Question 1
What can you say about Crypto Investment and how to properly utilize the investment tools available to make the right decisions?
Cryptocurrency is simply the digital asset characterised by security, transparency, speed of transaction, scalability, and several other interesting features about this virtual money.
Interestingly, this digital asset has been a great and profitable medium of investment, giving investors great returns on investment.
Just like how crypto Investment is profitable, it is also very risky due the high volatility this virtual currency always experience. This is to say that a minute, crypto investor may be in a great profit, and another minute, in a great loss. This is why it is very ideal to make some good research and get some great financial advise before venturing into cryptocurrency Investment.
Cryptocurrency Investment can therefore be defined as an investment scheme where an investor has full authority over his or her asset.
Since cryptocurrency is a great investment scheme, I would always prefer to be a long term investor and there are several tools I would like to use in order to always be on the right track and make some considerate level of decision.
To make a right decision on which project to invest in, a walk in the official website of the project will play a great role in helping an investor to make some level of decision. My reason for saying this is because from the webpage of the project, an investor will have some salient information about the project, information like the purpose of the project, the roadmap of the project, the team behind the project, and several other important information about the project.
Another great tool that will help an investor in making the right decision about a particular project is coinmarketcap and coingecko. These tools will give some great information about the performance of the project over time. They display information such as the volume of people investing in the project, the health of the project over the past 24 hours and past 7 days, the all time high of the project, their rank in the crypto space and many other great information.
A good knowledge of technical and fundamental analysis is another great tool used to make Investment decisions in the crypto world. This tools will play a great role in unleashing tricks engineered by financial institutions which in turn will help an investor in deciding when to invest and when not to invest.
Question 2
Talk extensively about the following. Also, highlight the benefits and risks associated with each. i. Private Sale in Cryptocurrency. ii. Presale in Cryptocurrency. iii. Public Sale in Cryptocurrency.
Private Sale in Cryptocurrency, Benefits and Risks
Cryptocurrency private sale is simply the initial stage at which token is being offered for sale to very few investors.
At this level of coin offering, announcement is not made but rather, the coin issuers just officially invite some specific set of investors to the event without making the invitation public. The idea behind this privacy is to first get fundings from healthy pocket investors on the project while promising this investors great investment returns.
Benefits
There is always a huge discount in the asset's price for the early investors as opposed to the crowd sales.
Because these investors are like early birds, when the project is finally disclosed to the public, they always have an edge in profit taking over the late investors because they can always sell and take profits while the crowd are buying.
Risks
It is great to partake in the private sale of a coin but what if this project rug pull after attracting the attention of these prominent investors? This means something called Huge Loss will set in.
The project is just starting and yet to be listed on exchanges. What if they can't meet the criteria of being listed on exchanges or in the coinmarket? The loss will be great because no one will be trading this coin if not listed.
Presale in Cryptocurrency
This very stage is the second stage of a project where the offer of this coin for sale is open to a more bigger audience.
At this stage, it's not like sales is being announced publicly but rather, those who visit the website of the project will know about it and participate if they wish and the price of purchasing the token at this stage is also considerably low.
Benefits
Investors purchase tokens at this stage at a considerably less price.
The profit taking after the token is publicly listed on exchanges is pretty much and always worth the time spent to HODL the coin if the project performs well.
The project at this stage enjoys more fundings from investors and that could go a long way in assisting the project team in building a more viable project.
Risk
That a project is on presale is no guarantee that it will succeed. If the project doesn't meet the expectations of the investor of if the project fails, it therefore means that an investor was actually HODLing tokens that are of less worth.
The project also stands to be in jeopardy if the investors at the first stage decides to dump the coin at this second stage.
Public Sale.
This is the final fundraising stage or phase of a project. At this stage, the project is now put forth to the notice of the public and the masses.
At this stage, the project developers arrive at a great fundraising which they can use to revamp the project in order to attract a handful of more future investors.
Most at times, this fundraising is done on exchange platforms.
Benefits
The risk at this level is being cushioned because the trading pressure will be increased.
At this stage of the project, average investors get an added confidence of the sustainability of the project.
At this stage, the project might have been listed on exchanges and it is more possible to exchange it for another token.
Risk
Average investors now purchase this tokens at a price higher than it was during the first and second phase.
Because at this stage the token might have been listed on exchanges, if the early investors sump their token, the value of the token will become deficient.
Question 3
What are the mediums used for Public/Pre/Public Sales in Cryptocurrency?
Several projects have come up with several ideas of raising funds for their projects using different medium. The most widely used are;
Official Website: Every crypto project is bound to own an official website of her own. This website can now serve as a medium of promotion and fundraising for them because it will help investors with their research like having access to the whitepaper of the project, roadmap of the project, purpose of the project, team of developers, smart contract address, and so on.
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One of the project currently running their presale token is the Unixswap, a project claiming to be a hard fork of UNI
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The presale is currently going on their official website and they have about 300,000 UNIX tokens for the presale of which 1 ETH can purchase 1,000 UNIX and the minimum amount of ETH that be used to purchase the token is 0.1 ETH and a maximum of 10 ETH.
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Their requirements for the presale is for investors to send any amount of ETH not less than 0.1 ETH to the ETH address below
0x752915cf84Cf498C260F8A87AE26cB0508926CF8.
