Markethive Gearing Up To Launch Its ICO With A Difference

And It's Not an IEO, Not a STO, Not an IDO

Continuing from our previous article, the allure of Initial Coin Offerings (ICOs) has diminished in recent years. An ICO is a process in which a cryptocurrency startup endeavors to generate interest in its digital currency project by promoting it on its website. This was a new phenomenon in crypto and financial markets in general, allowing individuals to purchase the newly created crypto token directly from the company behind the project. 

No restrictions or regulations were involved, and speculation rather than substantial foundations drove the majority of ICOs. Much of the hype surrounding ICOs attracted casual investors who hoped to achieve significant financial gains despite these projects often being based solely on concepts.

Numerous ICOs faced issues with regulatory entities as their tokens were classified as securities rather than utility tokens, resulting in multiple cryptocurrency companies being required to pay fines and reimburse investors. In the United States, the Securities and Exchange Commission (SEC) has struggled to establish a legal definition for tokens in cryptocurrency since the emergence of Bitcoin.

While ICOs were initially created to generate funds in a space without regulations, many deceitful ICOs were launched to exploit unsuspecting investors. By the end of 2017, China enforced a ban on ICOs, causing the cryptocurrency industry to search for alternative methods to finance emerging enterprises. This article will explore the various alternatives for ICOs and delve into the plans for Markethive's utility token, Hivecoin, in the coming year.

Source: Binance Square

Initial Exchange Offering (IEO)

Initial Exchange Offerings (IEOs) are fundraising events for crypto start-ups to raise funds through a trading platform. They occur on a crypto exchange for the company launching new tokens. One advantage is that investors may have greater trust as they witness a crypto token sale on a reputable crypto exchange, which enhances the project's credibility.

To raise funds on the exchange, start-ups must pay a fee and give a percentage of the tokens they sell. Once the Initial Exchange Offering (IEO) is finished, the tokens are listed on the exchange, which increases the company's visibility to potential investors. Unlike Initial Coin Offerings (ICOs), where contributions are sent directly to smart contracts, participants in an IEO send their contributions through the hosting platform.

IEOs have gained traction among major cryptocurrency exchanges. Binance Launchpad was among the initial platforms to introduce IEOs in the market, leading to other exchanges quickly adopting the same approach. The primary benefit of these offerings is the enhanced transparency and trust they provide. Since a reputable cryptocurrency exchange carries out the token sale, the risk of fraudulent activities and scams is considerably lower than ICOs. Reputable platforms conduct thorough assessments of projects before making them available to users.

There is a contention that IEOs do not offer higher security compared to ICOs. In the worst case, they can be seen as centralized authorities that control the types of projects that emerge. Furthermore, projects must pay to be included on a centralized exchange, limiting the opportunity to be featured to moderately established projects, not just concepts. Additionally, they may be required to sign agreements restricting them from listing tokens on competing exchanges.

Source: Tokenminds

Security Token Offering (STO)

STOs, or Security Token Offerings, are a relatively new way of raising funds using blockchain and cryptocurrency. They provide an alternative to typical equity investment and are among the most exciting emerging trends in cryptocurrency. Security tokens serve as virtual representations of ownership in various entities such as companies, financial products, investments, securities, and commodities, granting individuals ownership rights in the underlying value of these assets.

The challenges and constraints of obtaining funding from conventional sources have led to the popularity of alternative methods, such as STOs, for sourcing capital. STOs fully comply with laws and regulations, providing a secure means for companies to secure funding. They serve as a platform for start-ups, established businesses, and traditional institutions to raise funds by issuing digital tokens.

STOs are a category of tokens that represent legal ownership of tangible assets in the real world. They provide the opportunity for individuals or entities to obtain ownership rights in digitally secure assets and symbolize ownership in valuable assets such as real estate or company shares. This contrasts the conventional Initial Public Offering (IPO) process, in which companies become listed on the stock exchange.

