. This could entail diversifying your holdings over numerous new cryptotokens, dedicating only a small amount of your portfolio to speculative new initiatives, and continuously monitoring and changing your positions as market conditions shift.
By carefully assessing the future of digital token projects, their underlying technology, and their potential for long-term growth, you may find promising new listed tokens with the potential to become the best crypto for 2024 and beyond. Consider the blockchain in a cryptotoken context to better grasp the technical basis of these new decentralized cryptotokens.
Conclusion
Investing in new cryptotokens and newly listed tokens can be an exciting and possibly profitable strategy for investors looking to diversify their portfolios and capitalize on the future of digital tokens. By thoroughly researching promising new cryptotoken projects, understanding market trends and demand, and employing smart risk management measures, you may improve your chances of discovering and investing in the best cryptocurrencies in 2024.
Whether you're looking for decentralized cryptotokens, blockchain-based tokens, or just the best cryptotokens to invest in now, it's critical to do your research and never spend more than you can afford to lose. By diversifying your crypto portfolio with a mix of established and new cheap cryptocurrencies to purchase now, you can position yourself to profit from the greatest token to invest in right now.
Remember that the new cryptocurrency market is always evolving, so remaining knowledgeable and adaptive is essential for navigating the ever-changing landscape. With the correct research, strategy, and risk management technique, you may maximize the benefits of investing in new cryptocurrencies while also contributing to the continued growth and innovation in the world of digital assets.
FAQ
What are the key factors to consider when researching new cryptocurrency projects?
When analyzing new cryptotoken initiatives, consider the team's experience and track record, the project's utility and use case, the token's economics (such as supply, distribution, and tokenomics), and the broader market demand and community participation surrounding the project.
How can I stay up-to-date on the latest developments in the cryptocurrency market?
Closely monitoring social media, online forums, and industry news sources may keep you up to date on new token listings, market trends, and the amount of interest and participation in upcoming cryptocurrency initiatives. Furthermore, monitoring the listing of new tokens on prominent exchanges can provide information about the growth and use of these digital assets.
Why is it important to diversify my crypto portfolio with new tokens?
Diversifying your cryptocurrency portfolio by investing in a mix of established and new projects can assist in reducing risk and boost your chances of capitalizing on early-stage development prospects. However, it is critical to employ solid risk management measures, such as devoting only a small amount of your portfolio to speculative new tokens and continuously monitoring and modifying your positions as market conditions shift.
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nick-williams · 4 months
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Tips and Tricks for Successful DAO Development Services Integration: Building the Future, Together
Introduction
The landscape of Decentralized Autonomous Organizations (DAOs) offers a glimpse into a future powered by community governance and collective action. DAO development services are crucial players in this space, providing the technological infrastructure and expertise to bring these innovative organizations to life. But integrating these services seamlessly into your DAO project requires careful planning and strategic execution. Here, we'll delve into the key tips and tricks to ensure a successful integration and empower your DAO to thrive.
Clearly Defined Vision: The Roadmap to Success
Before embarking on the integration journey, it's vital to have a crystal-clear vision for your DAO. Here are some key questions to consider:
Purpose and Mission: What problem are you trying to solve with a DAO? What is your organization's core purpose and mission statement?
Target Audience: Who are you aiming to attract to your DAO? Defining your target demographic will inform your governance structure and token design.
Governance Model: How will decision-making take place within your DAO? Will you utilize a token-weighted voting system or a more complex hybrid model?
Tokenomics: What role will tokens play in your DAO's ecosystem? Will they serve as voting rights, represent ownership, or act as a utility token within the platform?
By establishing a well-defined roadmap with clear goals and a comprehensive vision, you'll be well-equipped to select the most suitable DAO development services and ensure smooth integration.
Choosing the Right Partner: Expertise Meets Collaboration
Selecting the ideal DAO development service provider plays a pivotal role in your success. Here are some essential aspects to evaluate:
Technical Expertise: Assess their experience with blockchain development services and their proficiency in building secure and scalable smart contracts tailored to your DAO's specific needs.
Development Process: Understand their development methodology (e.g., Agile) and communication style. Look for companies that promote open collaboration and prioritize your feedback throughout the process.
Deployment and Maintenance: Inquire about their post-deployment support services. Maintaining the DAO's infrastructure and smart contracts requires ongoing attention.
Industry Experience: Do they have a proven track record of working with DAOs in your industry or with similar governance models? This can be particularly valuable in terms of understanding regulatory considerations.
Security Audits: Security is paramount. Choose a company that offers security audits to identify and address potential vulnerabilities in your DAO's smart contracts.
Key Services to Consider
DAO development services offer a range of solutions to streamline your organization's formation and operation. Here are some core services to consider:
Smart Contract Development: Smart contracts are the foundation of any DAO. They automate governance processes, manage treasury funds, and enforce the DAO's rules.
dApp (Decentralized Application) Development: A user-friendly dApp serves as the interface for your DAO members to interact with the organization, propose changes, and participate in voting.
Tokenomics Design: Expert help in crafting a robust token economic model is crucial. This ensures fair incentive structures, distribution of voting rights, and minimizes potential risks like token inflation.
Community Management: Building and nurturing a thriving community is essential for success. Look for services that can assist with community outreach, engagement strategies, and online forum management.
Integration Services: Your DAO might need to connect with external DeFi protocols or other blockchain applications. Integration services can seamlessly connect these external elements to your DAO's infrastructure.
By strategically integrating these services, you can empower your DAO with the necessary tools to operate efficiently and transparently.
Beyond Technology: Building a Culture of Collaboration
While technology is a cornerstone, fostering a collaborative culture is equally important:
Open Communication: Transparency and open communication are vital elements in building trust within your DAO community. Encourage active participation and regular updates.
Educational Resources: Equip your community members with the knowledge they need to effectively navigate the DAO landscape. Provide educational resources, FAQs, and tutorials to empower informed participation.
Dispute Resolution Mechanisms: Establish clear and fair dispute resolution mechanisms to address any conflicts within the DAO community.
The Future is Decentralized: A Journey, Not a Destination
The integration of DAO development services is an ongoing journey, not a one-time event. Here are some additional tips to ensure long-term success:
Adaptability: The DAO landscape is constantly evolving. Embrace a growth mindset and encourage regular reviews of your DAO's structure and governance model to adapt to changing needs.
Security Audits: Conduct regular security audits to identify and address any potential vulnerabilities in your smart contracts.
Community Engagement: Continuously engage with your community, gather feedback, and refine your DAO based on their input.
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christopherisler · 8 months
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How to Spot the Next Big Crypto Presale Before it Explodes
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Crypto presales allow investors to buy new cryptocurrency tokens at discounted prices before they are listed on exchanges. Getting into the right crypto presale at the ground floor can lead to massive returns once the token takes off. But how do you spot the best crypto presale opportunities before they explode in popularity and price? Here are some tips to identify the next big thing in crypto presales.
The key with crypto presales is to find promising projects before the hype kicks in. You want to get in early while token prices are low. This requires researching teams, whitepapers, and communities to gauge the potential of new crypto projects. Pay attention to what thought leaders and crypto insiders are talking about to find overlooked gems before the crowd piles in.
Evaluating the Project Team and Vision
A legitimate and capable team is essential for executing on a crypto project's vision. Research the founders' backgrounds on LinkedIn and crypto forums. Look for technical capabilities, relevant experience, and past entrepreneurial success. A strong advisory board also validates the project. Beware of teams that lack online information or seem obscure.
