Tag Archives: markethive

Why Airdrops?

Why Airdrops?
This is why Markethive will replace Facebook

“Airdrops combine the best of paid referral programs with stock options. Potential users get paid for joining or using the network and have the potential upside if the network increases in value.”

Brayton Williams to CoinDesk

Why Do Projects Airdrop Their Tokens For Free?

Airdrops raise awareness, even Paypal (pre blockchain) discovered the awareness effect, and goodwill giving away $20 to sign up and verify your account back in the early 2000s. Paypal is now a household word and $50 billion company.

This awareness has a tendency to increase the token value as well as create a network effect. IE: A network effect (also called network externality or demand-side economies of scale) is the positive effect described in economics and business that an additional user of a good or service has on the value of that product to others.

This marketing strategy plays on a cognitive bias known as the endowment effect. In psychology and behavioral economics, the endowment effect (also known as divestiture aversion and related to the mere ownership effect in social psychology) is the hypothesis that people ascribe more value to things merely because they own them.

Are Airdrops Effective Marketing Tools?

OmiseGo conducted the first airdrop of this kind and amplitude on September 4th – distributing 5% of the total issuance of OMG token to every ETH address, with a minimum balance of 0.1 ETH. The airdrop enabled each ETH holder, by providing them with a share of the 5%, proportional to their share of the total circulating supply of Ether.

The aim of the airdrop was to allow the token to be distributed as widely as possible, allowing for true decentralisation of the platform, to ultimately increase its network security.

On the chart below from Google Trends, you can see that a surge in search interest related to OmiseGo occurred during the days of the airdrop, reaching a peak close to the end of 2017, and dropping to a tenth of the search interest in June 2018. Most websites such as CoinDesk, CoinTelegraph, and much of the Twittersphere spoke about the airdrop, leading to many people wondering what the project was about, and increasing OMG brand awareness.

The TRON foundation just recently completed an airdrop to market the Tron platform, which was set to launch a few days after the drop. Its desired effect on awareness had little impact most likely caused by the current bear market.

The cause could be simply that Tron was omnipresent in social media since January, meaning people were already aware of an incoming airdrop, or as this is the first airdrop that took place squarely in the middle of the current bear market we find ourselves in, so overall interest in cryptocurrency has led to this lack of interest in Tron’s airdrop.

However, POLY (Polymath) after privately raising 12.9 million decided to airdrop 10 million POLY coins to the blockchain community instead of an ICO, deciding to allow anyone to subscribe to the airdrop regardless of their holdings.

They received more than 40,000 applications complete with KYC and AML screening, to ensure that the tokens were airdropped to real users, rather than bots. All the people which completed the procedure received 250 POLY, worth $165 at the time of writing and $400 at the token’s all-time high.

Similarly to the other projects, besides Tron, the marketing scheme worked, as the search interest for Polymath reached its all-time high by the 10th of January, the deadline to apply to the airdrop.

In summary, it is strongly evident the additional benefits awareness causes trading and coin demand increase drives coin prices up.

What are Infinity Airdrops?

Inspired by the Paypal Hack, the Dropbox Campaign, then Crypto based Airdrops by OMG, EOS and TRON, amazing successes, effective yet short events; Markethive in the spirit of the Bitcoin Faucet and Universal Income is delivering the Infinity Airdrop. Simply join Markethive and receive coin, an offer with no end.

What are faucets? I assume most people know what a faucet is, but I am wrong in that assumption. It is a relatively new phenomenon, in that by simply visiting a website, entering in your Bitcoin wallet address, and solving a simple captcha challenge you can get paid free Bitcoin. Case in point:

Imagine a faucet giving away 5BTC! That’s what Gavin Andresen’s faucet was paying back in June of 2010. It was his first bitcoin-related coding project and he started it off with ฿1,100. At today’s prices, that’s close to $7,150,000. Your claim of ฿5 would be worth $32,500!

The concept created a huge, subculture phenomenon; with literally 1000s of sites operating like survey sites to get free Bitcoin. Unfortunately, the process today is anti-productive and only the most stalwart contenders are able to keep to the tasks due to the oppressive popup ads, viruses, browser hijackings, etc. The concept is intriguing and we believe the promise is solid, just waiting for a system to do this right.

Airdrops, Faucets and Universal Income

There is something there, blockchain, crypto, anti-inflationary coins, faucets and airdrops and Universal Income. Conventional Wisdom seems to think by heavily taxing the elite and profitable business interests, the masses can be given a sustainable income to survive. We do not agree. It is nothing more than a repackaged attempt at communism, stealing from the rich by the middleman, and giving to the poor, creating an entitlement culture, and a rich and powerful middleman (after all they will become more equal than you) bureaucracy and autocrats running the show. There is the absence of any motivation for the recipient of their allotted Universal Income (thereby destroying self-esteem) and the whole idea supports tyranny in every way.

We offer an alternative Universal Income. Get paid to support the entrepreneurial culture by simply working at building your dream within the ecosystem of Markethive. To attract the masses of entrepreneurs, we launch and operate the Airdrop. The never-ending Airdrop.

Markethive has set goals to build out portfolios of Coin Exchanges (like Bittrex and Cryptopia), News Sites (Like Cointelegraph and News.Bitcoin), Web building systems (like Wix and Volusion), Green House hybrid mining systems, and an ongoing strategy to build “money machines” to contribute to the sustainability of the Markethive Universal Income for Entrepreneurs.

The Billion Coin Drop

Markethive’s vision is to deliver Entrepreneurs a Universal Income in an Ecocenter environment designed to accelerate success as well as return huge profits to the founders who financed the initial stages of the platform, like the following have done:

Paypal valued today at $50 billion
New customers got $10 for signing up, and existing ones got $10 for referrals. Growth went exponential, and PayPal wound up paying $20 for each new customer. It felt like things were working and not working at the same time; 7 to 10% daily growth and 100 million users was good. No revenues and an exponentially growing cost structure were not. Things felt a little unstable. PayPal needed buzz so it could raise more capital and continue on. (Ultimately, this worked out. That does not mean it’s the best way to run a company. Indeed, it probably isn’t.)”

Dropbox valued today at  $10 billion
While PayPal rewarded its users with cash, Dropbox gave extra storage space to both the referrer and the referees. This was clever, because it invests the users in the product. It made sense for PayPal to give cash, because they’re a payments company and need users to use their service to make financial transactions. Dropbox is a storage company, and they need their users to use their service to store stuff. In both cases, the optimal currency is the lifeblood of the product. In World of Warcraft, the reward is in-game social currency, in the form of rare Mounts that can be shown off.

EOS Marketcap at $6.4 billion
EOS has become a powerhouse in the crypto space. One of the most promising things about it is the airdrops. Unlike Ethereum, many EOS projects are choosing to collect zero funds up front. Instead, they simply drop their token to the EOS community, while dropping themselves tokens to fund their project. The EOS markets then decide the value of the token based on demand, The team then sells some of its tokens to raise money. Since it’s easy and practically free to start a project on EOS, new players are popping up every day.

OMG Marketcap at $1 billion
Shortly after their first Airdrop, things started happening for OMG. OmiseGo's OMG token is reporting double-digit gains today, figures that throw shade on the rest of the top 25 cryptocurrencies by market valuation. Having clocked a two-month high of $20.67 earlier today, OMG is now changing hands at $18.20 on Bitfinex – up 15 percent in the last 24 hours. Meanwhile, OMG's BTC-denominated exchange rate jumped to a seven-month high (highest since Sept. 30) of 0.0023466BTC. The price rise may be associated with the OMG's listing today on Bithumb, one of the biggest cryptocurrency exchanges in South Korea. The token was also listed on Zebpay, one of India's largest cryptocurrency exchanges, yesterday. According to the chart analysis, though, the outlook will remain bullish as long as prices hold above $14.40.

