STO / ICO knowladge base
What is ICO?
When a cryptocurrency startup firm wants to raise money through an Initial Coin Offering (ICO), it usually creates a plan on a whitepaper which states what the project is about, what need(s) the project will fulfill upon completion, how much money is needed to undertake the venture, how much of the virtual tokens the pioneers of the project will keep for themselves, what type of money is accepted, and how long the ICO campaign will run for. During the ICO campaign, enthusiasts and supporters of the firm’s initiative buy some of the distributed cryptocoins with fiat or virtual currency. These coins are referred to as tokens and are similar to shares of a company sold to investors in an Initial Public Offering (IPO) transaction. If the money raised does not meet the minimum funds required by the firm, the money is returned to the backers and the ICO is deemed to be unsuccessful. If the funds requirements are met within the specified timeframe, the money raised is used to either initiate the new scheme or to complete it.
Early investors in the operation are usually motivated to buy the cryptocoins in the hope that the plan becomes successful after it launches which could translate to a higher cryptocoin value than what they purchased it for before the project was initiated. Early birds earn and get ICO Bonus. An example of a successful ICO project that was profitable to early investors is the smart contracts platform called Ethereum which has Ethers as its coin tokens. In 2014, the Ethereum ICO project was announced and its ICO raised $18 million in Bitcoins or $0.40 per Ether. The project went live in 2015 and in 2016 had an ether value that went up as high as $14 with a market capitalization of over $1 billion.
ICOs are similar to IPOs and crowdfunding. Like IPOs, a stake of the startup or company is sold to raise money for the entity’s operations during an ICO operation. However, while IPOs deal with investors, ICOs deal with supporters that are keen to invest in a new project much like a crowdfunding event. But ICOs differ from crowdfunding in that the backers of the former are motivated by a prospective return in their investments, while the funds raised in the latter campaign are basically donations. For these reasons, ICOs are referred to as crowdsales.
Although there are successful ICO transactions on record and ICOs are poised to be disruptive innovative tools in the digital era, investors are cautioned to be wary as some ICO or crowdsale campaigns are actually fraudulent. However ICOs in the USA regulated by financial authorities such as the Securities Exchange Commission (SEC), funds that are lost due to fraudulent initiatives may never be recovered.
In early September, 2017, the People's Bank of China officially banned ICOs, citing it as disruptive to economic and financial stability. The central bank said tokens cannot be used as currency on the market and banks cannot offer services relating to ICOs. As a result, both bitcoin and ethereum tumbled, and it was viewed as a sign that regulations of cryptocurrencies are coming. The ban also penalizes offerings already completed.
What does an ICO mean?
DEFINITION: ICO stands for (Initial Coin Offering)
What is an STO?
We have talked about ICOs (INITIAL TOKEN OFFERINGS) above. If the ICO token passes the Howey test is deemed a security token, and they are subject to federal securities and regulations. Why STOs (SECURITY TOKEN OFFERING) will be huge in 2019? With ICO we have seen wild wild west, projects without a legal entity without any team member identification and without any regulation, raised millions of dollars.
With security tokens it all could be changed. With regulatory frameworks token issuers has to be identifiable and has to take responsibilityfor their promises. Security tokens are the same as normal securities but they are faster, cheaper, and easier to utilize. Security tokens could be the new, regulated connection between legacy finance and newly forming blockchain startups. More information can be found about STO, STOs, (security token offerings) on: https://securitytoken-list.com
What is ListICO.io?
www.listico.io provides the best ICO list of Active ICOs, Upcoming ICOs, Pre ICOs, Private sales. Also we have ICO rating and ICO tracking services. However the rating is only our opinion and not a financial or investment advice. We are listing new ICOs on our ICO listing website daily. We also try to give as much information as possible about this newly forming Blockchain and Cryptocurrency projects. Our aim is to make the best Upcoming and Ongoing crypto ICO list also known initial coin offerings easy to track. ICOとは、何なのか。ICO 란 무엇인가?
What is Ethereum (ETH)?
Ethereum is a framework, of distributed computing platform based on the idea of blockchains.Based on a decentralized network of nodes, this construction allows for all kinds of transactions to be computed and verified around the world. The network becomes programmable entity that provides a blockchain for keeping track of and verifying all kinds of objects, individuals and agreements.An internal currency, Ether, allows for compensation of device owners who participate in the network by contributing compute power and bandwidth. Ethereum promises to be a sort of hivemind upon which all kinds of trade and organization can securely take place. We make it easy to discover Ethereum ICOs.
What is a cryptocurrency?
Cryptocurrencies, a subset of digital currencies, are instruments used for different exchanges of value. Our cryptocurrency ICO list ICO coin list makes it easy to discover hot ICOs. Cryptocurrencies rely on innovative uses of cryptographic technologies, such as blockchains, to create proof of value through computational expense, and a complete, often verifiable history of transactions. Bitcoin, created in 2009, is the first and most well-known decentralized cryptocurrency, combining p2p networking technology, like bit torrent, with advanced cryptography. Due to how only a limited supply of Bitcoin can be created, and how the currency can be split in tinier parts as the value grows, the original coin has offered legendary payback for early investors.
ICO sale phases
1, ICO preparation phase
In the ICO preparation stage 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 Priavte Sale phase
The private sales stage is usually open to early investors and it is not open to the public or not announced. Requirements for participation are higher then the Pre sale or the Main sale. Contribution has to be bigger 10x or 100x or 1000x compare to pres sale or Main ICO sale however the bonuses are much better as well. Private sale carries the biggest risk for investors.
3, Pre ICOs or ICO Presale
In the Pre - ICOs or in other words Presale stage participants still can get good discounts on token prices. In this pre-ICO stage hyped ICOs usually sold out quickly. In this stage social media, like twitter, telegram are active and have large audience and promoted trough main ICO listing websites like ListICO, ICObench, Coinschedule, TopICOlist.
4, Upcoming ICOs KYC and Whitelists
In the Upcoming ICO stage projects have enough resources from private sale and Pre ICO to promote their project worldwide and build up the hype as well. They preparing their main ICO sale.
- KYC: If the project and its regulatory status requires 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. Whitelisting period takes before the main ICO start and beein on the list is requirement to participate in the main ICO event.
5, Active ICOs or Ongoing ICOs
The mean event is the ICO main sale also called CrowdSale. Crowd sale offers the most token for sale however there is no discount price or just a small discount on the ICO tokens in this stage. Of course the risk of the participation in the ICO is the lowest compare to the earlier stages of the ICO slae. At this time the hype is on the top and the Best ICO project could raise millions of dollars.
What is an ICO Airdrop?
Airdrop is basically free tokens for you.
It is a marketing strategy, however it could be free money for you if the ICO project succeed, the main point of the Airdops is to spred the ICO project to the relevant audience of potential investors.
What is an ICO Bounty Program?
ICO Bounty is a reward program for promoting an ICO. Rewards paid in ICO tokens. Bounty program can include various of different activities like making YouTube review for the ICO, translating whitepapers in different languages, spreading ICO project on social media, writing articles ....
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Pre ICO list
Pre ICO tokens are cheaper and nowadays are the most popular part for the ICO investors. If you don't want to miss good ICO opportunity then see our Pre - ICO list click here
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