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August 16, 2018, 02:59:28 PM |
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Understanding ICO, Bounty and AirDrop in Crypto Coin
Understanding of ICO, Bounty and AirDrop in Crypto Coin
Sulis StyaCryptocurrency
Definition of ICO, Bounty and AirDrop
16-May-2018 Update. A lot of vocabulary is less familiar in the ear when discussing about crypto coin, for example is ICO AirDrop and Bounty, the following is a brief explanation and understanding.
Initial Coin Offering / ICO
ICO is a fundraising effort to build Blockchain related applications and implementations such as cryptocurrency, bitcoin, smart contracts and smart ledgers. ICO offers a number of tokens to investors who are rewarded with Cryptocurrency like Bitcoin.
This token is expected to be of high value in the future, depending on the success of the application developed by the ICO organizer in solving business problems.
These coins are referred to as tokens and are similar to company shares sold to investors in transactions of Initial Public Offering (IPO). If the money collected does not meet the minimum funds required by the company, the money is returned to the supporters and the ICO is deemed unsuccessful. If the funding needs are met within the specified time period, the money collected is used either to start a new scheme or to solve it.
The attraction that makes many people want to invest in ICOs is, a high price increase in ICO coins / tokens at a later date after the coin / token is entered into the trading / exchange of crypto currencies.
One obvious example is the launch of Ethereum at the beginning of the ICO with a price of 1 ETH = $ 0.311 and currently the price reaches $ 684.06. Fantastic increase, but keep in mind that not all ICOs have success like Ethereum.
Fundraising through the start-up Initial Coin Offering or ICO initiative has recently mushroomed, Ethereum's success as a criptocurrency launched in 2015, delivering Ethereum to become the second largest crypto coin after bitcoin.
The concept of the Initial Coin Offering (ICO) is the same as the concept of Initial Public Offering (IPO), namely the sale of the company's shareholdings to the public, maybe in the future blockchain technology will displace the existence of IPOs that have been used for hundreds of years.
The difference between ICO and IPO is when buying the first token in the ICO, potential buyers can interact directly without going through brokerage / securities brokers and almost or no fee / commission is paid, so that the existence of this technology can be a scourge for some people because technology will replace the role humans replace their jobs.
But if technology can help ease efficiency and effectiveness, compared to the old pattern, it is certain that fast or slow everyone will choose an easier method.
Understanding AirDrop
AirDrop is a kind of giveaway that is used as a promotional tool, AirDrop participants are usually required to do certain tasks as a condition to get a number of Cryptocurrency Tokens, for example, their tasks are like social media or making a video presenting the AirDrop organizer
AirDrop Purpose
The reason or purpose that allows airdrop can occur, that is, when there is a fork in cryptocurrency or the launch of a new network. An example is Bitcoin users get Bitcoin Cash, and Ethereum users get an Ethereum Classic token equal to the value stored in their original wallet. Further examples include ETC holders who are given CLO prizes with the emergence of Callisto blockchain or NXT holders who receive IGNIS tokens after selling IGNIS tokens.
Another Airdrop goal is to increase marketing on ICO: the team or company developers distribute free tokens to attract attention during their ICO, and to increase the investment value in their tokens. Airdrop is also often used in launching new crypto currencies. For lure, meaning Airdrop is used as something to persuade (entice) potential investors and make people excited, buy the new coin.
If you are new to the crypto world, you might wonder: "Why do they have to give free money or coins? This might be a scam, today is there free money / coins. Now, in 99% of cases, if they offer money it's free, it's probably a hoax.
However, you must understand two important points here:
Tokens / Coins without community are useless. People have to use it too.
Airdropping, giving free tokens / coins will make many people talk about the project and this is a great way to make cheap publicity.
What if the token is sold all without being partially free? it could be but on the other hand a lot of money will be used for mass publications on internet media.
Think of it as Airdrop is a free distribution of tokens / coins. If you are interested in AirDrop, you can write the comment below, then admin help join the Airdrop.
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