The project's vision and use case should also have real-world utility. A vague or far-fetched concept is unlikely to gain traction long-term. But a compelling solution to a defined problem has mainstream potential. The whitepaper should clearly detail this vision and roadmap.
Vetting Tokenomics and Distribution
The tokenomics - the token supply structure and distribution - is key for optimizing growth incentives. Look for a fixed supply cap and distribution split that encourages holding by investors and community participation. Make sure the founding team's allocation is not too high. Token burns, vesting schedules, and governance mechanisms are also positive signs.
Evaluating Early Community Interest
Before the hype kicks in, you can gauge genuine interest by the quality of early community engagement. Visit the project's Telegram, Discord, Twitter and other social channels. Look for focused, technical discussions rather than hype. Slow organic growth in community size and engagement is a good early indicator.
Following Notable Crypto Figures
Keep an eye out for crypt industry insiders discussing new projects positively. Founders promoting their own projects on Twitter can be biased, but independent voices can spotlight promising presales before most people know about them. Follow crypto thought leaders, investors, and influencers to find hidden gem callouts.
The most lucrative crypto presales tend to be the ones you get into early, when token prices are a fraction of later valuations. Do your research, gauge real community interest, and jump on opportunities highlighted by crypto insiders to get in before the herd. Check out sites like Upcoming Crypto Presales to discover new token launches on the horizon. With some savvy research, you can unearth the next big crypto presale before lift-off.
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hustlermentor · 1 year
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How to read crypto White paper like a pro
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Reading a crypto white paper is a skill that can help you understand the purpose, value, and potential of a cryptocurrency project. A white paper is a document that explains the problem that the project aims to solve, the solution it proposes, the technical details of how it works, and the roadmap for its development. A white paper also provides information about the team behind the project, the tokenomics of the coin or token, and the unique selling proposition of the product or service.
To read a crypto white paper, you need to follow some steps:
First, you need to find the white paper of the project you are interested in. You can usually find it on the official website of the project, or on platforms like CoinMarketCap that list and review various crypto projects.
Second, you need to skim through the white paper and get an overview of its structure, length, and style. You can look at the table of contents, the introduction, and the conclusion to get a sense of what the white paper covers and what its main points are.
Third, you need to read the white paper in detail and focus on the sections that are most relevant to your interests and goals. For example, if you are looking for a technical explanation of how the project works, you can read the section on the blockchain architecture behind it. If you are looking for a business case for investing in the project, you can read the section on its utility and use case.
Fourth, you need to analyze and evaluate the white paper critically. You can ask yourself some questions, such as:
Is the problem that the project addresses real and significant?
Is the solution that the project offers feasible and innovative?
Is the technical design of the project sound and secure?
Is the token distribution and utility fair and transparent?
Is the roadmap realistic and achievable?
Is the team qualified and experienced?
Is the value proposition clear and compelling?
Fifth, you need to compare and contrast the white paper with other sources of information, such as:
Other white papers of similar or competing projects
News articles and reports on the project or its industry
Reviews and ratings from experts and users
Social media posts and comments from the community
By doing this, you can get a broader perspective on the project and its strengths and weaknesses.
Reading a crypto white paper will help you make informed decisions about whether to invest in or support a cryptocurrency project. It also helps you learn more about the technology and innovation behind crypto. However, remember that a white paper is not a guarantee of success or quality. You should always research and do due diligence before investing in any crypto project.
To learn more.. take a free cryptocurrency course from Hustler University
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bitcofun · 2 years
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Key Takeaways Tokenomics is a field that evaluates normal components discovered in economics, such as supply, need, and energy, and uses it to cryptocurrencies. Investors can quickly overstate supply and need and undervalue how stories and memes might likewise affect a token's rate. Phemex, among the leading cryptocurrency exchanges in the market, does substantial tokenomics analysis prior to authorizing tokens for listing. When purchasing crypto, it's crucial to comprehend tokenomics to make educated choices and prevent getting rekt Tokenomics originates from integrating the words token and economics and is a field that studies the aspects that drive need for tokens. One needs to think about aspects such as supply and need, reward systems, worth accrual, and financier habits when evaluating a job's tokenomics. An Analysis of Supply and Demand The characteristics in between supply and need are the very first things to evaluate when a task problems a brand-new token. An excess of supply can adversely impact a property's worth. We can discover examples in fiat currencies that have actually struggled with run-away inflation and extreme printing (e.g., the Zimbabwean dollar or the Venezuelan Bolivar). The very same takes place in crypto. You would not feel fantastic if the running supply of the token you've simply purchased is just 30%. That suggests the supply has yet to increase by another 70%, possibly watering down the cost and declining. In this context, it's essential to understand what Fully Diluted Valuation (FDV) is. FDV is the rate of a token increased by the overall quantity that will ever remain in presence, consisting of tokens not yet in blood circulation. The metric is utilized to determine if the token is miscalculated or underestimated. If a job has a high FDV throughout its early days, you wish to ask yourself who the significant token holders are, at what cost they purchased their bags, and to whom they will offer them. An uncapped supply is not appropriate for the worth of a token either. Tokens like Bitcoin are tough capped, suggesting that once the procedure has actually provided all its tokens, the worth will continue increasing as long as there is need. To keep a balance in between supply and need, some tokens include fee-burning systems that can trigger the token to end up being deflationary depending upon how extensively the network is utilized. Ethereum, after the execution of EIP 1559, is an example of such a system. Other tokens consist of buyback and burn systems to created to control supply and need. Such holds true for the BNB token. Another crucial component to examine is supply relative to market capitalization. If a token has a worth of $0.002 and its market cap is around $600,000, have you ever believed what the marketplace cap would be if the rate increased to $0.50? Misperceiving a token's rate relative to its market cap can result in system predisposition. This term explains the belief that holding more systems of a less important coin will provide much better financial investment outcomes than holding a portion of an extremely valued coin. This is, in part, why meme coins have actually been so popular in current times. Think about holding 10,000 canine coins vs. ⅕ of a BTC-- one sounds much better than the other, however just if you do not take notice of the costs. On the other side, we have need. Need is what drives individuals to purchase a token and just how much they spend for it. Need is usually driven by the token energy, development in worth, and stories. Tokens like Ethereum or BNB obtain their energy from being utilized as a currency to perform software application on these networks. Whether it's to authorize a listing of an NFT collection or eliminate your tokens from a liquidity swimming pool, you'll require the native cryptocurrency of these blockchains to spend for so-called gas (execution) charges. Another usage case that increases token energy is when these possessions
are utilized as a implies of exchange for product or services in the real life, like a dining establishment accepting crypto in exchange for menu products. Regarding worth accrual, staking is a characteristic of lots of tokens that fuels need and assists increase the cost. When users stake their crypto trying to find benefits, lots of distributing tokens get locked, reducing sell pressure. Protocols intend to discover methods to incentivize long-lasting holding. We see an example in veTokens (ve= vote escrow), a system that offers ballot power to long-lasting holders. DeFi procedures frequently develop votes to choose which swimming pools get the most benefits in an effort to bring in liquidity. Your vote brings more weight if you hold a big quantity of a procedure's governance tokens. Some procedures even go as far to punish unstaking by eliminating users' veTokens to trigger less sell pressure. Lastly, tokens can increase in worth thanks to having strong stories or memes. Consider the pet coin crazes in October2021 Numerous NFT tasks came to life as pure speculative memes with energy from their use as profile pictures. With time, tasks like JPEG 'd are creating brand-new methods to mix the world of NFTs with DeFi broadening their energy. While comprehending tokenomics is essential to comprehending financial investment choices in crypto, it's not the necessary component. Stories can likewise produce enjoyment or lethargy towards a token, affecting its cost Phemex, among the leading cryptocurrency exchanges in the market, thoroughly examines each token's financial design prior to noting on the platform. The exchange uses high staking benefits from the unique functions of a list of tasks that have actually gone through deep tokenomics analysis. You can discover more about these tasks by going to the Phemex Launchpool website The info on or accessed through this site is gotten from independent sources our company believe to be precise and trustworthy, however Decentral Media, Inc. makes no representation or guarantee regarding the timeliness, efficiency, or precision of any info on or accessed through this site. Decentral Media, Inc. is not a financial investment consultant. We do not offer tailored financial investment guidance or other monetary guidance. The details on this site undergoes alter without notification. Some or all of the details on this site might end up being out-of-date, or it might be or end up being insufficient or unreliable. We may, however are not obliged to, upgrade any out-of-date, insufficient, or unreliable details. You must never ever make a financial investment choice on an ICO, IEO, or other financial investment based upon the details on this site, and you must never ever analyze or otherwise count on any of the details on this site as financial investment guidance. We highly suggest that you speak with a certified financial investment consultant or other competent monetary expert if you are looking for financial investment suggestions on an ICO, IEO, or other financial investment. We do decline settlement in any type for evaluating or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or products. See complete conditions A Dive Into Fan Tokens Fan tokens are energy tokens that sports clubs concern and offer to even more incorporate fans into the club. These tokens, which work on the blockchain, resemble other commitment ... An Introduction To Staking in Crypto No matter what level of experience you have in crypto, there's a possibility you've become aware of the principle of staking. Comparable to a cost savings account or a bank certificate of ... An Overview of On-chain Metrics for Investing in Crypto On-chain analysis (likewise referred to as blockchain analysis) is an emerging field that gets details about public blockchain activity. Leveraging On-chain Data For anybody not familiar with the innovation, blockchains are public ...
