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1  Alternate cryptocurrencies / Announcements (Altcoins) / ICO ANALYSIS - DETAILED GUIDE TO INITIAL COIN OFFERING on: July 12, 2018, 08:17:37 AM
ICO ANALYSIS
Detailed guide to Initial Coin Offering


1. What is an ICO?

An initial coin offering (ICO) is a means of crowdfunding, through the release of a new cryptocurrency or token to fund project development.

In an ICO, a project creates a certain amount of digital tokens and sell them to the public, usually in exchange for other cryptocurrencies such as bitcoin or ether.

Main reasons why public might be interested in a new token are these:
1) The token has an inherent benefit — it grants the holder access to a service, a say in an outcome or a share in the project’s earnings.
2) The benefit will be in increasing demand, which will push up the market price of the token.

An ICO is somewhat similar to an initial public offering in that it allows investors to purchase a “share” (or token) in a new idea or project. They often take place over 30 days and are the primary source of funding for some cryptocurrency startups. Unlike an IPO most ICOs are unregulated and there are few or no protections for investors.

Main problems of ICOs:
  
  • Absence of Regulatory Oversight: Regulations are good because they protect people/investors/YOU. It is recommended to have due diligence before investing.
      
  • No Track Record: The majority of ICOs don’t even have a working product, just a conceptual white paper that outlines how the coin will work. Not only that, ICOs have been asking for an incredibly large amount of funding.
However, It can be said that ICOs are a good thing for the following reasons:

  
  • Democratization: Allow projects to circumvent the traditional method of asking Banks/Venture Capitalists that may take a lot of time and resources. Anyone can invest and can earn the possibly huge returns just like how the big boys are accustomed to. Of course, investing in ICO’s is a high-risk venture.
      
  • Immense Profit Potential: Many in the space want to invest in the “next Bitcoin”, potentially riding the wave of buying coins at pennies on the dollar and selling them later at an astronomical valuation. Most ICOs have only a conceptual white paper with little to no proof of concept, thereby validating a high payoff potential due to the extremely high-risk investors are taking.
2. Origin of ICOs

The first sale of so-called tokens was carried out by Mastercoin in July 2013. Even though not that popular at the time this was a historical moment. The second event that sparked the ICO gold rush was Ethereum in 2014. Seven projects raised a total of 30 million dollars that year, and Ethereum alone raised over 18 million dollars.

2015 was a quieter year: Activity started to pick up in 2016, when 43 sales — including Waves, Iconomi, Golem and Lisk — raised $256 million. Included in that total is the infamous sale of tokens in The DAO, an autonomous investment fund that aimed to encourage ethereum ecosystem development by allowing investors to vote on which projects to fund. Not long after the sale raised over $150 million, a hacker stole approximately $60 million worth of ether, leading to the project’s collapse.

2017 saw an explosion of activity — 342 token issuances raised almost $5.4 billion — and thrust the concept to the forefront of blockchain innovation. Sales selling out in increasingly shorter periods of time fuelled the frenzy, and in the haste to get “in on the action,” project fundamentals became less important to would-be investors.

By the middle of the year, ICOs had overtaken venture capital as the main source of funds for blockchain startups as they flocked to what appeared to be an easier and faster way to raise a huge amount of money without sacrificing equity in the company.

As the ICO frenzy built up steam regulators around the world began to raise increasingly urgent alarms. No country was more concerned than China. In order to protect Chinese investors, the authorities announced that ICOs were a fraudulent way to make money.
This ban was followed by sharp warnings from a number of other regulators, including the European Central Bank and the IMF. Russia has also taken steps to more heavily regulate the cryptocurrency market and a number of large financial institutions have voiced concerns about the state of the market.

Despite the risks associated with them, ICOs are an important fundraising tool. They have allowed more people than ever to invest in new and revolutionary ideas.