Instead, companies have the option to create a new enterprise or utilize an already established one with the assistance of smart contracts. These smart contracts are automated legal agreements between two parties stored on public blockchains. This minimizes the challenges encountered in transactions, including issues like fluctuating prices, fraudulent activities, and regulatory compliance complications.

Security tokens are also utilized in the practice of crypto-fractionalization, which involves securing real-world assets through the process of tokenization. Various real-world assets, including real estate, capital markets, commodities, and equity funds, can be tokenized. STOs are specifically designed to meet the regulations set forth by global regulatory bodies such as the U.S. Securities and Exchange Commission (SEC).

Source: Hackernoon

Initial DEX Offering (IDO)

An Initial DEX Offering (IDO) is a contemporary way of crowdfunding or fundraising that occurs on a decentralized exchange (DEX). Unlike previous methods, such as Initial Coin Offerings and Initial Exchange Offerings, where the sale of tokens was controlled on centralized platforms, IDOs offer a transparent platform on a DEX that enables crypto projects to issue and sell tokens to users directly.

The approach has transformed from ICOs, which were troubled by problems like fraud and inconsistencies, to more controlled formats, such as IEOs and STOs. In 2013, the first initial coin offering was held by Mastercoin Protocol, raising $500,000 worth of bitcoin (BTC). IDOs gained attention in 2019 when Raven Protocol made the announcement of the first IDO on Binance DEX.

IDOs have been improving their approaches since they were first introduced, becoming more popular because they are affordable, have fewer restrictions, and give power to individuals instead of central entities. As a result, they have significantly changed the way crypto fundraising is done. IDOs also provide a simpler and more affordable option for smaller projects to release their tokens instead of using more significant centralized exchanges. To ensure fairness, IDOs often have measures to prevent a single investor from purchasing a large quantity of tokens.

On the other hand, it is easier for projects with a questionable reputation to distribute their tokens via IDOs rather than through IEOs on regulated exchanges because there is less oversight on the projects. Moreover, IDOs bypass regulatory approval, increasing the risk of scams and fraudulent activities. Despite these risks, IDOs illustrate a promising advancement in crypto fundraising, demonstrating how the decentralized nature of the crypto ecosystem continues to evolve.

Source: Markethive

Markethive’s One-of-a-kind ICO for Hivecoin

As discussed in a previous article, many fall victim to ICOs. The hype and speculation of its newly minted crypto token are sold to wannabe investors on the promise of high returns and the revolutionary technology and purpose it claims to serve, even though no tangible evidence of its effectiveness exists. 99% of ICOs don’t do what they say they will do, resulting in the naive investor getting stuck “holding the bag” of worthless tokens. Meanwhile, the individuals responsible for the ICOs swiftly exit after amassing substantial funds, seemingly vanishing without a trace.

Markethive is in preparation to launch an ICO-like event, which differs from other coin offerings because it already has an operational system and delivers what other ICOs only promise to give when they commence their fundraising. It's worth noting that Markethive has never conducted an Initial Coin Offering. 

So far, Markethive’s progress has been made possible by utilizing small amounts of money in the form of a loan from members who have subscribed to the Entrepreneur One Upgrade (E1), earning portions of an ILP in return. Additionally, some members have directly purchased ILPs, which also contributes to the development. This method is significantly different from the traditional ICO approach.

As stated by CEO and founder Thomas Prendergast, 

“It’s time to raise money to market and promote Markethive and bring in the millions, if not billions, that can benefit from what Markethive offers. We will raise money not based on speculation but on fact. We’ve already built the system and have our coin with everything ready to go, making Markethive’s ICO very different from all others that have already done ICOs. That should actually have a significant impact on the industry.” 

Thomas also shared his deep concern about the growing population of individuals who are experiencing poverty and financial burden as a result of being deceived, manipulated, and defrauded by online scams. He stated that this concern serves as a driving force behind the development of Markethive, an extensive undertaking intended to establish a platform that can generate a genuine and sustainable income for its users. While Thomas prefers not to speculate on specific timelines, he maintains that despite the obstacles encountered by Markethive, 2024 appears to be the year when everything will come together.

