Tag Archives: Cryptocurrency

CryptoCurrencies: What is an Initial Loan Procurement and why it will drive the Markethive.

CryptoCurrencies:
What is an Initial Loan Procurement and why it will drive the 
Markethive.

There seems to be a lack of awareness around Initial Loan Procurements (ILPs), as well as a lot of confusion if that. This post will try to explain what ILPs are and their significance to finance and Markethive.

The Initial Loan Procurement is a new fundraising method that is similar to an Initial Coin Offering (ICO) but in the form of loans rather than coins. In this ILP scenario, borrowers and creditors enter loan agreements through legally binding smart contracts. Markethive is one of the firsts to offer an ILP along with the originator from Blockhive.

ILPs (Initial Loan Procurement) disrupt the global debt capital market and have the potential to become bigger than ICOs. Blockchain is revolutionizing finance, especially capital markets, which allow companies (and even governments) to raise money from investors globally.

Let’s talk about how companies and governments raise investor money:

Companies can either sell stakes in the company or equity. This is done by issuing stocks and stockholders share the company’s profits. Likewise company losses are stockholders losses and companies aren’t required to pay the investors back. On the other hand, companies can borrow from investors by issuing corporate bonds. Although bondholders don’t share in the company’s profit, they will be paid back their original investment + interest unless the company goes bankrupt.

Governments can issue government bonds to big investors as well and the logic works the same as corporate bonds. Since the government is deemed less risky, government bonds typically have lower interest rates. Examples are US Treasury bonds.

When companies/governments first issue these financial securities, they are issued in what is called the primary market. The average joe does not participate in this market. The big banks and institutional investors are the usual investors. After this, the already-issued securities are traded in the secondary market which includes retail investors like the average joe. Ex. Stock market

Then there’s the private capital market. All companies start private and once they get big, they might go public and list on one of the stock exchanges. Ex. Uber is currently a private company valued at $70B, and they are supposedly planning an IPO soon. Only then, would the average joe be able to buy Uber stocks and invest in the company. So who invests in these private companies early on? Big institutional investors such as Venture Capital firms (VCs) with lots of money get to invest early on for equity and if the company takes off, they could multiply their investments by orders of magnitudes.

This was how things were done TRADITIONALLY. With Blockchain technologies, modern finance is changing. Initial Coin Offerings provide companies (and governments) with a whole new way of raising capital. It’s easier, faster, and the whole world gets to participate. Although coins are not 100% like stocks, a lot of them behave that way: Many tokens will profit if the issuing blockchain company becomes successful. (For example exchange token holders earning trading commission fees). Like stocks, there is no legal obligation for the company to pay the investors back their original investment. Initial Coin Offerings serve as the primary market and exchanges like Binance serve as the secondary market. This change is happening extremely fast. In 2017, more money was raised with ICOs for blockchain start-ups than ALL of Venture Capital. Pretty much EVERYONE can participate in these ICOs as well as trade the tokens once they are listed on exchanges.

This is why regulators are going crazy about cryptocurrencies right now. Throughout history, financial market crashes have devastated many lives, and each time regulators stepped in with rules to protect consumers. Let’s not debate the pros and cons of regulation here, but it’s just the way things are. With cryptocurrencies, regulators see more risk than ever for consumers as now regular people are participating not just in this unregulated secondary crypto market, but in primary markets as well through ICOs.

Meanwhile, the global debt capital market has barely been disrupted by blockchain tech. If anything, there are many crypto projects in the works for peer-to-peer lending, but there is only one project that I know of focused on disrupting the public debt capital market: Initial Loan Procurements (ILPs).

A fundraising structure utilized by Markethive, this has the potential to grow even bigger than ICOs (The world debt market is way bigger than the world equity market). This year Markethive will be one of the firsts to offer an ILP, like Blockhive, and will be one of the first companies to raise capital by decentralized crowdfunding of debt.

To summarize Markethive’s ILP: we are targeting 10.5M Dollars (USD in Bitcoin) from lenders (think ILP). In this decentralized world, anyone can participate. The loan period is projected to be 10 years and the interest is 20% of Markethive’s operating profit. For example, if I lent Markethive  $1,000 through this ILP, I will be repaid this principal in 10 years, and also earn interest over that period (In Markethive's case, 20% of Markethive’s operating profit will be distributed across the lenders. Furthermore, the ILP structure issues Hive Foundation Shares (HFS), which will allow me to sell my loan contract in the secondary market, if I don’t want to wait 10 years to be paid back. Each ILP will have its own FLAT to provide liquidity in the secondary market. Markethive's FLAT is also called Hive Founding Shares.

All ILPs are powered by legally-binding smart contracts (loan contracts between each creditor/issuer), and digital identity/signature solutions. The token utilized for these products will be traded on the open market exchanges (yet to be announced)

This is HUGE. Instead of issuing traditional bonds, corporations and governments can participate in this decentralized form of crowdfunding loans. It’s fast, easy, and the whole world can participate.

'

The financial revolution is now just starting.

The need

The Markethive team believes that there is a need for an alternative to ICO due to the following shortcomings. The token economy is based on the demand, and sometimes selling tokens doesn’t make sense because the token has no real function for your business. Also, laws and regulation are an important consideration, because countries such as China have banned ICOs. Taxes also play a major part. Some countries consider money raised through ICOs to be income rather than capital and may tax it at rates as high as 40 percent.

The alternative 

Markethive has partnered with smart-contract development firm Menlo Tech and the original developer of the Monero Coin to develop a way to raise funds using loans. Here are some unique points of ILP:

The structure is as effective as an ICO because it is open to individuals around the world.

It is legally binding because agreements are digitally signed using blockchain technology which records information in a distributed database so they can’t be easily altered, adding a level of security for creditors.

Because ILP is in the form of loans, it is considered to be debt, and not subject to tax.

For businesses that don’t need tokens in the first place, ILP provides an alternative so more time and energy can be spent on business development, rather than creating tokens with no actual usage.

The ILP is regulation-friendly. Markethive conforms with regulatory frameworks designed to fight fraud and money laundering. Therefore, participants of ILP will be required to submit their identification and to go through the process of authentication (KYC).

The Markethive team says, “ILP provides a fast track alternative so more time and energy can be spent on business development. Last, but not least, because ILP is in the form of loans, it is considered to be debt, and not subject to tax.”