3. Types of ICOs

In the ICO sphere, there are typically four types of ICO projects:

   1. Organic — These are the “original” ICOs — new projects that wouldn’t have been possible without their use of blockchain and crypto technology. The easiest way to identify this type of ICO is to ask, “is this project completely impossible using a traditional web tech stack?”
   2. Artificial — A crypto project’s “Artificial” ICO is often a traditional equity round in disguise, with a white paper in place of a financing deck. It’s only natural for companies — particularly those struggling to find capital through established channels — to seek novel ways to finance their businesses. But these are weeds growing in the crypto garden, and they will eventually be eliminated from the market as buyers become more professionalized and savvier.
   3. Synthetic — A “Synthetic” ICO is when an established, traditionally funded company that has built a sizeable audience plans to make the leap to the crypto economy. In the “CPG-ization” of the web, an ICO can be a way to escape the shadows of Amazon and Facebook. For companies that are #2 or #3 (or #10) in a space, shaking up the category can be a smart strategy.
   4. Scams — How to identify scammy ICOs? Read their whitepaper. How do you feel after reading it? Do you feel the FOMO (fear of missing out)? Scam ICOs play very strongly on that concept. If you feel consumed by fear after reading the white paper, it is very likely that you have been emotionally manipulated by the wording and structure of the paper. Most likely, the team who wrote the white paper would have been capitalizing on your greed to push you to make the purchase. Legit ICOs tend not to focus on this fear, but on the core unique selling point of technology, solutions, and problems that they are solving.

4. Types of ICO auctions

An initial coin offering (ICO) is a means of crowdfunding, through the release of a new cryptocurrency or token to fund project development. Just how the ICO intends to collect its funds also contributes to its attractiveness.

There are three main types of auction methods that ICOs employ to raise capital:

    1. CAPPED SALES — In this case, ICOs sell a fixed number of coins at a predetermined fixed price. The ICO team sets a maximum amount of tokens available and cuts off token sales once a particular amount have been sold and the desired market cap has been reached. The advantage of this is that it gives a fixed valuation for your network which makes the process very transparent for investors. If investors believe your network is worth more than the valuation implied by the token price, they can feel confident in purchasing your coins. The downside to this model is that if you are launching a particularly hot product, often it becomes a race to buy up as many tokens as possible.
    2. UNCAPPED SALES — This means that the ICO team sells its coins at a predetermined price but does not cap the total number of coins it will give out. So the more people that invest, the more total tokens ICO will mint. An uncapped ICO will still limit the percentage of tokens available, however, the real percentage of the given token supply is not known until the token sale has ended. Investors also cannot know the value of each token until the sale has ended and all the capital has been raised.
    3. DUTCH AUCTION — Participants get tokens for the same final price, which is set by the auction, irrespective of the time of their bid. A Dutch auction normally entails the auction beginning with a high asking price, which is lowered until participants are willing to accept either the auctioneer’s price, or a predetermined reserve price. The main goals of the auction are to enable everyone to participate while offering certainty about the maximum total value of all tokens at the time of the bid. There is also a reverse Dutch auction system where tokens grow less expensive over time, encouraging investors to hesitate and take more time in purchasing tokens.

ICOs are also incorporating tiered multiple investment rounds and pre-sales in order to generate more desirable outcomes. We can conclude that ICOs are very much still in the process of innovating.

5. How to participate in ICOs?

    Before you decide to participate in an ICO, you should do your research, and never invest more than you are willing to lose!

ICO Participation process consists of four steps:

1. Open an Exchange Account

    Assuming that you’re confident after performing your research and want to proceed with participating in the ICO, then you should open a fiat-accepting cryptocurrency exchange account to convert your domestic fiat currency into popular cryptocurrency of Bitcoin (BTC) or Ether (ETH).

2. Open Your Own Wallet to Participate in ICO

It is absolutely essential that you have your own wallet.
Your exchange account DOES NOT COUNT as your own wallet, as you do not control their private keys.
Participating in an ICO requires you to send BTC or ETH from your personal, private wallet. If you send it from an exchange, you WILL NOT get the ICO tokens since the transfer originates from the wallet of the exchange and technically you do not own any wallet in an exchange.

3. Follow the ICO Instructions

ICOs will most often provide a step-by-step guide to participating in their ICOs.
You should join their official communication channels such as Slack or Telegram to receive the latest updates and ask questions directly to the developing team.

4. Exchanges to Trade ICO Coins

If you believe in the tech, then hold the coins for the medium to long-term, or until your price target is hit (e.g. 2x, 3x, 10x of capital).
If you just want to flip it, then sell it once it reaches an exchange that usually lists an ICO.
Alternatively, if you’ve missed out on the ICO, you can buy it at an exchange.

The most popular ICOs sell out in matters of seconds and that is why it is important to be prepared the moment an ICO goes live. You should also take into consideration other factors such as the speed of the transactions you send. Whether participation is successful is dependent on how fast the ICO receives an investment. If the transaction is not accepted in time, it will be returned to the address that sent it.

