Welcome to my entry on the crypto academy contest. It is with great joy that I provide my entry for the contest. I would be going straight to the contest proper.

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Share in details your understanding of the initial cost offering (ICO) and the purpose of the event in the crypto ecosystem

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The great advent of the cryptocurrency in the last decade has brought about a skyrocketed advancement in solving technical and financial issues in the world today. The special prerequisite for participating in cryptocurrency today is basically having your project prototype enlisted on a generally acceptable centralized exchange medium or decentralized exchange medium respectively.

Cryptocurrency do thrive well in the presence of appropriate funding and financial fueling. The project developers globally need finance to fund their respective projects and individual tokens so to say. Therefore, they resort to various approaches towards obtaining a positive result in their prospect. How do these project developers obtain great results in respect to gaining profitability and attaining success in their projects?

However, these projects developers decisively offers token in form of a coin, native token or otherwise to raise money or financial support from these elite investors. This brings me to defining the Initial Coin Offering.

Initial Coin Offering is the the liberal offering of a token to the cryptocurrency ecosystem, prior to it's substantial value in the public exchange. It's the first token offered by a project developer to generate funds from elite investors.

Purpose of the ICO

The basic purpose of ICO is find raising for project developers through avenues to attract investors to take part in the project's full launch.

Another crucial import is that it provides opportunity for early investors who partner in the project before it becomes tradable gather these assets at a cheap discounted thereby supplying profit to these elite investors if on the long run the project yields profit.

ICO also support the publicity of tokens in the cryptocurrency space. A token gifted as airdrop to early investors causes a sporadic increase in investors ordering for such asset, thereby increasing it's overall publicity of such tokens.

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Discuss your understanding of the Initial Exchange Offering (IEO) and Initial DEX Offering(IDO). What platform is utilized for IEO? Give an example of a platform and how it works for the coin offering

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Initial Exchange Offering(IEO)

An IEO is a form of project sales which occurs on a verified exchange platform. It is a form of token sale, which occurs on an exchange platform which acts as a host platform where prospects project developers obtain licence to put their tokens up for sale at verified exchanges.

Initial Exchange Offering has great Fidelity and utmost security, as these project developers pitch convincing memo, against the centralized exchange, going through scruitiny before they can get their assets on the exchange platform. This is to curtail the rate of vulnerability and reduce the risk of investing in deteroriated, scam projects, so to say,making a smooth process for investors to thrive and successful partnership with project developers.

Initial DEX Offering(IDO)

This is a decentralized offering carried out on decentralized exchanges. In this process these elite investors are given access to the funds on their wallets owing to the fact that it is a decentralized system. No mediator or dictator figure head but there is request liquidity pool.

In view of this, investors can exchange these projects token in their wallets during the liquidity pool once liquidity pool portal is created to enable smooth trading or swapping of these tokens against major tokens. Its crucial to note that the decentralized nature of IDO enables token sales easy and stress free.

Platforms which utilizes IEO's
^{screenshot from my binance}

It shows above that the launch pad has supported 65 project launch and 3668923 all time unique participants and a host of other details on the binance launch pad.

The binance Launchpad is a very good instance of a good IEO. It is used globally as it allows investors buy BNB while leveraging BNB to asset or token to be invested in at a particular time frame. This BNB is exchanged to the supposed value of such token and swapped on special enlisting date of the prospect token and the collateral BNB.

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Have you participated in any ICO/IEO/IDO before? If yes, what's your experience? Discuss a project that has performed a successful ICO before and results of event.

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I haven't participated in any coin offering sake before. I made a little research on a project token Bictony Finance

source

The little research shows that Bictony Finance just ended their IDO which ran through Nov 4-Nov 8 2022. It ended 3 days ago. The token had 157894.73 BT and an ICO price of 0.9500 a fund raising goal of $150k and an address for purchase too "kommunitas".
source

What are the merits and demerits of Initial Coin Offering

Merits of Initial Coin Offering

• The ICO rings various people globally to a trading space through the cryptocurrency without any barrier for free trading.

• ICO has been proven to be an avenue for fund raising and supply of funds to project developers and also investors yielding a symbiotic relationship between the duo.

• Publicity to the investors is too priority as ICO enables investors invest in projects, attracting various investors yielding success in the project.

Demerits of ICO

• Potential failure in projects brings a reason to abstain from the ICO process. Investors would not like to loose their valued assets again once the first investment yields no ROI

• Non-regulatory measures against these ICO sales therefore making those investors exposed to fraudulent activities or project scam.

• Project failure also discourages project developers as it gives disappointment and less productivity to the cryptocurrency space too.