How does it work?

In Markethive’s case,

We first ask our creditors to register their identification, address and other information.

Then, they will digitally sign the loan agreement and send Bitcoin to our registered account.

Once we receive the Bitcoin, the contract is made.

That means Markethive’s creditors can receive 20 percent of Markethive’s monthly profit as an interest payment.

After the loan contract is made, Markethive will issue the Hive Foundation Shares (HFS the FLAT  Future Loan Access Tokens). HFS gives creditors the right to transfer loans to others, using Markethive’s Wallets, Markethive’s internal exchange or on public exchanges.

The team further clarifies, “When individuals receive HFS tokens, they become potential creditors and can use the tokens to sign loan agreements with the borrower, in this case, Markethive. Once they have signed the loan agreement with Markethive, they are now the new creditors of the loan agreement and they will get the interest payments.”

Take part in the Markethive ILP

The ILP seems like a much more secure approach to fundraising while keeping the ease of raising funds like the ICO. Markethive is a first test case of this new funding method. It is currently in pre-launch and you can register for it here – https://markethive.io

 

Thomas Prendergast
Founder

Markethive

 

 

 

 

Thomas Prendergast

Russian Institutions to Trial Central Bank ICO Platform

Russian Institutions to Trial Central Bank ICO Platform

Two Russian financial institutions are set to test a regulatory platform

that aims to make domestic initial coin offerings (ICOs) more transparent and secure for traditional investors. Russia's National Settlement Depository (NSD) announced on Thursday that it is working with Sberbank CIB, the bank's corporate and investment banking arm, to test an ICO issuance platform launched by the Bank of Russia – the country's central bank – in April.

According to an announcement, in the testing environment, a company named Level One will launch a token sale, for which Sberbank will act as the "issuance coordinator and anchor investor." The NSD, on the other hand, will serve as the custodian, recording and settling transactions, as well as safeguarding the assets. The firms say the platform will ultimately provide transparency that would reduce risks for traditional investors in the token issuance process. It's hoped the test, along with feedback from the central bank, will help improve the platform before it can be scaled up for real-world use.

Igor Bulantsev, senior vice president of Sberbank and head of Sberbank CIB, said:

"Sberbank CIB considers the Russian ICO market to be very promising. Many Sberbank clients are interested in this type of investment, and we plan to promote this service proactively once the appropriate legislative framework comes into effect; we will be one of the drivers to institutionalize and popularize this type of transaction."

As previously reported by CoinDesk, the Bank of Russia and the Ministry of Finance have already resolved a disagreement over one draft bill covering ICOs, and the country has now slated in a summer deadline for introducing two relevant pieces of legislation. Eddie Astanin, chairman of the executive board at the NSD, said the end goal of the project is to allow "the emergence of a new type of asset for investors" and the circulation of digital assets on the secondary market.

Article Produced By
Wolfie Zhao
wolfie@coindesk.com

A member of the CoinDesk editorial team since June 2017, Wolfie writes all things about the blockchain and cryptocurrency. He studies Business and Economic Reporting at New York University, and does not currently hold value in any digital currencies or projects

https://www.coindesk.com/russian-institutions-to-trial-central-banks-ico-platform/

Thomas Prendergast

Markethive is bringing Universal Income for Entrepreneurs

  Markethive is bringing Universal Income for Entrepreneurs

Markethive is all I do. It is what I do. It is why I do everything I do. It is a mission, it is a vision and it is on the verge of rising up. Its primary mission is to build a universal income, an Income to support the entrepreneur’s effort to build their business, to build their dreams. This is our mission.

It is part of the New Revolution. It is 27 years of proven technology. It is merging with the blockchain. And this will result in a flotilla of money machines driving the basic platforms and, making an eco-centre for entrepreneurs to attain a liveable income while they build their dreams with the Markethive dream machine.

Because that is what Markethive is, it is a money machine, a dream machine a revolution for you the rank and file, the aspiring for something bigger than you are, the mom and pop who struggle to make the dream come true.

We are not launching an ICO, but we could. Come to our Sunday webinars to find out exactly what we are doing. Because what we are about to launch could make you wealthy. It is called Markethive and we plan on making huge waves with it.


At 6am (PDT);  8am (CDT); 3pm (CEST); 11pm (AEST)
https://www.timeanddate.com/time/map/

Markethive Calendar

Speaking of amazing dreamers, our special guest Andrew Grieg of Electric Universe, will be speaking about Data being the new Oil, Hemp Power and how the EU’s (Electronic Universe) Heart Transverter and Hemp makes it all possible.

We will be revealing the details of the coming Airdrop and how that can accelerate your business and literally make you a fortune.  How this all ties into Markethive bringing “Universal Income” to the entrepreneur.  How hemp power plays into Markethive building a huge flotilla of internationally sovereign money machines (hives). How all this will drive Markethive into the top ten Crypto Currencies and the number one Market (social) Network in the world (nothing wrong with big dreams)!

 


At 3pm (PDT): 5pm (CDT); 12 midnight (CEST); 11pm (AEST)
https://www.timeanddate.com/time/map/

Markethive Calendar

David Hickman is our special guest to reveal the power of Menlo Tech and his perspective of Markethive.

Our new engineering organization with over 200 engineers is run by David Hickman, a long-time friend of Doug Yates and this single factor is the tipping point for Markethive’s rise to prominence in the market. We have already addressed and updated many aspects of Markethive already. And how all the unfinished projects in Development are being completed and made ready to upgrade into Production. Buckle up brothers and sisters, because Markethve is about to take over the world (I know I know, I am a big thinker and dreamer but this is the Lord’s vision, I am just the Hive Keeper)


Doug Yates and I will also be revealing, discussing and displaying our White Paper’s headway as it is being completed, our plans, why we choose to fund via ILP instead of ICO, as well as our Infographics on the entire workings of Markethive, current systems, in development systems and proposed systems. This is going to be a big event with a lot of beautiful eye candy as well.