Source: Markethive

So What’s Markethive Got Already?

Markethive offers various features and assets. It has a fully operational wallet and has introduced its cryptocurrency called Hivecoin. With a total quantity of 45 million, Hivecoin is currently used within the platform to make payments and provide incentives. The Markethive Wallet consists of multiple wallets serving different purposes.

• It’s an Accounting system.
• It houses The vault.
• It’s used for Payments.
• Incorporating a Bitcoin wallet, Solana wallet, and Hivecoin wallet

With its current operational platform, Markethive offers a range of tools and services currently being improved through iterations and UX enhancements. The fundamentals consist of;

• A full-blown marketing platform.
• Social network
• Inbound Marketing 
• Storefronts
• Promocodes
• Customer acquisition 
• Lead generation
• Marketing tools

Markethive’s iterations and UX enhancements will incorporate multiple feeds and be likened to;

• Twitter, a microblogging feed
• YouTube, a video feed
• Google Blogger, a blogging feed
• Scoop.it, a curation feed.

Markethive has been at the forefront of introducing unique initiatives and projects that remain unparalleled in the industry. It combines an automated marketing system, an inbound marketing platform, and a social network. By merging various types of social networks into one and transforming it into a broadcasting platform, Markethive has established itself as a pioneer. With a rapidly expanding community of over 200,000 members, Markethive continues to flourish. 

The Next Four Big Milestones

1: E1 Exchange. The EX1 permits the purchase and sale of Entrepreneur One subscriptions. E1 is an exclusive framework created to financially support Markethive and provide users access to all the platform's tools. Since the company will no longer offer E1 subscriptions, the only means of obtaining one is through the E1 marketplace, where existing E1 holders may choose to sell, making it a highly valuable and scarce asset.

2: Promocode System. The Markethive admin panel has a promocode system that generates unique codes for E1 members. These codes offer giveaways like Hivecoin, Markethive credits, Boosts, and Wheel of Fortune spins. Each E1 member will receive a specific promocode to promote Markethive on different websites and attract potential users. Any signups, bonuses, or airdrops resulting from these promotions will be credited to the person who acquired the prospect.

Entrepreneur One members will also be provided with a control panel where they can create their own Promocodes. They can select the rewards to offer, which can be purchased through the shopping cart. Additionally, Promocodes can be used for individual groups or storefront signups. For example, if someone joins your group, they will receive a gift. The Promocode is made for Markethive’s social network and has never been done in this industry. 
 
3: Premium Upgrade. The Premium upgrade will replace the E1 upgrade. Those with Premium upgrades will have access to all the features and benefits of the E1 package, except for ILPs or Banner Impressions. The cost for the Premium upgrade will be significantly lower than the E1, which is $100 per month and will be classified as a retail product that generates revenue.

4: Login Registration and Incentive. Upon signing up for Markethive, you will be required to complete the Know Your Customer (KYC) process. You will have 30 days to do this, as indicated by a countdown clock that will periodically remind you. After completing your KYC, you will receive a free 30-day Premium Upgrade. Additionally, you will be eligible for an HVC airdrop, and if you used a Promocode during registration, you will also receive all the incentives associated with that particular Promocode offer.

The KYC procedure has been streamlined and now involves recording a brief one-minute video of yourself to demonstrate your identity and provide your credit/debit card information. A small sum will be deducted as part of the verification process. It is worth mentioning that you do not need to submit any other forms of identification. Please be aware that you will only receive bonuses, airdrops, or promocode offers once you have successfully completed the KYC process.

An added bonus is that once KYC status is fulfilled, it will allow you to withdraw HVC from your Markethive wallet; however, in keeping with our security protocols, you must activate the 2FA authenticator to access your wallet. 

On completion of these milestones and the Markethive ICO websites to be used in the ICO campaign, Markethive will embark on an ICO-like event to fund the marketing of these milestones and increase Hivecoin awareness. The funds raised will also pay for the cost of an ICO-dedicated platform and employ it to launch Markethive’s ICO and to guide Markethive on the ICO journey. 

