Cryptocurrency - How Does ICO Help To Raise Fund To Your Business?

Introduction to Cryptocurrency Markets

With the enormous development of the Blockchain Technology, new opportunities are created in the field of Trading and Investing. Specifically Crypto Markets are 'Borderless & 24/7 Open' so it offers huge potential for growth in Investment and Wealth Management era. More than 2000 new Cryptocurrencies are being created and traded on daily basis, leading to high returns for many investors. The combined market capitalization of all currently available in Cryptocurrencies together is only around $300 Billion USD, which leaves lots of room to expand in future. Financial Experts confidently consider that Blockchain and Cryptocurrency have become a niche market which leads to increase in transaction volume especially to Bitcoin and Ethereum. According to Juniper research, total Cryptocurrency transaction value may surpass $1 Trillion USD by 2022.

From my title picture, you may think that I am going to write an article on how to raise huge fund or make big investment from one of the trending terms called “ICO” or “ITO”. No, this article is only intended to make people having overall picture on ICO or ITO process. Initial Coin Offering cannot not be taken as a simple and easy way to generate capital rather it has a lot of effort and hard work involved.

Now I would like to start this article with a serious advice about ICO. You might have read in news articles like ‘Huge Capital is generated or Million Dollar Fund is created within an hour from ICO’. This kind of news creates a perception to the New Entrepreneurs that ICO is the best way to create fund to their ideas or innovations. Apparently No! ICO is not the place where you can get rich quickly from your New Idea or investing on New Ideas rather participating ICO makes you strictly committed to complete your final outcome. Okay, lets move to our topic!

Tokens & Coins

Tokens and Coins are two major categories of Cryptocurrency. Tokens are the representation of a particular asset or utility which are resides on Blockchain Network. It can also represent any assets that are fungible and tradeable, from commodities to loyalty points to even other cryptocurrencies. Tokens are created and distributed to the public through an Initial Coin Offering (ICO) which means crowdfunding of project development. It is such a similar concept of how Initial Public Offering (IPO) for stocks works.

Coins also referred as Altcoins or Alternative Cryptocurrency are often used as medium of exchange because of its interchangeability in design. Coins are basically derived from either existing open source Blockchain Network like Bitcon (Namecoin & Peercoin) or native Blockchain like Ethereum & Ripple. One common property of all coins is that they each possess their own Blockchain Network where transactions relating to their native coins.

Initial Coin Offering (ICO)

An Initial Coin Offering (ICO) is a kind of fund-raising method made available by the development of Blockchain technology. Through the creation and sale of Digital Crypto Tokens and Coins, investor has the percentage of right to project and development team creates fund to their project. These rights (Tokens & Coins) can be accessed through Blockchain platform and traded in Crypto Exchanges with other digital currencies or fiat currencies.

Process of raising ICO

Risks of ICO

• Uncertain Regulations & Compliance
• Lacking of Complacency
• Bad Token Distribution
• Code Vulnerabilities
• Lack of Understanding in Crypto-Economy
• Uncertain basis for token valuation
• Lack of comprehensive due diligence
• High positive promises for guaranteed returns
• Unawareness of Project Scope and Market Analysis Reports 

Story Time

This short story is just for having better understanding on how ICO works in layman level.

One-day God has created a beautiful island in a big ocean with lot of natural resources to survey. People who found this island in the ocean were started to immigrate. God offered those people few Coconuts as a welcome gift based on their capacity. People in the island used their coconuts in hunger time and exchange with other people to get the desired stuff which others have. Life was going smooth for everyone. Great!

One guy has decided to build a house for him but his only effort on building the house was not enough so he gathered few people as workers and started building his own house. All his workers were offered with coconuts as wages and this guys came to know that coconuts were not enough to complete the work. Then he explained to all the people in the beautiful island about his House Building Design and asking their contributions to build the house completely by offering their coconuts. For return, he assured to provide a room in his house based on their contribution level. Few people believed his effort and importance of building house and contributed their coconuts to continue his work. By this way, he has successfully finished building his house and allocated rooms to the contributors. Now life is going better for everyone based on their trust on others. The End!

In this story, Beautiful Island is the Blockchain Network and God refers with the Blockchain Technology Hosting Team. Coconuts are tokens or coins which was used for medium of exchange. House Building Guy is the Founder of the Project and Contributors are Investors. The whole process can be referred to ICO.

Thanks for reading my article. Please post your queries, clarifications and suggestion.

Disclaimer: Information provided in this article are my understanding being shared for the educational purposes only. All the information provided here is from public domain, to best of my knowledge no proprietary information is used. If any questions or concerns about the content, please contact me directly.

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Have you gone through a Great Leader in your Professional Life?

In this year, I would like to start my articles from a non-technical and the most important concept called Leadership. Leadership is apparently a gift by nature and many people develop this skill from their role models as well. Role Models cannot always be a known person or a Leader rather you can adhere your leadership skills from Nature. In this article, I want to detail few leadership skills which I have come across in my life.

“Leadership is neither a position nor a title rather it’s a skill to be acted as an example”

There is chance of remembering your Boss or Leader while reading the following sections and it can be a positive or negative experience. “Not Judging People” is the top quality of leadership. From your experience, you should not judge your leader because a leader is not for a single person rather a team or organization.

Multiverse Vs Solar System

The multiverse is a group of multiple universes including the universe in which we live and Solar System is a micro-dot of a universe which has a star with planets orbiting it. Do you understand why I give this comparison here? In our Solar System, Sun is a giant and planets in variable sizes are rotating around it. Sun has enough energy to serve all planets, its moons and other flying objects. If there is no Sun, Solar System does not exist.

“I strongly believe that leadership should not be like a Solar System”

What is happening in Multiverse? There are a lot of universes, operating independently, for a common goal and the goal is continuously expanding themselves. If one of the universes has vanished, rest are contently operating on their goals. Great Indeed! Leadership is not having more people to report and manage huge number of professionals. It is ‘Believing and Empowering’ people to operate independently for achieving organization goal.
Many Leaders accept Multiverse is the best leadership but they think that it is practically impossible to have a control on organization goal. In this case, leaders must think how MNCs are operating in different geographic, culture and leaderships to achieve their common goal.

“In simple, leadership is that operating MNCs within their team or organization”

Core Leadership Skills

This diagram is pretty straight forward to understand the core skills of Leadership.

What Great Leaders Always Consider!

• Micromanagement is simply wasting everyone’s time
• “Yes Employees” are always trouble makers than bringing positives 
• Not afraid of receiving honest feedbacks and different opinions
• Appreciating Good Work without Ego
• Spending more time with Team Members than Superiors
• Believing and Investing in People
• Being Examples than Claiming Expertise 
• Money and facility cannot make everyone happy in the organization
• Handling critical situations by humor sense
• Having strong strategy for long-term goal instead of dynamic changes
• Not considering themselves as experts in everything and believe in delegating 

Finally!

Having a bad boss increases the chance of having Heart Attack by 60%, a study says. Also it says that 56% of employees stay because of their good bosses and leaders though it is a bad organization. Being a Great Boss or Great Leader is not for others, it must be for themselves. Being Grateful to the employees would definitely make a good leader than having fancy designations and powers.

Thanks for reading this article. Please post your queries, clarifications, concerns and suggestions.

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