What is ICO – Initial Coin Offering

The advice and exclusive tips contained within the following entry will help the novice investor understand and fully comprehend the basic fundamental concept of an “Initial Coin Offering”. Important aspects covered will include an explanation as to why this working tokens generating strategy is an integral and in some cases critical aspect of sustaining a generous supply of venture cash infusion into our cryptoeconomy, thereby potentially inducing new job creation, a brief foray highlighting buyer eligibility requirements related to purchasing new issues and subsequent selling of ICO’s. The preceding will be covered in detail along with a few other invaluable insights to provide the reader with a solid foundation of knowledge regarding this highly speculative segment of the token market.

WHY ICO’s?

When an existing privately held company reaches a crossroads in regard to the availability of working capitol for essential research, product manufacturing, or any other necessity to ensure the venture maintains a viable path toward growth and profitability, there are several potential financing avenues the owners(s) can pursue.

One plausible way to secure the needed funds is to convert and or transfer all or a portion of the company from private to public ownership by offering and ultimately issuing to participating investors and investment companies, undivided and equal units of equity called “ERC20 Token”, or “Digital Token”, or just simply “Smart Contract” (the equivalent of shares) .

Depending upon a company’s overall performance, which ultimately dictates the long term price trend of tokens. However, once company equity is transferred to the public, the management team must then perform their duties under a new dynamic, the atmosphere of intense scrutiny and watchful eyes of several thousand individual co owners (Coinholders) who have the future right to cast one vote for every smart contract they own.

Essentially, the management team is now responsible for producing a profitable venture and ultimately must report to, and satisfy not only themselves, but a virtual army of individuals and institutions who have a vested interest in the company’s overall success. Moreover, once the conversion from private to public company is complete, a lot of people and journals will then have an innate obligation to analyze underlying fundamentals and report specific accounting facts and figures to the public via respective publications.

Jump start, and grow a fledgling privately held company via ICO can be a viable option, but it does come with a unique set of inherent circumstances and risks which need to be thoroughly researched and considered.

TAKING A COMPANY PUBLIC

There are a multitude of critically important steps that must be successfully completed prior to the actual selling of tokens to the public and or financial institutions – The table below illustrates the basic procedure in chronological order. Generally speaking, every prospective ICO must adhere to the following guidelines and basic principles to ensure compliance with regulations, and thereafter maximize ICO marketing effectiveness:

“ROAD TO ICO”
The company idea & concept to public / journals and present the “Story” i.e. product or service, initial goals, projected short, mid, and long term sales & revenue potential etc.
Sign on with “Security Consultant
“Security Consultant” analyzes & evaluates pertinent token smart contract.
“Preliminary Prospectus” which includes flexible token price is published & delivered to potential investors
“The Show” begins, i.e. introduction & promotion of new company
Beginning of sales.

WHO CAN BUY IPO’s?

Anyone who has the means can purchase an equity interest in an ICO via “Smart Contracts” (“Pre Market Tokens” are usually subject to availability). Nowaday, the ICO has been a much sought after and enticing investment and long term sustained market value appreciation potential.

  1. Visit ICO company website and make a new account.
  2. There deposit the amount of bitcoins, ethereum or altcoins, at the website you can see all the supported altcoins to buy Smart Contracts.
  3. Accept terms and conditions.
  4. That’s it once you have deposited then you just have to wait till they receive you the Tokens.

The Internet now, as it has for decades, provides individual investors with convenient fingertip access to perform their own research which enables them to make their own financial decisions before each transaction is executed. As it stands today, if you have the financial resources and access to the ICO shares, a buy transaction is just seconds away.

roi_ico_btc ROI ICO/BTC IcoStats

Read your smart contract (ERC20 Token)

The crowdsale contract, viewable here:  https://etherscan.io/address/ContractAddress tab Contract Source.

Some of the tokens include further information describing the token contract:

1   string public constant name = "Token Name";
2     string public constant symbol = "SYM";
3     uint8 public constant decimals = 18;  // 18 is the most common number of decimal places

The sale will run for a maximum of 14 days:

1   contract CrowdsaleController is SmartTokenController, SafeMath {
2   uint256 public constant DURATION = 14 days; // crowdsale duration

The list of guaranteed buyers and their associated limits have been set beforehand by calling setGuaranteedAddress(). This function also emits an event GuaranteedAddress().

1   /// @param _limit Limit for the guaranteed address.
2   function setGuaranteedAddress(address _th, uint256 _limit) public initialized onlyOwner

More about ERC20 Token Standard read here.

Fails and Wins.

The DAO ICO raises more than $117 Million in World’s Largest Crowdfunding at 2016, but soon by Saturday, 18th June 2016, the attacker managed to drain more than 3.6m ether into a “child DAO” that has the same structure as The DAO. The price of ether dropped from over $20 to under $13.  (the Ether Thief).

The latest craze in the cryptocurrency markets just got crazier. An outfit called the Bancor Foundation raised $153 million worth of ETH by selling its digital tokens for three hours on June 12, making it the largest token sale ever.

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