By The Numbers

First Airdrop will utilize 1 Billion Coins

500 coins will be transferred to every new subscriber to Markethive upon completion of the registration process. An additional 100% matching bonus will be awarded to (either) the qualifying referrer, or in a rotational share assigned to a qualifying member in the CAP (Customer Acquisition Program) Thus 1000 coins will be used for every new subscriber, thereby producing 1 million new Markethive subscribers.

To qualify for the matching bonus, the CAP, and other benefits, the subscriber must upgrade to the Entrepreneur level at $100 per month. The benefits of this upgrade far outweigh the monthly costs. The Entrepreneur upgrade is explained in detail further down.

In scores of focus groups when the participants understand the benefits with the Entrepreneur upgrade we consistently get 100% of the participants agreeing they would enthusiastically upgrade to Entrepreneur.  We are downgrading our projection to 10% for this illustration at the lowest expectations.

Projected Scenario

First Airdrop of 1 billion coins divided by 1000 (500 to the new registrant and 500 to the referrer) equals a total of 1 million registered members. Estimating 10% will upgrade to the Entrepreneur level at $100 per month or pre Pay $1000 per year ($200 discount) that monthly income revenue valued at $10 million in USDA.

20% of Markethive revenue (profit) is set aside to pay back the loan (ILP) holders, share(s) of that profit. There are 4 phases in the crowdfunding. If the Airdrop is launched when Phase one is completed, and that Airdrop produces 1 million subscribers as projected and 10% of those subscribers upgrade to Entrepreneur level, as projected, then those 125 ILP shareholders will each receive $16,000 as projected (but not guaranteed) the first or second month, depending upon the effectiveness of that campaign.

As such if we do not launch until Phase 2 is completed, there will be 250 ILP shareholders activated to receive equal shares of the projected revenue of 20% of the $10 million making each holder $8,000 per month as illustrated and projected.

If we should complete all 4 phases prior to launching the Airdrop etc. then the projected revenue will be shared amongst 1000 shareholders (500 active and the 500 projected Shadow holders) paying out $2,000 per month per share.

We are seriously preparing to replace both LinkedIn and Facebook as the next-gen network, the Market Network.

No other system out there has the advantage to do this. We are well branded. Markethive perfectly brands and illustrates exactly what we are. A Market Network, a name easily remembered, a name that has been trademarked in the US and internationally in as many classes possible, ensuring command over the usage of the name. We have also taken control on 95% of all TLD domains. We also control the name as a username on every Social Network that matters.

Trademark proof: https://trademarks.justia.com/owners/markethive-inc-3156092/

Markethive has been operational in BETA with over 5000 subscribers for nearly 4 years. Our entire system is run on our copyrighted code. It is a proven system and continually improves.

Appendix of options and requirements:

Mention 3 referrers activates the Micro Payment system

 

Markethive is converting to the blockchain to increase security, ensure privacy and establish digital currency viability. Blockchain conversion gives us our own coin to conduct internal commerce but also trade and commerce outside globally.

Having our own viable coin, allows us to activate a Micro Payment system, to reward active members, with a real Universal Income with Markethive tradeable coin.

The Markethive Free Program

Everything (Airdrop, Inbound Marketing, Social Networks, Blogging Platform, Broadcasting, Groups, Campaigns, Capture Pages, Conference Rooms, earning free coins, Messaging, Wallets, etc.) in Markethive is free. You can even be rewarded for referring your friends and traffic to sign up via the Infinity Airdrop. Markethive has a Micro Payment reward system where you can earn income by simply using the tools of the system. To activate it, you simply refer 3 people to sign up via your profile page.

The Entrepreneur Upgrade program

100% Matching Referrals

Earn 100% Matching Bonus on all signups referred through your profile page. This can be as much as 500 coins, traffic 1000 people to register through your profile page and earn up to 500,000 coins. (Steem a social networked blog blockchain platform only, coins are trading at $1.30 and earlier this year had reached over $6 per coin. We expect Markethive coin to eclipse Steem once Markethive gets rolling).

Build Quality level Leads

Facebook makes friends, LinkedIn makes connections, and Twitter makes contacts. None of these give you additional social accounts, verified phone number, full name, IP, agreement to connect, etc. Markethive’s Entrepreneur program acquires this for you and calls them Associates, superior lead development within a nurturing program.

Company Ad Co-op

Buying customers is a relatively new concept. Trivita does this for their distributors. Buy a marketing share and receive 1 customer. They charge between $60 to $150 per customer. It is a sound concept and helps to grow the budget for larger advertising campaigns. The Entrepreneur upgrade is built on this concept. We take the revenue raised by the Entrepreneur Upgrade and run million dollar ad campaigns, video ads, press releases, articles, social networked reaches to drive the awareness of the Markethive Airdrop, the Markethive system, and the Markethive Universal Income.

Our Co-op sells shares, which means you could receive a lot of “customer” referral signups, not just one.

Traffic Portals

Thomas Prendergast the CEO and Founder of Markethive coined the term “Traffic Portals” back in the 90s. Traffic Portals offer something of value. A news site, a search engine is a version of a Traffic Portal. Markethive already has a portfolio of Traffic sites in the works;

Bigcaboodle.com (A WIX like web site builder)

Aboutbitco.in (A news site like Cointegraph.com)

Hiveroom.com (A webinar service like Gotomeeting)

Beelancers.com (A freelancers pier to pier commerce type site)

MarketExchange (A cryptocoin Exchange site)

CryptoPonics (A hybred coin mining and herb greenhouse facility)

The epitome of Inbound Marketing is the Traffic Portals. They assist in generating additional traffic that converts to customers for your benefit as the Entrepreneur upgrade at Markethive.

Exclusive Banner Program

Banners appear throughout all Markethive dash board pages, blogs, and Traffic Portals. Exposure is guaranteed. Banner advertising is exclusive to the Entrepreneur Upgrade. Banner ads may run up to 7 days. Compare to other systems banner ad programs average $100 per day per banner. Banner ad placement in the Markethive system is unlimited.

Shadow Share ILP (ICO) incentive

As an Entrepreneur Upgrade, you also get your own replicated IO site. An IO site is the web page we use to raise crowdfunding. Most blockchain start-ups, like TRON, EOS, OMG, etc. utilize a similar type of page for their ICO (Initial Coin Offering)

Having your own replicated site will tag all crowdfunding applicants to you.  Any ILP that is processed will earn you an equal shadow version of that ILP. The only difference a showdown ILP is to an active ILP is the shadow is not actively sharing profit until the crowdfunding campaign is completed. Then the shadow ILPs become active for the same terms the ILPs Have.

This can be a significant opportunity to build an investment that has the potential to return significant revenue over the years of the terms of the ILP.

Welcome to the new Markethive

Thomas Prendergast
Founder
 

inbound marketing explained and compared

Veretekk invented Automated Marketing (in 1996), later to become known as Inbound Marketing (MarketHive). Veretekk’s traffic portal offers, auto responders, Broadcasting technology (The Hammer), Conference rooms and sales funnel process became the foundation that today is known as Inbound Marketing.

WATCH THE VIDEO BELOW

But let us digress some. Before the Internet; advertising and marketing were for the most part driven by Outbound Marketing:


Outbound marketing is buying attention, cold- calling,
Direct paper mail, radio, TV, sales flyers, spam,
telemarketing and other forms of traditional advertising.

 

 

 

Inbound marketing is the most effective marketing method for doing business online. Inbound marketing focuses on creating quality content that pulls people toward your company and product, where they naturally want to be. By aligning the content you publish with your customer’s interests, you naturally attract inbound traffic that you can then convert, close, and delight over time.

 

 


Simply concept really, execution is the challenge. (Just ask a few of your friends how often they blog) vs posting to Facebook newsfeeds, Skyping or texting back and forth.  With a little understanding, some instruction and determination, any entrepreneurial motivated person can make a success with the right tools.