See you there,

Thomas Prendergast, Doug Yates and Annette Schwindt
Founders
Markethive.com

Access the conference via the Markethive Back office calendar, via Aboutco.in or via this link
https://www.ivocalize.net/#room/CryptoHive

Thomas Prendergast

Look No More: 3 ICOs to Watch in Q2 2018

Look No More:
3 ICOs to Watch in Q2 2018

The explosion in ICO projects has made choosing

which ones to participate in a very complicated task, and the competition between them extremely fierce. Back in 2015, the Lisk founders raised 14,000 bitcoin with a team of just 2 people! Doing that today seems impossible: teams are paying thousands just to get famous industry advisors, and all the noise while very little fundamental substance exists. Furthermore, it’s thought that perhaps 75% of projects offering token sales have ideas that are too convoluted to ever become tangible or real. Nor would their teams have the ability or means to implement such ideas into real-world use realistically either. To help you out in this mess, here are a few ICOs that are raising their heads above the rest, and likely to deliver spectacular gains in 2018.

GoNetwork

This project could be a total game changer. The team is tackling one of the most crucial and interesting problems in the industry: scaling the Ethereum platform. Despite not having a background in crypto, the team won the ETHWaterloo, the World’s Largest Ethereum Hackathon, a 36-hour event where participants worked alongside founders Vitalik Buterin and Joseph Lubin.

Essentially, the GoNetwork is a fast, low-cost and scalable network that connects the Ethereum blockchain to other mobile, desktop and web platforms. It will be mobile-focused and uses a technology called state channels to minimize on-chain transactions by accumulating transactions off-chain before any output is given. This solution is particularly favorable to mobile, due to architecture and programming language, where the majority of internet traffic is taking place nowadays.

Now here is the deal: on top of this solution, the developers will build a decentralized marketplace for games and digital goods. Given that the CEO, Rashid Kahn, is also the founder of one of Canada’s largest game studios, their track record in this market works in their favor. If they use their scalable, mobile Ethereum network to create some real-world adoption, the possibilities are huge! ICO is open to accredited investors only and more info can be found at GoNetwork.co.

Neon Exchange

Despite the evolution of crypto in the last few years, it is still an industry in its infancy. A key part of it becoming mature is developing fully functional, state of the art decentralized exchanges to replace the centralized, non-secure gatekeepers that exist nowadays. There are many contenders for this position, but we would like to highlight one that is keeping out of the media spotlight while developing a very interesting solution.

NEX is cryptographic trade and payment service platform built on the NEO blockchain. It will offer a technical off chain matching verification for trading and will allow more complex trading such as limit orders, something that existing DEX’s cannot do. Another interesting idea is the development of a Chrome extension that will act as a wallet and still be connected to the exchange, effectively making it a Metamask for all NEP-5 tokens.

In general, the project has extremely solid foundations: the team is chocked full of talented programmers with a track record, who have literally not even opened a Telegram account in order to stay focused on delivering. The roadmap is very comprehensive and includes every detail needed in such a grand vision, including entry points for fiat purchases of NEP-5 tokens. What is most interesting, however, is the role such a project will play in the development of the NEO Smart Economy, the amazing vision that sets NEO apart from the rest of the industry. It’s no surprise that NEO founders and core developers, Da Hongfei and Erik Zhang, both sit on the advisory board.

OptiToken

One of the most interesting projects in terms of possible ROI versus complexity is Optitoken, which has just recently come into the spotlight. It is the first ever actual hyper-deflationary currency, whose value is supported by an automated portfolio that uses professional trading techniques, AI, and machine learning. The portfolio will be bought with funds from their ICO, giving it serious value early on.

Their CEO Sean Donato is an old-school crypto trader and who was also one of the founders of BitHalo which was an early pioneer start-up in crypto and of which is a free software still active and available for smart contracting. His strategies tweaked in depth by the team are being coded into the “OptiX” which is an algorithmic swing trading engine. The project has a transparent portfolio demonstrating OptiX live on their website OptiToken.io which serves an MVP as it’s been active and also managed to outpace Bitcoin since November of 2017.

The gains made by the algorithmic trading will be used in part to buy back their own tokens on exchanges, creating constant upward price pressure and nurturing a market that has very strong buy support this is the function that seeks to massively drive the currencies value upwards continually. The rest of profits from buy cycles is reinvested to grow the initial holdings. OptiToken Interestingly also solves a common problem of new ICO’s, that can’t find any volume early on. CEO Sean Donato said, “Trading is perhaps 90% psychology and so often times people find themselves following trends after the fact as opposed to using solid fundamentals and then selling overbought and buying oversold based on traditional price fluctuations of the asset or perhaps  RSI’s.” After the buybacks, 100% of the tokens purchased are sent to a transparent and verified unspendable address and thus destroyed forever in order to create value through scarcity. This combination is very innovative in the space and should attract serious organic buys on exchanges to partake in the price action.

What is great about this project is that can be immediately profitable. The technology is relatively straightforward to build, as the team is not promising a perhaps working product for a fantastic idea in Q3 of 2019 AKA “vaporware”. Rather, the product, already in Beta, will be in alpha in a few months, trading the proceeds from the ICO, and will hit exchanges just before or after this time frame according to projection. The ICO is open to Non-US and Non-China citizens now at OptiToken.io and is filling up fast.

Article Produced By
Guest Author for NEWSBTC

https://www.newsbtc.com/2018/05/23/look-no-3-icos-watch-q2-2018/

Thomas Prendergast

Justin Sun Has A Tron (TRX) Airdrop For You

Justin Sun Has A Tron (TRX)
Airdrop For You

MainNet that is now 7 days and 13 hours away, Justin Sun is gifting the TRX community what he calls ‘Millions of TRX Candies’. These candies are in the form of TRX airdrops received for inviting friends to the Tron Telegram Channel. The Airdrop is currently ongoing and all you have to do is follow the link provided and enter your corresponding ETH wallet address. The announcement looks legitimate in that Justin Sun announced it himself on twitter, and the TRX team on Telegram, also confirmed his statements.

Justin had this to say via twitter:

$TRX #TRON mainnet will be launched soon, we prepared millions of #TRX candies, join us to get #TRX candies, you can also get more by inviting friends, the airdrop will be ended at 12:00 AM June, 1, if candies were given out, it will be ended in advance.

 

The Tron Telegram channel also echoed his statements:

 

$TRX #TRON mainnet will be launched soon, we prepared millions of #TRX candies, join us https://tron.network/activity/d8c1d4aa43e12e39?lang=en to get TRX candies, you can also get more by inviting friends, the airdrop will be ended on 12:00 AM June, 1, if candies were given out, it will be ended in advance.

