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Why the Whales Couldn’t Care Less

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What’s wrong with crypto investing?
If you ask traditional investors, you’ll probably get responses like:

  • Most projects have zero transparency.
  • There are too many impractical solutions being developed.
  • Few project leaders have the business experience needed to successfully launch their platform.

While three distinctly different issues, they can all be traced back to one major problem: Most projects don’t consider the needs of the traditional investor, which can be a crucial mistake when going after, excuse the pun, the big fish. This is because too many blockchain startups focus on attracting whales rather than the functional, conservative crypto investor.

This causes a number of long-term problems which can negatively affect the integrity of a project. For starters, whales aren’t necessarily interested in the long-term success of the project. They’re looking to invest in a startup when the price is low, then sell as soon as they’re able to maximize their profits.

Whales Aren’t Concerned with the Project

Naturally, there will be whales looking for investment opportunities everywhere, not just in the crypto space. However, the problem with blockchain projects is that they become so whale-oriented that companies start to lose the scope of their initial goals and objectives and wind up catering to whales rather than the blockchain community and their long-term investors.

What’s more, many whales end up manipulating the value of tokens to further increase their earning. If you’ve ever watched the price of a token soar after it was being overhyped on social media, or watched a token crash after negative, speculative news about a project went viral, then you’ve witnessed whales manipulating the market firsthand.

The Industry Needs a Workable Alternative

As it stands right now, the blockchain industry is overrun with whales looking to become the next Tim Draper and scammers looking to make a quick buck. Before we can truly legitimize blockchain technology and onboard serious, longterm, value-based investors, there needs to be a change in how startups raise funds.

Going forward, blockchain projects should:

  • Have safeguards to protect supporters against scammers.
  • Be aligned with the interests of the serious investor.
  • Be able to sustain themselves without the assistance of pump-and-dump whales.
  • Be free of speculation and unnecessary hype.

Guess what? We’re closer to this reality than you think.

The Solution Is The Distributed ICO

Distributed ICOs are a new, more efficient way for blockchain projects to raise money. They do this by bringing the security of smart contracts and traditional project management to the blockchain arena.

Instead of generating hype and appealing to the deep pockets of whale investors, distributed ICOs target the serious blockchain enthusiast by ensuring supported blockchain projects are practical and capable of addressing real-world issues.
Here’s how the Distributed ICO works:

  • Funding is based on the actual needs of the project. Startups are only able to raise the money they need to ensure their platform succeeds, effectively reducing the need for whales.
  • Funds are distributed over an extended period of time rather than at once. Like years and quarters, the project is divided into periods and rounds. At the end of each round, a specific number of tokens are allocated to the investors.
  • At the end of each round, investors are able to vote on the future of the project. This ensures that the platform is always aligned with its investors. If the investors vote not to continue the project, their funds are automatically returned and the ICO is terminated.

Moreover, the distributed ICO model rewards early investors by offering tokens at a discounted rate in the early periods of the ICO.

Sound interesting? Visit ICOSuccess today to learn more about Distributed ICOs and how you can use them to take your blockchain project to the next level.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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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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KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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