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ICO Initial Coin Offering
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Kickstarter or ICO?
In January we decided to launch on Kickstarter. In March we agreed on the date - 4th July - Independence Day - manifesting freedom and independence.
Now, we are seriously considering (leaning towards) ICO as a viable alternative - innovative, forward-thinking people in the crypto space are our target audience - they are exactly type of contributors we would like to attract to our project.
Are we suitable for ICO?
Consulting knowledgeable people in the space, there are some valid concerns:
I’m not sure an ICO is going to be suitable for you since your offering doesn’t really have anything to do with blockchains.
If you’re going to do an ICO and distribute a token then the token must have some sort of utility in your platform (e.g. you can use it to pay for things). Since you’re really just raising funding for what’s effectively an accommodation in a very specific geographical location I don’t see how it can be cast as a blockchain-based project that has global reach.
This is more of equity crowdfunding than ICO so at this time we cannot help you as we are fully focusing on blockchain and technology companies.
Think of slock.it - creators of orignal DAO (that was hacked and lead to Ethereum hard fork)
apartments become fully automated, smart objects can be rented on demand
Currently we have 2 buildings - we can operate at much larger scale by licensing our technology, software, know-how, processes... See investment section on our website to see our global reach strategy.
(it is possible that content of this wiki - complete, uncensored, transparent braindump is overlapping with the whitepaper)
Where the money goes?
We own a historical chapel from 1838 that requires capital for refurbishment - see also stay and refurbishment - we can get there in stages (bit by bit) or we could raise enough money and use the surplus capital to acquire more real-estate and replicate the model.
We own another chapel - http://www.dailypost.co.uk/news/north-wales-news/historic-caernarfon-chapel-sells-auction-6953093 - that also requires substantial investment.
We are thinking about acquiring another large building - very affordable price - not linking to avoid conflict of interest.
Offers in Excess of £150,000- http://www.rightmove.co.uk/property-for-sale/property-58079374.html
£150,000 Sold Subject To Contract- https://www.dafyddhardy.co.uk/property/100278009590?pg=1&s-search=1&s-ttype=0&s-term=Bangor&s-radius=1&s-type=&s-bedmin=&s-bedmax=&s-pricemin=&s-pricemax=&s-lat=53.22739&s-lng=-4.129263000000037
115 000 zł- http://www.domiporta.pl/nieruchomosci/sprzedam-inne-izbica-kujawska-540m2/146837481
Earlier this year we tried to raise funds to purchase an island - http://seafort.us/ - SOLD OUT :(
Depending on the level of funding we will purchase island in Panama instead - https://www.nomadbase.world/
NETWORK EFFECT and ECONOMY OF THE SCALE.
Contrary to other crypto projects, the capital is invested in tangible real-estate, something that will preserve long-lasting value.
(as opposed to bubble'y FOMO pump and dump premided shitcoin scam territory)
- no country at all
- Bitnation / Aragon
- Liberland: https://www.facebook.com/permalink.php?story_fbid=1860338954290392&id=100009429163339
- E-Estonia: https://twitter.com/stefek99/status/870629709398323201
- Hong Kong / Singapore (stable financial system outside EU)
- Switzerland / Liechtenstein
- April 2014: https://www.fca.org.uk/publication/policy/ps14-04.pdf
- February 2015 review: https://www.fca.org.uk/publication/thematic-reviews/crowdfunding-review.pdf
EPIC - A Securities Law Framework for Blockchain Tokens - https://www.coinbase.com/legal/securities-law-framework.pdf - and even more great links:
- https://coincenter.org/entry/framework-for-securities-regulation-of-cryptocurrencies - https://coincenter.org/wp-content/uploads/2016/01/SECFramework2.5.pdf
- June 6, 2017: https://www.linkedin.com/pulse/ico-whitepaper-stephen-palley - linking to many of the links above too:
Smart Contract for ICO
- https://github.com/ConsenSys/Tokens/issues/51 - just checking
- https://github.com/OpenZeppelin/zeppelin-solidity/tree/master/contracts/crowdsale - ACTIVE, probably the best choice
Towards a Standard ICO Crowdfunding Smart Contract Library
allows for token cloning (forking), which will be useful for many future use-cases.