Dear readers, this analysis is the product of an extensive research that was carried out in June 2018. Since the world of cryptocurrencies is changing extremely fast, this may not be relevant in the future, but for now, we hope you will find it useful Smiley
2  Other / Beginners & Help / ICO ANALYSIS - DETAILED GUIDE TO INITIAL COIN OFFERING on: July 12, 2018, 08:08:54 AM
ICO ANALYSIS
Detailed guide to Initial Coin Offering


1. What is an ICO?

An initial coin offering (ICO) is a means of crowdfunding, through the release of a new cryptocurrency or token to fund project development.

In an ICO, a project creates a certain amount of digital tokens and sell them to the public, usually in exchange for other cryptocurrencies such as bitcoin or ether.

Main reasons why public might be interested in a new token are these:
1) The token has an inherent benefit — it grants the holder access to a service, a say in an outcome or a share in the project’s earnings.
2) The benefit will be in increasing demand, which will push up the market price of the token.

An ICO is somewhat similar to an initial public offering in that it allows investors to purchase a “share” (or token) in a new idea or project. They often take place over 30 days and are the primary source of funding for some cryptocurrency startups. Unlike an IPO most ICOs are unregulated and there are few or no protections for investors.

Main problems of ICOs:
  
  • Absence of Regulatory Oversight: Regulations are good because they protect people/investors/YOU. It is recommended to have due diligence before investing.
      
  • No Track Record: The majority of ICOs don’t even have a working product, just a conceptual white paper that outlines how the coin will work. Not only that, ICOs have been asking for an incredibly large amount of funding.
However, It can be said that ICOs are a good thing for the following reasons:

  
  • Democratization: Allow projects to circumvent the traditional method of asking Banks/Venture Capitalists that may take a lot of time and resources. Anyone can invest and can earn the possibly huge returns just like how the big boys are accustomed to. Of course, investing in ICO’s is a high-risk venture.
      
  • Immense Profit Potential: Many in the space want to invest in the “next Bitcoin”, potentially riding the wave of buying coins at pennies on the dollar and selling them later at an astronomical valuation. Most ICOs have only a conceptual white paper with little to no proof of concept, thereby validating a high payoff potential due to the extremely high-risk investors are taking.
2. Origin of ICOs

The first sale of so-called tokens was carried out by Mastercoin in July 2013. Even though not that popular at the time this was a historical moment. The second event that sparked the ICO gold rush was Ethereum in 2014. Seven projects raised a total of 30 million dollars that year, and Ethereum alone raised over 18 million dollars.

2015 was a quieter year: Activity started to pick up in 2016, when 43 sales — including Waves, Iconomi, Golem and Lisk — raised $256 million. Included in that total is the infamous sale of tokens in The DAO, an autonomous investment fund that aimed to encourage ethereum ecosystem development by allowing investors to vote on which projects to fund. Not long after the sale raised over $150 million, a hacker stole approximately $60 million worth of ether, leading to the project’s collapse.

2017 saw an explosion of activity — 342 token issuances raised almost $5.4 billion — and thrust the concept to the forefront of blockchain innovation. Sales selling out in increasingly shorter periods of time fuelled the frenzy, and in the haste to get “in on the action,” project fundamentals became less important to would-be investors.

By the middle of the year, ICOs had overtaken venture capital as the main source of funds for blockchain startups as they flocked to what appeared to be an easier and faster way to raise a huge amount of money without sacrificing equity in the company.

As the ICO frenzy built up steam regulators around the world began to raise increasingly urgent alarms. No country was more concerned than China. In order to protect Chinese investors, the authorities announced that ICOs were a fraudulent way to make money.
This ban was followed by sharp warnings from a number of other regulators, including the European Central Bank and the IMF. Russia has also taken steps to more heavily regulate the cryptocurrency market and a number of large financial institutions have voiced concerns about the state of the market.

Despite the risks associated with them, ICOs are an important fundraising tool. They have allowed more people than ever to invest in new and revolutionary ideas.

