Things That Have Positive Cryptocurrency

While there are some adjustments to the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There are many market activities that are changing the tide for the better. With the right analysis and the right dose of optimism, anyone who invests in the crypto market can get millions out of it. The Cryptocurrency market is here to stay for a long time. In this article, we have given you five positive factors that can encourage further innovation and market value in cryptocurrencies.

1. Scale innovation

Bitcoin is the first cryptocurrency on the market. It has the most users and the highest cost. It dominates the entire value chain of the cryptocurrency system. However, this is not an issue. The main bottleneck is that it can only handle six to seven transactions per second. In comparison, credit card transactions typically cost a few thousand per second. Apparently, there is scope for improving the scaling of transactions. With the help of peer to peer transaction networks at the top of blockchain technology, it is possible to increase the number of transactions per second.

2. Legitimate ICOs

While there are cryptocoins with a strong market value, newer coins are being designed to serve a specific purpose. Coins like IOTA are intended to help the Internet market In Things that exchange money for electricity. Some coins address the issue of cybersecurity by providing encrypted digital vaults for saving money.

The new ICOs come with innovative solutions that disrupt the existing market and bring a new amount of transactions. They also gather market authority with their easy-to-use exchange and reliable backend operation. They are changing both the technology side of using specialist hardware for mining and the financial market segment by providing more freedom and options to investors instead.

3. Regulatory peace

In the current situation, most governments are studying the impact of cryptocurrencies on society and how its benefits can be gained by the majority of the community. We can expect that there may be reasonable conclusions as to the results of the studies.

Few governments have gone through the route of legalizing and regulating crypto markets like any other market. This will prevent the ignorant investors who are investing from losing money and protect them from harm. Possible regulations to boost cryptocurrency growth are expected to show in 2018. This could pave the way for widespread adoption in the future.

4. Add application

There is great enthusiasm for the use of blockchain technology in almost every industry. Some startups are offering new solutions such as digital wallets, debit cards for cryptocurrency, etc. which will increase the number of traders willing to operate cryptocurrencies which will also increase the number of users.

The reputation of crypto assets as a medium transaction is strengthened as many people rely on this system. Even if some startups may not be viable, they are positively contributing to overall market health that creates competition and innovation.

5. Investment from financial institutions

Many international banks are looking at the cryptocurrency scene. This can lead to the influx of investors into the market institution. The influx of multiple investment institutions will increase the next phase of the growth of cryptomarkets. It got what many banks and financial institutions envisioned.

As the risks and bottlenecks around cryptocurrency diminish, there is more withdrawal from traditional investors. This will bring a lot of dynamism and fluidity that is especially needed for any growing financial market. Cryptocurrency can be a defacto currency for transactions worldwide.

What is an ICO and How Does It Work?

The ICO has proven to be an innovative way for many companies and projects to raise money. The ICO can be said to be a mixture of traditional methods and advanced methods. The main thing to consider here is that investors who invest in ICOs can be 100% risk-free due to the technology used.

To date, most ICO funds have been collected through Bitcoins (BTC) or Ether (ETH). While the ICO was created, the project created a Bitcoin or Ethereum address to receive funding and afterwards, it was displayed on each web page. The procedure is the same as opening a bank account, and then displaying it on a specific web page of people so they can send money.

Initial coin offering (ICO) is an illegal way to collect crowdfunding through various cryptocurrencies (fiat currencies in some cases) and is mobilized by cryptocurrency organizations to obtain the capital funds needed to implement the project. In an ICO, a specific portion of the recently issued cryptocurrency is sold by investors in exchange for any legal tender or any other cryptocurrency. It can be referred to as token sale or crowd sale which involves taking the investment amount from the investors and providing them with some features related to the project to be launched.

An IPO, ie Initial Public Offering is a process in any way that can be placed in the ICO where investors can receive part of the ownership of the company. While in ICO, investors buy company coins that can increase in value if the business grows.

The first token sale, i.e. an ICO was created by Mastercoin in July 2013. Ethereum collected money through an ICO in 2014. The ICO gained a new meaning in recent years. In May 2017, there was an estimate. 20 offers, and another new web browser Brave’s ICO generated about $ 35 million in just 30 seconds. As of the end of August 2017, a total of 89 ICO coin sales worth $ 1.1 billion have been generated since January 2017.

Investors send Bitcoin, Ethereum or any other cryptocurrency to the given address and after exchange, they get new tokens that will benefit them if the project hits.