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bydfi · 2 years
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We are seeing one of the biggest opportunities right now.
Since the dawn of trading, chaos has always created opportunity. You don't make money in a market where things are nice and stable, and there's no volatility. Nor by buying when things are at their peak of going well. ​ The more volatility, the more the opportunity. You can take advantage of bigger price swings. Losses come quick, but so do gains. The tide turns very quickly in this market. This is what has attracted risk taking traders to crypto. It's a high risk high reward market, like not too many others. ​ But this isn't like a casino game where the house always wins and the odds are never in your favor. You can stack the odds in your favor, by using more due diligence, putting effort in your research, and having a strong game plan. This is also a market that favors those who are patient. Thanks to a little loophole in the tokenomics of this market thanks to the Bitcoin halving. Is there still future growth for crypto? Have the fundamentals of Bitcoin and major coins taken a u-turn? Has anything changed for the worse about the technology of Bitcoin and major coins? Has adoption gone down in this bear market compared to the last bear market? Are there fewer use cases for crypto? Are institutional investors and large corporations not using crypto anymore? ​ If you answered mostly no to all the above, you would be mostly correct. There is no sign of future growth stopping. And as long as there is future growth, there is opportunity. ​ ...But remember to evaluate the risks, and how much risk you can tolerate. This is the high stakes table. submitted by /u/fan_of_hakiksexydays [link] [comments] http://dlvr.it/ScWPJz
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insperonjournal · 2 years
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Dynamic Way How Crypto and CBDCs are Serving Communities
This news about Fintech is now making a lot of people wonder about a lot of how’s. whenever we search for Fintech news in India, crypto news follows. Nearly billions of people around the world are not able to access the traditional financial system. New upgraded technologies and adoption give an original opportunity that helps to democratize this system with the help of markets opened up for the masses.
With the help of cryptocurrencies, many countries including developing countries have the potential to provide social and economic growth all over the world. Cryptocurrency has no third-party involvement with them. With this positive spectrum, it can be able to offer more transparency and transactional security better. Also, the analyst calculated that the global cryptocurrency market will have a value of more than 3 times by the year 2030, which would be an evaluation of nearly about 5 billion dollar amount.
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Now, what do we mean by CBDCs? CBDC stands for Central Bank Digital Currency. Although CBDC and cryptocurrency sound similar. In simple terms, CBDC is a digital fiat. These fiat transactions are all digital in nature. According to Fintech news sources, Kent Barton, who is a tokenomics lead at ShapeShiftDAO spoke about it as “it is quite difficult to see how these differ mostly than the money we have in today’s time”.
Both of them are digital currencies. But it differs in some cases. If the CBDCs take distributed ledger and blockchain aspects at the level of the ledger, they will not be able to provide utility in the decentralized Defi or web3 arena.
According to the International Monetary Fund (IMF), centralized technology for example like CBDCs can help in reduce expenses, make sure to use the seamless flow of money, enhance financial inclusion, and also makes sure to provide safe access to monetary uses through every digital channel. There are a lot of ways how crypto and CBDC are helping the community in long run.
It gives great returns for everyday people
Tristan Roozendal who is a renowned blockchain entrepreneur and the chief executive officer of the digital asset platform named Centralex says that he is certain that the everyday person can be able to get many returns from the crypto market offers available. But for all those who still gain confidence in trading for cryptos, for them, the implementation of the central bank could also be a great help.
There is no backing from the fact that those people who are not well informed about crypts can easily fall prey to scams. However, with good knowledge, and research about the investment opportunities and the business normal people can also be able to safely invest in cryptos through trusted exchanges and can avail of great returns.
Crypto gives you the control back
Toby Gilbert who is the CEO and the co-founder of a chain computation platform named Coinweb has said there are many countries around Europe where the authorities have vilified the use of it, just like Sweden where it is likely banned, and the UK if you have amount more than 1000 euros you have to justify from where it is or else it is a matter of police. The lesser developed countries where the societies are relied upon cash transactions for the most part to operate have managed to transition quite faster than the rest. However, places like china and southeast Asia are mostly in the use of near-instant mobile banks to bank transactions using platforms such as e-wallets scanning QR codes.
Speeds up economic activities
Lissele Pratt who is a co-founder at Capitalixe states that cryptocurrencies and central bank digital currencies (CBDC) have great potential to help the community in many ways. By the ways they help to transact without the need of a bank, minimizing the risk of inflation and providing international trade they can level up the economic activities resulting in reduced poverty levels worldwide.
It is a market for every individual
Marcello Mari, the CEO at SingularityDAO states further that while every other person believes that here the rich get richer, everyday people suffer and struggle to even start. This inception of crypto has formulated new opportunities to change the mindset.
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elmcoin · 2 years
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coinformula · 3 years
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CoinSale: Start Investing & Earn Money
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Introduction
Cryptocurrency is a kind of digital asset, which uses cryptography to secure from theft and fraud. Some people call it a virtual currency or alternative currency while others refer to it as a “crypto” asset and an emerging asset class.
There is no doubt that the crypto market will continue to grow and attract new investors. The crypto market is relatively young in comparison to the traditional financial market and cannot reach the same size. However, we can see that tokens have a lot of potentials and they will continue to attract investors who are eager to gain higher profits.
Seeking the opportunity is key, but not all of us can find it. We are looking for, evaluating and providing you with the first investment opportunities in blockchain and cryptocurrency projects.It's time to put your money where your ideas are.