While it is unnecessary for Markethive to be listed on a cryptocurrency exchange to launch an ICO, it would be advantageous to have one. In addition to Markethive’s plans of establishing their own dedicated offshore crypto exchange, Markethive is vetting various crypto exchanges for listing Hivecoin and introducing Markethive to the global cryptocurrency market.

Exciting Update for Members of Entrepreneur One! 

Every single Entrepreneur One member will receive the signups resulting from the ICO campaign as well as the Promocode site to promote the ICO and with incentives such as Markethive giveaways. 

This is the year when Markethive becomes revenue-oriented and retail-oriented with the new dashboard, state-of-the-art capture page system, and autoresponders. These are retail products and are separate from the free marketing system provided to free members. 
 
Additionally, Markethive will promote its system and launch an ICO-style campaign to drive in the multitudes, with the aim of having hundreds of millions of members in the Markethive system. Markethive is expanding the scope and depth of its vision in what it's building for all humanity. 2024 really looks like the year Markethive will ascend to new unprecedented heights and give back to the community that has upheld the Markethive vision. 

Tim Moseley

Initial Coin Offerings: A Crypto Revolution. Whatever happened to the ICO?

Initial Coin Offerings (ICOs) gained immense popularity in 2017 and continued to thrive in 2018; however, they have become a bitter disappointment to many. Nowadays, alternative approaches for token offerings have become more favored due to various factors. A significant reason is that most ICOs have failed due to misdirection, hype, pump-and-dump manipulation, and even fraud. An ICO, which stands for Initial Coin Offering, is a method blockchain projects use to generate funds and introduce a new cryptocurrency. 

On the surface, ICOs may seem similar to Initial Public Offerings (IPOs), where companies sell shares to the public on the stock market. Many consider ICOs the cryptocurrency industry's equivalent to IPOs, although this perception is arguably not entirely accurate.

While IPOs are closely monitored by regulatory bodies, Initial Coin Offerings (ICOs) enjoy relatively more freedom, with fewer formalities and documents required. This freedom, however, comes at a cost, as investors must conduct extensive due diligence to separate fact from fiction.   Additionally, investing in crypto tokens through ICOs does not necessarily grant ownership in the company, unlike IPOs. The lack of regulation surrounding ICOs has led to some instances of non-compliance with federal securities laws, resulting in legal issues for specific tokens.

Many in the crypto industry would argue that it’s misguided to begin with a securities framework to govern the introduction of crypto tokens. This approach is incompatible and hinders the development of new business models arising from these token use cases. 

Hence, it is essential to acknowledge that tokens can represent a unique category of assets, necessitating a dedicated legal and regulatory framework. Unlike the restrictive "security" label often applied by regulators, tokens do not always signify a personal financial stake or equity share in a larger entity. Instead, they serve as a novel proxy for our digital existence, which is constantly evolving.

ICOs Are Predominantly Speculation 

In a token sale or Initial Coin Offering (ICO), a crypto startup sells its newly created digital tokens to raise funds for its future ecosystem. The startup's success depends on convincing potential investors of its concept or blueprint, showcasing credible engineers and a sound executive team. A key element of most coin offerings is a company’s “white paper,” a document that outlines the project's goals, technical specifications, and team credentials. 

Hardly any ICOs, if at all, can claim to have a working product, service, or protocol in place when the token sale begins. The promise of delivering the intended utility or purpose for its token and future crypto-based ecosystem, coupled with exaggerated promises of profits to unsuspecting investors, has resulted in fraudulent schemes and even exit plans. 

With the rise in popularity of utility tokens in 2017, scammers took advantage of the situation by creating fake ICOs. Numerous so-called tech companies managed to raise millions of dollars in the highly enthusiastic cryptocurrency market, employing misleading or dishonest methods to attract investors.

