You have heard good things about an Initial Coin Offering (ICO). What are the right questions to ask?
In late 2017, most people who had any interest in the Crypto World were focusing on the extraordinary surge in the price of Bitcoin and the rise in the trading volumes of crypto-exchanges globally.
Meanwhile, the Fintech Association of Hong Kong (FAHK) was looking at the Crypto World from the point of view of Crypto-Venture Capital (VC) entrepreneurs. Nearly six months later, the FAHK’s paper on ‘Best Practices for Token Sales’ remains one of the clearest discussions of the issues that really matter for deal makers who are looking to undertake ICOs.
In its paper, the FAHK identifies questions that are as relevant to ICO investors as much as to Crypto-VC entrepreneurs.
The project. Most crypto-coins (and, indeed, many securities that are listed on a conventional exchange) exist to solve problems. What is the problem that the new crypto-coin looks to solve? Will people see it as a viable solution to the problem? Is there already an effective solution that is being widely used?
The crypto-coin. Crypto-coins can provide solutions to problems. However, solutions to problems do not necessarily come from crypto-coins. How will the new crypto-coin really contribute to the solution of the problem in the way that another approach (e.g. an initial public offering or IPO from an existing company) would not? Are the economics of the IPO and the way in which the crypto-coin is to work really viable? In one sentence, who are the people who will buy the crypto-coin and why?
The entrepreneur. Virtually no successful enterprises depend on just one person. They depend on a team. Does the team behind the ICO have the expertise that is needed? If not, are they willing and able to buy in the expertise that they need? Taking into account the cost of buying in expertise, how will the IPO be financed?
The strategy. It is one thing talking about the issues that matter in an ICO. It is another to actually execute the deal. What are the details behind the ICO? What is the exchange on which the new crypto-coin will be traded? How will conversion between fiat currencies and the crypto-coin be handled? Could the vision behind the deal be better executed with private investments or private loans?
The Whitepaper. The Whitepaper is the document that explains an ICO in full. What matters is clarity. In the Crypto World as in the world of conventional investment, a potential investor’s understanding of the deal is key. The more that he/she really understands, the less likely it is that he/she will be disappointed. Does the whitepaper explain the essence of the project in no more than 200 words? Can the rationale for the crypto-coin be summarised in just one sentence? Does the whitepaper show that the team behind the ICO really have credibility? Even if it only does so with a graphic timeline and a series of bullet points, does the Whitepaper really explain how the deal is to be executed?
The risks. Perhaps most importantly, the Whitepaper should make it clear what are the risks and how the sponsors of the ICOs are working to mitigate those risks. Even if there is the real possibility that an investor in a particular deal will lose all the money that he/she is committing, it does not mean that the deal is a bad one. Have independent and professional advisers been involved with the preparation of the Whitepaper?
Here’s our big announcement! 😱We want to demonstrate our belief in crypto by offering DAC Coin via our ICO at the Bitcoin exchange rate of US$10,000! Details: https://dacxi-ico.com #WeBelieveInCrypto #Dacxi
META: Marketplaces are evolving, and the building of new exchanges is driving the evolution of the crypto space, both in outreach and in applied technology.Think back a few years ago. Crypto exchanges were rudimentary, a necessary evil, even downright risky. The best thing one could hope for was to learn to maneuver around Poloniex well enough, and pray that exchanges like HitBTCand YoBit did not go down in flames. Frequent outages, lost wallets, lost coins and a generally bad user experience — all of these had to be braved in order to buy or exchange crypto assets.Alongside the best-visited exchanges, there existed a retinue of small-scale markets with a shady