The link to the airdrop states that you get 2 TRX the first time, and get an additional 4 TRX when you invite a friend to join the Telegram group. The Airdrop ends on the 1st of June. However, and due to regulatory issues, the airdrop is not available for participants from China, USA, New Zealand, Canada, South Korea and OFAC sanctioned countries.

TRX has also not been spared by the current market decline that has seen some of our favorite coins decrease by the double digits. TRX is hanging onto the number 9 spot on coinmarketcap.com and is currently trading at $0.0718 at the moment of writing this. The token is down 10% in 24 hours and currently has a market capitalization lead over IOTA that is equivalent to $455 Million. These two cryptocurrencies have been competing for the number 9 position for the past few weeks and constantly switching between the #9 and #10 slots.

Article Produced By
John P. Njui
A Crypto Enthusiast. Terrible dancer. Former DJ. Amateur Marathoner. Electrical Engineer. Kool kat.

https://ethereumworldnews.com/justin-sun-has-a-tron-trx-airdrop-for-you/

Thomas Prendergast

Move ‘Em Out: ICOs Don’t Seem So Scary Outside the US

Move 'Em Out:
ICOs Don't Seem So Scary
Outside the US

ICO issuers are starting to look to jurisdictions outside the U.S. to set up shop.

In an environment of regulatory uncertainty, where the U.S. Securities and Exchange Commission (SEC) has begun investigating ICOs and the industry surrounding the capital raising technology but has yet to make a formal decision of how it will regulate crypto tokens, issuers and other stakeholders are finding other jurisdictions a better bet for launching their projects.

And no other place during Blockchain Week was the topic hotter than at Token Summit III (the original event took place a year ago) on May 27 in New York City. Both on stage and off, startup founders, attorneys and investors had strong opinions about how far to go in an environment where enforcement agencies know how easy the market boom for the tokens makes it for malicious actors to spin up a fake company and bilk millions of dollars out of unwitting buyers.

That boom packed venues in New York City throughout Blockchain Week. "The reason there's a thousand people here, it's not blockchain technology," Jason Fang of Sora Ventures told CoinDesk, saying he's been going to blockchain events for years and it was all the same faces until the initial coin offering (ICO) boom. "The difference is money. The difference is speculation."

But not everyone felt that hype meant rushing headlong would be the right approach. For instance, Paypal's original chief operating officer and now an investor in Craft Ventures, which incubated and backed the security token platform Harbor, David Sacks spoke to how getting compliance right led cryptocurrency exchange Coinbase to be "the first really successful company in the space."

He wasn't the only one. Throughout the day, different speakers returned to the question of regulation, and from the stage it began to become clear that the rest of the world isn't nearly as complicated as the U.S. This is perhaps unsurprising – as the world's biggest economy it also has the most rules. Regulators in the U.S. would much rather err on the side of caution, even if that means curtailing some of the excitement. Laws in the U.S. are based around the Roaring '20s, which led to the Great Depression, Lowell Ness of Perkins Coie explained during a panel on regulation,

saying:

"Literally the securities law is intended to exclude the moms and pops from too risky investment."

But other parts of the world take a more open-minded, if not lax, approach and that's luring some ICO issuers overseas.

'ICO tourism'

For instance, representatives from Switzerland, Lichtenstein and Gibraltar spoke to the crowd, both assuring listeners that their nations took an extremely responsible approach without quite the aggressive fretting of U.S. rule-makers.

Speaking for his home country of Switzerland, Andreas Glarner of MME said:

"It's not our task as a regulator to tell people which way they want to lose their money."

Yet judging investments is one thing and willfully manipulating people is another. He added, "If the project is fraudulent we're going to prosecute it." Representatives from Lichtenstein argued that the small country has a large enough regulatory staff to work with companies it hosts and help them build businesses that are still within its regulatory framework. Meanwhile, representatives from Gibraltar said that its regulators have done the work to build rules from the ground up that specifically fit the new world of cryptocurrency and blockchain.

Meanwhile, attorneys in the U.S. sound frustrated, but hopeful. Several who have been working with the SEC spoke on a panel about where the country is at in terms of defining rules for the industry. "What we're doing primarily is educating the SEC on what blockchain is," Nancy Wojtas, a former SEC staffer now with Cooley LLP, said. "I think there was just a misunderstanding by them to what cryptocurrency is all about. They hear 'cryptocurrency' and they think 'fraud.'"

Ness from Perkins Coie was more hopeful, forecasting forthcoming clarity. "Now we have a position where there's going to be bright lines," he said. "Full functionality [of a platform] is a very hard bright line to draw. Full decentralization is a bit easier." Bloq's Matthew Roszak has also been working through Token Alliance, a Washington DC-based initiative of the Chamber of Digital Commerce, to guide the SEC so that they make decisions that will allow the technology to thrive in the States.

"The last thing I want to do is spend time with regulators, three-letter agencies. I want to build, invest and innovate," he said, noting that he's doing it, though, because he believes it's important. Wojtas cut through the optimism, again though, stating that entrepreneurs in the space will likely have an uphill battle for some time.

She said:

"Being involved in an investigation is like living in hell without dying."

She continued, warning founders about the price of hiring attorneys to answer questions and respond to regulator requests, "You will be spending between $100,000 and $300,000 per month." As such, Sebastian Bürgel of Switzerland's Validity Labs said of companies visiting countries trying to figure out where to domicile

(even if its staff doesn't actually work from the country):

"I see what I would call ICO tourism."

Startups' thoughts

At Token Summit III, the room was filled with about two-thirds startups and one-third investors. The startups, including those domiciled in places like Hong Kong and Singapore – attractive places after China's central bank banned crypto token sales – spoke to how they viewed the regulatory environment throughout the world.

Lea Bauer, director of operations at Centrifuge, a startup building a decentralized enterprise resource planning platform, told CoinDesk that her firm is talking to lots of lawyers in the U.S. or Europe before it decides where to land. Centrifuge envisions a token for services on the platform. And while it wants to execute a good legal plan, it won't wait for absolute certainty.

Bauer explained:

"If we wait too long, that gives us complications on the product side, whereas if we move too early that gives us trouble on the legal side."

