Cryptocurrency as a way to raise capital: ICO, IEO, STO provide an alternative to the old-school IPO. Part one
Along with the development of blockchain technology, a new business model and ways to increase capital have appeared, and cryptocurrencies have opened up completely new financing opportunities for the world.
Revolution in the world of investing
Cryptocurrency has become a new opportunity for a growing number of startups to Finance their projects. ICO, IEO, and STO are widely used as alternatives to the already established and complex IPO process. If you are confused by all these abbreviations, don’t worry. In this article, we will explain what each of them means, and what are the pros and cons of this method of financing.
IPO (initial public offering of shares)
An IPO is the first sale of shares in a private company to shareholders. This is not news, as it is a generally accepted form of external financing. In an IPO, shares are sold through a centralized and regulated stock exchange, and strict government regulations must be followed.
In General, the prerequisites for a company to get an IPO permit include a good name and financial stability, which means that this method of financing is often not available for start-up companies. In addition, the firm’s financial performance must be reviewed by a professional audit firm.
All these processes make an IPO a very complex, long (up to 6 months) and expensive method of financing. Thus, even many companies that meet the above requirements do not enter the IPO. Moreover, even when shares are listed on the stock exchange, the company still needs to attract investors who must be accredited. Non-accredited investors should be guided by a document that determines where the funds from the sale of shares will go. Naturally, investors are interested in income or profit from the resale of shares.
ICO (initial coin offering)
ICO originated as the first blockchain-based crowdfunding model. Startups have recognized that this is a regulatory-free path to venture capital. Thus, in 2017, ICO has become a very popular method of financing. What can also be called the ICO hype lasted until at least 2018, and more than 5,000 ICOS have been held so far.
To launch an ICO, you just need a website with the address of the wallet to which the cryptocurrency will be sent. Often, the project conducted an ICO with only a “technical document” describing their idea, without a minimum viable product (MVP). Sometimes even technical documents were missing or written carelessly.
Everything is developed in complete anonymity, and investors are not protected, so there was nothing unusual in fraud. It should be noted that only a small percentage of ICOS in 2017-2018 were successful. Many of them failed to provide a working product, some committed exit fraud and escaped with all the funds raised, and others, such as Telegram TON, were stopped by regulatory authorities, namely the US securities and exchange Commission (SEC).
Today, ICOS are considered very risky, as investors will only benefit if the development and implementation of the project idea is successful. In addition, due to strict regulatory requirements, it is now much more difficult to conduct an ICO than it was in 2017. The concept of IEO and STO appeared as a more regulated and investor-protecting alternative to the once very popular ICO.
End of the first part.
How to listing my coin/token to the SPACEBOT?
Application Form for Listing
Please Kindly Answer the Following Questions:
- 1. Coin Recommender
- 1.1 Anyone Introduces You to SPACEBOT?
- 1.2 Referral’s Name, Mailbox, Telegram Account
- 2. Introduction of the Project
- 2.1 Name of Project, supporting both Russian and English
- 2.2 Official Website
- 2.3 Documentation link (api for developers)
- 2.4 Symbol (url: coinmarketcap.com,coinpaprika.com etc.) ATTENTION: It’s a prerequisite! If information about your coin is not available on this resource, we can agreed and list it on coinmarketrate.com. Listing price from 10 ETH.
- 2.5 Offering Price (url: coinmarketcap.com,coinpaprika.com etc.)
- 2.6 Total Fundraising Amount (url: coinmarketcap.com,coinpaprika.com etc.)
- 2.7 Brief Introduction of your Project Covering its Positioning, Features , etc.
- 2.8 Expected Trading Pairs against BTC, USDT, ETH (url: coinmarketcap.com,coinpaprika.com etc.)
- 2.9 Anyone in Charge of the Project
- 2.10 Contact of Project Manager
- 2.11 Project promotion Channel like Website, Wechat Official Account, Twitter, etc.
- 2.12 Attachment of Source File of Token Logo
- 2.13 Is the Project Tokens Based on ERC20 (or other blockchain)?
- 2.14 Any Market Value Management?