3. Types of ICOs

In the ICO sphere, there are typically four types of ICO projects:

   1. Organic — These are the “original” ICOs — new projects that wouldn’t have been possible without their use of blockchain and crypto technology. The easiest way to identify this type of ICO is to ask, “is this project completely impossible using a traditional web tech stack?”
   2. Artificial — A crypto project’s “Artificial” ICO is often a traditional equity round in disguise, with a white paper in place of a financing deck. It’s only natural for companies — particularly those struggling to find capital through established channels — to seek novel ways to finance their businesses. But these are weeds growing in the crypto garden, and they will eventually be eliminated from the market as buyers become more professionalized and savvier.
   3. Synthetic — A “Synthetic” ICO is when an established, traditionally funded company that has built a sizeable audience plans to make the leap to the crypto economy. In the “CPG-ization” of the web, an ICO can be a way to escape the shadows of Amazon and Facebook. For companies that are #2 or #3 (or #10) in a space, shaking up the category can be a smart strategy.
   4. Scams — How to identify scammy ICOs? Read their whitepaper. How do you feel after reading it? Do you feel the FOMO (fear of missing out)? Scam ICOs play very strongly on that concept. If you feel consumed by fear after reading the white paper, it is very likely that you have been emotionally manipulated by the wording and structure of the paper. Most likely, the team who wrote the white paper would have been capitalizing on your greed to push you to make the purchase. Legit ICOs tend not to focus on this fear, but on the core unique selling point of technology, solutions, and problems that they are solving.

4. Types of ICO auctions

An initial coin offering (ICO) is a means of crowdfunding, through the release of a new cryptocurrency or token to fund project development. Just how the ICO intends to collect its funds also contributes to its attractiveness.

There are three main types of auction methods that ICOs employ to raise capital:

    1. CAPPED SALES — In this case, ICOs sell a fixed number of coins at a predetermined fixed price. The ICO team sets a maximum amount of tokens available and cuts off token sales once a particular amount have been sold and the desired market cap has been reached. The advantage of this is that it gives a fixed valuation for your network which makes the process very transparent for investors. If investors believe your network is worth more than the valuation implied by the token price, they can feel confident in purchasing your coins. The downside to this model is that if you are launching a particularly hot product, often it becomes a race to buy up as many tokens as possible.
    2. UNCAPPED SALES — This means that the ICO team sells its coins at a predetermined price but does not cap the total number of coins it will give out. So the more people that invest, the more total tokens ICO will mint. An uncapped ICO will still limit the percentage of tokens available, however, the real percentage of the given token supply is not known until the token sale has ended. Investors also cannot know the value of each token until the sale has ended and all the capital has been raised.
    3. DUTCH AUCTION — Participants get tokens for the same final price, which is set by the auction, irrespective of the time of their bid. A Dutch auction normally entails the auction beginning with a high asking price, which is lowered until participants are willing to accept either the auctioneer’s price, or a predetermined reserve price. The main goals of the auction are to enable everyone to participate while offering certainty about the maximum total value of all tokens at the time of the bid. There is also a reverse Dutch auction system where tokens grow less expensive over time, encouraging investors to hesitate and take more time in purchasing tokens.

ICOs are also incorporating tiered multiple investment rounds and pre-sales in order to generate more desirable outcomes. We can conclude that ICOs are very much still in the process of innovating.

5. How to participate in ICOs?

    Before you decide to participate in an ICO, you should do your research, and never invest more than you are willing to lose!

ICO Participation process consists of four steps:

1. Open an Exchange Account

    Assuming that you’re confident after performing your research and want to proceed with participating in the ICO, then you should open a fiat-accepting cryptocurrency exchange account to convert your domestic fiat currency into popular cryptocurrency of Bitcoin (BTC) or Ether (ETH).

2. Open Your Own Wallet to Participate in ICO

It is absolutely essential that you have your own wallet.
Your exchange account DOES NOT COUNT as your own wallet, as you do not control their private keys.
Participating in an ICO requires you to send BTC or ETH from your personal, private wallet. If you send it from an exchange, you WILL NOT get the ICO tokens since the transfer originates from the wallet of the exchange and technically you do not own any wallet in an exchange.

3. Follow the ICO Instructions

ICOs will most often provide a step-by-step guide to participating in their ICOs.
You should join their official communication channels such as Slack or Telegram to receive the latest updates and ask questions directly to the developing team.

4. Exchanges to Trade ICO Coins

If you believe in the tech, then hold the coins for the medium to long-term, or until your price target is hit (e.g. 2x, 3x, 10x of capital).
If you just want to flip it, then sell it once it reaches an exchange that usually lists an ICO.
Alternatively, if you’ve missed out on the ICO, you can buy it at an exchange.


The most popular ICOs sell out in matters of seconds and that is why it is important to be prepared the moment an ICO goes live. You should also take into consideration other factors such as the speed of the transactions you send. Whether participation is successful is dependent on how fast the ICO receives an investment. If the transaction is not accepted in time, it will be returned to the address that sent it.

