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What are Initial Coin Offerings | Platinum Trading Institute

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Title: What are Initial Coin Offerings | Platinum Trading Institute


1
CRYPTOCURRENCY
  • What are Initial Coin Offerings (ICOs)?

2
Initial Coin Offerings (ICOs)
  • Initial Coin Offerings (ICOs) is akin to offering
    shares to crowdfund a Blockchain or
    cryptocurrency based project.
  • At Platinum Trading Institute (PTI), we are
    excited to offer this primer on ICO Investment,
    fundamentals.

3
IPOs versus ICOs.
  • Compared with Initial Public Offerings (IPOS),
    ICOs differ from IPOs in many respects.
  • IPOs are not truly Crowd Funding mechanisms.
  • ICO Investment is TRUE crowdfunding mechanisms.
  •  IPOs are issued for an existing technology,
    product, or an idea. For example, say an APPLE
    device was developed and sold using private
    investors funds before it was ever sold to the
    public. The pre-existence of technology is thus
    less risky and breeds confidence among
    investors. 
  • ICOs are issued prior to the technology or the
    product being developed. Thus, they are riskier
    and often investors have to rely on the promise
    of the underlying technology for making ICO
    investment decisions.

4
Is ICO Investment Legal?
  • The legality of ICO Investment is still an open
    question. They are new and still unregulated
    financial instruments. In addition, they do not
    follow any traditional pathways for generation,
    sale, and dissemination among the investors.
  • However, SEC has recently issued a series of
    opinions that lead to its acceptance by the
    traditional investment communities. For example,
    some applications of these tokens are just only
    that they are utility tokens and used for a
    specific use. Some of the gaming tokens fall
    under that category.
  • On the other hand, some of the reputed ICOs allow
    the purchaser to own them for some future gain in
    their values. In that case, these tokens are
    viewed as an investment or a security for
    example, Ripple or Ethereum.

5
How are ICOs Priced and Issued?
  • Recall that ICOs are the mechanisms to crowdfund
    a given project, contract, or a product.
  • Thus, an inventor or an entrepreneur sets up a
    protocol or a Blockchain for the product that he
    envisions to launch.
  • Once the Blockchain is established, his next step
    is to mine coins in support of that product or
    the contract.
  • At a given point in this mining process, the
    miner names the coin and establishes its initial
    offering price. This could be 0.10 or 1.00 at
    the discretion of the miner. In addition, the
    miner can offer a low price to initial investors
    increasing it gradually for later investors.
  • The next step is to facilitate its sale and
    dissemination. A coin can be offered for weeks or
    a month, though there have been instances where
    initial offering has been exhausted in a matter
    of minutes raising hundreds of Millions of
    dollars. 
  •  The ICO issuer also resorts to social media
    outlets, his own website, and other digital
    marketing approaches to make Initial Coin
    Offering more accessible to the public.

6
How to Make ICO Investment Decisions?
  • Just like any other ICO Investment decision a
    due diligence of a given ICO product is almost a
    must. Thus, researching an ICO is a critical
    element prior to investing in any offering. There
    are several ways to research a given ICO.
  • Evaluate Top ICO list,
  • Follow ICO watch lists as advertised by major
    exchanges,
  • Acceptance by a major exchange, and finally
  • We, the Platinum Trading Institute (PTI) experts
    invite you to subscribe to our Cryptonnaire
    weekly.

7
THANK YOU.
  • If you want to stay on the top of the crypto
    technologies, innovative trading strategies, or
    simply like to be financially successful, please
    sign up for a two-day course on cryptocurrency
    trading.
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