This is why it is important to know your “WHY” as that is what will drive your market base. What you love to do will attract others that share the same passion. And that is the “secret”.

Sharing is caring and inbound is about creating and sharing content with the world. By creating content specifically designed to appeal to your dream customers, inbound attracts qualified prospects to your business and keeps them coming back for more.

By publishing the right content in the right place at the right time, your marketing becomes relevant and helpful to your customers, not interruptive. Now that’s marketing people can love.

Major themes:

Create targeted content that answers prospects' and customers' basic questions and needs, then share that content far and wide.  (Broadcasting)

Promoters don’t just materialize out of thin air: they start off as strangers, visitors, contacts, and customers. Specific marketing actions and tools help to transform those strangers into promoters. (Share the revenue “AFFILIATE”)

Tailor your content to the wants and needs of the people who are viewing it. As you learn more about your leads over time, you can better personalize your messages to their specific needs. (Build your sphere of influence)

Inbound marketing is multi-channel by nature because it approaches people where they are, in the channel where they want to interact with you. (Social Network connections)

Content creation, publishing and analytics tools all work together like a well-oiled machine – allowing you to focus on publishing the right content in the right place at the right time. (Tracking and measuring traffic, comments, responsive interaction)

The Four Marketing Actions

Attract

We don’t want just any traffic to our site, we want the right traffic. We want the people who are most likely to become leads, and, ultimately, happy customers. Who are the “right” people? Our ideal customers, also known as our buyer personas. Buyer personas are holistic ideals of what your customers are really like, inside and out. Personas encompass the goals, challenges, pain points, common objections to products and services, as well as personal and demographic information shared among all members of that particular customer type. Your personas are the people around whom your whole business is built.

Some of the most important tools to attract the right users to your site are:

Blogging– Inbound marketing starts with blogging. A blog is the single best way to attract new visitors to your website. In order to get found by the right prospective customers, you must create educational content that speaks to them and answers their questions.

SEO– Your customers begin their buying process online, usually by using a search engine to find something they have questions about. So, you need to make sure you’re appearing prominently when and where they search. To do that, you need to carefully, analytically pick keywords, optimize your pages, create content, and build links around the terms your ideal buyers are searching for.

Pages– Your website pages are your digital storefront. So put your best face forward! Optimize your website to appeal to your ideal buyers and transform your website into a beacon of helpful content to entice the right strangers to visit your pages.

Social Publishing– Successful inbound strategies are all about remarkable content – and social publishing allows you to share that valuable information on the social web, engage with your prospects, and put a human face on your brand. Interact on the networks where your ideal buyers spend their time.

Convert

Once you’ve attracted website visitors, the next step is to convert those visitors into leads by gathering their contact information. At the very least, you’ll need their email addresses. Contact information is the most valuable currency there is to the online marketer. So in order for your visitors to offer up that currency willingly, you need to offer them something in return! That “payment” comes in the form of content, like eBooks, whitepapers, or tip sheets – whatever information would be interesting and valuable to each of your personas.

Some of the most important tools in converting visitors to leads include:

Forms- In order for visitors to become leads, they must fill out a form and submit their information. Optimize your form to make this step of the conversion process as easy as possible.

Calls-to-action are buttons or links that encourage your visitors to take action, like “Download a Whitepaper” or “Attend a Webinar.” If you don’t have enough calls-to-action or your calls-to-action aren’t enticing enough, you won’t generate leads.

Landing Pages– When a website visitor clicks on a call-to-action, they should then be sent to a landing page. A landing page is where the offer in the call-to-action is fulfilled, and where the prospect submits information that your sales team can use to begin a conversation with them. When website visitors fill out a form on a landing page for the first time, that visitor becomes a contact.

Contacts– Keep track of the leads you're converting in a centralized marketing database. Having all your data in one place helps you make sense out of every interaction you’ve had with your contacts – be it through email, a landing page, social media, or otherwise – and how to optimize your future interactions to more effectively attract, convert, close, and delight your buyer personas.

Close

You’re on the right track. You’ve attracted the right visitors and converted the right leads, but now you need to transform those leads into customers. How can you most effectively accomplish this feat? Certain marketing tools can be used at this stage to make sure you’re closing the right leads at the right times.

Closing tools include:

CRM– Keep track of the details about all the contacts, companies, and deals in your pipeline, and easily get in touch with the right prospects at the right time. Customer Relationship Management (CRM) systems facilitate sales by making sure you have the right information at your fingertips to better engage with prospects across every channel.

Closed-loop Reporting– How do you know which marketing efforts are bringing in the best leads? Is your sales system effectively closing those best leads into customers? Integration with your CRM system allows you to analyze just how well your marketing and sales teams are playing together.

Email– What do you do if a visitor clicks on your call-to-action, fills out a landing page, or downloads your whitepaper, but still isn’t ready to become a customer? A series of emails focused on useful, relevant content can build trust with a prospect and help them become more ready to buy.

Marketing Automation– This process involves creating email marketing and lead nurturing tailored to the needs and lifecycle stage of each lead. For example, if a visitor downloaded a whitepaper on a certain topic from you in the past, you might want to send that lead a series of related emails. But if they follow you on Twitter and visited certain pages on your website, you might want to change the messaging to reflect those different interests.

Delight

The Inbound way is all about providing remarkable content to our users, whether they be visitors, leads, or existing customers. Just because someone has already written you a check doesn’t mean you can forget about them! Inbound companies continue to engage with, delight, and (hopefully) upsell their current customer base into happy promoters of the organizations and products they love.

Tools used to delight customers include:

Surveys– The best way to figure out what your users want is by asking them. Use feedback and surveys to ensure you’re providing customers with what they’re looking for.

Smart Calls-to-Action– These present different users with offers that change based on buyer persona and lifecycle stage.

Smart Text– Provide your existing customers with remarkable content tailored to their interests and challenges. Help them achieve their own goals, as well as introduce new products and features that might be of interest to them.

Social Monitoring- Keep track of the social conversations that matter to you most. Listen out for your customers’ questions, comments, likes, and dislikes – and reach out to them with relevant content.

The New Methodology

The Inbound Methodology covers each and every step taken, tool used, and lifecycle stage traveled through on the road from stranger to customer. It empowers marketers to attract visitors, convert leads, close customers, and delight promoters. The new methodology acknowledges that inbound marketing doesn’t just happen, you do it. And you do it using tools and applications that help you create and deliver content that will appeal to precisely the right people (your buyer personas) in the right places (channels) at just the right times (lifecycle stages).

Want to learn more about inbound marketing?

An Entrepreneurial Social Network integrated with an advanced Inbound Marketing platform is genius on steroids. Sharing up to 50% of the potential revenue with you is very generous and the potential of this combination is atomic!

 

Thomas Prendergast
CMO Markethive, Inc.

 

Blockhive Introduce The ILP Markethive is implementing it

The Next Generation of ICO Is Here? Blockhive Introduce The ILP

We’re entering into a new world of finance and transfer of value, one that could have large implications for many current intermediaries and many individuals all across the globe.

In this era we have a trustless system where exchanges are to happen peer to peer in a seamless manner, this is facilitated by the blockchain and interesting features such as smart contracts. These features have contributed to interesting mechanisms that institutions are using to raise capital to fund operations while using that same capital to form an economy where that specific form of capital, that issued token, is what’s used as the currency of trade.

This mechanism is called the Initial Coin Offering and it has been a mechanism that has grown rapidly in the past, yet, there have been forms of abuse in this direct to market offering sort of mechanism and governments have looked into regulating it, while some, such as China and South Korea have went as far as banning this new sort of funding vehicle.

This state of uncertainty has caused some organizations to act and provide their unique solution to this new market need.