Dear readers, this analysis is the product of an extensive research that was carried out in June 2018. Since the world of cryptocurrencies is changing extremely fast, this may not be relevant in the future, but for now, we hope you will find it useful Smiley
3  Other / Beginners & Help / Bounty analysis - Detailed guide to ICO bounties on: June 28, 2018, 09:42:42 AM
Bounty Analysis
Detailed guide to ICO bounties


1. What are Bounties?

A Bounty campaign is a marketing tactic that allows a company to allocate a small amount of their tokens to promoting their ICO through the crypto community. Bounties are simply jobs, tasks, or projects that have usually been created by token developers. If participants complete the job, then they will receive a reward in token form.

The tasks are never too complicated, and almost never involve any sort of computer programming. That’s what the developers do. However, there will be other things that the developer either can’t do, or just won’t have time to do. However, those tasks are necessary for the success of the token they created. So what do they do? They get other people to do those tasks, rewarding them with tokens of their creation.

    Examples of typical bounties include promoting the new token on Twitter, or translating promotional content for that token. Something anyone can do in their spare time.

2. Origin of bounties

The original “Bugs Bounty” program was the creation of Jarrett Ridlinghafer while working at Netscape Communications Corporation as a technical support Engineer.

Netscape encouraged its employees to push themselves and do whatever it takes to get the job done and, in late 1995, Jarrett Ridlinghafer was inspired with the idea for, and coined the phrase, ‘Bugs Bounty’.

He recognized that Netscape had many enthusiasts and evangelists for their products, some of whom to him seemed even fanatical, particularly for the Mosaic/Netscape/Mozilla browser. He started to investigate the phenomenon in more detail and discovered that many of Netscape’s enthusiasts were actually software engineers who were fixing the product’s bugs on their own.

More recently, the concept of a bounty program comes from the online gaming world, where a bounty is a reward paid out to an individual or group for accomplishing certain objectives.

In the ICO sphere, bounty programs are used by blockchain startups to accomplish a wide range of tasks at the cost of the project’s token.

3. Purpose of bounties

ICO bounty programs allow companies to use their platform tokens for maximization of their marketing efforts.

Within the cryptocurrency scene, bounties have become a useful part of any ICO campaign. Many startups usually incorporate a bounty program as part of their ICO campaign. During the bounty program, the ICOs provide compensation for a number of tasks spread across marketing, bug reporting or even improving aspects of the cryptocurrency framework. The reward is usually in the form of cryptocurrency tokens or fiat currency (this option is rare).

Bounties are essentially tokens of appreciation for helping the blockchain project progress. They cut down on costs for startups while simultaneously incorporate members of the [Suspicious link removed]munity.

However, the ICO landscape is extremely competitive. It is not uncommon for dozens of ICOs to be happening at the same time. One way that startups can get ahead of their competitors is through running a successful ICO bounty program.

4. Types of bounties

It is common for a cryptocurrency startup to set aside a percentage of the total coin supply for the bounty program. Information regarding this amount can usually be found on their website, white paper or Bitcointalk ANN thread.

In the ICO sphere, there are two main categories of bounties:

   1.  PRE-ICO Bounty Programs — Like the name implies, these are bounty programs that are carried out before the actual ICO. They are usually done to build momentum and to give the cryptocurrency project an improved presence on social media platforms. It is all about creating awareness for the cryptocurrency ICO and to get the buzz going. The aim of such bounties is that as participants go about carrying out the various activities, and spread the word in their circle about the new token or cryptocurrency.
   2.  POST-ICO Bounty Programs — At this point, the ICO is completed and funds have been raised. Now, it’s all about making improvements to the projects based on community suggestions. Post-ICO bounty programs are aimed at improving feedback from the crypto community.

Pre-ICO bounties:

  
  • Social Media Campaign Bounties
This involves activities that promote the ICO on the social media accounts of participants. The rewards earned depend on the engagement levels generated by such posts. This can be in the form of retweets, likes, shares, views, and comments. The popular social media platforms used for ICO bounty programs include Facebook, Twitter, and YouTube.
  • Article Writing Bounties
ICO bounty programs can offer rewards to bloggers to write featured articles about the ICO on their blogs. Just like the social media bounty, the rewards will be dependent on the engagement level of the articles and blog posts.
  • Bitcointalk Signature Bounties
    This is a popular bounty for many ICOs. It is open to participants of the Bitcointalk forum. The ICO releases a signature with a code embedded in it. The ranking of the participants who post this signature determines the number of stakes they get. For most bounty programs, only people on Bitcointalk who are Jr. Members and above can participate.