ICO Scams Prevalent

The Wall Street Journal reviewed 1,450 documents related to Initial Coin Offerings (ICOs) in 2018 and revealed several red flags in 271 instances. These red flags included plagiarized white papers, guarantees of returns, and absent or fabricated executive teams.

Investors have injected over $1 billion into 271 coin offerings that have raised red flags, per a review of company statements and online transaction records. Out of the 1,450 projects examined, which have primarily targeted English-speaking audiences since 2014, it’s claimed that they have collectively raised at least $5 billion. Research conducted by Satis Group, a firm specializing in data analysis, reveals that since 2017, cryptocurrency coin offerings have generated over $9 billion in overall proceeds worldwide.

Source: WSJ.com

A considerable number of projects, specifically 124, failed to provide any information regarding the personnel involved. Moreover, several projects listed team members who were either non-existent or real individuals unaware of their names being used. Additionally, 111 projects were found to have copied entire sections verbatim from other white papers, including descriptions of marketing strategies, security concerns, and technical details, such as database interaction methods for other developers.

Source: WSJ.com

Furthermore, it was discovered that several projects completed their white papers or websites by incorporating executive pictures taken directly from online stock photography or other platforms, such as LinkedIn. One of the most notable examples is Premium Trade, an investment startup. The images of its executive team, consisting of five members, were discovered to be used on almost 500 unrelated websites simultaneously. Interestingly, Premium's co-founder Andrew Ravitsky was also identified as "Dr. John Watsan" in an online cardiology course.

Source: WSJ.com

The Premium Trade website portrayed CEO Idan Cohen as an "experienced entrepreneur," but the depiction of Mr. Cohen is indeed Eduardo Carillo, a close acquaintance of the photographer. The images that supposedly depicted Premium Trade's executive team of five members were probably purchased from stock photography websites. In many instances, the photos used by Premium Trade are of individuals who have been seen on various other websites across the Internet.

Source: Wall Street Journal analysis of Google Image Search results
Photos: Designed by Freepik (stock images)
Premium Trade website (screenshot)

The United States has shown skepticism towards initial coin offerings (ICOs), regardless of their legitimacy. A primary concern is the lack of regulatory oversight, which makes it easy for inexperienced investors to get caught up in fraudulent schemes. The Securities and Exchange Commission (SEC) has issued warnings to investors, citing that many cryptocurrency deals in the private market may violate securities laws. To illustrate this point, the SEC created a fake coin offering website as an example of what to avoid.

As a result of this negative perception of ICOs, Initial Exchange Offerings (IEOs) and Security Token Offerings (STOs) have recently gained popularity as alternatives—more about these in an upcoming article. 

Token Utility Is Of Utmost Importance To ICO Startups

Source:  William Mougayar

Apart from the outright scams, most ICOs fail because entrepreneurs and developers neglect the three fundamental aspects of a successful ICO: Tokenomics, Utility, and Security. For the purpose of this article, we will focus on Utility, as proposed by William Mougayar, a prominent blockchain theorist and strategist. Mougayar's token utility framework consists of three tenets: Role, Features, and Purpose. Each role serves a specific purpose, as depicted in the accompanying chart.

Source:  William Mougayar

When assessing a token-based company, it is advantageous to have as many criteria met regarding the token's purpose. The function of tokens can be likened to nails that secure your business model. Having multiple nails to firmly establish and maintain its defensibility and sustainability is preferable.

Entrepreneurs' resourcefulness is showcased in the various practical applications they devise for tokens, effectively bridging the gap between concept and implementation. It's a display of ingenuity at the token level, where creative ideas come to life.

If the way the token is used is unclear, poorly described, or can be defended, then that model has a flaw. Listed below are questions to determine if an organization can be categorized as ICO-based.