Kain Warwick, with the Australia-based stablecoin project, Havven, told CoinDesk, "I genuinely don't believe the regulators want to impede what's happening." But he also added that risk in his home country "is far less than it is from the SEC," he said. While geographies seemed a main concern for many ICO issuers, it isn't the only kind of distance that could lower risk. Time could also serve an issuer. Founder of crypto loanmaking platform, ETHLend, Stani Kulechov, told CoinDesk that it did its sale last fall. "Back then, when we did the ICO, the regulatory uncertainty was pretty vague," he said.

However, his company is based in Switzerland, where the rules are clear enough that the company isn't concerned. Additionally, the fact that it had a working app before doing any fundraising adds to Kulechov's confidence. Just to be sure, though, "We don't accept US customers," he said. Jae Kwon of Cosmos said similar things of stage, telling the crowd he's glad the company did its token fundraiser before all the ICO hype started. "There's too much money piling in," he said. And if you bring in too much money, "they can always sue you, especially in the United States."

Leonard Frankel, CEO of ClanPlay, an existing gaming company, which is building the Good Game token, in order for gamers to earn money for playing, has a very complicated plan to get both the tax and legal structures he desires. An Israeli company, Frankel plans to actually launch his tokens out of Gibraltar but then transfer them to Israel and sell them from his home country, so that the company will pay its taxes there.

Erik Buschbaum, CMO of Rlay, a protocol to validate information, said his company is based in Berlin but domiciled in Gibraltar, which works for them by and large. Still, he said, "We have investors right now, Kryptonite1, and they advised us not to do a public sale because of regulatory risk." All this said, it's clear the ICO industry is reeling somewhat from both the unclear guidelines throughout the world and the thought that regulators could create rules that make their businesses illegal at some point. Speaking to the fear many have of U.S. regulators, MME's

Thomas Linder said:

"The U.S. needs to learn that in a globalized, decentralized economy, they are not the center of the universe anymore."

Article Produced By
Brady Dale
Brady Dale is a reporter who has previously written for Fortune, Technical.ly Brooklyn, Next City and Motherboard, among others. He grew up in Kansas and lives in Brooklyn.

https://www.coindesk.com/move-em-icos-dont-seem-scary-outside-us/

Thomas Prendergast

The Seven Pillars of ICO Investing

The Seven Pillars of ICO Investing

The number of initial coin offerings (ICOs) is growing rapidly,

having raised an astounding $5.6 billion in 2017 alone. More outrageous is that, by most estimates, over half of the ICOs launched in 2017 have already failed. In addition to the hundreds of ICOs being launched every month, our management company Crypto Asset Management (CAM), also receives around a dozen emails per day from new companies planning on launching crypto tokens to raise capital. CAM, through the various funds and share classes it manages, invests in less than one out of every 100 ICOs that comes across its desk.

Out of absolute necessity, we have developed an analytical framework for ICOs, which CAM applies to every such opportunity it evaluates. In this article we explain what we call The Seven Pillars Of ICO Investing™, which we've rigorously crafted over several years of investing in crypto and other assets.

Pillar #1: Team

The critical element which we are searching for is an experienced team, ideally with a strong track record in developing and launching blockchain technology. In addition, the team should have experience in the market it is targeting. A team that is not only competent, but capable of developing, completing and/or expanding the project is paramount to its success.

A couple of additional issues to consider are:

  • Does the team have a vesting token schedule that will properly incentivize it?
  • Do the advisors have the right experience and are they actively engaged?
  • Does the project have any notable financial backers? (VCs, other hedge funds, etc.)

Pillar #2: Idea

Without a compelling, realistic and timely idea for a blockchain-based enterprise, the investment will almost certainly fail.

A few of the key things we look for are:

  • Total addressable market:
    How large is the opportunity? We want as large of a market as possible (See: ethereum, filecoin).
  • Product-market fit:
    Does the business address an urgent problem? (0x, ChainLink)
  • Unique value proposition:
    What facets of the technology enable it to stand out from the competition? How much competition is there (Wax)? Ideally, the token has proprietary technology, and as little competition as possible (Orchid Protocol).

There is clearly an interrelationship between Pillars 1 and 2. However, if we had to choose between them, we would clearly rather invest in an "A" team working on a "B" idea than a "B" team working on an "A" idea. A talented group of people are the lifeblood of any business, and crypto is no different.

Pillar #3: Execution

In the cut-throat business world we live in, the only thing that matters is results. A brilliant idea and great team are nice, but execution is everything. Is there a working prototype or does your idea only exist in a nebulously written white paper? We prefer to invest in a product that already exists to some degree (Presearch, Basic Attention Token, Superbloom, FunFair), whether in the crypto space or analogously in the fiat space (Wax). Finally, we look for some sort of proof that the company will be able to hit future milestones.

Pillar #4: Legal/Regulatory

This pillar is essential given the current and growing regulatory uncertainty in the industry. Almost every week, there is news of a governmental agency in one country or another taking regulatory action or making a new statement around ICO governance. Of course, almost as often, there is news of a different country considering crypto-favorable legislation. Comprehensive regulation in many marketplaces is on the horizon and it is imperative to ensure that ICOs vigilantly navigate the landscape to the best of their abilities.

The threshold issue is jurisdiction: in what country is or will the ICO company be incorporated and the ICO executed? This determines the rules that will apply to the company's actions and the ICO. Depending on the approach taken, we may apply the somewhat arcane rules of the Howey test (in the US or if US investors are targeted or allowed to invest), KYC/AML principles (which are essentially universal) and applicable securities law.

Pillar #5: Tokenization

A significant number of the ICOs we analyze do not actually need the blockchain, tokenization or a public sale of their tokens to be successful. When this is an issue, it is usually the last – public sale – which is not necessary. (NASDAQ's settlement system is an excellent example of where tokenization is a brilliant idea but a public market would be superfluous, or even counterproductive.) Also, they are sometimes glorified apps that could be built without creating a specific token, despite how much "utility" the founders may claim their token provides.

With the enormous amount of value exchanging hands over the blockchain and the prospect of getting "free" money without giving up any equity, it's not hard to imagine why many industrious entrepreneurs try to identify any possible reason to launch an ICO. That being said, one of the crucial things that every investment we make must have is a legitimate reason for "tokenizing" their business, and for creating a public market for that token (OmiseGo, Icon, Raiden Network, Cosmos).