    Post-ICO bounties:

      
    • Translation Campaign Bounties — This involves translating all documents for the cryptocurrency project as well as moderating different forum groups. The common translation activities include cryptocurrency website, white paper and the Bitcointalk ANN thread.
    •  Bug Reporting Bounties — Apart from being an effective bounty campaign activity, bug reporting also helps the developers. A good bug report clearly and concisely identifies issues with the cryptocurrency software or platform.

      
    Note: There isn’t a hard and fast rule as far as the activities for Pre-ICO and Post-ICO campaigns. Cryptocurrency ICOs can decide to use any of the aforementioned activities in either type of bounty programs.

    5. How to participate in bounties

    ICO bounty programs are a great way to participate in the market and earn tokens. These tokens can even be exchanged for fiat money. Most of the activities aren’t really technical in nature as they rely on common internet activities and interactions. Participants can simply look up reliable and famous bounty programs on the internet. There are sites that will list a dedicated list of ICO bounty programs. One of the best ways to get involved in bounty programs is via Bitcointalk and Cryptocointalk forums. Almost all ICO bounties are listed here.

    Users can simply check the eligibility criteria and the activities listed to be executed under the program. They can enrol themselves in a pre-ICO or a post-ICO bounty program with added ease & earn rewards with every share, every like or every article they like. Users who are participating in a bounty program are usually called “bounty hunters”. As a bounty hunter, participants are telling others about projects that are undergoing a certain bounty program.

    Signing-up for an ICO bounty program is easy. As soon as users associate with a program, they start receiving links that can be easily posted to their social media accounts. Further success depends on the number of likes, shares and other social reactions. Also, it depends on participant’s writing or debugging skills, i.e. how well they might execute the task assigned. ICO’s usually explain in great detail specific rules for their bounty programs.

    6. Future of bounties

    We can say that as the popularity of ICO is increasing, there is a significant increase in the popularity of bounty programs. According to the website Bounty lord, from September 2017 to date (May 15th 2018), there have been 469 active bounties and 737 closed ones.



    Out of all active bounties, 24 are active since January, 127 since February, 126 since March, 93 since April and 80 since May 2018. These numbers coincide with the increasing number of ICO’s that have emerged since the beginning of 2018.



    These numbers clearly show that this trend is not going away, and that we can expect many more ICO’s and a lot more exciting bounty programs to show up in the second half of 2018.

    Although the number of ongoing bounties is not going to diminish anytime soon, there is a lot of criticism of bounty programs, mostly for the following reasons:

        Bounties create an artificial sense of community through Telegram numbers, social media followers, posts, youtube videos, etc.
        They give incentives to “free” token receivers to sell when the token is available at the market
        There is no way to tell whether hype surrounding an ICO is an active, market-ready community or a well-incentivized group of bounty hunters
        Bounty incents this group of bounty hunters to pump any news, increasing crypto volatility
        There is no differentiation between someone who is genuinely promoting a project and someone who is posting for a reward

    What might be the solution to these problems — Full disclosure.

      
    • ICO projects should require their bounty hunters to somehow identify themselves when they are posting or doing an action for bountie
    • Bounty hunters should voluntarily disclose when they are posting or doing an action for bounty
    • Bounty programs should be disclosed during the token sale, so that anyone interested can clearly see what kinds of bounties are being levied and for what

4  Other / Beginners & Help / Airdrop Analysis - Detailed guide to crypto Airdrops! on: June 19, 2018, 08:56:07 AM
Airdrop Analysis
Detailed guide to crypto Airdrops


1. What are Airdrops?


An airdrop for a cryptocurrency is a procedure of distributing tokens by awarding them to existing holders of a particular blockchain currency, such as Bitcoin or Ethereum. It can also be considered a marketing strategy, since its goal is usually to spread the word about a certain product, coin or exchange in the world of cryptocurrencies. Lately this strategy has become increasingly important due to various social networks, most notably Facebook, refusing to allow ads promoting various virtual coins. In the United States, the practice has raised questions about tax liabilities and whether they amount to income or capital gains.

   Airdrops are the crypto analog to free samples in the shopping mall.

Projects that are just starting out will oftentimes give out a small amount of free tokens to verified people in order to spread the word about their project. They often do this near the time of their ICO.


