ICO Knowledge Base

What Is an ICO?

An initial coin offering (ICO) or initial currency offering is a type of funding using cryptocurrencies. Mostly the process is done by crowdfunding but private ICOs are becoming more common. In an ICO, a quantity of cryptocurrency is sold in the form of “tokens” (“coins”) to investors, in exchange for legal tender or other cryptocurrencies such as Bitcoin or Ethereum. The tokens sold are promoted as future functional units of currency if or when the ICO’s funding goal is met and the project launches. In some cases like Ethereum the tokens are required to use the system for its purposes.

An ICO can be a source of capital for startup companies. ICOs can allow startups to avoid regulatory compliance and intermediaries such as venture capitalists, banks and stock exchanges. ICOs may fall outside existing regulations,  depending on the nature of the project, or be banned altogether in some jurisdictions, such as China and South Korea.

What Is Ethereum?

Ethereum is a decentralized, open source, and distributed computing platform that enables the creation of smart contracts and decentralized applications, also known as dapps.

Smart contracts are computer protocols that facilitate, verify, or enforce the negotiation and performance of some sort of agreement. For instance, a smart contract could be used to represent a legal contract emulating the logic of contractual clauses or a financial contract specifying responsibilities of the counterparts and automated flows of value.

A smart contract is pretty much exactly what you think it would be: it’s an auto-executing, programmed agreement that is recorded on the Ethereum blockchain. It operates based upon an if, then logic, so that if x action happens, then y action occurs. Here’s a helpful definition from the Ethereum Foundation:

“Smart contracts are applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.”

What is a Cryptocurrency?

cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems.

The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.

Bitcoin, first released as open-source software in 2009, is generally considered the first decentralized cryptocurrency. Since the release of bitcoin, over 4,000 altcoins (alternative variants of bitcoin, or other cryptocurrencies) have been created.

What are ICOs sale phases?

As explained above, ICO (Initial Coin Offering) is a form of crowdfunding for cryptocurrency and blockchain projects. Participants finance the development of the company now in order to get benefits in the future.  So what are the ICOs sale phases?

1. ICO preparation phase

In the ICO preparation phase normally the founder of the project identify a problem or problems what can be solved by a new startup. Preferably this new startups solution based on blockchain technology. In this phase the ICO startup do its research, analyze market and demand, preparing the ICO website, gathering team for the development. Get the necessary licenses and check all the legal requirements.

2. ICO Private Sale phase

This is the first investment proposal. Terms of the idea implementation, the necessary amount of coins, token emission are announced. Often there is a preliminary closed token sale. So, investments for the official launch are collected. At this stage, you can buy tokens with maximum discount and bonuses (sometimes up to 50%) and on more flexible terms.

3. Pre-ICO or Pre-Sale

This is the fundraising before the ICO for its realization. During the Pre-Sale, the cost of tokens is traditionally lower than at the ICO, but higher than at the Private Sale. Investors receive bonuses and discounts. Many investors consider this stage to be potentially most profitable. They buy tokens at a low cost, and then sell them as soon as the they start trading on exchanges. This is a form of short-term investment.

4. ICOs kyc and Whitelists

In this phase the projects have enough resources from private sale and Pre ICO to promote their project worldwide and build up the hype as well. They are preparing their main ICO sale.

– KYC: If the project and its regulatory status requires that the ICOs has to do KYC (Know Your Customer).

– WHITELIST: Also some of the ICOs can only accept limited number of participants so they do Whitelist.  White-listing period takes before the main ICO start and being on the list is requirement to participate in the main ICO event.

5. Token sale start (CrowdSale)

This is the main phase of the token sale, the ICO itself. Initially, the startup offers investors to purchase tokens at their platform (website). Later, sales are launched on the publicly available crypto stock exchanges. The release of the ICO startup tokens on the exchange is considered to be a certain proof of the solvency of the project, but it does not guarantee its success in the long term.

 

What are tokens?

A token is a form of digital asset that is being sold to the public during an ICO campaign. Usually, it is for other cryptocurrencies such as BTC or ETH. Tokens usually has no blockchain, they are just hosted on another blockchain like Ethereum’s.

What are the risks of joining in an ICO?

In joining in an ICO, you don’t have the guarantee that your chosen token will succeed. Investing in an ICO, can provide both huge financial benefits and huge risks. You should only invest what you can afford to lose.

What is ICOs List?

ICOs List is a new ICO site wherein you can find the latest ICO Listings and Coin News. You can search the Active ICOs, Upcoming ICOs and the Ended ICOs with their overview and other details you have to know about the project. You can even request to add your own ICO if you have one, just tick on Contact tab to send a message.

What is an ICO Airdrop?

An​ ​ICO airdrop​ ​is​ ​when​ ​a​ ​blockchain project distributes​s free​ ​tokens or​ ​coins to​ ​the​ crypto ​community. Airdrops are commonly used as a marketing strategy.

What is an ICO Bounty Program?

Bounty programs give the possibility to receive tokens of blockchain start-ups without investing one’s own funds.

A project that goes to ICO offers to users to perform certain actions focused on the start-up popularization and attraction of new users, and pays them with tokens.

Usually each task is specified as concretely as possible and estimated in a fixed number of tokens. For example, the more followers you have on Twitter and Facebook, the more tokens will be brought to you by the re-posts.

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