 About Coinsale
In the cryptocurrency world, CoinSale is a great partner for projects who want to sell tokens, increase liquidity, and reach new investors. In order to invest in projects at IDO events that will be held on CoinSale's platform, you can stake CoinSale's tokens. Because of this platform, which lets you invest first, you will be one of the first people to invest in projects.
To be able to participate in all IDO sales on CoinSale, users (investors) must stake the token of this platform, which is called CoinSale. When the time and conditions are set, all they have to do is put their money down. Then you will be able to take part in all IDO sales without having any problems.
CoinSale is a decentralized IDO platform that provides an advantage in all parts by offering a fair and equal opportunity to users. CoinSale will be one of the most successful steps you have taken regarding investments.
the project is quite important and well planned. A large number of developers, a clear vision and detailed roadmap. The value of the token is given by multiple services that are provided through this platform. The main task of the platform is to become a decentralized exchange which will consist of cryptocurrency projects. The token of the platform is an obligatory instrument for practically all transactions within it.
Invest in the projects you believe in and increase the value of your coins !
 CoinSale IDO Application
Project owners must fill out an application form on the Coinsale website in order to have a project listed as an IDO. The Coinsale team will decide whether or not a project is eligible after reviewing the project's content, team information, plans, and budget. In order to maintain operations, only project managers who have passed the preliminary application process are interviewed. Interviews with project managers who had passed the preliminary application were conducted by the Coinsale team.
 Tokenomics
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( $CSF ) TOKEN PRICE
The private sale price for 1 CSF is: USD 0.15
IDO price: 1 CSF = USD 0.3
Listing price: 1 CSF = USD 0.35
On the 8th of January 2021, PCS will be listed.
The initial market cap is expected to be at USD 320,000.
**Total Supply: 5,000,000 CSF**
**Launch Supply: 912,500 CSF**
 VESTING:
Every month, you'll get a ten percent increase in your rewards for the next two months.
The team has a one-year contract.
The first three months of development are a lock, with a 10% partnership and advisory fee every month after that.
In-store promotion: 5% at TGE, 10% thereafter
10% at the TGE and 15% every month thereafter for private sales
25 percent off at TGE, 25 percent off each and every month after that
 Conclusion
The CoinSale platform can be helpful not only for potential investors but also for the projects themselves. The developers will be able to attract a whole new audience of potential investors, while guaranteeing that they will never have a problem of lack of liquidity. They will be additionally supported by the platform’s advertisement on their website and in their system. It is worth pointing out just how convenient and user-friendly this service is for its end users, regardless of whether they are investors or projects.
For More Information Visit:
Website: https://www.coinsale.finance/
White Paper: https://coinsale.finance/CoinsaleWhitepaper.pdf
Telegram: https://t.me/coinsalefinance
Twitter: https://twitter.com/coinsalefinance
 Writer:
Bitcointalk Username : apabaka
BitcoinTalk Profile URL: https://bitcointalk.org/index.php?action=profile;u=3373901
BSC Address : 0x2c1A49CC125892368319C153eBA052Ab3451c253
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khendari · 3 years
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Koinomo
Koinomo – is a very profitable investment project for everyone
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The cryptocurrency industry is at this point in its early stages, so it offers a phenomenal opportunity to contribute before standard funding occurs, working on the possibility of critical returns in the short term. One guiding way of approaching building the value of your Bitcoin property is through trading, which is something that takes time, effort, and a lot of investing. Trading is not a simple task, especially in cryptocurrencies. You need to collect a large amount of small information and separate it to be successful. Trading requires supervision, wandering, evaluation, cross-checking, and so on
Founded since 2017 (Koinomo), we have had a real and long-lasting inclusion in the energetic but moderate cryptocurrency market, remarkably making some credible highs and some lows. We guarantee that your theory or your association makes progress in a broader perspective. Improve your work and base.
If you are an expert with PC, many of you really need to create your KOINOMO account in less than 10 minutes or potentially fund it. We've improved a few ways to get started and if you need further support from a certified individual, simply click on the visit affix and ask an active individual to help you get everything you might need and explain anything needed if needed.
About Koinomo, it's a resource fate phase that boss uses with smart settings powered by blockchain technology. The KOINOMO token offers the answer to a risky monetary game plan that is settled under the current money structure. In addition, tokens offer an avenue to re-establish a fair payment flow in the economy.
The KOINOMO token offers answers to questionable monetary techniques carried out under the current global cash system. Furthermore, the symbolic provides an avenue for changing the equitable distribution of wages in the economy. KOINOMO will focus on the growing collection of KMO tokens. The extended KMO fundraiser will offer asset valuation support which can also help boost and lead to greater capital inflows into the KOINOMO economy.
Goal We aim to have the best and most capable background so that we have the best view in all cases. Our partnerships and experience bring the standard of help that no one else does to you and your assets before being pooled in money-related business and then in the world.
In your few months below, you will realize how we don't function like the banking sector and other contributors basically through your understanding of the work.
What are the aggregates of basic theory? The minimum effort on the FONDI platform is 1 BNB, however if you visit the KOINOMO Broker office, the basic theory total will be much higher. Note that it is not important to come and visit us if you are contributing or have contributed. Due to the extended interest of the line of action, larger customers are simply treated.
What is the minimum investment amount? We don't give credit in the same relative way as with contributions that you can gain or lose. With our previous returns (which are not guarantees), we averaged around over 10% consistently on your KMO (Koinomo) theoretical assets. Likewise, you can check Fiat returns in our monthly report on the Investor Relations page.
What is your average return? Everything hasn't really been fixed in KMO, which suggests that KOINOMO will likely train your KMO resources. This may require a request, why do you regularly think about KMO based execution? Well, since 2018, smart settings have become the most useful asset on earth. Beat all kinds of things. So it's just with whatever it deems right to add to that enhancement as we'll probably come up with a way to guarantee your size.
Tokenomics Tokenomics: Koinomo Token Ticker: KMO Jaringan: Binance Smart Chain Total Passage: 10,000,000 KMO
Roadmap
PERSONAL SALE NOW LIVE
Ketat oleh First Come First Serve (FCFS)
Conclusion
The KOINOMO token offers a solution to the questionable economic policies implemented under the current global monetary system. More than this, tokens provide a pathway to re-establish a fair distribution of cash flows in the economy.
Read More Here
Website:    https://koinomo.finance/
Telegram:   https://t.me/koinomo
Twitter:   https://twitter.com/koinomotoken
Khendari https://bitcointalk.org/index.php?action=profile;u=3198782
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sundanzer · 5 years
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Open Letter to the Cryptopsychedelic Community from the Meta Villa founder
Despite not being at any official ‘cryptopsychedelic’ events, I count as friends many within this community.  Many have interpreted this as active or tacit support to one or both sides, or the convergence of such. This is not unreasonable. Like many, I have been curious both about cryptocurrencies and new research into psychedelics and where these will converge for societal impact.  I have been content for the most part to observe and not to make any public positions. However, after observing certain highly damaging patterns around me I believe I need to make a public statement. 