- 3. Project Marketing ant Its Users Scale
- 3.1 Expected Listing Date
- 3.2 Users Community in Telegram, Twitter, Reddit, Slack, WeChat, QQ Group , etc. and Its Links and Scale
- 3.3 Media Reports and Links
- 3.4 Time and Place of Roadshow or Other Marketing Campaign？
- 3.5 Marketing Budget on SPACEBOT and Token price establishing margin
- 4. Qualifications
- 4.1 Basic Information of Team Members
- 4.2 Consultants or Public Figures
- 4.3 Early Investment
- 4.4 Whether Listed on Quote Platform，such as Feixiaohao ,CoinMarketCap, etc.
- 1. Notes for Listing
- 2. SPACEBOT the unique software, for co-production of cryptocerrency. SPACEBOT provides an opportunity to get a monthly increase in the productivity of the cryptovoltaic minting of PRIZM, BIP and other cryptocurrency due to the total increase of the balance in the network of blockages through the “Proof-of-Stake” system.
- 3. SPACEBOT is only responsible for verification of authenticity and legitimacy of projects. SPACEBOT will not evaluate the project, and not provide any moral and value endorsement. The digital assets team will take full responsibility for all illegal irregularities such as illegal fund-raising, pyramid selling, money laundering, gambling, drug abuse, fraud, being banker of the asset, etc.
- 4. The digital asset teams need to make preventive measure with SPACEBOT to keep away from crushing the market. Otherwise we will end the cooperation.
- 5. SPACEBOT will remove the project from the list if : The dissolution of team keeps our client away from mining, transferring, block inquiring, etc. No investors trade, hold, use this token; technical failure which affect mining, transferring, block inquiring, etc. The team has some illegal irregularities such as illegal fund-raising, pyramid selling, money laundering, gambling, drug abuse, fraud, being banker of the asset, etc.
How to register a new users on SPACEBOT?
Registration on SPACEBOT is available only via the referral link which you can get after bonding 100 coins to the pool.
In order to get the link through the Telegram bot:
1. Send 100 coins to the wallet given by the bot: Wallet – Deposit
2. Bond 100 coins to the pool: Wallet – Deposit for paramining
3. Skip to ‘Affiliate program’ section and copy your referral link
4. Now you can share your referral link and invite new users
In order to get the link through iOS/Android:
1. Send 100 coins to the wallet given by the App: Home screen – Refill
2. Bond 100 coins to the pool: Home scren – Bond
3. Skip to ‘Affiliate program’ section and copy your referral link
4. Now you can share your link and invite new users
How to install the iOS App?
To install the App
1. Follow the link:
2. Сlick ‘Install’ and follow the standard steps to install the App on your device
3. If you are a new user – press ‘Register’ (you need to indicate your inviter; find your inviter`s ID or get a referral link in the ‘How to register a new user’ section)
4. If you already have your SPACEBOT Telegram account you need to link it to email. You may find how to do it in ‘How to link email to your SPACEBOT account?’ section.
How to install Android App?
To install the App:
1. Follow the link:
2. Press ‘install’ and follow the standard steps to install the App on your device.
3. If you are a new user – press ‘register’ (you need to indicate your inviter; find your inviter`s ID or get a referral link in the ‘How to register a new user’ section)
4. If you already have your Telegram SPACEBOT account you need to link it to email. You may find how to do it in ‘How to link email to your SPACEBOT account?’
How to top up your balance?
Top up your balance with Telegram bot:
1. Go to ‘Wallet’ section
2. Press ‘Deposit’
3. Copy the wallets sent to you (be careful not to copy extra symbols)
4. Transfer coins to the copied wallet adress
Top up your balance with iOS/Android App:
1. Press ‘Top up’ on the mail screen
2. Copy the wallets sent to you (be careful not to copy extra symbols)
3. Transfer coins to the copied wallet adress
* Track transaction on the blockchain:
PRIZM – https://prizmexplorer.com
BIP/BTT – https://explorer.minter.network
**Please note that depositing of coins requires certain number of confirmations in the network and it takes time to process a transaction with our algorightm
***Also note that many exchanges and wallets services carry out transfers with delay (on some exchanges it can take up to 72 hours), and you shouldn`t worry since this is a stadard procedure.