Multiple rounds? Soft cap? Hard cap?
And now you have your own crypto token! Tokens by themselves can be useful as value exchange on local communities, ways to keep track of worked hours or other loyalty programs. But can we make a currency have an intrinsic value by making it useful?
You can use, for instance, the tokens to represent a share in a company or you can use a central committee to vote on when to issue new coins to control inflation. You can also use them to raise money for a cause, via a crowdsale. What will you build next?
Low hashing power - subject to 51% attack - someone could do hostile takeover - need better
Proof of selfie algorithm
- ReddCoin case study: https://www.reddit.com/r/reddCoin/comments/25qgv9/case_study_51_attack_and_double_spending/
- https://cofound.it/en/ - crowdsaling own platform...
- colony.io BETA: https://twitter.com/liamkurmos/status/857303414765735941
- seems too early, limited in the functionality, generally promising, like the concept
- https://blog.aragon.one/aragon-network-token-sale-terms-8998f63a3429 - worrying about raising too much:
But since we don’t want another The DAO scenario to happen, a security cap is a must.
- list of lists via Waves: https://docs.google.com/spreadsheets/d/18A1ybjDTBCk1NoA8bsRe9JQEC0SKOE5UYPLCOrG_1XI/edit#gid=0
A decentralized, open-source, crowdfunding platform built on Ethereum.
Various tools (not only ICO)
- BIP39 wordlist seed phrase: https://github.com/bitcoin/bips/blob/master/bip-0039/bip-0039-wordlists.md
- https://github.com/bokkypoobah/TokenTrader - token exchange on ethereum
- Multi-sig wallet: https://blog.gnosis.pm/release-of-new-multisig-wallet-59b6811f7edc
- Very well thought of: https://github.com/aragon/multisigs/blob/master/community.md
- CryptoCurrency Analysis: Helping You To Profit: https://www.youtube.com/channel/UC4gOL3aNl67bIU7U9QVrYJw
- 2017-07-27 https://blog.wavesplatform.com/how-to-run-an-ico-e21b9f8c11d6
Appcoin developers should consider building tokens with true consumptive value. An appcoin has consumptive value because it can be consumed and put to real use with a decentralized product.
But even if regulators have held back so far, other legal experts think that more regulatory action could be around the corner. Grinberg, for one, argued that catastrophe might ultimately be what piques the action of regulators.
Waves Platform. Despite accumulating nearly twenty million USD during the ICO there’s still no such thing as Waves Platform
In other words, you are the early adopters, the investors, who will own these coins when people buy your products and services with them. You are intending that 1K of your products and services and together, as a community, we will all be able to create a Coin that becomes the currency of a Gift Civilization. We will create a currency that continues to rise in value and a currency that reflects our values, intentions and visions for the world. This will include the festival communities, tech communities, new paradigm business communities, gift economy communities, etc - an that's just the beginning.
The market in Initial Coin Offerings risks becoming a bubble
2017-07-26 SEC: https://www.sec.gov/news/press-release/2017-131
https://blockgeeks.com/guides/what-is-an-initial-coin-offering/ - more great links at the bottom
World Crypto Network: https://youtu.be/AGQ-FYCQqMc?t=17m30s
The ICO thing obviously is going to ridiculous point now
Everyone is creating their ICO
Do your own research: https://bitcointalk.org/index.php?topic=1923939.msg19087583#msg19087583 (great post)
Do your own research - altcoins: https://www.investitin.com/cryptocurrency-altcoin-investing/
This crowdfunding model is similar to Kickstarter, with the added benefit of immediate liquidity and global access. Andreessen-Horowitz partner Balaji Srinivasan calls token sales “Kickstarter on Steroids.” Given all the recent hype, they look more like Kickstarter on crack.
Beyond gambling and speculation, there aren’t many popular uses for digital currency right now. A recent token offering called PonzICO promises to apply the proceeds towards buying the founder a Tesla. Token holders get nothing more than the right to vote on the color of the car, and somehow even that project collected nearly $3,000.