  • ICOs are often created for cryptocurrency-based projects that rely on a decentralized approach. Such is the nature of such projects that can only be forced by investors who have a great interest in the concept of cryptocurrency and are friendly with the technology used.
  • An investor-owned document remains in the form of a webpage, whitepaper or web post. Some of these documents show exact details about the project, while others are literally fake in its appearance to mislead interested ones. So before relying on any white paper or e-document, it is best to go through a quality review.

What is an ICO in cryptocurrency?

ICO stands for Initial Coin Offering. When launching a new cryptocurrency or crypto-token, developers offer investors a limited number of units in exchange for other major cryptocurrencies such as Bitcoin or Ethereum.

ICOs are amazing tools for the rapid rain of development funds to support new cryptocurrencies. Tokens offered during the ICO can be sold and traded on cryptocurrency exchanges, provided there is sufficient demand for them.

Ethereum ICO is one of the most notable successes, and the popularity of initial coin offerings is growing as we speak.

A brief history of the ICO

Ripple is probably the first cryptocurrency to be distributed through ICOs. In early 2013, Ripple Labs began developing the Ripple payment system and generated approximately 100 billion XRP tokens. They were sold through the ICO to fund the development of the Ripple platform.

Mastercoin is another cryptocurrency that sold several million tokens for Bitcoin during the ICO, also in 2013. Mastercoin aimed to tokenize Bitcoin transactions and execute smart contracts by creating a new layer on top of the existing Bitcoin code.

Of course, there are other cryptocurrencies that have been successfully funded through the ICO. Back in 2016, Lisk raised about $ 5 million during their initial coin offering.

Still, the Ethereum ICO held in 2014 is probably the most prominent so far. During their ICO, the Ethereum Foundation sold ETH for 0.0005 bitcoins, raising nearly $ 20 million. Leveraging the power of smart contracts with Ethereum, it paved the way for the next generation of initial coin offerings.

ICO Ethereum, a recipe for success

The Ethereum smart contract system has implemented the ERC20 protocol standard that sets out the basic rules for creating other matched tokens that can be transactional on the Ethereum blockchain. This allowed others to create their own tokens, in line with the ERC20 standard, which can be traded for ETH directly on the Ethereum network.

DAO is a significant example of the successful use of Ethereum smart contracts. The investment firm raised $ 100 million in ETH, and investors received DAO tokens in return that allow them to participate in platform management. Unfortunately, the DAO failed after it was hacked.

Ethereum’s ICO and their ERC20 protocol highlighted the latest generation of blockchain-based crowdfunding projects through Initial Coin Offerings.

It has also greatly facilitated investing in other ERC20 tokens. Simply switch ETH, paste the contract into your wallet and the new tokens will appear in your account so you can use them as you wish.

Obviously not all cryptocurrencies with ERC20 tokens live on Ethereum’s network, but almost any new blockchain-based project can trigger an initial coin offering.

The rule of law of the ICO

As for the legality of the ICO, there’s a bit of a jungle out there. In theory, tokens are sold as digital goods, not as financial assets. Most jurisdictions have not yet regulated ICOs, so assuming the founders have a seasonal lawyer on their team, the entire process should be paperless.

Nevertheless, some jurisdictions have become aware of ICOs and are already working on their regulation in a similar way as the sale of shares and securities.

As early as December 2017, the U.S. Securities and Exchange Commission (SEC) classified ICO tokens as securities. In other words, the SEC was preparing to stop ICOs that they believe are misleading investors.

There are cases where the token is just a service token. This means that the owner can easily use it to access a particular network or protocol, in which case it may not be defined as financial security. Nevertheless, proprietary signs whose purpose is to assess value are quite close to the concept of security. Truth be told, most token purchases are made specifically for investment purposes.

Despite the efforts of regulators, ICOs remain in the gray legal area and until a clearer set of regulations is imposed, entrepreneurs will try to benefit from initial coin offerings.

It is also worth mentioning that once regulations reach their final form, the cost and effort required to comply can make ICOs less attractive compared to conventional funding opportunities.

Closing remarks

For now, ICOs remain an amazing way to fund new crypto-related projects, and there have been more successful ones with even more.

However, keep in mind that everyone today is running ICOs and many of these projects are fraudulent or lack the solid foundations they need to thrive and return on investment. For this reason, you should definitely thoroughly research and research the team and background of any crypto project you may want to invest in. There are several websites that list ICOs, just search on Google and you will find some options.