The introduction of the ILP

The Initial Loan Procurement (ILP) is introduced to serve as an alternative to the Initial Coin Offering, providing for global financing using cryptocurrency.

ILP’s were introduced to alleviate the current issues that were surrounding ICO’s. These issues stem primarily around the aspects of legal and taxation, both, serving as major concerns for any reasonable and sophisticated investor.

Another issue that is continuously brought up around the idea of ICO’s is the question of, can this business truly create an economy that sustains its native token? Sometimes, the answer comes up as no, going further into the matter, at times, one might even find that setting up an economy through the ICO funding vehicle could contribute to a worse experience for the user.

How does ILP solve these issues?

Through the future loan access token (Flat). This a mechanism formed to overcome issues of taxation and regulation. It works through a simple process and also acts a token model, one issues these through Ethereum using an EIP20 standard. This essentially enables a token agreement with the token issuer as well as the transfer of agreement to others. Those who hold FLAT tokens are able to digitally sign a loan agreement, become a creditor and receive interests through the feature of  Agrello smart contracts.

A key feature of the ILP structure is that creditors are able to transfer rights to a new creditor if they wish to do so.

Initial Deployment and the Future

The organization behind this new structure, Blockhive, in conjunction with Agrello, will be issuing the first ILP from January 26th through the end of February 9th.

After they use and deploy this initial funding vehicle, it is expected that others too, will start to use it as a solution to their regulatory and taxation struggles. Interested parties will be able to access and use this new form of financing through the joint venture platform, tokennote.io.

What are the highlights of the Initial Loan Procurement Vehicle?

  • Accessible Globally
  • Legally Binding, recorded on the blockchain, thus providing security for creditors
  • ILP is structured in the format of loans, thus allowing for it to not be subject to taxes, a necessity when raising funds for a new venture
  • No need for a new and unnecessary and purposeless token

The ILP is regulation-friendly, blockhive has conformed to regulatory frameworks, making certain that issuers comply with anti-money laundering laws

We’re entering into a new world of finance and transfer of value, one that could have large implications for many current intermediaries and many individuals all across the globe.

In this era we have a trustless system where exchanges are to happen peer to peer in a seamless manner, this is facilitated by the blockchain and interesting features such as smart contracts. These features have contributed to interesting mechanisms that institutions are using to raise capital to fund operations while using that same capital to form an economy where that specific form of capital, that issued token, is what’s used as the currency of trade.

This mechanism is called the Initial Coin Offering and it has been a mechanism that has grown rapidly in the past, yet, there have been forms of abuse in this direct to market offering sort of mechanism and governments have looked into regulating it, while some, such as China and South Korea have went as far as banning this new sort of funding vehicle.

This state of uncertainty has caused some organizations to act and provide their unique solution to this new market need.

The introduction of the ILP

The Initial Loan Procurement (ILP) is introduced to serve as an alternative to the Initial Coin Offering, providing for global financing using cryptocurrency.

ILP’s were introduced to alleviate the current issues that were surrounding ICO’s. These issues stem primarily around the aspects of legal and taxation, both, serving as major concerns for any reasonable and sophisticated investor.

Another issue that is continuously brought up around the idea of ICO’s is the question of, can this business truly create an economy that sustains its native token? Sometimes, the answer comes up as no, going further into the matter, at times, one might even find that setting up an economy through the ICO funding vehicle could contribute to a worse experience for the user.

How does ILP solve these issues?

Through the future loan access token (Flat). This a mechanism formed to overcome issues of taxation and regulation. It works through a simple process and also acts a token model, one issues these through Ethereum using an EIP20 standard. This essentially enables a token agreement with the token issuer as well as the transfer of agreement to others. Those who hold FLAT tokens are able to digitally sign a loan agreement, become a creditor and receive interests through the feature of  Agrello smart contracts.

A key feature of the ILP structure is that creditors are able to transfer rights to a new creditor if they wish to do so.

Initial Deployment and the Future

The organization behind this new structure, Blockhive, in conjunction with Agrello, will be issuing the first ILP from January 26th through the end of February 9th.

After they use and deploy this initial funding vehicle, it is expected that others too, will start to use it as solution to their regulatory and taxation struggles. Interested parties will be able to access and use this new form of financing through the joint venture platform, tokennote.io.

What are the highlights of the Initial Loan Procurement Vehicle?

  • Accessible Globally
  • Legally Binding, recorded on the blockchain, thus providing security for creditors
  • ILP is structured in the format of loans, thus allowing for it to not be subject to taxes, a necessity when raising funds for a new venture
  • No need for a new and unnecessary and purposeless token

The ILP is regulation-friendly, blockhive has conformed to regulatory frameworks, making certain that issuers comply with anti-money laundering laws

Markethive isw utilizing this loan based crowd funding option.

The 5 + 18 Things Elon Musk Does Every Day to Make Himself Productive

The 5 Things Elon Musk Does Every Day to Make Himself Productive

Elon Musk gets more done each day than any three random CEOs. Here's how he manages it

Last week, I pointed out that because Elon Musk can successfully run multiple businesses, he could run any one of those businesses working part-time. Because of this, mere mortals like you and me should be able to create and run a business without working long hours– certainly not more than 40 hours a week.

As you can imagine, I got some pushback on that concept, probably because I neglected to point out specifically what Elon Musk does to manage his time better than your average insanely successful entrepreneur.

I've not worked with Musk personally or interviewed him but I watch him and his companies pretty closely. Here are some specific techniques that have emerged either from Musk's speeches or from his actions as reported in the news:

1. He doesn't bother with business plans.

In a recent appearance at SXSW, Musk explained that he's not a big fan of business plans. Instead, he works at the visionary level and leaves the operational details to others.

By contrast, most CEOs (including Steve Jobs, BTW) tend to get deeply involved in the business planning process, even to the point of micromanaging it.

The main point of a business plan is to get funding; after that, you're probably better off setting ambitious goals and improvising a way to get there (i.e., pivoting).

 

2. He immediately ends pointless conversations.

As I mentioned out in "Elon Musk Just Gave the World's Best Productivity Advice in a Single, Short Sentence," when Musk perceives that people are wasting his time, he cuts them off, even if it seems rude. To his way of thinking, what's truly rude is forcing him to listen to conversations that are neither interesting nor useful.

For example, when some analysts at a financial update meeting asked him some stupid questions, Musk just pointed out that the questions were "bonehead" and moved on. While he got flak for this, subsequent events have proved Musk right: The question were bonehead.

By refusing to suffer fools gladly (or otherwise), Musk probably frees up a dozen or more hours each week to do other, more useful things. As an additional bonus, he isn't forced to clutter up his mind with other people's irrelevant nonsense.

 

3. He immediately walks out on useless meetings.

Similarly, if a meeting wanders or is on a subject that's not immediately relevant, Musk simply gets up and leaves. More important, he also gives his staff and employees permission to do the same.

Since meetings are the biggest time wasters in business, Musk, by refusing to be part of a captive audience, probably frees up another dozen hours a week that he can spend on something useful or amusing.

 

4. He avoids foolish consistencies.

Musk isn't afraid to contradict himself. As a result, he doesn't waste his time defending the indefensible.

For example, while Musk frequently touted that Model 3 factory as almost entirely automated, he didn't hesitate to publicly announce it when he swapped out some automation in favor of human labor.

Most CEOs would have quietly made the change and then tried to bury it to avoid some bad PR. This adds the time and mental burden inherent in any cover-up that could turn into a PR disaster.

It's much more time-effective to do what Musk does in such situations: Bite the bullet and then move on.

 

5. He decides rather than deliberates.

In my experience and observation, most CEOs–even entrepreneurs–tend to overthink and overanalyze before taking action.

By contrast, while Musk never appears to be acting out of ignorance, it's obvious from the pace of his decision-making that he prefers to decide to take action (with all its attendant risks) to talking a decision to death.