There are no regulations, constraints, or pretense of investor guarantees on ICO offerings
Want to launch a blockchain token? @AdamDraper and @willwarren89 discuss the process on the @BoostVC podcast
Today, there are probably less than 100 people in the world who are experts in cryptoeconomics.
Token sales have emerged as a fundraising alternative to traditional venture capital. To this day, $380+ million have been raised through public token sales — 60% of which occurred in the past 2 months. - https://blog.coinfund.io/toward-more-equitable-token-sale-structures-a71db12c8aff
World Crypto Network @SimonDixonTwitt: https://youtu.be/fXxW5wyeGrk?t=1h27m20s
BitcoinTalk forum, Reddit
Bitmex newsletter: http://mailchi.mp/bitmex/crypto-trader-digest-1307649?e=0ddd0fb121
While I believe the majority of ICO issues are worth close to zero, I do not dismiss the importance of this new mode of financing. In fact, I like many, believe the ICO phenomenon is part and parcel of the move to democratise financial services.
Global Cryptocurrency Benchmarking Study: https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/global-cryptocurrency/#.WUetDxOGORu
2017-07-06 from Hacker News: https://www.fxempire.com/education/article/ico-initial-coin-offering-work-418446
- https://news.ycombinator.com/item?id=14688177 - long list of projects that are still alpha...
- "It's not even gambling. If you're not the one creating the ico scam, you are flushing money down the toilet."
2017-07-18 massive resource: https://github.com/Scanate/EthList
Recent, notable examples
Our crowdfund will begin on June 12, 10:00 GMT
The Tezos fundraiser is likely delayed until June.
The Tezos Foundation has decided to delay the fundraiser previously scheduled for Monday, May 22, until some time in June. We want to share some background on what led to this decision: For more than six months, Tezos' creators worked with legal experts to form a legal architecture for the Tezos Foundation and the global Tezos community that will stand the test of time. That architecture is now in place via the Tezos Foundation.
The Swiss authority that regulates and supervises all Swiss foundations is currently overwhelmed by demand. A key driver for that demand is that more cryptographic startups and ICOs are being launched here, in the Crypto Valley, than anywhere else in the world. This appeal stems from Switzerland's unique culture and politico-legal system which provides greater protection for individuals and their property than any other jurisdiction.
While the Foundation's legal advisors have stated that we could hold the fundraiser as planned, we have discussed this amongst our board and decided that, in the interest of the high prudential standards we hold ourselves to, we will not proceed until every i has been dotted and t has been crossed with the Swiss foundation supervisory authority. We will bring this level of care and forethought to everything it does, so the Tezos community always has peace of mind that things are being done right.
The Tezos Foundation is extremely pleased with the fantastic community that is starting to sprout around the Tezos project. The interest in the Tezos fundraiser has been electrifying. It is an amazing vote of confidence in decentralized governance and in the world class team developing the project. That interest has been matched by engineering development resulting in a testnet that has been operating for several months already and a production version that is expected to ship later this year.
Humaniq (HMQ) - released on Bittrex - https://bittrex.com/Market/Index?MarketName=BTC-HMQ
Gnosis - sold out in under 15 minutes - https://medium.com/@jakelanor/why-the-gnosis-ico-sold-out-in-15-minutes-7dd7c6b93e2e
Golem - Golem Crowdsale Sells Out in 18 Minutes - https://www.reddit.com/r/ethtrader/comments/5cf2zm/golem_crowdsale_sells_out_in_18_minutes/
Aragon - https://www.cryptocoinsnews.com/ethereum-based-aragon-raises-25-million-15-minutes-record-ico/ - Ethereum-Based Aragon Raises $25 Million Under 15 Minutes in Record ICO!
Matchpool - "Exit scam" - diversification of ETH into BTC.
Blockchain capital - https://tokenhub.com/#
Basic attention token - https://basicattentiontoken.org/ (Brave browser)
- I should have at least tried: https://twitter.com/stefek99/status/870678368336830465
Listing on exchanges
It will happen automatically. They get commission from each trade and deposit - it's their job to add trading pairs.