Pillar #6: ICO Structure

Similar to traditional venture capital investing, the financial underpinnings of the deal ultimately determine the decision to invest. The characteristics of an ICO can have important implications on the expected upside of the token.

This can be split out into two categories – ICO mechanics and ICO deal structure.

  • ICO Mechanics
    Historically, ICOs with a lower hard cap tend to outperform ICOs with massive hard caps. While it is important that the parent companies be well funded and have sufficient runway to work with, ICOs need to have a convincing plan for use of proceeds as the potential upside decreases in proportion to the amount raised. The precise metric here is valuation of the token economy – a derivation of the hard cap. Both the valuation in light of circulating tokens at launch and the valuation upon release of all tokens are factors that we consider.
  • ICO Deal Structure –
    The deal should be structured in a way so that investors are not at a disadvantageous position to the market.These are a few of our considerations:

    • Distribution: 
      The team should have a compelling structure for the distribution of tokens, fair allocation among team/advisors and investors, programs for market uptake, etc.
    • Distribution Schedule:
      Given the fast-moving pace of the crypto market, the distribution schedule should not massively favor specific parties. While long distribution periods can be considered acceptable for high-potential ICOs, individual liquidity preferences should be considered.
    • Discounts:
      Discounts are ubiquitous in the ICO environment, so examining the discount levels given to different tranches allows investors to understand where they stand in relation to other stakeholders.
    • Equity Stakes:
      At Crypto Asset Management, we like to be part of the growth of the company and investing directly into the equity of a company allows us to play a greater role in that development. In the world of token sales and short-term liquidity, people often forget that the value proposition of a company can be just as great or even greater than the token ecosystem it is developing.

Pillar #7: Price Drivers

Even if we believe a team is able to create a great product that incorporates a token with an imperative use case, this does not necessarily mean that we will want to hold the token or invest in the ICO. A token must additionally have a mechanism to drive price appreciation.

A token with constant supply without any incentive to hold, will not be subject to buying pressure which significantly outweighs selling pressure over the long run (Votes). This is underpinned by the concept of price risk, in which individuals will lean towards reducing their exposure to price volatility in favor of fiat or a form of stable currency.

A few of the price drivers we look for include:

  • Network Volume:
    In almost every instance the value of a token increases as the number of transactions on the blockchain increases (bitcoin, ethereum). This is one of the most basic, yet influential, indicators of demand, and is also the reason we invest primarily in protocols rather than dapps.
  • Market Leadership:
    We look to invest only in tokens that are clear market leaders, or have the potential to be in the near future. Usually, these tokens have a distinct and growing unique advantage over their competition (Practical VR).
  • Incentives to Hold:
    There is a clear reason why a user would rather hold than spend the token, which can be related specifically to speculated price increases or other non-monetary rewards (Presearch, PROPS). We won't invest in a token that's only purpose is a medium of exchange.
  • Supply Changes:
     This can include limiting inflation, meaning the token supply does not dilute the value of all tokens over time, or token burning, where the supply of tokens in the system decreases over time (Binance Coin, Iconomi).
  • Profit Sharing:
    Part of the value that is extracted from the system is given back to the token holders (Augur, NEO, Neon Exchange, Ethorse).
  • Staking:
    Having users of a network to lock up their tokens either for network consensus or as a requirement in certain processes. (Bee Network, Open Platform, NuCypher, Video Coin).
  • Sufficient Liquidity:
    If the project isn't proactive about getting listed on multiple exchanges, preferably top-tier exchanges, we will likely not make an investment.

Please note that, as a general rule, we are not in favor of asset-backed tokens as an investment vehicle at this time. There are no real drivers of price formation after an initial, relatively small boost for convenience (Sandcoin, OneGram) and the opportunity cost is consequently too high (there are far greater returns elsewhere). Importantly, the effect of implementing strong incentives to hold is multiplicative. Not only will the price increase be driven by the inherent tokenomics design, but also by speculation directly related to the implementation of these drivers.

Despite the incredible number of fly-by-night operations in the world of ICOs, it is certain that token generation events are here to stay. Such events are completely transforming the traditional venture capital industry and, for savvy investors, are creating fortunes literally overnight. For unsophisticated or undisciplined investors, ICOs are a minefield that should probably be avoided. However, for those who perform proper due diligence, the odds increase for realizing breathtaking returns on your investments.

This article is an abbreviated summary of our process for investing in ICOs. Here at Crypto Asset Management, we've also developed more in-depth tools, such as our innovative 64-point ICO Scorecard and a more traditional Private Equity Due Diligence Checklist.

Article Produced By
Tim Enneking, Robert Brauer & Andrew Kang

Tim Enneking is managing director at Crypto Asset Management. Robert Brauer and Andrew Kang are members of the Crypto Asset Management ICO Analysis team.

https://www.coindesk.com/seven-pillars-ico-investing/

Thomas Prendergast

What are “Airdrops” in Crypto World?

What are “Airdrops” in Crypto World?

Have you ever come across the term cryptocurrency airdrop

and wondered what it meant? Well, it’s nothing like the image you probably have in your head of an airplane dropping coins from the sky. In times of war, natural disaster, or other forms of crisis where the lives of people have been affected in places that are difficult to access by land, airdrops are carried out to provide essential supplies to people trapped in those zones. In the world of cryptocurrencies, airdrops have a different meaning. The cryptocurrency world has its own unique vocabulary which is expanding as the market evolves over time. In this article, cryptocurrency airdrops will be explained in detail.

Airdrop Definition

Airdrops can be defined as the process whereby a cryptocurrency enterprise distributes cryptocurrency tokens to the wallets of some users free of charge. Airdrops are usually carried out by blockchain-based startups to bootstrap their cryptocurrency projects. Also, established blockchain-based enterprises like cryptocurrency exchange platforms and wallet services can also carry out airdrops as well.

Process Mechanism

There are basically two major types of airdrops; the ones that come as a surprise and the ones that are announced beforehand. For already established blockchain-based enterprises, they may choose to go the route of the former rather than the latter. Getting to know about it might depend on how involved one is in the crypto community. These are the types of airdrops that occur and have people commenting on online forums that their wallets have been credited with coins and no one is the wiser as to where the coins came from.