A perfect example of this was when he fired all the Tesla contractors who couldn't find a Tesla employee to vouch for them. Most CEOs would have tried to cut the contractors "with all due speed," taking months to do something that could apparently be accomplished in a single day.

 

  By Geoffrey JamesContributing editor, Inc.com@Sales_Source

 

Russian Institutions to Trial Central Bank ICO Platform

Russian Institutions to Trial Central Bank ICO Platform

Two Russian financial institutions are set to test a regulatory platform

that aims to make domestic initial coin offerings (ICOs) more transparent and secure for traditional investors. Russia's National Settlement Depository (NSD) announced on Thursday that it is working with Sberbank CIB, the bank's corporate and investment banking arm, to test an ICO issuance platform launched by the Bank of Russia – the country's central bank – in April.

According to an announcement, in the testing environment, a company named Level One will launch a token sale, for which Sberbank will act as the "issuance coordinator and anchor investor." The NSD, on the other hand, will serve as the custodian, recording and settling transactions, as well as safeguarding the assets. The firms say the platform will ultimately provide transparency that would reduce risks for traditional investors in the token issuance process. It's hoped the test, along with feedback from the central bank, will help improve the platform before it can be scaled up for real-world use.

Igor Bulantsev, senior vice president of Sberbank and head of Sberbank CIB, said:

"Sberbank CIB considers the Russian ICO market to be very promising. Many Sberbank clients are interested in this type of investment, and we plan to promote this service proactively once the appropriate legislative framework comes into effect; we will be one of the drivers to institutionalize and popularize this type of transaction."

As previously reported by CoinDesk, the Bank of Russia and the Ministry of Finance have already resolved a disagreement over one draft bill covering ICOs, and the country has now slated in a summer deadline for introducing two relevant pieces of legislation. Eddie Astanin, chairman of the executive board at the NSD, said the end goal of the project is to allow "the emergence of a new type of asset for investors" and the circulation of digital assets on the secondary market.

Article Produced By
Wolfie Zhao
wolfie@coindesk.com

A member of the CoinDesk editorial team since June 2017, Wolfie writes all things about the blockchain and cryptocurrency. He studies Business and Economic Reporting at New York University, and does not currently hold value in any digital currencies or projects

https://www.coindesk.com/russian-institutions-to-trial-central-banks-ico-platform/

Look No More: 3 ICOs to Watch in Q2 2018

Look No More:
3 ICOs to Watch in Q2 2018

The explosion in ICO projects has made choosing

which ones to participate in a very complicated task, and the competition between them extremely fierce. Back in 2015, the Lisk founders raised 14,000 bitcoin with a team of just 2 people! Doing that today seems impossible: teams are paying thousands just to get famous industry advisors, and all the noise while very little fundamental substance exists. Furthermore, it’s thought that perhaps 75% of projects offering token sales have ideas that are too convoluted to ever become tangible or real. Nor would their teams have the ability or means to implement such ideas into real-world use realistically either. To help you out in this mess, here are a few ICOs that are raising their heads above the rest, and likely to deliver spectacular gains in 2018.

GoNetwork

This project could be a total game changer. The team is tackling one of the most crucial and interesting problems in the industry: scaling the Ethereum platform. Despite not having a background in crypto, the team won the ETHWaterloo, the World’s Largest Ethereum Hackathon, a 36-hour event where participants worked alongside founders Vitalik Buterin and Joseph Lubin.

Essentially, the GoNetwork is a fast, low-cost and scalable network that connects the Ethereum blockchain to other mobile, desktop and web platforms. It will be mobile-focused and uses a technology called state channels to minimize on-chain transactions by accumulating transactions off-chain before any output is given. This solution is particularly favorable to mobile, due to architecture and programming language, where the majority of internet traffic is taking place nowadays.

Now here is the deal: on top of this solution, the developers will build a decentralized marketplace for games and digital goods. Given that the CEO, Rashid Kahn, is also the founder of one of Canada’s largest game studios, their track record in this market works in their favor. If they use their scalable, mobile Ethereum network to create some real-world adoption, the possibilities are huge! ICO is open to accredited investors only and more info can be found at GoNetwork.co.

Neon Exchange

Despite the evolution of crypto in the last few years, it is still an industry in its infancy. A key part of it becoming mature is developing fully functional, state of the art decentralized exchanges to replace the centralized, non-secure gatekeepers that exist nowadays. There are many contenders for this position, but we would like to highlight one that is keeping out of the media spotlight while developing a very interesting solution.

NEX is cryptographic trade and payment service platform built on the NEO blockchain. It will offer a technical off chain matching verification for trading and will allow more complex trading such as limit orders, something that existing DEX’s cannot do. Another interesting idea is the development of a Chrome extension that will act as a wallet and still be connected to the exchange, effectively making it a Metamask for all NEP-5 tokens.

In general, the project has extremely solid foundations: the team is chocked full of talented programmers with a track record, who have literally not even opened a Telegram account in order to stay focused on delivering. The roadmap is very comprehensive and includes every detail needed in such a grand vision, including entry points for fiat purchases of NEP-5 tokens. What is most interesting, however, is the role such a project will play in the development of the NEO Smart Economy, the amazing vision that sets NEO apart from the rest of the industry. It’s no surprise that NEO founders and core developers, Da Hongfei and Erik Zhang, both sit on the advisory board.

OptiToken

One of the most interesting projects in terms of possible ROI versus complexity is Optitoken, which has just recently come into the spotlight. It is the first ever actual hyper-deflationary currency, whose value is supported by an automated portfolio that uses professional trading techniques, AI, and machine learning. The portfolio will be bought with funds from their ICO, giving it serious value early on.

Their CEO Sean Donato is an old-school crypto trader and who was also one of the founders of BitHalo which was an early pioneer start-up in crypto and of which is a free software still active and available for smart contracting. His strategies tweaked in depth by the team are being coded into the “OptiX” which is an algorithmic swing trading engine. The project has a transparent portfolio demonstrating OptiX live on their website OptiToken.io which serves an MVP as it’s been active and also managed to outpace Bitcoin since November of 2017.

The gains made by the algorithmic trading will be used in part to buy back their own tokens on exchanges, creating constant upward price pressure and nurturing a market that has very strong buy support this is the function that seeks to massively drive the currencies value upwards continually. The rest of profits from buy cycles is reinvested to grow the initial holdings. OptiToken Interestingly also solves a common problem of new ICO’s, that can’t find any volume early on. CEO Sean Donato said, “Trading is perhaps 90% psychology and so often times people find themselves following trends after the fact as opposed to using solid fundamentals and then selling overbought and buying oversold based on traditional price fluctuations of the asset or perhaps  RSI’s.” After the buybacks, 100% of the tokens purchased are sent to a transparent and verified unspendable address and thus destroyed forever in order to create value through scarcity. This combination is very innovative in the space and should attract serious organic buys on exchanges to partake in the price action.

What is great about this project is that can be immediately profitable. The technology is relatively straightforward to build, as the team is not promising a perhaps working product for a fantastic idea in Q3 of 2019 AKA “vaporware”. Rather, the product, already in Beta, will be in alpha in a few months, trading the proceeds from the ICO, and will hit exchanges just before or after this time frame according to projection. The ICO is open to Non-US and Non-China citizens now at OptiToken.io and is filling up fast.

Article Produced By
Guest Author for NEWSBTC

https://www.newsbtc.com/2018/05/23/look-no-3-icos-watch-q2-2018/

Justin Sun Has A Tron (TRX) Airdrop For You

Justin Sun Has A Tron (TRX)
Airdrop For You

MainNet that is now 7 days and 13 hours away, Justin Sun is gifting the TRX community what he calls ‘Millions of TRX Candies’. These candies are in the form of TRX airdrops received for inviting friends to the Tron Telegram Channel. The Airdrop is currently ongoing and all you have to do is follow the link provided and enter your corresponding ETH wallet address. The announcement looks legitimate in that Justin Sun announced it himself on twitter, and the TRX team on Telegram, also confirmed his statements.