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When the presale is over, they claim 30% of the funds they are able to raise will be locked in Uniswap liquidity pool while 30% of the raised funds will be used to list the token a on exchanges like Binance, Huobi, Coinbase and Hotbit. Then the remaining 40% will be used to buy back the UNIX token when the presale is over so that people won't really dump the token.
Exchanges: Another medium of project promotion is by doing it on exchanges. Even though this medium comes with some amount of hassles for the project devs but with less hassles for investors.
Social Media: Social media is another medium of for project promotion. This medium of presale is one of the cheapest and infact aids the easiest communication means between the project team and the investors.
Question 4
Research about any recent (2021) successful ICO or IEO and give detailed information about the project. (Note: BETA token is excluded).
Financio (FIN) is a decentralized exchange incorporated on the Binance Smart Chain with sole aim of rewarding its users with high passive crypto reward.
Their mission is to improve the chances of users making secured and transparent payments, no matter how large, with very little withdrawal limitations.
It is currently in its public sale stage at a price of $0.08. The first stage started on the 15 of September 2021 and the offering price was $0.04 and the second stage started on the 1st of October 2021 and the offering price was $0.06.
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This 3rd stage is slated to end on October 30, 2021, and during this last phase, it will be listed on coinmarketcap, coingecko and Pancakeswap. Then by November, FIN will be launched on crypto exchange, the staking and yield farm will be launched and it will be listed on Hotbit exchange.
All this information and many more can be found in the Roadmap of the project.
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Here is information of FIN on BscScan showing a total supply of 20,000,000 FIN so far.
Question 5
Create an imaginary token. Write about the project including its use case. Develop an ICO which includes Private sales (3 stages) and Public sales (1). Note that: You are expected to explain what the funds are intended to be used for, your Private sale should have 3 stages, and specify the initial supply available, and the price you are issuing the token in each stage. Also, specify the price you are issuing the token at the Public sale phase (including the supply).
TOMSCO (TOM) is a proposed decentralized blockchain with sole aim of bringing gamers together to interact and exchange ideas about their gaming experiences and they earn while interacting.
This project will be built on the Ethereum blockchain, and it will employ the Proof of Stake (PoS) as it's consensus mechanism.
The idea of employing the Proof of Stake consensus is to ensure that while gamers interact amongst their selves as they are gaming, a high level of scalability will be maintained.
As a result a particular gamer being able to share his experience with another gamer, the platform will reward him for that transfer of idea and the gamer on the other end who is gained this shared idea will as well be rewarded but not higher than the person who shared the idea or experience. So it will be a win-win for everyone who interacted.
The native token of the TOMSCO network will be TOM and it be used to reward gamers for sharing their video gaming experiences which will help other gamers who are to gain from the experience.
ICO of TOM
To get the platform become a successful one, an actual amount of $6 million will take care of building the platform. The fundraising is supposed to take 2 phases of which the first phase will be divided into 3 stages.
The intended token supply will be 40 million TOM of which 20% (8million) will be shared amongst the 3 private stages and the 20% (8million) will be allotted the public sale phase.
Below is the roadmap of the project.
(November 1, 2021)
Project Establishment
Team set up and employing developers
WhitePaper v1.0.0 release
Roadmap v1.0.0 release
(December 1, 2021)
Development of first product
TOMSCO Token (TOM) creation on Ethereum blockchain
ICO sale and start of promotion.
First Private Sale
The first private sale will be hosted on the official website of the project.
Top gamers with good gaming experiences will be invited. The token will be sold at $0.02 and 2 million TOM tokens will be in supply at this phase. The funds raised will be used to pay the dev team so they continue working on keeping the network secured.
Second Private Sale
The second phase of the private sales will still be hosted on the website of the project. It will take effect from February 1 and will last for 15 days. The price will be $0.04 and 2 million TOM will be in supply.
The funds raised at this stage will be used to purchase some more machines that will enhance a fluent connection among gamers.
Third Private Sale
The third phase will start on February 20, 2022 and will last for 10 days. The price for TOM will be $0.08 and another 2 million TOM tokens will be supplied. The funds raised at this stage will be used to pay for listing on exchanges.
Public Sale
The second phase which is the public sales, the token will be sold at the rate of $0.10 and 4 million TOM will be in supply. The money raised at this phase will be used to pay the staffs of the network and further get the token listed on some other exchanges like Huobi.
Question 6
What are the criteria required for listing a token on CoinMarketCap. Is there a criterion for listing an asset on a Centralized Exchange? If Yes, use an exchange for your explanation in response to the question.
There are certain criteria for which coins get listed on coinmarketcap.com.
There must be an official website to which this coin can be traced so as to ensure credibility and accountability of the coin.
The coin has to be minable. So there must be a consensus algorithm to which the coin is subscribed to.
For the purpose of the coin to prove its trustworthiness, it must have an exchange on which it can be traded.
There must be a spoke person to which the coinmarketcap.com team can get in contact with.
Meeting these criteria, the coin issuer can now proceed to filling the application form, even the above criteria are really not a complete guarantee that the coin will be listed
Listing on centralized exchanges, Binance for example demands 3 basic criterias which are.
- The project owners must first apply by filling the listing application form. Information required here are; name of the project, name, full name of the coin, etc.
The next thing demanded is a detailed information of the project.
The last is the successful submission of the application which if it meets their thirst, then they get coin listed.
Conclusion
Cryptocurrency Investment is a great and rewarding Investment scheme which if right utilized, could bring avalanche of good profit. It's been a great lecture from Prof. @fredquantum and I must say that I have learned a whole lot.
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