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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.

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Bitcoin

Behold The Cryptopreneurs – Overcoming The Obstacles Facing The Blockchain Industry

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Integrating blockchain technology is fast becoming a necessity for enterprise ventures and small or large businesses, but with a growing number of choices in the tech revolution, it’s difficult to pick a direction without feeling overwhelmed or taken advantage of. This is where BEHOLD THE CRYPTOPRENEURS comes in.

Private keys, the myth of anonymity, and the battle against anarchist ideology are only a few of the difficult challenges faced by businesses that want to incorporate blockchain into their culture. Author Dennis H. Lewis guides the reader through those challenges and helps them discover the true potential of investing in this new economic paradigm.

Every business has pain points that must be overcome in order to branch out and thrive in an ever-changing commercial environment. Blockchain has real world solutions and cryptopreneurs are not limited to the cryptocurrencies they invest in but rather how they seize economic and technological opportunities to make it work for them.

Innovation, trust, and solutions can differentiate your business from all the noise, but without a solid marketing plan, a cryptopreneur can have the best idea and never get far. Remember: a million great ideas times zero market presence equals zero success.

Investors want to know there is public interest and enthusiasm in a project before they commit any money to it. As a cryptopreneur, you are tasked with generating that interest from the…

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