Justin had this to say via twitter:

$TRX #TRON mainnet will be launched soon, we prepared millions of #TRX candies, join us to get #TRX candies, you can also get more by inviting friends, the airdrop will be ended at 12:00 AM June, 1, if candies were given out, it will be ended in advance.

 

The Tron Telegram channel also echoed his statements:

 

$TRX #TRON mainnet will be launched soon, we prepared millions of #TRX candies, join us https://tron.network/activity/d8c1d4aa43e12e39?lang=en to get TRX candies, you can also get more by inviting friends, the airdrop will be ended on 12:00 AM June, 1, if candies were given out, it will be ended in advance.

The link to the airdrop states that you get 2 TRX the first time, and get an additional 4 TRX when you invite a friend to join the Telegram group. The Airdrop ends on the 1st of June. However, and due to regulatory issues, the airdrop is not available for participants from China, USA, New Zealand, Canada, South Korea and OFAC sanctioned countries.

TRX has also not been spared by the current market decline that has seen some of our favorite coins decrease by the double digits. TRX is hanging onto the number 9 spot on coinmarketcap.com and is currently trading at $0.0718 at the moment of writing this. The token is down 10% in 24 hours and currently has a market capitalization lead over IOTA that is equivalent to $455 Million. These two cryptocurrencies have been competing for the number 9 position for the past few weeks and constantly switching between the #9 and #10 slots.

Article Produced By
John P. Njui
A Crypto Enthusiast. Terrible dancer. Former DJ. Amateur Marathoner. Electrical Engineer. Kool kat.

https://ethereumworldnews.com/justin-sun-has-a-tron-trx-airdrop-for-you/

Move ‘Em Out: ICOs Don’t Seem So Scary Outside the US

Move 'Em Out:
ICOs Don't Seem So Scary
Outside the US

ICO issuers are starting to look to jurisdictions outside the U.S. to set up shop.

In an environment of regulatory uncertainty, where the U.S. Securities and Exchange Commission (SEC) has begun investigating ICOs and the industry surrounding the capital raising technology but has yet to make a formal decision of how it will regulate crypto tokens, issuers and other stakeholders are finding other jurisdictions a better bet for launching their projects.

And no other place during Blockchain Week was the topic hotter than at Token Summit III (the original event took place a year ago) on May 27 in New York City. Both on stage and off, startup founders, attorneys and investors had strong opinions about how far to go in an environment where enforcement agencies know how easy the market boom for the tokens makes it for malicious actors to spin up a fake company and bilk millions of dollars out of unwitting buyers.

That boom packed venues in New York City throughout Blockchain Week. "The reason there's a thousand people here, it's not blockchain technology," Jason Fang of Sora Ventures told CoinDesk, saying he's been going to blockchain events for years and it was all the same faces until the initial coin offering (ICO) boom. "The difference is money. The difference is speculation."

But not everyone felt that hype meant rushing headlong would be the right approach. For instance, Paypal's original chief operating officer and now an investor in Craft Ventures, which incubated and backed the security token platform Harbor, David Sacks spoke to how getting compliance right led cryptocurrency exchange Coinbase to be "the first really successful company in the space."

He wasn't the only one. Throughout the day, different speakers returned to the question of regulation, and from the stage it began to become clear that the rest of the world isn't nearly as complicated as the U.S. This is perhaps unsurprising – as the world's biggest economy it also has the most rules. Regulators in the U.S. would much rather err on the side of caution, even if that means curtailing some of the excitement. Laws in the U.S. are based around the Roaring '20s, which led to the Great Depression, Lowell Ness of Perkins Coie explained during a panel on regulation,

saying:

"Literally the securities law is intended to exclude the moms and pops from too risky investment."

But other parts of the world take a more open-minded, if not lax, approach and that's luring some ICO issuers overseas.

'ICO tourism'

For instance, representatives from Switzerland, Lichtenstein and Gibraltar spoke to the crowd, both assuring listeners that their nations took an extremely responsible approach without quite the aggressive fretting of U.S. rule-makers.

Speaking for his home country of Switzerland, Andreas Glarner of MME said:

"It's not our task as a regulator to tell people which way they want to lose their money."

Yet judging investments is one thing and willfully manipulating people is another. He added, "If the project is fraudulent we're going to prosecute it." Representatives from Lichtenstein argued that the small country has a large enough regulatory staff to work with companies it hosts and help them build businesses that are still within its regulatory framework. Meanwhile, representatives from Gibraltar said that its regulators have done the work to build rules from the ground up that specifically fit the new world of cryptocurrency and blockchain.

Meanwhile, attorneys in the U.S. sound frustrated, but hopeful. Several who have been working with the SEC spoke on a panel about where the country is at in terms of defining rules for the industry. "What we're doing primarily is educating the SEC on what blockchain is," Nancy Wojtas, a former SEC staffer now with Cooley LLP, said. "I think there was just a misunderstanding by them to what cryptocurrency is all about. They hear 'cryptocurrency' and they think 'fraud.'"

Ness from Perkins Coie was more hopeful, forecasting forthcoming clarity. "Now we have a position where there's going to be bright lines," he said. "Full functionality [of a platform] is a very hard bright line to draw. Full decentralization is a bit easier." Bloq's Matthew Roszak has also been working through Token Alliance, a Washington DC-based initiative of the Chamber of Digital Commerce, to guide the SEC so that they make decisions that will allow the technology to thrive in the States.

"The last thing I want to do is spend time with regulators, three-letter agencies. I want to build, invest and innovate," he said, noting that he's doing it, though, because he believes it's important. Wojtas cut through the optimism, again though, stating that entrepreneurs in the space will likely have an uphill battle for some time.

She said:

"Being involved in an investigation is like living in hell without dying."

She continued, warning founders about the price of hiring attorneys to answer questions and respond to regulator requests, "You will be spending between $100,000 and $300,000 per month." As such, Sebastian Bürgel of Switzerland's Validity Labs said of companies visiting countries trying to figure out where to domicile

(even if its staff doesn't actually work from the country):

"I see what I would call ICO tourism."

Startups' thoughts

At Token Summit III, the room was filled with about two-thirds startups and one-third investors. The startups, including those domiciled in places like Hong Kong and Singapore – attractive places after China's central bank banned crypto token sales – spoke to how they viewed the regulatory environment throughout the world.

Lea Bauer, director of operations at Centrifuge, a startup building a decentralized enterprise resource planning platform, told CoinDesk that her firm is talking to lots of lawyers in the U.S. or Europe before it decides where to land. Centrifuge envisions a token for services on the platform. And while it wants to execute a good legal plan, it won't wait for absolute certainty.

Bauer explained:

"If we wait too long, that gives us complications on the product side, whereas if we move too early that gives us trouble on the legal side."

Kain Warwick, with the Australia-based stablecoin project, Havven, told CoinDesk, "I genuinely don't believe the regulators want to impede what's happening." But he also added that risk in his home country "is far less than it is from the SEC," he said. While geographies seemed a main concern for many ICO issuers, it isn't the only kind of distance that could lower risk. Time could also serve an issuer. Founder of crypto loanmaking platform, ETHLend, Stani Kulechov, told CoinDesk that it did its sale last fall. "Back then, when we did the ICO, the regulatory uncertainty was pretty vague," he said.

However, his company is based in Switzerland, where the rules are clear enough that the company isn't concerned. Additionally, the fact that it had a working app before doing any fundraising adds to Kulechov's confidence. Just to be sure, though, "We don't accept US customers," he said. Jae Kwon of Cosmos said similar things of stage, telling the crowd he's glad the company did its token fundraiser before all the ICO hype started. "There's too much money piling in," he said. And if you bring in too much money, "they can always sue you, especially in the United States."