2. History of Airdrops


According to Jun Hasegawa, CEO of Omise, the company pioneered the airdrop concept on Ethereum in August 2017, after announcing it would airdrop its “OMG” tokens to every wallet that held more than 0.1 ETH.

Omise decided to conduct an airdrop to raise awareness about the project, but Hasegawa spoke to the broader benefits of the distribution model, writing in an email to CoinDesk — via a spokesperson, “The real value of Ethereum projects doing Airdrops to all ETH holders is that it’s a crypto economic mechanism designed to incentivize Ethereum project communities to maintain alignment with the entire ethereum community.”

After Omise, the trend slowly started to become predominant PR strategy for new projects. Since August 2017, when the average number of monthly Airdrops was 2, there is a significant change in the number of Airdrops released, with the average number of 5 Airdrops DAILY.


    As this table clearly shows, there is an exponential growth in number of Airdrops that come out daily. The similar trend can be seen in the number of emerging ICO’s.

3. Purpose of Airdrops


Cryptocurrencies only hold value because people believe in them and recognize their worth. The more people who own a cryptocurrency, the more likely it is to become widely adopted and rise in value. Airdrops are effective due to the “endowment effect,” a phenomenon in which people will ascribe value to things merely because they own them.

One main reason for doing airdrops, are recent marketing restrictions for ICOs, that are real and painful in equal measure. The companies launching their ICOs can’t use either Facebook or Google to market their projects. So, the best way through which a project can create lasting exposure and hype is airdropping.

There are plenty of reasons why ICO’s give away free tokens in an Airdrop, and here are the main ones:

    To Raise Popularity: Getting token to as many wallets and people as possible for building a strong base of active users, who might end up being real customers. Wide range of distribution is typically the important metric, particularly given that many projects are trying to jump-start a network effect.
    To Raise awareness: A lot of monetary interest is built once the token hits exchanges.
    To Raise capital: To fund the future development and build-out of the project.

4. Types of Airdrops


Most successful marketing campaigns usually deliver freebies to prospective customers/investors. Well, crypto airdrops are built on a similar concept. In the ICO space, an airdrop happens whenever a blockchain-based startup delivers free tokens to its prospective customers. In the past, many businesses have successfully airdropped their tokens; some of the prominent airdrops are done by Aktie Social, Eligma, and BunnyToken.

There are two types of Airdrops:

    -Traditional Airdrops — free tokens are distributed to existing holders of a particular blockchain currency, such as Bitcoin or Ethereum. They will reward users for simply holding a specific coin without expectation of any reciprocal consideration
    -Bounty Airdrops — which will reward users with free tokens if they complete simple social media tasks (Joining the Telegram group, reposting on Twitter, etc.)

5. Participating in Airdrops


For participating in Traditional and Bounty Airdrops users will most likely need to have these tools:

    1. Ethereum Wallet — not one that is on an exchange. It has to be a personal address that is ERC20 compatible because most of the tokens that are airdropped are ERC20 tokens, which are or were originally Ethereum-based ICOs. The Ethereum Wallet needs to be ACTIVE. If user’s wallet doesn’t show activity, it might not receive the airdrop. Sometimes, coins will be explicit in what they look for, including some type of balance in the account.
    2. A Telegram Account (https://telegram.org/). Telegram is the chatting tool of choice for many of the ICOs. Free tokens are the tool for boosting the audience count. Usually, airdrop tokens will also require participants to sign up for their Telegram accounts. If participants want to receive the token in their Ethereum wallet, they should not leave the Telegram accounts or they risk disqualification for the airdrop.
    3.  A Twitter Account (https://twitter.com/). Similar to the reasons behind the Telegram account, many of the airdrop tokens will also require participants to follow them on Twitter. Some of them will even ask participants to retweet some tweet.
    4. An email address. Sometimes airdrops will ask for participants’ email, too.
    5. Referral code — Sometimes, in order to participate in the airdrop, all that participants have to do is sign up through someone’s referral link, which only requires participant’s name and email.

6. Where to find Airdrops?


There are a few ways to find airdrops:

    1. Bitcointalk — one of the oldest and largest forums for crypto discussion. This is usually the very first place a new project will announce themselves, and is a great place to learn about all of the ICOs going on. Participants can usually get a great history of the project by looking through their initial Bitcointalk thread.
   2. Airdrop aggregates — These often do some pre-processing for participants and verify that the airdrops are legitimate and that the projects are likely to actually pay out the coins. Some of the good aggregates are: Airdrops.io, Airdropking.io, Airdrop Alert, Sub-Reddit Airdrops, Sub-Reddit CryptoAirdrops,…
    3. Platforms — Some platforms, like Earn.com allow participants to sign up for airdrop lists and have their address publicly available to be airdropped into. All available airdrops will also be available in Tokens Marketplace under the category Airdrops!