For blockchain-based startups, they mostly favor the route that involves pre-airdrop announcements to get the buzz going. Since the aim is mostly to bootstrap the project, the airdrop process usually involves the completion of a number of tasks by the user in order to qualify for the airdrop. When the date of the airdrop arrives, the enterprise will release the free tokens to the users who qualify.

Reasons for Carrying Out an Airdrop

From creating hype and buzz around a new blockchain-based enterprise to rewarding loyal customers, there are a number of reasons why a cryptocurrency airdrop is carried out. The following are some of the reasons for carrying out a cryptocurrency airdrop.

As a Reward for Loyal Customers

From time to time, blockchain-based services like cryptocurrency exchange and trading platforms, wallet service providers etc. wish to give back to their customers and subscribers. Airdrops can be used as a means of rewarding loyal customers with free cryptocurrency tokens. This serves as an incentive that can assure continued patronage on such platforms. This type of airdrop mirrors the voucher and discount giveaways of non-blockchain companies in the mainstream commercial world.

In 2017, the cryptocurrency exchange platform, Binance, carried out an airdrop of 500 TRX cryptocurrency to account holders on the platform. The airdrop lasted from the end of October 2017 to the middle of November 2017. In order to qualify for the airdrop an account holder needed to have at least 0.003 BTC in addition to having completed at least one transaction on the account. Binance account holders who had the equivalent of 0.003 BTC in other cryptocurrencies were also eligible for the airdrop as long as they fulfilled the transaction requirement.

To Generate Lead Database

Marketing is all about leads. Organizations tend to pay a lot of attention to generating appropriate leads that will drive their marketing campaigns and increase patronage. Airdrops can be used by blockchain-based enterprises to generate valuable lead databases for their organizations. In exchange for free cryptocurrency tokens, users will be asked to complete online forms that contain valuable user information which can be used to develop targeted marketing strategies. This application of airdrops to generating lead databases can even be utilized by none-blockchain enterprises.

To Create Awareness About a New Cryptocurrency

With the sheer size of the cryptocurrency market, a new cryptocurrency can go completely unnoticed if it isn’t given the right boost in terms of substantial marketing campaigns. Just like every other aspect of the digital world, hype and buzz play an important role in the cryptocurrency ecosystem. With many cryptocurrency enthusiasts looking for new cryptocurrency options, an airdrop is a great way to get people interested in a cryptocurrency.

The marketing campaigns on social media for an airdrop can lead to increased attention being paid to a new cryptocurrency. Word of mouth advertising and other forms of organic engagements brought about by an impending cryptocurrency airdrop can lead to increased user participation in the cryptocurrency. This can help to bootstrap a new cryptocurrency as seen in the case of Bitcoin Cash. After the Bitcoin fork that led to the creation of the Bitcoin Cash, the developers of Bitcoin Cash carried out an airdrop rewarding all of its users. For every bitcoin held by a Bitcoin Cash participant, the developers gave a corresponding amount of Bitcoin Cash. The end result was that in less than one month, Bitcoin Cash was among one of the top 10 cryptocurrencies in the market.

How to Get Involved in Airdrops

Getting involved in airdrops requires access to information and the ownership of a cryptocurrency wallet to receive the free coins. The first step is to sign up for online services that provide timely information about cryptocurrency airdrops. These include websites, Twitter accounts, Telegram groups, as well as online cryptocurrency airdrop forums. Some examples of such online services include Airdropaddict and Icodrops. These services provide vital information that will help users stay informed about upcoming cryptocurrency airdrops. They also provide information on the qualifying criteria for participating in the airdrops.FundYourselfNow also has an ongoing Airdrop Program.

Getting a cryptocurrency wallet is an essential part of being in the cryptocurrency market and that applies for airdrops as well. It is a good idea to get an ERC20 compatible multicurrency wallet since the majority of the cryptocurrency tokens in the market are ERC20 tokens. When participating in airdrops, it is important to be security conscious so as to not fall a victim of fraudulent airdrop campaigns. Some airdrops are designed to hack wallets and steal private keys. Always confirm the authenticity of a cryptocurrency airdrop campaign before participating in it.

Article Produced By
The Mission

https://medium.com/the-mission/what-are-airdrops-in-crypto-world-a345725c75e0

Thomas Prendergast

What Needs to Be Done With the Elephant in the ICO Room?

What Needs to Be Done With the Elephant in the ICO Room?

There is an elephant in the room

and that room is the current ICO market. The elephant is the unignorable fact that the majority of ICOs offer no protection to their token buyers who consider themselves as investors.
These buyers are not investors.

Here’s why.

In 2017, initial coin offerings, or ICOs, emerged into the big time. Over the course of the year, startups conducting an ICO as a way of raising startup capital raised over $6.5 billion. Since then, many ICOs have issued utility tokens under the guise of security tokens, and they have raised millions of dollars by promising their holders huge returns and part of their income. In reality, they may not able to deliver on these promises.

The difference between a utility token and a security token was explained by Laimonas Noreika, the CEO of DESICO, the world’s first fully legal security token platform: “if Google were to have launched an ICO to raise capital by selling utility tokens, then Google utility token holders would now receive free Google ads in exchange for their tokens. Were Google to have issued security tokens, then Google security token holders would now be eligible to revenue share of the company.”

A security token is an investment and a financial product. It is a token that gives its holder ownership of a real asset, which can range from tokenized commodities and tokenized real estate, to tokenized funds. Meanwhile, a utility token simply provides access to a platform or product, and unlike a security token, it is not an investment and does not provide its holder with any rights.

Due to the different characteristics of security tokens and utility tokens, plus the lack of legal regulation, this has led to the ICO industry being shrouded in mystery. In mid-2017, this perception surrounding the credibility of ICOs led to the U.S. Securities and Exchange Commission, the SEC, cracking down on security ICOs and making them “subject to the requirements of the federal securities law.”

“The ICO industry is in desperate need for the correct legal frameworks and infrastructure to issue security tokens,” Noreika continued. “This is because finance experts predict that 2018 will be the year when security tokens begin to outstrip utility tokens, since more capital is expected to flow into the security crypto asset class. By the first quarter of 2019, it is estimated that ICOs issuing security tokens will outnumber those issuing utility tokens.” Empowered by the belief that security tokens are the future of a global tokenized economy, the DESICO team will introduce the world’s first fully legally compliant, and therefore game-changing, infrastructure to issue and trade security tokens.

