Crypto Academy Week 9 - Homework Post for @imagen

Ico is an abbreviation under the blockchain which could be named in full as initial coin offering it is said to be ways in which investors try to raise funds or also try to scam private and external investors by creating different schemes and level in which their capital investment will be increasing as a multiplier rate and they will get more than the amount invested in

A blockchain would rather be seen as a decentralized, distributed journal, ledger transaction that books down or record the provenance of a digital asset. By network or web designs, they are seen as monetary terms of transaction which can only be seen but not touched until when transferred into monetary value or currency and it has the most simplified advanced security level which makes it legitimate for payment, and for cyber security.

Initially the ico was created or established as a systematic way of raising funds or help in multiplying money for investment schemes and backup of projects it could also be said that it was to perform functions of the micro finance banks except from giving out loans. They types of blockchain mostly used in raising funds were actually 2 namely :-
1- Bitcoins
2- etherum

1- bitcoin is said to be the most popular due to its ability to increase deposited funds to very high rates and most rich investors prefer the bitcoin because it has been in production for ages and it never had issues of hacking or cyber crime it is said to be a legit account to keep money .
The bitcoin is actually referred to as a cryptocurrency it is also a virtual figure of cure or could be named digital currency, is a money that is completely virtual. For example it could be called an online version of cash , it can be sent to digital wallets and then be transferred from one person to another .

2- etherum would be said to be the second popular as at during the covid 19 crisis which also made its worth to also increase and investors started making money there but it didn’t last due to the cybercrime which was in progress during the period, some used it as an investment scheme while mostly others used it as a way to steal from others which made it not to last longer in the blockchain the etherum currency which was launched in 2015 is seen as an open source, blockchain and also a decentralized software platform used for its own cryptocurrency.

What could be said to be the difference between ico and ieo?

Ieo which is said to be the initial coin offering while the ieo is abbreviated to be the initial exchange offering the ieo could also be explained according to the abbreviation that it is also a way of creating funds or increasing funds but it involves the coming together of two or more parties and transfer of cryptocurrency is present in such case the ieo is not that very much different from the ico they are both established for raising funds but in different ways

1- it maybe said that the ico is a amount particularly based for the helping of funds raising and helping in projects backing up while the ieo might be the actual amount of money being put into the business but and amount gotten from various transfers from different wallet accounts

2- the ico varies from the ieo in the creation of funds based on ieo involving third party in creating funds to help benefit a project while the ico just creates its own capital to help raise funds between the investor and the funder.

3- the benefits of an ieo is that it doesn’t give room for scammers because when a project is being given they asked for detailed information about the business and the owner and share it among the third party investors so the business will be properly screened by different individuals but it’s not applicable for the ico because it just generates fund without asking for basic information about the organization that’s why they mostly involve in scamming issues

4- the ieo is able to generate greater and higher funds because they involve third parties in their business and due to the outside parties trusting them enough to know their money will be intact without them being scammed while for the ico they can’t generate massive funds like the ieo they r limited to only the amount they can generate

The major advantages of ico

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1- it is very easy to start up, raise , or fund it requires either less or huge capital it is based on the amount of token that is being able to be generated .

2- it doesn’t require bringing together of another party to help in raising funds or sharing of gained profit ,it is enjoyed alone

3- the ico is highly liquid in the sense that it has an high rate of mobility of accounts in the sense that it could be sold and moved to different investors and it will still remain in its surrender value and the investors will still be able to keep track of their account due to the transaction being done virtually online

4- the ico gets a very high return on investment if it is backed up by a popular company with that they will be able to lure investors in coming to join their business and help them to gain more in the specified business

@imagen

The disadvantages of ico

1- they r mostly generated for scamming purposes they could also be seen as Ponzi scheme they will be created for a short period of time to steal funds from investors and then run away

2- they don’t last long enough to be legit they’re very easy to hack because they were not built to last long enough so their firewalls are not going to be very firm which gives room for hackers to try to hack the site and also make their way in stealing funds

3- different kinds of ico investment schemes also go through risks and competition which could also make them to liquidate fast from the market

4- some business operators develop an ico account for a specific period of time after going to borrow a particular amount from the bank then set up the investment scheme for a particular period of time with a fixed amount to earn and when the value is gotten they shut down the account

There are various types of ico scheme that are in progress
Examples is

Spectrocoin

The spectrocoin was also created like in form of the bitcoin to the extent of it having a debit card but it was later said to be a scamming area as at the year 2020 when investors said the money that was being transferred to account could not be withdrawn and the account will be having a credit balance but the withdrawals process saying their account isn’t being fully verified for withdrawal or they use excuses of them not fully complying to their kyc data

## Another example of an ico coin base scheme is the ARK 

It is said to have Been in progress for over the last 2 years and has been funding its investors well the current price worth of ark as at today is at $2.47
The ARK could be explained to be another blockchain and cryptocurrency made as a development programme that allows anyone or investors to edit and customize their own blockchain page .
The present rate of ARK to BITCOIN is
0.00004015 it could be said that the ARK cryptocurrency is presently doing well in the market and is also in a good term of trade because it has a very strong party of organization behind it so making investment in time like this would be very productive