Leonard Frankel, CEO of ClanPlay, an existing gaming company, which is building the Good Game token, in order for gamers to earn money for playing, has a very complicated plan to get both the tax and legal structures he desires. An Israeli company, Frankel plans to actually launch his tokens out of Gibraltar but then transfer them to Israel and sell them from his home country, so that the company will pay its taxes there.

Erik Buschbaum, CMO of Rlay, a protocol to validate information, said his company is based in Berlin but domiciled in Gibraltar, which works for them by and large. Still, he said, "We have investors right now, Kryptonite1, and they advised us not to do a public sale because of regulatory risk." All this said, it's clear the ICO industry is reeling somewhat from both the unclear guidelines throughout the world and the thought that regulators could create rules that make their businesses illegal at some point. Speaking to the fear many have of U.S. regulators, MME's

Thomas Linder said:

"The U.S. needs to learn that in a globalized, decentralized economy, they are not the center of the universe anymore."

Article Produced By
Brady Dale
Brady Dale is a reporter who has previously written for Fortune, Technical.ly Brooklyn, Next City and Motherboard, among others. He grew up in Kansas and lives in Brooklyn.

https://www.coindesk.com/move-em-icos-dont-seem-scary-outside-us/

The Seven Pillars of ICO Investing

The Seven Pillars of ICO Investing

The number of initial coin offerings (ICOs) is growing rapidly,

having raised an astounding $5.6 billion in 2017 alone. More outrageous is that, by most estimates, over half of the ICOs launched in 2017 have already failed. In addition to the hundreds of ICOs being launched every month, our management company Crypto Asset Management (CAM), also receives around a dozen emails per day from new companies planning on launching crypto tokens to raise capital. CAM, through the various funds and share classes it manages, invests in less than one out of every 100 ICOs that comes across its desk.

Out of absolute necessity, we have developed an analytical framework for ICOs, which CAM applies to every such opportunity it evaluates. In this article we explain what we call The Seven Pillars Of ICO Investing™, which we've rigorously crafted over several years of investing in crypto and other assets.

Pillar #1: Team

The critical element which we are searching for is an experienced team, ideally with a strong track record in developing and launching blockchain technology. In addition, the team should have experience in the market it is targeting. A team that is not only competent, but capable of developing, completing and/or expanding the project is paramount to its success.

A couple of additional issues to consider are:

  • Does the team have a vesting token schedule that will properly incentivize it?
  • Do the advisors have the right experience and are they actively engaged?
  • Does the project have any notable financial backers? (VCs, other hedge funds, etc.)

Pillar #2: Idea

Without a compelling, realistic and timely idea for a blockchain-based enterprise, the investment will almost certainly fail.

A few of the key things we look for are:

  • Total addressable market:
    How large is the opportunity? We want as large of a market as possible (See: ethereum, filecoin).
  • Product-market fit:
    Does the business address an urgent problem? (0x, ChainLink)
  • Unique value proposition:
    What facets of the technology enable it to stand out from the competition? How much competition is there (Wax)? Ideally, the token has proprietary technology, and as little competition as possible (Orchid Protocol).

There is clearly an interrelationship between Pillars 1 and 2. However, if we had to choose between them, we would clearly rather invest in an "A" team working on a "B" idea than a "B" team working on an "A" idea. A talented group of people are the lifeblood of any business, and crypto is no different.

Pillar #3: Execution

In the cut-throat business world we live in, the only thing that matters is results. A brilliant idea and great team are nice, but execution is everything. Is there a working prototype or does your idea only exist in a nebulously written white paper? We prefer to invest in a product that already exists to some degree (Presearch, Basic Attention Token, Superbloom, FunFair), whether in the crypto space or analogously in the fiat space (Wax). Finally, we look for some sort of proof that the company will be able to hit future milestones.

Pillar #4: Legal/Regulatory

This pillar is essential given the current and growing regulatory uncertainty in the industry. Almost every week, there is news of a governmental agency in one country or another taking regulatory action or making a new statement around ICO governance. Of course, almost as often, there is news of a different country considering crypto-favorable legislation. Comprehensive regulation in many marketplaces is on the horizon and it is imperative to ensure that ICOs vigilantly navigate the landscape to the best of their abilities.

The threshold issue is jurisdiction: in what country is or will the ICO company be incorporated and the ICO executed? This determines the rules that will apply to the company's actions and the ICO. Depending on the approach taken, we may apply the somewhat arcane rules of the Howey test (in the US or if US investors are targeted or allowed to invest), KYC/AML principles (which are essentially universal) and applicable securities law.

Pillar #5: Tokenization

A significant number of the ICOs we analyze do not actually need the blockchain, tokenization or a public sale of their tokens to be successful. When this is an issue, it is usually the last – public sale – which is not necessary. (NASDAQ's settlement system is an excellent example of where tokenization is a brilliant idea but a public market would be superfluous, or even counterproductive.) Also, they are sometimes glorified apps that could be built without creating a specific token, despite how much "utility" the founders may claim their token provides.

With the enormous amount of value exchanging hands over the blockchain and the prospect of getting "free" money without giving up any equity, it's not hard to imagine why many industrious entrepreneurs try to identify any possible reason to launch an ICO. That being said, one of the crucial things that every investment we make must have is a legitimate reason for "tokenizing" their business, and for creating a public market for that token (OmiseGo, Icon, Raiden Network, Cosmos).

Pillar #6: ICO Structure

Similar to traditional venture capital investing, the financial underpinnings of the deal ultimately determine the decision to invest. The characteristics of an ICO can have important implications on the expected upside of the token.

This can be split out into two categories – ICO mechanics and ICO deal structure.

  • ICO Mechanics
    Historically, ICOs with a lower hard cap tend to outperform ICOs with massive hard caps. While it is important that the parent companies be well funded and have sufficient runway to work with, ICOs need to have a convincing plan for use of proceeds as the potential upside decreases in proportion to the amount raised. The precise metric here is valuation of the token economy – a derivation of the hard cap. Both the valuation in light of circulating tokens at launch and the valuation upon release of all tokens are factors that we consider.
  • ICO Deal Structure –
    The deal should be structured in a way so that investors are not at a disadvantageous position to the market.These are a few of our considerations:

    • Distribution: 
      The team should have a compelling structure for the distribution of tokens, fair allocation among team/advisors and investors, programs for market uptake, etc.
    • Distribution Schedule:
      Given the fast-moving pace of the crypto market, the distribution schedule should not massively favor specific parties. While long distribution periods can be considered acceptable for high-potential ICOs, individual liquidity preferences should be considered.
    • Discounts:
      Discounts are ubiquitous in the ICO environment, so examining the discount levels given to different tranches allows investors to understand where they stand in relation to other stakeholders.
    • Equity Stakes:
      At Crypto Asset Management, we like to be part of the growth of the company and investing directly into the equity of a company allows us to play a greater role in that development. In the world of token sales and short-term liquidity, people often forget that the value proposition of a company can be just as great or even greater than the token ecosystem it is developing.

Pillar #7: Price Drivers

Even if we believe a team is able to create a great product that incorporates a token with an imperative use case, this does not necessarily mean that we will want to hold the token or invest in the ICO. A token must additionally have a mechanism to drive price appreciation.

A token with constant supply without any incentive to hold, will not be subject to buying pressure which significantly outweighs selling pressure over the long run (Votes). This is underpinned by the concept of price risk, in which individuals will lean towards reducing their exposure to price volatility in favor of fiat or a form of stable currency.