First, my background involves long experience in academic research on epistemology and altered states of consciousness. I did all of my first researches in ethneogens while I was at Brown University helping curate the Contemplative Studies Initiative, which was one of the first major academic initiative of its sort. This focused primarily on the mystical states that were described by long-term meditators, although I also looked at various other described states from other types of traditions. I then spent a long time in long standing traditions that had a monastic type structure around them (Sivananda, Kripalu, Yogananda). My first experiences with Burning Man and “festival culture” came only since I arrived in California a couple years ago and, as interesting as I find them, the sort of insights they represent often come with a high cost. In particular, psychedelic users seem to be especially susceptible to collective delusional thinking, including egoic thinking that leads people to evaluate their progress as correlated with the amount of substances they are taking. Various substances, like MDMA, also make everything around the person seem really lovely but at the same time suppress normal critical thinking around such topics and leave people in a constant flood of ungrounded ‘good feelings,’ a trap that it is difficult to break out of. It is also quite common for people to give “friends” large amounts of psychedelics (including date rape style drugs that cause you to lose your cogency and memory) so that they will have sex with them. Periodic usage of these substances tends to erode boundaries and erode memory, such that one always seeks a new level of peak enthusiasm and promotes the ‘new high’ without remembering any of the problematic aspects of the last high, leading to a high degree of dissipation and an inability to do anything if there is not some associated high.
Second, with respect to cryptocurrency I only got heavily involved at the advent of the Ethereum project. This because ‘smart contracts’ as originally intended had a variety of technological improvements over existing types of technology including the automated rules based resolution of many aspects of what we know as the corporation and equity-like instruments. Most of this technology was and remains highly undelivered.  This is partially because thought the early engagement was highly technology driven, it allowed people to received massive financial gains around a prototype technology before it reached any sort of maturity. Additionally, it incentivized people who created ideological niche products that would appeal to the techie community instead of people who would create consumer products. Even worse, it attracted people who desired fast money and who often were entirely technologically ignorant. With respect to Ethereum, this meant that most of the core people have moved on and the platform is mostly moribund. Other projects have been far worse. The root problem in cryptocurrency seems to be the cart leading the horse, by which I mean the incentive structure is weighted towards encouraging speculation on an undelivered product as opposed to delivering something of consumer value. When people are able to get financial gains this way, they tend to become addicted to this pattern and then ultimately farther and farther from anything real in any usual sense. At this moment I effectively expect Facebook (which is ultimately a consumer platform) to create a massively successful currency and for the world to gradually forget about the other alternatives that exist.
In general, in both cases (psychedelics and cryptocurrencies) I have seen no projects that I would wholeheartedly endorse. I have donated to MAPS (and Zendo) for their research and advocacy, but the fact that they blend both together in my mind weakens their ability to do pure research. I have both done academic research on and created a Burning Man camp, but also have enough  observed enough cases of ‘date rape’ psychedelic uses that I would not wholeheartedly endorse anything in that world at the moment unless one has a very good guide. I have met astonishingly gifted people in my time in the Ethereum world, many of whom continue to work on DAO related projects and I continue to believe that there will be a time when these will fully bloom, but, for a variety of reasons, do not have high confidence in any of the foundations that I have observed.
In short, there are a lot of bold ideas and very occasionally good teams that come together around these topics, but in almost all cases over excitement, lack of critical thought, and inherently flawed incentive structures cause projects to be stillborn. 
That said, there are still some massive opportunity areas in both communities.
Some massive opportunity areas around psychedelics remain: (1) Taking the best historical examples of the use of entheogens  (Mesoamerican, Grecoroman, etc) and integrating them into modern life (2) Building the clinical psychotherapy pathway in which usage can be performed in a therapeutic setting conducive to personal growth, such as is currently happening with the Phase III trials of MD a (3) Research into biohacking and other ways to optimize for peak performance Key opportunity areas around cryptocurrency remain:
(1) Application areas that require a censorship-proof platform (2) A higher degree of automation for the “corporation” (e.g. streamlining capital deployment) (3) Incentive structures that reward people at the edges (4) Governance structures which are global in scope The main problem with “censorship proof” platforms is that many of the areas which are declared illegal by governments are areas which are actually harmful to people. For example, it is harmful to soak meat in bleach, yet it happens (https://time.com/4498998/china-meat-food-safety-bleach-police-guandong-shenzhen/). Many of the applications areas that have been most prominent within blockchain context are areas where it is highly debatable whether or not there is any positive benefit.
Here are some warning signs to watch for:
(1) Platforms which market themselves by talking about what is negative about  existing infrastructure rather than what is positive about theirs (2) Platforms which talk about the positive social utility of their product primarily by the amount of money it makes (3) Incentives which are weighted towards delivering prototypes but not working platforms (4) Teams which do not value internal technical expertise or using fuzzy or arcane language when describing the ostensible technical benefit (5) Teams which use any sort of groupthink or collective positive feelings (e.g. induced by psychedelics) to market their products. This virtually always comes at the expense of individual critical thinking. (6) New business models not derived from consumer demand but some sort of funky tokenomics hocus pocus.
There is something thrilling in being a pioneer on a new frontier as it opens up. Along with homesteaders are all manner of gold miners and brigands. There is also lots of gold to be mined, you just have to know where to look and how to get it back to safety.
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cryptswahili · 6 years
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Tokenizing Assets for Dummies
How to Tokenize an Asset
Tokenize an asset and launch a Security Token Offering in a few misleadingly simple steps.
The Market Shifts in Focus
As the blockchain technology and cryptoasset markets mature, the focus has shifted from Initial Coin Offerings and Utility Tokens to Security Token Offerings and Security Tokens. Judging by the speed at which we seem to switch focuses in this industry I imagine we’ll be onto the next big buzz word within the next few weeks (the tokenized asset buzz already seems to be dying down in fact), however, for the time being- let’s look at how tokenizing assets actually works.
Tokenizing assets is using digital tokens to prove ownership of real assets provides a number of benefits that expedite the process of buying and selling securities. Tokenizing an asset or backing the value of a token with a real-world asset opens up the potential investor base of that token to a wider market, increases liquidity compared to traditional securities, and drastically reduces the time required to trade them.
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It seems like more and more companies approach me every week with hopes of tokenizing assets. Sometimes through tying the value of a token to a commodity such as gold or silver, and sometimes through more creative endeavors such as using tokens to represent ownership of a cargo ship. Through consulting these parties on how best to go about the tokenization process, I’ve noticed that companies and individuals tend to get hung up on the same steps. Largely due to a lack of understanding around the process itself. Most of the companies I speak with have already gathered many of the pieces necessary. I find that people tend to hit roadblocks from step 3 onwards (steps listed below).
To help alleviate this, let’s identify the steps one must take to tokenize an asset and examine the different options future tokenizers have available to them.
Security Token Offering Process Overview
Identify an Asset
Evaluation and Confirmation of Asset
Smart Contract Generation, Tokenomics, and Tokenization Platforms
Equity or Cash Flow
Reg D filing with Law Firm (or Reg A or Reg A+) (2–3 months)
Once the Reg D is filed, you can start selling tokens to investors.
Identify Asset
The first step is finding a widely traded asset like gold, silver, or diamonds. Something with a market for it already, if it doesn’t have a market you have to have a valuation done by an auditing firm or accounting firm.
For example, if someone was tokenizing a ship, it might require validation in value from accounting, banks, or consultants (Deloitte) — auditing firms
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Evaluation
Once auditing is finalized, the smart contract has to be created. The price and number of tokens should correspond to the price and valuation of the asset.
If the asset is widely traded already like gold or silver than valuing it isn’t too difficult, because there are already existing markets that trade the asset it’s easy to pin a value to it. If you’re tokenizing an asset that doesn’t have an existing market already, you need to reach out to an auditing firm to determine a value for the token.