META: Exchanges are not what they used to be - but what is the next step? Decentralised exchanges are hot, but are they the only solution? A mix of decentralised exchanges and community-fuelled marketplaces may be the best answer.How do you figure out the game of crypto trading? Personal trial and error is one way. Crypto trading has a steep learning curve, and just like any learnable skill on the Internet, it tends to generate discussion, and create communities. Those organic communities may be pointing at something important – the idea that just maybe, we don’t have to figure it out on our own.Some services, like eToro, have already included social trading. But classical e
Exchange coins are assets that have fuelled both the creation of a new breed of crypto exchange, and helped with liquidity and price discovery. Binance, KuCoin, Huobi are the most prominent examples of a native exchange-linked coin. DAC is next. 💪🏻🤛
With crypto’s constantly evolving ecosystem, it can be challenging to keep a long-term time horizon in mind. With the news cycle moving so quickly, the notoriously volatile crypto market is prone to sudden price movements, whether bullish or bearish. In these exciting but extreme conditions, it is all too easy to lose sight of the big picture.At Dacxi we approach crypto asset investing with an investor mindset. That means long-term thinking. We believe that the world is in the early stages of a multi-generational technological and economic revolution. We are participating in the birth of a brand-new asset class that is fast gaining legitimacy. The creation and
Some useful tips -Learn more about the investors and founders of the companyRead the whitepaper to understand the road-map and future plansCredible companies will be transparent about how the funds will be usedConsider long-term use for the coins that you’re purchasingSearch on social media channels to check the activitiesGreat companies will have a great customer support structure. Try to ask questions on the support platform.Good luck and have fun!
*บทความนี้ไม่ใช่คำแนะนำทางการเงิน ผมไม่ใช่ Financial Advisor โปรดศึกษาข้อมูลก่อนตัดสินใจลงทุน - This is not financial advice. I am not Financial Advisor, please do your own research.“Bitcoin และ สกุลเงินดิจิทัล (Cryptocurrency) ต่างๆที่มีอยู่ในปัจจุบันส่วนใหญ่กว่า 90% ทำงานโดยเทคโนโลยีบล็อกเชน (Blockchain)”สาเหตุที่ผมเขียนบทความนี้1. เพื่อให้ทุกท่านที่กำลังลงทุนหรือวางแผนจะลงทุนในอนาคต เข้าใจเกี่ยวกับเทคโนโลยีบล็อกเชนมากขึ้น โดยไม่มองว่าสิ่งที่กำลังลงทุนเป็นการเก็งกำไรเท่านั้น2. สำหรับเจ้าของธุรกิจมองเห็นโอกาสในการนำเทคโนโลยีบล็อกเชนมาใช้ในธุรกิจจริง3. สถาบันการศึกษา และหน่วยงานต่างๆ นำประโยชน์ของเทคโนโลยีบล็อกเชนมาใช้ได้จริง“เทคโนโลยีบล็อกเชน (Blockchain) ในช่วงก่อนหน้าถึงปัจจุบัน อาจเปรียบ
Fun Facts about MillennialsNearly a third of millennials say they'd rather own Bitcoin than stocksMillennials seem to favor Bitcoin, Ethereum and other digital currencies. A new report released by Finder.com found that millennials (between the ages of 22 and 37) had a 17% cryptocurrency ownership rateIn developed countries, 54% of the millennials started or plan to start their own business, while 27% are already self-employedAlmost 90 percent of millennilas can't walk for more than 15 minutes without checking their phone
The shop is a welcome addition to the steadily growing crypto sector in the Balkan country. The team behind the project plans to expand to all major Croatian cities and even other countries in the region.https://news.bitcoin.com/new-store-sells-cryptocurrencies-for-regular-old-cash-in-croatia/
Meet the 26-year-old ex-Googler who got $133 million for a cryptocurrency startup that could replace money completelyBasis CEO Nader Al-Naji just got $133 million to fund his stable cryptocurrency startup Basis, from top tier investors like GV (formerly Google Ventures), Bain Capital Ventures, Lightspeed Venture Partners, Andreessen Horowitz, and Sky9 Capital.Al-Naji's passion for cryptocurrencies began with a bitcoin mining rig he built in his Princeton dorm.Al-Naji quit his job at Google in order to work on his cryptocurrency, called Basis, which has a stable value determined algorithmically. In theory, that will make it more useful as a currency, and not just a vehicle for speculation.htt