1. Is the token tied to a product usage, i.e., does it give the user exclusive access to it or provide interaction rights to the product?
2. Does the token grant a governance action, like voting on consensus-related or other decision-making factors?
3. Does the token enable the user to contribute to a value-adding action for the network or market being built?
4. Does the token grant an ownership of sorts, whether it is real or a proxy to a value?
5. Does the token result in a monetizable reward based on an action by the user (active work)?
6. Does the token grant the user a value based on sharing or disclosing some data about them (passive work)?
7. Is buying something part of the business model?
8. Is selling something part of the business model?
9. Can users create a new product or service?
10. Is the token required to run a smart contract or to fund an Oracle? (an oracle is a source of information or data that other than a smart contract can use)
11. Is the token required as a security deposit to secure some aspect of the blockchain’s operation?
12. Is the token (or a derivative of it, like a stablecoin or gas unit) used to pay for some usage?
13. Is the token required to join a network or other related entity?
14. Does the token enable a real connection between users?
15. Is the token given away or offered at a discount as an incentive to encourage product trial or usage?
16. Is the token your principal payment unit, essentially functioning as an internal currency?
17. Is the token (or derivative of it) the principal accounting unit for all internal transactions?
18. Does your blockchain autonomously distribute profits to token holders?
19. Does your blockchain autonomously distribute other benefits to token holders?
20. Is there a related benefit to your users resulting from built-in currency inflation?

A company's success is likely assured if it confirms and implements the procedures for most items listed above. The more usage scenarios they can confirm, the stronger their Token-to-Market fit will likely be.

Evolutionary and Successful ICO-based Projects

Most ICOs fail to meet the expectations they initially generated or encounter difficulties during their implementation, so it’s crucial for potential investors to thoroughly scrutinize and evaluate these ventures before committing their resources. However, it should be noted that a few ICOs have successfully delivered on their promises.

ICO-based projects that have evolved and succeeded have utilized Initial Coin Offerings to secure the necessary funding to create the groundwork for a decentralized and digital future. These projects range from establishing extensive data storage systems to implementing more equitable payment systems for artists and creating innovative financial products.

The influence of prominent blockchain ventures such as Ethereum, EOS, Telegram, Tezos, and Filecoin cannot be overstated, as they have garnered substantial financial support and yielded significant impact. Projects like Cardano, Solana, TRON, and Polkadot have also achieved remarkable success in their ICOs, etching their names in the annals of history as some of the most successful ICOs ever. 

These pioneering initiatives have not only blazed a trail for nascent projects but have also offered valuable lessons in crowdfunding and decentralized platform development, demonstrating the vast potential of decentralized platforms and the innovative ways in which they can be financed, showcasing the enormous potential of blockchain technology. 

At the heart of these successful ICOs is a dedicated and driven team of talented developers who put in long hours to ensure their success. Also, their transparency and a genuine desire to contribute to an emerging industry and technology parallel to the centralized bodies that the broader community is now recognizing as corrupt and oppressive.

In Closing…

As previously stated, the majority of ICO startups merely possess an idea, a concept. They haven't even developed an alpha version of their final product; it is all founded on speculation and the project's potential. What if an emerging crypto industry project already had a working beta version? A platform and protocol that were already constructed, along with a robust community, and then decided to launch an ICO-like campaign for iterations, further development, and marketing strategies?

Markethive is gearing up to accomplish precisely that. This is a big deal as it’s never been done before, and it will propel Markethive and its Hivecoin token to unprecedented heights, making them a pioneering force in the industry. Introducing a cutting-edge crypto ecosystem and blockchain technology to the marketing, social networking, and broadcasting sectors is a trailblazer in this uncharted territory, revolutionizing how entrepreneurs approach marketing and communication.

I will provide more comprehensive information in my upcoming article. In the meantime, join us for the Markethive webinar on Sunday at 10 am MST, where we discuss the history, current status, and future developments of everything pertaining to Markethive.

This article is provided for informational purposes only and should not be relied upon as legal, business, investment, or tax advice. Furthermore, however plausible, the contents of this article may include speculative opinions. Of course, there is nothing wrong with speculation as long as its premises are made clear. Speculation is the customary way to begin the exploration of uncharted territory as it stimulates a search for evidence that will support or refute it.

Resources: WSJ.com, William Mougaya, Doubloin.com.

Tim Moseley