Auditing firms can range from law firms, accounting firms, banks, and general consulting firms like Deloitte or PwC. The more credibility the company auditing your token has, the stronger your valuation.
Smart Contract Generation / Tokenomics
This is both the easiest and trickiest part of the process. It’s easy in the sense that there are several solutions out there for generating smart contracts if you don’t want to code them yourself. I’d suggest generating a contract through a company like Polymath or GoSecurity over doing it yourself or finding a random smart contract on the internet- as a matter of fact, absolutely do not use a random smart contract you find on the internet...
This is also the part of the process when you determine your tokenomics.
Tokenomics are the economics of your token.
When generating your smart contract, you have to input how many tokens will exist and determine how many of these tokens you’ll be distributing to interested investors. This can make or break a token in the long run as this is when you determine the supply of your token. Too high of a supply can deter investors as they worry it won’t have enough demand to reach a high value, too low of a supply and your token can have low liquidity. These issues are far more prevalent when dealing with utility tokens, but still factors to consider.
Equity or Cash Flow? Determine how you’re going to tokenize the asset, are you giving equity or profit sharing/cash flow.
For example, if I’m tokenizing a farm I have a couple different options.
Equity Tokens I can set the value of my new tokens to specific equity in my farm. In this scenario, I’ll generate 100 tokens that in total represent ownership of 50% of my facility. The token holder gains value as the facility increases production capacity, when new distribution deals are struck, and when it is eventually sold. This form of tokenization is similar to a traditional stock in a company, you own a tokenized share of whatever you're investing in.
Profit-Sharing/Cash Flow Tokens Alternatively, I could issue 100 tokens and peg their value to a percentage of profits generated by my farm. Each token, for example, could represent 0.5% profits generated- in this case, the token holder receives value from the profits generated from your assets as opposed to the rise in value of the asset itself.
Reg D Filing
For Reg D (506 C) is the best option when filing your new security token, unless you're filing a share space filing (like an IPO). There are a few different versions of this, but Reg D or Reg A allow people to invest as quickly as possible.
There are plenty of benefits to going with Reg D (506c), but the SEC says it best so I’ve put some important facts pulled from their website below.
The company may sell its securities to an unlimited number of “accredited investors” and up to 35 other purchasers. All non-accredited investors, either alone or with a purchaser representative, must be sophisticated — that is, they must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment.
Under Rule 506(c), a company can broadly solicit and generally advertise the offering and still be deemed to be in compliance with the exemption’s requirements if:
The investors in the offering are all accredited investors; and
The company takes reasonable steps to verify that the investors are accredited investors, which could include reviewing documentation, such as W-2s, tax returns, bank and brokerage statements, credit reports and the like.
You can find more detailed information on Reg D filings here.
Find Investors & Sell Tokens through a Broker/Dealer
If you want to trade it within a year, you have to file a share space filing. If you wait a year, you can launch it on a security compliant exchange. Either way, you’re going to need access to a Broker/Dealer license and that’s going to cost you a pretty penny.
Broker/Dealers are regulated under the Securities Exchange Act of 1984 and are required to facilitate the process of buying and selling new securities. They’re compensated in several different ways, in my experience it’s usually through a pretty hefty percentage fee.
Distribute Tokens
How you distribute your tokens will depend highly on your token itself and the asset you’ve tokenized. It could be that you only need to distribute it to a small group of accredited investors, in which case it isn’t too difficult. If your planning on having several shareholders this can add a few more steps into the process but the main thing to consider here is remaining legally compliant. I highly suggest you seek out legal counsel for the duration of this process, most importantly during the final three steps of the process.
Tokenization Process Checklist
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Photo Courtesy of Manhattan Street Capital
(In case you were too lazy to read the article)
1. Find legal service providers to complete your SEC filing.
2. Create all the necessary internal and external documents: building your offering pitch, video, PR, graphics, social media accounts, advertising.
3. The offering goes live, the investors can purchase your Tokens or other legitimate security The investors deposit their money into escrow.
4. If you’re running a Reg D 506C token sale then the issuer is responsible for verifying that it’s investors are accredited.
5. File Form D with the SEC. Form D is a filing that does not require you to wait for SEC Qualification.
— — — — — — — —
Feel free to reach out to me via telegram @RezaJafery if you have any questions or would like to chat about STOs, Blockchain, or just nerd out about Crypto in general.
You can also find me on Discord at the Cosmic Trading Crypto Forum, join for free here!
Discord - Free voice and text chat for gamers
Tokenizing Assets for Dummies was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
[Telegram Channel | Original Article ]
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cryptobrief · 5 years
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Perhaps the blockchain revolution is yet to happen and the distributed ledger technology, as well as for cryptocurrencies, have not integrated into our daily lives fully. But for the last several years we see different real sector companies and startups try to tokenize, integrate with blockchain — or simply put, sugarcoat and sell their product (even if nobody needs it) through various methods, like ICOs (initial coin offerings), TGEs (token generation events) or even simple exchanges or swiping of their product tokens for much more valuable and circulated cryptos.
How does it work, what are they in a nutshell and what are the drawbacks of such offerings?
It all began with the crypto hype of 2017: many real sector manufacturers and sellers have got an idea to make a quick and easy buck via trendy blockchain projects. Disguised as startups tons of various things went through ICOs: coal and gold, diamonds and granite, natural resources, car services, co-working space spots, hotel rooms, waterparks and other stuff without number. In short, a lot of things that had nothing at all to do with blockchain suddenly acquired their own blockchain-protocols, crypto tokens and teams of international advisers as members of of the Expert Council for an out-of-town carwash.
Some people would consider this approach rather ridiculous, and yet some of these ICOs were pretty successful and raised more than a million dollars each. Perhaps this is the future of cryptocurrency funding? For better or worse, time has put everything in its place. None of the real sector projects managed to bring their investors interesting and functional business models, token price growth and, most importantly, profit.
Let’s look at several main problems that stood in the way of the projects that tokenized real sector products and conducted an ICO.
1.The biggest problem. Project tokenomics.
Creators of these ICOs have chosen three main ways of using tokens in their businesses. The first one is exchanging products for tokens, where a product costs more than the token in the real world, thus forming the price difference that will allow the buyer of these crypto assets to profit. The second way is the exclusivity right when without owning the token a user would not be able to use some special services of the token issuing company. And the last one is the right to dividends, a share of the business or the right to make certain company-wide decisions.
In the first case the problem is not the idea of earning money via the difference between the prices of the asset and the token, but the buyer or sometimes ICO investor himself. The vast majority of token buyers are not at all interested in receiving the physical product, since there are no infrastructure or instruments in place for its further use and sale. In other words, if you let’s say have a GOLD token that gives you the right to receive a bar of gold, it’s not always possible to physically get to the place where you’d get it or there is no delivery, finding a buyer for the asset might also get difficult when it stops being digital. Not to mention all the legal consequences, like proving ownership and the right to sell. In reality, the majority of buyers are forced to not utilize their ownership rights, but sell it on cryptocurrency exchanges, where the possible price growth is not transparent. 99% of token buyers look for 1% of real world product buyers to sell them the ownership, which deflates the trading volume and stunts the price growth of the token.
