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Author Topic: Sale of Large BTC amount after ICO  (Read 84 times)
CryptoSuperPanda
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December 06, 2017, 11:12:00 AM
 #1

Hi all!  Smiley

Now everyone talks about ICO, there are a lot of articles / posts / videos on this topic. However, I could not find information on one issue: 

What is the best (the fastest and with the minimum commission) way of transferring cryptocurrency raised during ICO into Fiat money (USD)?  Huh

1) Suppose the ICO was very successful and managed to collect, say, 400 BTC or $ 5 million at the rate of BTC / USD = 12,700 (at 11:30 on December 6)
2) Contractors require Fiat money to pay for services, not everyone agrees to receive BTC. Accordingly, in order to further develop the product you need Fiat money
3) The amount of funds is very large

- Changing this amount on the Exchange will take a very long time and the Exchanges have large requirements for information disclosure and registration:
    - Bitfinex doesn't allow for USD withdrawal
    - GDAX has USD 10 thsd withdrawal limit per day
    - Gemini has USD 100 thsd withdrawal limit per month
    - Kraken has USD 500 thsd withdrawal limit per month for Tier 4
    - BTCC has USD 100 thsd withdrawal limit per day
    - Other Exchanges have similar requirements

- OTC market has another drawback - small liquidity:
    - Supply of USD for BTC is very limited on LocalBitcoins

How can you cope with this problem in practice?  Huh

How much in aggregate can all the commissions from the stage of ICO fundraising (in foreign jurisdiction) be received before the receipt of fiat money on the settlement account of a company registered in other country with no cryptocurrency legislation (let's say Russia)?
Saw open source estimates of up to 50%, ie, if the ICO collected $ 5 million, you eventually get only $ 2.5 million. How much is this estimate fair?


Many thanks for responses / tips / recommendations!  Smiley
May the Force be with you!  Wink
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CryptoTamer
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December 06, 2017, 01:20:38 PM
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Before ICO ends The team must meet the requirements to increase the withdrawal limit in exchange
Not all service providers agree to receive payments in Bitcoin therefore you must make an agreement before using their services for example, an agreement for term payment system

orkoso
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December 06, 2017, 01:22:04 PM
 #3

Hi all!  Smiley

Now everyone talks about ICO, there are a lot of articles / posts / videos on this topic. However, I could not find information on one issue: 

What is the best (the fastest and with the minimum commission) way of transferring cryptocurrency raised during ICO into Fiat money (USD)?  Huh

1) Suppose the ICO was very successful and managed to collect, say, 400 BTC or $ 5 million at the rate of BTC / USD = 12,700 (at 11:30 on December 6)
2) Contractors require Fiat money to pay for services, not everyone agrees to receive BTC. Accordingly, in order to further develop the product you need Fiat money
3) The amount of funds is very large

- Changing this amount on the Exchange will take a very long time and the Exchanges have large requirements for information disclosure and registration:
    - Bitfinex doesn't allow for USD withdrawal
    - GDAX has USD 10 thsd withdrawal limit per day
    - Gemini has USD 100 thsd withdrawal limit per month
    - Kraken has USD 500 thsd withdrawal limit per month for Tier 4
    - BTCC has USD 100 thsd withdrawal limit per day
    - Other Exchanges have similar requirements

- OTC market has another drawback - small liquidity:
    - Supply of USD for BTC is very limited on LocalBitcoins

How can you cope with this problem in practice?  Huh

How much in aggregate can all the commissions from the stage of ICO fundraising (in foreign jurisdiction) be received before the receipt of fiat money on the settlement account of a company registered in other country with no cryptocurrency legislation (let's say Russia)?
Saw open source estimates of up to 50%, ie, if the ICO collected $ 5 million, you eventually get only $ 2.5 million. How much is this estimate fair?


Many thanks for responses / tips / recommendations!  Smiley
May the Force be with you!  Wink

Why would you do that? Bitcoin is going up now? Are you trying to run away with the money?? LOL
laurenB7742
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December 06, 2017, 04:59:53 PM
 #4

Can you please provide source of that 50% estimate? I think this percentage greatly depends on your country and taxation on BTC withdrawals to your bank. For example in my country, there is no tax on profits made from cryptocurrency trading. You only pay tax if you were mining crypto and then sold it.
My estimate would be more like 80 to 90%. So you loose only 10 to 20%.

Also, why would you convert to fiat the entire amount raised in ICO? Most ICOs convert only smaller part of funds and than they gradually convert part of crypto every month for monthly expanses like salaries and material expenses. This way you don't have problem with limitations on exchanges. I think 500 000 USD per month on Kraken is enough for most ICO companies.

If you really wanted to convert the entire amount to fiat in short period of time, there are ways to do this, but you would have to pay high fees, probably around 10 to 20 percent, so I don't understand why would you do this. There is a company in my country that is doing cryptocurrency advising and they are also open for larger buy/sell deals but they charge fee. This is meant for rich businessmen who don't have the time to study crypto, but they do want to invest so they hire that company to do everything for them and store their Bitcoins in a safe place. I think you could make a deal with them and sell them large amounts of Bitcoins or ETH for a price smaller than market price.

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