7. Future of Airdrops


An internet search for “airdrops” or “free tokens” yields lots of websites, subreddits and Telegram channels that people can follow to gather up crypto tokens. And there’s even a Pokemon Go imitator under development that would allow companies to distribute free tokens to people playing an augmented reality game.

    Since August 2017, Airdrops have massively increased in numbers and are labeled as a new PR craze in crypto world. According to the website airdrop alerts, since July 2017 there have been 467 Airdrops and 96 are ongoing at the moment of writing this analysis.



Everyday we see approximately 5 new Airdrops listed on websites, and this number is on the rise. Still many advise against airdrops for now.

“In China, many people refer to these offerings as ‘candy’, said Minhui Chen in an interview with Coindesk, a partner at Global Blockchain Innovative Capital (GBIC), continuing: “Low-quality projects are taking advantage of airdrops to make a fake community.”

Brayton Williams of Boost VC, a fund that favors crypto projects with a strong focus on community, thinks issuers could do a better job of targeting with airdrops. For example, he’d like to see issuers focus airdrops on people based on geography, demographics, etc. to cultivate the best market for the future platform.
It is very early to see how this trend will result, but the majority agrees that ICO’s need actual users to have access to the tokens.

This analysis is the product of an extensive research that was carried out in May 2018. Since the world of cryptocurrencies is changing extremely fast, this may not be relevant in the future, but for now, we hope you will find it useful Smiley
5  Alternate cryptocurrencies / Service Announcements (Altcoins) / [ANN] TOKENS MARKETPLACE on: June 07, 2018, 01:58:33 PM
TOKENS MARKETPLACE !!!LIVE!!!

Welcome to Ethereum Tokens Marketplace

!!!WEBSITE IS LIVE!!!

Free ICO listing in 60 seconds! FREE AIRDROP, FREE BOUNTY LISTING!!! http://tokensmarketplace.com/basic_listing

*We will review all submissions. We reserve the right to not list projects that look suspicious







WEBSITE - https://tokensmarketplace.com
TWITTER - https://twitter.com/TokensMarketpl1?lang=en
FACEBOOK - https://www.facebook.com/TokensMarketplace-187990588700511/?notif_id=1528364282798794&notif_t=page_fan
MEDIUM - https://medium.com/tokensmarketplace
TELEGRAM CHANNEL - https://t.me/tokensmarketplace
6  Alternate cryptocurrencies / Announcements (Altcoins) / [ANN] TOKENS MARKETPLACE on: June 07, 2018, 01:49:48 PM
TOKENS MARKETPLACE !!!LIVE!!!

Welcome to Ethereum Tokens Marketplace

!!!WEBSITE IS LIVE!!!

Free ICO listing in 60 seconds! FREE AIRDROP, FREE BOUNTY LISTING!!! http://tokensmarketplace.com/basic_listing

*We will review all submissions. We reserve the right to not list projects that look suspicious







WEBSITE - https://tokensmarketplace.com
TWITTER - https://twitter.com/TokensMarketpl1?lang=en
FACEBOOK - https://www.facebook.com/TokensMarketplace-187990588700511/?notif_id=1528364282798794&notif_t=page_fan
MEDIUM - https://medium.com/tokensmarketplace
TELEGRAM CHANNEL - https://t.me/tokensmarketplace
7  Economy / Service Announcements / [ANN] TOKENS MARKETPLACE on: June 07, 2018, 12:55:48 PM
TOKENS MARKETPLACE !!!LIVE!!!

Welcome to Ethereum Tokens Marketplace

!!!WEBSITE IS LIVE!!!

Free ICO listing in 60 seconds! FREE AIRDROP, FREE BOUNTY LISTING!!! http://tokensmarketplace.com/basic_listing

*We will review all submissions. We reserve the right to not list projects that look suspicious








WEBSITE - https://tokensmarketplace.com
TWITTER - https://twitter.com/TokensMarketpl1?lang=en
FACEBOOK - https://www.facebook.com/TokensMarketplace-187990588700511/?notif_id=1528364282798794&notif_t=page_fan
MEDIUM - https://medium.com/tokensmarketplace
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