With regard to the means of selling the real sector asset token as a way to receive exclusive products or services, there are two main problems. The first one is that, as we mentioned previously, in the majority of cases the buyers are mostly people who want to profit off of the token and its price growth, not the people who want to receive the final product. The second one is that a company simply cannot offer a sufficient amount of truly exclusive and competitive products and services while competing with the non-exclusive ones and maintaining viability and profitability. Imagine that half of your clients will come for the service that they payed for yesterday at a lower price, while your new profit is formed by today’s clients that don’t have equivalent ownership of products or services. In this case there is no way for a business to be self-supporting in the long term.
With regards to dividend rights, business shares or decision making rights within a company, it is pretty simple. According to the laws of most countries this type of token would be considered a security. The founders of similar crypto projects, with the goal of making a quick buck, either deliberately misled their investors or did not understand the legal consequences of their actions. In the best case scenario, these projects should have simply registered their tokens as a security, but sadly the majority of them had not pursued any other goals except for fraud and misleading investors.
2.The second major problem that real sector asset tokenizing crypto projects face is that they tend to maniacally try to implement blockchain into their business processes.
One needs to understand that blockchain can be really helpful to some entities, like banks, insurance companies and governments, to process large quantities of data. Data storage, user-friendliness, security of information — all of this is really important for them. But many of the project founders seem to think that to make an ICO much more attractive, modern and interesting they have to integrate blockchain into it. And so they added blockchain to a car wash, a pizza delivery, a water park or to a coal mining operation.
There is nothing inherently bad about trying to optimize your real sector company business processes. But to successfully integrate blockchain you need the know-how, professionals, time and money, to say nothing of the justification of such integration. You cannot turn a non-core business into an IT startup. All of this is pretty funny, but sad at the same time. Instead of focusing on the main business of “coal mining”, entrepreneurs try to create something completely different like “coal mining data storage and transfer”, thus raising and spending funds on the wrong thing and turning a business with clear vision and ambitions into another incompetent and useless IT startup.
3.Excessive ICO costs
Cryptocurrency price growth and increased interest have caused the prices of services related to ICO tokens marketing and sale to rise. Many have heard that creating a website and investor personal account would cost about $50,000, legal services services for ICO registration may cost up to $100,000, and the price of marketing and social media promotion would be no less that a $1,000,000; while a real sector company would need much less money to create and develop their business and services. To build a real sector business or raise funds for an existing one, you’d need more money than previously mentioned to make an ICO. Even if diamond mining is already really costly, conducting an ICO could potentially kill your project on an early stage, since no one can guarantee that by spending a large amount of money you will find investors for your project.
It’s ironic that by trying to raise a rather small amount of funds for your project’s launch or development and expecting to not have to spend tons of cash on marketing your ICO, you are most likely doomed to fail. Token buyers need to see the potential breakneck price growth of your cryptocurrency, and thus a small financial goal could deter potential investors. A small project with little ambition is unlikely to provide large trading volume, worldwide expansion and high ranks on the top crypto exchanges.
Because of this, a real sector ICOs become either outright scams or illogical enterprises destined to fail.
What is the Product Protocol Platform solution?
By analyzing the real sector ICO market and evaluating the amount of funds raised via selling various cryptocurrencies by businesses unrelated to the development of technological blockchain solutions, we have reached a conclusion that existing ways of crypto fund raising for such projects are ineffective. We identified a number of features that subsequently lead to the idea of the Product Protocol project.
1. While the Soft Cap and Hard Cap goals of raising funds for a project usually were around $2,000,000 to $10,000,000, in reality, when not taking into account ICO cost recovery and the unreasonably increased ambitions, these companies needed much smaller amounts of money. About $200,000 to $1,000,000 by our estimates.
2. The majority of the projects have raised funds not to create revolutionary solutions, but to produce comprehensible products in their respective countries. In other words, there was no need to create a technological startup, just get the financing.
3. In many cases the companies had already been prepared to supply their products to the interested buyers, the ICOs were a way to finish capitalization of these entities or, in some cases, a way to communicate information about their product.
4. In rare instances, there were audits, legal and financial evaluations of the product manufacturers. Sometimes token buyers had doubts if the people mentioned on the ICO website even existed.
Can we, bear in mind everything previously mentioned, conclude that real sector business crypto financing as well as tokenized product and blockchain asset creation is meaningless and has no value?
We do not think so. There are undeniable upsides to real sector manufacturers creating their own tokenized assets.
1. Transnationality and fast exchange and sale. By creating a token that gives the right for a real sector asset, let’s say a bar of gold, you just need to embed its features (weight, price, location and means of obtaining) on the internet. The token transfer itself takes a fraction of a second within the blockchain. A Florida resident can transfer the ownership of a bar of gold to a California resident in mere fractions of a second, and the final buyer, that perhaps lives in the country where the gold mine is, can exercise this ownership right to receive the bar of gold without even ever knowing the previous token owners.
2. More favourable terms of purchase in some cases. Generally, during the ICO, the product is sold to a large number of buyers for a more attractive price.
3. In the case of selling a tokenized copy of a digital asset, like software, blockchain allows storing the data about the owners, use and transfer of such assets, which will solve the problem of piracy and theft.
4. Means to receive funding from other countries. Companies in countries with less developed economies will be able to sell their product to clients from countries with higher economic status — a great opportunity to expand the pool of potential investors, buyers and clients for any business.
5. Crypto financing can also be a good alternative to more traditional bank financing. In some cases, it can be less expensive and regulated and more fair and fast.
We have decided to create the Product Protocol project to combine all these undeniable advantages of tokenization for manufacturers and buyers of tokenized assets, and to get rid of the obvious obstacles that stand in the way of blockchain revolution.
Product protocol consists of several services for asset manufacturers and buyers, which will be expanded upon and updated in the future:
1. Asset Tokenization Service
2. Tokenized Asset Sale Service
3. Proprietary Marketplace
4. Tokenized Asset Commodity Exchange
5. Guaranteed Product Realization From the Manufacturer to the End Customer Service
In a way, the idea of Product Protocol is to create a blockchain based equivalent to the well-known ‘Alibaba’ services. But through implementing blockchain into the b2b and b2c trade systems with our own marketplace, we want to revolutionize the world of transborder trade, just like Apple revolutionized phones years ago.
Let’s look at the Product Protocol services by using an example of a real sector software company issuing a token. Let’s call it ‘Newsoft’. We now know all the risks and obstacles such a company would face without the Product Protocol platform.
Newsoft submits an application for the tokenization of some of the digital copies of its software. The goal is to raise $500,000 to finish the development of their project. The software is expected to revolutionize work for designers across the world. The retail price of a digital copy is $10.
After receiving the application, the Product Protocol specialists conduct the formative evaluation of the Newsoft company, as well as verify the existence of the company and its product. In a way, Product Protocol and its partners act as a guarantor of the formative evaluation of the assets on the platform. The owners of the PPO (Product Protocol Tokens) are encouraged to vote whether the Newsoft product is interesting for them and other platform users and whether it should be tokenized.
The tokens of the Newsoft digital copies (A portion of which are sold via the PPA program) are released on the platform for a price of $5 per copy and are offered to the platform users as part of the initial tokenization lot. At this moment only the PPO token owners are allowed to purchase the tokens by using the deposit feature. In the event of the total buyout of the lot, the funds are transferred to the manufacturer to fund the development of the software. The platform users now can trade the tokenized asset.
The product development nears the end and soon enough Newsoft begins selling digital copies on its website for $10 per digital copy. Once this day comes, the Product Protocol platform users that own the software tokens receive their digital key codes for the product. Some can redeem these keys and install the software (end users), others can resell them on the internet, and those who managed to purchase the initial tokens via the PPA program receive guaranteed payments from the Product Protocol platform for each token purchased. Unclaimed copies can still be traded within the marketplace or the PP commodity exchange.
