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How a Distributed ICO Smart Contract Works

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One of the biggest advantages of Distributed ICOs is its added security. By integrating smart contracts into the ICO process, Distributed ICOs successfully curb scammers while keeping projects aligned with the needs and expectations of their investors. But how does it all work?

A major difference between traditional and Distributed ICOs is how the project is governed. Distributed ICOs involve extra guidelines that protect the investor and maintain the integrity of the project. This is achieved with a token contract that controls the entire ICO process, from start to finish. More than just a means of distributing tokens to investors, token contracts determine:

    • Token prices and the number of tokens distributed during each investment period.
    • The amount of money the startup can raise.
    • The minimum and maximum investment amount.

In other words, the smart contract works to ensure that projects raise enough money to complete their tasks, without giving the project leaders all the money upfront. This doesn’t only prevent startups from using investments as a way to turn a large profit, controlling token prices also effectively eliminates any manipulation techniques used to capitalize on volatility.

How the Distributed ICO Is Structured

First and foremost, there needs to be a funding plan that’s based on the project’s roadmap. That way, the team can look at the goals and expectations of the project and determine how much money they need to reach each milestone.

From there, the funding plan is partitioned as follows:

    • The entire funding plan is broken up into several periods.
    • Each period is divided into rounds.

The total number of tokens available, the price for each token, and the number of rounds that make up a period are all determined at the beginning of that period. This information informs how each round will be managed.

Every round has a set number of tokens available, and that number of tokens can’t exceed the number of tokens available for the whole period. Each round has its own predetermined minimum and maximum investment amount as well.

There’s also a special situation known as Round 0. This happens when the project has no token holders yet, so investors receive their tokens immediately upon investing rather than at the end of a period. The same applies for projects; during Round 0, they also immediately receive the funds from investors.

Finally, there’s the end-of-round procedure. This is when investors get to vote (proportionally based on the number of tokens they have) on the continuation of the project at the end of each round.

    • If the investors vote yes, the startup receives their funds and the investors receive their tokens.
    • If the investors vote no, the smart contract automatically returns the money collected in this round to the investors and the ICO is terminated.

Bringing a Better Solution to ICOs

As you can see, the distributed ICO adds some much-needed structure and accountability to blockchain projects. As such, startups integrate traditional project management principles into their company roadmap. The end result is a blockchain project that has the scope, financial management, and transparency needed to attract traditional investors.

Learn more about how you can use distributed ICOs to grow your platform by visiting the ICO Success website today.

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Bitcoin

The Bitcoin Revolution: Everything You Need To Know To Take Profits

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Bitcoin is soaring high in the cryptomarket once again, and experts are expecting a return of the bullish trend of 2017. The current Bitcoin price is $7,615 as of 23 May 6:56 AM UTC. This significant jump comes just six months after the Bitcoin price plummeted to a low of $3150 in December 2018. Since then, Bitcoin has experienced steady growth and gain in the market. However, in the last 30 days, the Bitcoin price peaked to $8,320.82, its highest price ever. This phenomenal jump occurred in a span of only 10 days breaking the Bitcoin record so far of significant gains made in short time frames. This positive growth has led to experts forecasting the Bitcoin price to hit the $20,000 mark by the end of this year.

Since entering the market almost 11 years ago, Bitcoin is still at the top of the global cryptocurrencies list. The current circulating supply of Bitcoin is at unbelievable 17,708,875 BTC. The market trend of the Bitcoin price has remained positive even when the currency did not maintain an uptrend. Cryptocurrency researchers believe that Bitcoin has the potential to grow up to a high of USD 50,000 within the next two years.

How to Profit from Bitcoin…

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Altcoins

3 Altcoins That Are Outperforming Bitcoin and Will Likely Face Consequences

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The crypto market is going through a period of massive recovery in the past few months, which has caused the investors’ optimism to return. While all eyes are on Bitcoin (BTC), as usual, the largest coin seems to be struggling with a major resistance level at $8,000 at the moment. While this level was breached a few times now, every breach resulted in a correction.

At the time of writing, BTC is approaching this level yet again, with its current price being at $7,985,79, and rising further. The price managed to grow by 1.06% in the last 24 hours, and will undoubtedly hit $8,000 in a matter of hours, if not sooner.

However, while Bitcoin continues to remain volatile and struggles with waves of growth and decline, there are some altcoins that are not following its path. Of course, most of them are performing in pretty much the same manner as BTC, as they always had. But, a few coins have actually managed to outperform Bitcoin in recent months.

While optimists believe that this might lead to decoupling from Bitcoin — something that only Binance Coin (BNB) managed to pull off up to this point — it is likely that there will be consequences for these cryptos. This likely means that a price drop for these specific coins awaits somewhere in the near future, as outperforming BTC…

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