A few of the price drivers we look for include:

  • Network Volume:
    In almost every instance the value of a token increases as the number of transactions on the blockchain increases (bitcoin, ethereum). This is one of the most basic, yet influential, indicators of demand, and is also the reason we invest primarily in protocols rather than dapps.
  • Market Leadership:
    We look to invest only in tokens that are clear market leaders, or have the potential to be in the near future. Usually, these tokens have a distinct and growing unique advantage over their competition (Practical VR).
  • Incentives to Hold:
    There is a clear reason why a user would rather hold than spend the token, which can be related specifically to speculated price increases or other non-monetary rewards (Presearch, PROPS). We won't invest in a token that's only purpose is a medium of exchange.
  • Supply Changes:
     This can include limiting inflation, meaning the token supply does not dilute the value of all tokens over time, or token burning, where the supply of tokens in the system decreases over time (Binance Coin, Iconomi).
  • Profit Sharing:
    Part of the value that is extracted from the system is given back to the token holders (Augur, NEO, Neon Exchange, Ethorse).
  • Staking:
    Having users of a network to lock up their tokens either for network consensus or as a requirement in certain processes. (Bee Network, Open Platform, NuCypher, Video Coin).
  • Sufficient Liquidity:
    If the project isn't proactive about getting listed on multiple exchanges, preferably top-tier exchanges, we will likely not make an investment.

Please note that, as a general rule, we are not in favor of asset-backed tokens as an investment vehicle at this time. There are no real drivers of price formation after an initial, relatively small boost for convenience (Sandcoin, OneGram) and the opportunity cost is consequently too high (there are far greater returns elsewhere). Importantly, the effect of implementing strong incentives to hold is multiplicative. Not only will the price increase be driven by the inherent tokenomics design, but also by speculation directly related to the implementation of these drivers.

Despite the incredible number of fly-by-night operations in the world of ICOs, it is certain that token generation events are here to stay. Such events are completely transforming the traditional venture capital industry and, for savvy investors, are creating fortunes literally overnight. For unsophisticated or undisciplined investors, ICOs are a minefield that should probably be avoided. However, for those who perform proper due diligence, the odds increase for realizing breathtaking returns on your investments.

This article is an abbreviated summary of our process for investing in ICOs. Here at Crypto Asset Management, we've also developed more in-depth tools, such as our innovative 64-point ICO Scorecard and a more traditional Private Equity Due Diligence Checklist.

Article Produced By
Tim Enneking, Robert Brauer & Andrew Kang

Tim Enneking is managing director at Crypto Asset Management. Robert Brauer and Andrew Kang are members of the Crypto Asset Management ICO Analysis team.

https://www.coindesk.com/seven-pillars-ico-investing/

What are “Airdrops” in Crypto World?

What are “Airdrops” in Crypto World?

Have you ever come across the term cryptocurrency airdrop

and wondered what it meant? Well, it’s nothing like the image you probably have in your head of an airplane dropping coins from the sky. In times of war, natural disaster, or other forms of crisis where the lives of people have been affected in places that are difficult to access by land, airdrops are carried out to provide essential supplies to people trapped in those zones. In the world of cryptocurrencies, airdrops have a different meaning. The cryptocurrency world has its own unique vocabulary which is expanding as the market evolves over time. In this article, cryptocurrency airdrops will be explained in detail.

Airdrop Definition

Airdrops can be defined as the process whereby a cryptocurrency enterprise distributes cryptocurrency tokens to the wallets of some users free of charge. Airdrops are usually carried out by blockchain-based startups to bootstrap their cryptocurrency projects. Also, established blockchain-based enterprises like cryptocurrency exchange platforms and wallet services can also carry out airdrops as well.

Process Mechanism

There are basically two major types of airdrops; the ones that come as a surprise and the ones that are announced beforehand. For already established blockchain-based enterprises, they may choose to go the route of the former rather than the latter. Getting to know about it might depend on how involved one is in the crypto community. These are the types of airdrops that occur and have people commenting on online forums that their wallets have been credited with coins and no one is the wiser as to where the coins came from.

For blockchain-based startups, they mostly favor the route that involves pre-airdrop announcements to get the buzz going. Since the aim is mostly to bootstrap the project, the airdrop process usually involves the completion of a number of tasks by the user in order to qualify for the airdrop. When the date of the airdrop arrives, the enterprise will release the free tokens to the users who qualify.

Reasons for Carrying Out an Airdrop

From creating hype and buzz around a new blockchain-based enterprise to rewarding loyal customers, there are a number of reasons why a cryptocurrency airdrop is carried out. The following are some of the reasons for carrying out a cryptocurrency airdrop.

As a Reward for Loyal Customers

From time to time, blockchain-based services like cryptocurrency exchange and trading platforms, wallet service providers etc. wish to give back to their customers and subscribers. Airdrops can be used as a means of rewarding loyal customers with free cryptocurrency tokens. This serves as an incentive that can assure continued patronage on such platforms. This type of airdrop mirrors the voucher and discount giveaways of non-blockchain companies in the mainstream commercial world.

In 2017, the cryptocurrency exchange platform, Binance, carried out an airdrop of 500 TRX cryptocurrency to account holders on the platform. The airdrop lasted from the end of October 2017 to the middle of November 2017. In order to qualify for the airdrop an account holder needed to have at least 0.003 BTC in addition to having completed at least one transaction on the account. Binance account holders who had the equivalent of 0.003 BTC in other cryptocurrencies were also eligible for the airdrop as long as they fulfilled the transaction requirement.

To Generate Lead Database

Marketing is all about leads. Organizations tend to pay a lot of attention to generating appropriate leads that will drive their marketing campaigns and increase patronage. Airdrops can be used by blockchain-based enterprises to generate valuable lead databases for their organizations. In exchange for free cryptocurrency tokens, users will be asked to complete online forms that contain valuable user information which can be used to develop targeted marketing strategies. This application of airdrops to generating lead databases can even be utilized by none-blockchain enterprises.

To Create Awareness About a New Cryptocurrency

With the sheer size of the cryptocurrency market, a new cryptocurrency can go completely unnoticed if it isn’t given the right boost in terms of substantial marketing campaigns. Just like every other aspect of the digital world, hype and buzz play an important role in the cryptocurrency ecosystem. With many cryptocurrency enthusiasts looking for new cryptocurrency options, an airdrop is a great way to get people interested in a cryptocurrency.

The marketing campaigns on social media for an airdrop can lead to increased attention being paid to a new cryptocurrency. Word of mouth advertising and other forms of organic engagements brought about by an impending cryptocurrency airdrop can lead to increased user participation in the cryptocurrency. This can help to bootstrap a new cryptocurrency as seen in the case of Bitcoin Cash. After the Bitcoin fork that led to the creation of the Bitcoin Cash, the developers of Bitcoin Cash carried out an airdrop rewarding all of its users. For every bitcoin held by a Bitcoin Cash participant, the developers gave a corresponding amount of Bitcoin Cash. The end result was that in less than one month, Bitcoin Cash was among one of the top 10 cryptocurrencies in the market.

How to Get Involved in Airdrops

Getting involved in airdrops requires access to information and the ownership of a cryptocurrency wallet to receive the free coins. The first step is to sign up for online services that provide timely information about cryptocurrency airdrops. These include websites, Twitter accounts, Telegram groups, as well as online cryptocurrency airdrop forums. Some examples of such online services include Airdropaddict and Icodrops. These services provide vital information that will help users stay informed about upcoming cryptocurrency airdrops. They also provide information on the qualifying criteria for participating in the airdrops.FundYourselfNow also has an ongoing Airdrop Program.

Getting a cryptocurrency wallet is an essential part of being in the cryptocurrency market and that applies for airdrops as well. It is a good idea to get an ERC20 compatible multicurrency wallet since the majority of the cryptocurrency tokens in the market are ERC20 tokens. When participating in airdrops, it is important to be security conscious so as to not fall a victim of fraudulent airdrop campaigns. Some airdrops are designed to hack wallets and steal private keys. Always confirm the authenticity of a cryptocurrency airdrop campaign before participating in it.

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The Mission

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