Steemit Crypto Academy Season 2 Week 1, Homework Post for Professor @imagen

In this post I will discuss about ICO (Initial Coin Offering) and IEO (Initial Exchanges Offering) and one of successful ICO. This is a homework topic given by professor @imagen. Here's my homework.

What is ICO (Initial Coin Offering)

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ICO or Initial Coin Offering is a method used by the founders of new projects on the blockchain to raise funds. After opening the offer, a number of investors who are interested to invest will provide a certain amount of funds to the project, while investors will get the new coins according to the price offered at the time of the ICO, and there are also projects that provide additional benefits and other attractive offers for their investors. It is also important for you to know, that you must really understand about an ICO based on the project whitepaper.

• Advantages

After getting sufficient funds, then the project will start developing the project until the cryptocurrency slides onto the market. After sliding into the market, if the cryptocurrency has increased in price over time, investors who have bought the cryptocurrency at a low price at the time of the ICO will get a lot of benefits because the cryptocurrency is experiencing price pumping. This condition is like a mutually beneficial symbiosis of mutualism for both parties.

• Disadvantages

Investing in projects that are currently in ICO's carries a high risk. Most ICO projects these days are scams, but some have made it to the release stage and are traded successfully on the market.

Apart from the risk of fraud, there are also other risks such as bankruptcy of the project developer and coins experiencing price depreciation that is far from expectations after launch because the coins are not selling well in the market. For that you need to be careful in investing your money, you should do research from reliable sources before deciding to become an investor in an ICO.

Difference between ICO and IEO (Initial Exchange Offering)

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Not much different from ICO, IEO is also an attempt by a new project on the blockchain that aims to raise funds through the initial sale of coins. What distinguishes the two is the platform on which the offer is made. If the ICO is offered directly by the project party to investors, the IEO bid is made through a trusted exchange platform as an intermediary for the project party and the investor. That way, the exchange platform has confirmed in advance that the credibility of the project is clear so as to eliminate investors' worries about investing.

NXT is One of Successful ICO

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In 2013, the developer known as BCNext launched NXT. This is one of the earliest ICOs, and also one of the most successful. NXT is designed as a blockchain platform serving the financial services sector. The token price was selling for just $ 0.0000168 at the start of the launch, the NXT development team managed to get around $ 16,800 Bitcoin at the time of the ICO. This capital is focused on developing the currency associated with the platform. At its peak, NXT tokens hit a high of $ 2.15 giving investors a return on investment of 1,477,000%.

To get the latest information about NXT, I went straight to the website https://coinmarketcap.com to find out. The current price of the NXT is $ 0.08264 with a circulating supply reaching 100%, which is 998,999,942 NXT. The highest NXT price for today is $ 0.0858 and the lowest price for today is $ 0.07862 with the trading volume reaching $ 2,455,692. NXT has a market capitalization of $ 82,552,546 and is ranked 470 for now. Until now, NXT has been successfully traded on various crypto exchanges and is very well received in the market.