With this example we looked just at the fund raising and product sale features. Newsoft could have used tokenization to expand its client base or to simply bolster security via blockchain, or as a marketing measure. There are many more ways to use the platform while the user friendliness and the modern solutions will allow the platform to compete with the titans of the b2b and b2c trading.
Website: https://pprotocol.io/
Chat: https://t.me/pprotocol
The post Product Protocol: The Blockchain Version of Alibaba appeared first on ZyCrypto.
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Satisfy the winner of Blockchain Start-up of the year
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ICO and STO full stack platform service provider, ICO Malta, won the prominent Malta Blockchain Top "Start-up of the Year Award." ICO Launch Malta is the leading provider of turnkey ICO and STO launch services on the Blockchain Island, Europe's leading hub of blockchain innovation. We overtook ICO Malta CEO, Jan Sammut, after he received the award.
ICO Malta won the Malta Blockchain Top "Startup of the Year Award." What can you inform us about that?
We were, naturally, proud to just be nominated for Malta Blockchain Start-up of the Year award. ICO Release Malta dealt with, along with our able competitors, a professional panel of 30 plus judges with several years of combined experience in the crypto space. They came together at the Malta Blockchain Awards to evaluate the most innovative and successful crypto start-ups in Malta. The team at ICO Launch Malta is exceptionally proud that we won. The best start-up award marks a considerable turning point in our journey towards being the finest token offering platform service provider not just in Malta but in the whole of Europe. We wish to thank the judges at Malta Blockchain Awards for identifying our innovation and accomplishments in the DLT area.
ICO Malta is gaining a track record as the go-to service for ICO and STO launch services. How did you get to this point?
Well, firstly, we have a stellar group of internal Strength designers, marketing specialists, web devs, legal representatives, and biz dev specialists. Beyond that, ICO Introduce Malta is a genuinely full-service ICO/STO launch platform. Furthermore, a huge benefit is that we are, naturally, situated in Malta with its strong and crypto-friendly regulatory structure.
Please detail what you imply by a "complete stack" or "turnkey" token offering platform.
ICO Malta takes a job from concept to difficult cap. We do the tokenomic modeling, following which our Solidity developers develop the token and smart contracts that govern the sale. We develop robust KYC/AML procedures and protected multi-signature wallets where the funds will go. We can do that part in just 15 business days, which is quite fantastic. ICO Malta carries out the legal evaluation of the token model and white paper. We help carry out company incorporation with a legal documents and bank setup. We can introduce our customer to our institutional financier swimming pool. We create the investor and admin control panels. We execute high-end branding that consists of development of a site that converts visitors into financiers. So ICO Release Malta handles every element of the project, from business development to token sales to an exchange listing.
Tell us about your dev group and the token launch platform they've produced.
Blockchain innovation is pushing the envelope far beyond Satoshi Nakamoto's preliminary use case as a global money alternative. ICO Malta's software application makes life simpler for token companies, investors, and designers. As mainstream adoption of STOs grows, we supply the infrastructure that enables property owners to liquidate and offer tokenised shares of their previously illiquid possessions, with partly automated KYC/AML compliance. Investors can invest easily and securely. Our blockchain developers can innovate custom-made options developed on our underlying turnkey platform. My partner, Alex Anter and I, introduced the very first ICO ever to be run out of Malta 2 years ago. Alex is now our tech lead. He is a fantastic wise contract designer, and he led the coding of our token launch platforms.
Can you tell us more about how ICO Malta establishes an optimal tokenomic blueprint?
Alex has an eager and instinctive sense of exactly how to exercise the finest tokenomic structure to put in place a balanced and quickly leveraged incentivisation plan for the security token releasing business, investors, and clients to finest achieve the goals of a particular STO job. Tokenomics dictate the behaviour of a token in the platform it populates. A well designed tokenomic ecosystem will, of course, increase the possibility of token value gratitude. It must do that by incentivising good behaviour among all celebrations participating on the token's platform. It is equally essential to create the tokenomics so that there are strong and stable disincentives for those who might otherwise act maliciously. When all that is master prepared and checked, it is pretty easy to exercise a token rate and difficult cap based upon deflation that provides both the token provider and investors with a token that gains value in time.
There are numerous blockchain use cases. Can you discuss why ICO Malta is focusing much of its attention on STOs?
The potential for the security token offering area seems massive, but is yet to be shown. Systems for raising capital have not progressed much for many years. With the innovation of the security token offering and the security token itself, we might be considering a multi-trillion dollar addressable market. The apparent, rapidly growing need is regulatory-compliant STO services, for which ICO Malta carries out custom-made options which undergo regulatory approval. Security tokens represent value that develops a pledge of payments of dividends, and the ability to liquidate the equitized possession for the possession owner. This makes them subject to security law guideline, in which Malta has actually taken the lead worldwide. If ICO Malta and others can assist make the security token a mainstream financial instrument, equity markets could be transformed. Every kind of equity can potentially be tokenized, freeing up liquidity in generally illiquid properties, and allowing possession owners to raise capital for additional financial investment and expansion.
So you see the marketplace moving away from utility ICOs and towards security ICOs?
In general, yes, and probably in a big way. Energy token usage cases and energy token assessments are frequently quite vague, and, as you can see in the ongoing bearish crypto market, financiers are quickly moving away from perceived or real threat. The marketplace's understanding of energy token ICOs has actually shifted to the negative. That might change at some time when strong and battle-tested usage cases end up being the standard. Our requirements for thinking about dealing with an energy token launch client is a white paper with a clear, positive legal viewpoint, a sense-check of the physical fitness of the customer, technical viability of the project, proper appraisal of the task, and correct raise targets and token and funds allowance. The number of traditional ICOs happening in any one month will drop. New ones might emerge, and their tough caps might be quite high. However, the launching of ICO jobs constructed on weak or unproven use cases is not a sustainable design.
STOs are going to attract more conventional players?
Yes, that seems where we are headed. ICO Malta has actually shifted focus to securitised token offerings. We still provide energy ICOs to customers with strong use cases that will likely benefit considerably from the network impact of a well-designed token community instead of a traditional VC raise. Our shift of focus to STOs grants our clients with established and lucrative businesses the choice of running what are essentially bond or stock offerings on the blockchain without quiting equity, ballot rights or any board seats. An issuing company that is collateralizing a possession that provides itself to an exceptional tokenomic usage case that can benefit immensely from the blockchain's decentralised architecture and network effects. Most of queries we are now getting are from the traditional financial sector, such as banks, hedge funds, and other enterprise-level companies. We are also getting questions from UHNW clients thinking about fractional ownership tokens for things like real estate, hotel resorts, and yachts.
Let's end up with your views on what sort of industry maturation we are likely to see over the next couple of years.
There will be 2 sweeping modifications. There will be magnitudes of order scaling gains for some cryptocurrencies and other digital possessions. And second of all, the spotlight will move from utility token offerings to security token offerings with a rapidly increasing influx of sustainable business level investment.
Jan Sammut is a veteran ICO advisor. As one of the most crypto-knowledgeable people in Malta, Jan Sammut's viewpoint brings much weight with residents along with the extended European crypto community. Jan ran Malta's first ICO and launched Europe's first MiFID 2 compliant security token offering. Jan is a fixture on the European blockchain conference tour and advisor to ICOs with market caps exceeding $1B.
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