DESICO’s full legal compliance is rooted in its country of operation. DESICO has chosen to operate from Lithuania, a Eurozone member and European Union member state. Lithuania holds a significant legal advantage due to its crowdfunding law, which makes it one of the few countries in the world, and the only EU country, to fully legally regulate ICOs. According to a recent report by Tokendata, Lithuania ranks third in the world behind the only the United States and China in terms of capital raised through ICOs in 2018. Furthermore, 2018 has seen startups from Lithuania successfully raise $249 million so far.

DESICO is a concrete example of Lithuania’s open attitude towards globally-operating blockchain companies. It has received support from the government backed business development agency, Enterprise Lithuania, as well as the country’s Ministry of Finance, with finance minister, Mr. Vilius Šapoka, praising DESICO for its encouragement in developing “Lithuania’s fintech and blockchain communities by promoting the settlement of global blockchain and fintech businesses in Lithuania.”

With its infrastructure to issue, buy, and sell security tokens in full compliance with the law, its internationally-experienced team of advisors and employees, plus its backing from the government of an EU member state, DESICO will not just eliminate the elephant in the room of ICOs. It will set new standards for the global ICO industry. Welcome to DESICO. Welcome to the world of security tokens.

Article Produced By

https://www.newsbtc.com/2018/05/18/what-needs-to-be-done-with-the-elephant-in-the-ico-room/

Thomas Prendergast

What is airdrop coin? Don’t miss a single coin airdrop!

What is airdrop coin? Don’t miss a single coin airdrop!

What is a crypto airdrop? What is airdrop coin?

First of all, let’s focus on the airdrop cryptocurrency meaning. What does airdrop mean? Maybe you’re a newbie in the crypto world. And it’s better to know what you’re dealing with… So, a crypto airdrop, coin airdrop or cryptocurrency airdrop, is a limited time event created by coin projects to promote their crypto-currencies. How? By distributing tokens or coins to early adopters, for free. In other terms, projects airdrop coin. While there aren’t many requirements to get free airdrop coins 2018, you may have to work a little (create a post, like a page etc.). Or even to share some personal information (share your Facebook profile or give access to your contact list).

Also you may need to be active in the crypto-community. Indeed, some crypto-airdrops are restricted and noobs can’t get in… In addition, you may require some coins from a specified blockchain in your wallet. Most likely bitcoin or ethereum, because they’re the most popular out there. But a free coin airdrop can be done on any blockchain. And this brings me to the best part: You can receive free coins anytime, without even knowing about it! Indeed, some platforms give away tokens to people holding some of their coins, just like that. Therefore, I’d recommend you to hold a little bit of the most popular coins in your portfolio. And enjoy as many freebies as possible! Also, don’t worry too much about the requirements now. Because I’m not only offering an airdrop tracker, with a list of airdrops. But I’ll also explain how to get free tokens for all upcoming airdrops!

Why do people give away free coins via airdrop cryptocurrency?

Now you know what is airdrop coin. But why would projects give away free cryptocurrency? A coinairdrop is a win-win situation: On one hand, you get free tokens which could worth something in the future. And on the other hand, blockchain projects raise awareness for their crypto-projects. Because it’s free advertising for them, giving away tokens that are worth next to nothing. And that way, they’re able to create a community around their coin. Indeed, if you give someone a coin, he or she’ll likely get involved, to get some money out of it.

Also, giving away some tokens cause the new currency to appreciate. Because if you have a token, you’re inclined to give it more value than if you hadn’t heard of it. Furthermore, it’s a mean to create a customer database for a cheap price. And I don’t need to remind you the saying: If you’re not paying for it, you’re the product! Because these projects collect all the data they can in exchange of a few worthless tokens…

Finally, it seems there’s a new trend of digital currencies which don’t require mining coins. And this is an interesting concept, when we see how much energy and computer power is needed to mine bitcoins. So users don’t mine coins, they generate them during a Token Generation Event (TGE). And sometimes projects distribute all their tokens during a crypto airdrop campaign!

Coin airdrop: How does an airdrop cryptocurrency work?

Coin-airdrops are a brand new method to distribute free tokens in the cryptocurrency community. As a result, there isn’t any standard set of rules yet. And each blockchain team can request whatever they want from their backers. But always beware of scammers! Legit coin airdrops will never require you to share your private keys. And if you find one that does, please report it to the community. Because unscrupulous people are definitely behind it. While I’ll give you as much details as possible for each coin airdrop, you may have to get in touch with the developer directly.

If you need specific coins during a cryptocurrency airdrop, the dev team will make a photo of the corresponding blockchain. And only the people holding the crypto-currency in their wallet at that time will be able to get the free tokens. While you may get the tokens automatically, you may also be requested to claim airdrop tokens on the project’s website. If the free coin airdrop is linked to a social media network, you’ll have to share or retweet a post with a link of the project. And you may need a certain amount of followers to be eligible… Also, some teams request an access to your contact details and list of friends!

I received airdropped coins: What next?

You’re all excited because you got some free coins. But what now? Are you a millionaire yet? Not really… And after a coin airdrop, there’s nothing much to do. Because nobody has heard of the new crypto-currency… And it’s not even available in any exchange, yet. While you can exchange coins with other early adopters, your solutions are too limited. And despite the value the project announces, it’s really worth nothing.

But don’t despair yet. Because it becomes interesting when the new crypto arrives in the exchanges. And that’s when you know the real price of what you received. However, most backers usually want to sell their coins, to get “real” money. So the price may not be up to your expectations… Anyway, you don’t have to sell your free crypto coins, you can hold them for a later use.

How to keep your new free coins safe?

First of all, you need a wallet, to be able to receive, hold and send the newly minted crypto. While you can find many web-based wallets, a.k.a. hot wallets, I recommend you to use a hardware wallet. Trezor is the original and most secure cold wallet. And it’s compatible with most airdrop free tokens! And you must keep secret your private keys to your coins & tokens. Otherwise they’re not yours. Period. While you can share your crypto address, you must never share your private key! If you do, you can say goodbye to your coins. Finally, remember that this is your best airdrop alert website! So don’t forget to register to my newsletter, or to subscribe to my Telegram channel, my Facebook page or my Twitter account. And you won’t miss a single airdrop crypto!

Article Produced By
CoinAirdrops.com

https://coinairdrops.com/

Thomas Prendergast