Since the beginning of the year 2017, ICOs have been rampant on all crypto platforms and have amassed quite a fortune. There’s no denying the fact that almost half of the ICOs launched back in the previous year have crashed and thrown out of the market, but there are also examples set by tech start-ups which have raised almost $1.3 billion through their initial coin offerings. Due to this ICOs have been a frequent victim of several regulatory, financial and technical issues but nonetheless, there has been no stopping of ICOs.
- Background of Stellar
Stellar works on consensus protocol and promotes the organic growth of the network through the unanimous accepted list of nodes. Birth of Stellar can be dated back to 2014 and since then its goal has been to act as a medium for organizations by which they can extend financial opportunities to communities. It has been a fast-growing organization which has now reached the market capital of $10.1 Billion and its circulating supply is 18.5 Million XLM tokens as of writing this article. One of the company’s founders Jed McCaleb is a well-known cryptocurrency genius who has been built two full-fledged cryptocurrency companies. He was the core person who successfully sealed the deal with ‘Stripe’ that resulted in the formation of his second brainchild after ripple.
- Role of ICOs in Cryptocurrency Market
Through initial coin offerings, we have observed the gradual growth of different decentralized networks adopting blockchain technology. ICOs are more than just fundraising schemes. It allows network participation and global financial inclusion. Organizations have raised almost $1.8 billion through ICOs since last January.
- Advantages of ICOs
- Initial coin offerings deliver a better approach to open source project development.
- ICOs deliver smart network efforts while keeping the costs of fundraising at the minimum.
- Once the coin is launched and acquired by users, its demand increases exponentially, which adds to the coin’s value.
- Token holders who acquire tokens during pre-sale often get additional tokens as rewards for their investments as a bonus.
- By purchasing tokens via its ICO buyers can ensure to obtain a share of profit from the project.
- Ethereum – The Tradition ICO Platform
In the past, ICO funded projects have always been issued on Ethereum network using the ERC-20 standard. But for the past few years, the Ethereum blockchain has been subjected to transactional backlogs and security breach. This situation has called for an immediate step to break out from the norms and accept a better choice for ICO platform which is ‘stellar’.
- Reasons for Using Stellar as An ICO Platform
The first ICO that took place on stellar blockchain is Mobius Network, which has raised around $39 Million during the first two hours of its ICO making it one of the largest ICO to be held on Stellar.
Below are some highlights of using stellar as an ideal platform for ICOs.
- Built-in decentralized Exchange:
Stellar was formed in order to support efficient trading. Tokens which are created on the stellar platform can be sold immediately on stellar’s decentralized exchange by employing stellar’s native offer mechanism. It reduces the need of relying on any third-party exchanges.
- Enhanced Security
The simplicity behind transaction model of stellar compensates for Ethereum’s lack of security concerns. The fact that it doesn’t require turing-complete smart contracts but employs atomic multi-operation transactions that can be audited quickly serves as a shield from security breaches and program vulnerabilities. There are many other additional securities such as node validation of their transaction by organizations.
- Creation of Custom ICO
Stellar provides customized ICO creation for those who understand the uniqueness of initial coin offerings by features such as base abstractions that include accounts, offers, payments, and transactions. With the help of these base abstractions, people can structure a unique built-in ICO features with ease. In addition to this, the stellar platform is also suitable for organizations having KYC requirements.
- Cheaper and Faster
The major reason behind finding an Ethereum replacement for ICO platforms is because of the increasing costs of computations, transactions, and valuations. With the rise in the value of ether, working on the Ethereum blockchain is getting more expensive. But this isn’t the case with stellar since it does not require ‘GAS’ for the execution of programs and the transaction fee is around .00001 XLM which is negligible. The average transaction time on the stellar platform is approximately 5 seconds making it much faster than Ethereum where it is 3.5 minutes.
We will be updating our subscribers as soon as we know more. For the latest on XLM, sign up below!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Niklas Morberg via Flickr
Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors
When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat. These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor. But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.
Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace. The real benefit to trading in these offices is to participate in the free flow of trading ideas and information. Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed. Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?
While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.
Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors. The goal of the platform is to help newcomers shorten their learning curve,…
CoinFlip Scores Big with BRD Wallet Partnership
As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible. While many crypto users are extremely tech oriented, a lot of those on the sidelines are not. The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above. In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country. Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.
In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map. Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells. BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit. The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.
Cryptocurrencies are already making a huge difference around the world. Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…
Cryptocurrency Collateralized Debt Positions Are Growing in Popularity
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…