HOMEWORK TASK SEASON 2 WEEK 1 BY PROF. @imagen || ICO (INITIAL COIN OFFERING) ||

HELLO, ALL STEEMIANS!
I hope that you all will be fine and enjoying good health. This post is a homework task for prof. @imagen. This post is about the initial coin offering. So let's begin.

1.WHAT IS ICO

The term ICO means (initial coin offering). This contributes to raising money or funds to start new projects for their blockchains such as coin, app, or service launches. It matches with the term IPO which stands for (initial public offering).

The investors that are interested in the coin offering spend their funds which include money and other cryptocurrencies and get a token of the project or new cryptocurrency which is issued by the company.

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This ico has becomes an excellent option in raising funds. The peoples that invest can also get their money back so they see an iico as the best investment opportunity.

The results of ico were not so satisfactory because the research shows that many of them were scams which causes a great loss to the person who invests it.

The common reason for the frauds in the ico is the ease in its development.
=> EXAMPLE OF ICO
The best example of ico is etherum which has ehers as its coin tokens. They have rise **15.5 million for a total of 50 million eherum at the price of 0.311 dollars of each token **.
the range of value of etherum is 2000 to 2200 dollars nowadays.
WORKING OF ICO

The all information about ico is present in the white paper. It provides us all information about the project. The information about the developmental team and the cryptographical graph is also present in it.
The investigation of the project owner is also necessary to know about it.

2.DIFFERENCE BETWEEN ICO AND IEO

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ICO	IEO
ICO stands for initial coin offering.	IEO stands for initial exchange offering
It is fundraising by issuing tokens to investors.	It is fundraising through exchanges.
In ICO developers conduct the campaign and paid for the advertisement and social network.	In IEO this role is taken over by the exchange.
In ICO all information of the project is not disclosed by the issuers. The developers simply create a website and issue whitepaper and then sell tokens. so it makes it easy to frauds as they can make ico platform and after fundraising, they disappear.	In IEO crypto exchanges make start with the complete diligence procedure. in this way, all information about the project, company is disclosed and verification also takes place. This makes it difficult to the frauds to reach the fundraising methods.
It is easy to set up ICO.	It is difficult to set up IEO.
The ICO cost low in fundraising	The IEO costs high in fundraising.
Protection is LOWER in In ICO	Protection is higher in IEO
In marketing ICO had projects	In Marketing IEO had both projects and exchanges.

3. ADVANTAGES AND DISADVANTAGES OF ICOS

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ADVANTAGES OF ICO :

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• EASY to buy tokens for the investors that invest in the fund and the company issue tokens for them.

• Much TIME is required for planning, making whitepaper, fund collection, token creation. As it takes a long time for success.

• The STATUS of ICO is written on the blockchain that makes investors know about ico more and more.

• The investors can get additional REWARDS or bonuses in the form of coins and tokens.

DISADVANTAGES OF ICOS:

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• Security is less in The ICO that's why the investors may face difficulty.

• ICO is considered as unregulated process for both the investors and for issuers.

• In ICO everyone can invest that's why they may cause difficulty when there come unsuccessful and fraudulence.

4. EXPLANATION OF ONE ICO

AS PROF.given a task to explain one of ico of our interest i research for ico and find a website name as icodrops
. On this website, I find many icos(initial coin offerings).In the screenshot given below, you can see different active, upcoming, and ended icos.

As I have to explain one of the ended ico. i will explain about ERC20 of rocket vault.

its token type is ERC20. ITS ICO token price is 0.08 USD .their fundraising goal was 1401562 token .their total token was 100000000.

Rocket vault has aims to change the world through the use of AI & ML in Crypto Value Investing.

It was the smart vault that delivers the highest APY of stable coin. Its whitepaper contains the information of all project, company, and token that is issued by the company to investors.it identifies the best performing pools and reduces the risk through different pools. It also has historical data that helps one to gain knowledge about its ups and downs.

So this is my complete task for a professor. @imagen. I hope that all you will show me your support.

Special mentions

@imagen
@steemitblog

THANKS FOR VISITING MY POST.