Investment through Private and Public Sales - Crypto Academy / S4W6 - Homework Post for @fredquantum

in hive-108451 •  10 months ago 

steemit crypto academy - public and private sales.jpg

Question 1 - What can you say about Crypto Investment and how to properly utilize the investment tools available to make the right decisions?

In the world of cryptocurrency, investment is one of the main activities carried out. The term investment is basically the act of putting in a set capital into a particular asset(s) with the sole aim of making profit. Crypto investment is basically the act whereby an individual who is an investor makes use of a set amount of capital to purchase a particular cryptocurrency asset or assets so as to make profit in either short, medium or long term.

When it comes to cryptocurrency investment, market capitalization is key. There are 3 types of market capitalization that cryptocurrency assets fall into – Large market capital, mid market capitalization and low market capitalization. Large capital cryptocurrencies are basically cryptocurrencies that have a market capitalization of $10 billion and above. Mid capital cryptocurrencies are basically cryptocurrencies with a market capitalization of $1 billion to $10 billion. Low capital cryptocurrencies are basically cryptocurrencies with a market capitalization of below $1 billion.

Market capitalization is key when it comes to crypto investment and it can greatly determine how much ROI can be made from the investment. That is why a lot of investors make their investment decisions based on the market capitalization of the cryptocurrency assets they are investing in. For instance, an investment in large market cap cryptocurrencies would most likely yield less ROI compared to the high ROI that is possible in low market cap cryptocurrencies. However, the risk level is low in large market cap cryptocurrencies compared to the high risk level in low market cap cryptocurrencies.

When it comes to investing in cryptocurrencies, the smart investors usually have an investment portfolio which comprises of the different cryptocurrency assets. Each investor have their different strategies for their investments. For me, it is important to have a good investment portfolio that comprises of the different crypto assets. I like to invest in large market cap, mid market cap and low market cap cryptocurrencies to make up my investment portfolio. As an investor, I always allocate different percentages to different crypto investments based on their market cap. For me, 50% usually goes into large market cap cryptocurrencies, 35% goes into mid market cap cryptocurrencies and 15% goes into low market cap cryptocurrencies.

How to properly utilize the investment tools available to make the right decisions?

As far as crypto investment is concerned proper research is very important before making any investment. There are tools that are available to help investors carry out research and analysis, and also other tools that help investors make the right decisions. Tools such as coinmarketcap and coingecko for statistics such as market capitalization, circulating supply, total and max supply, liquidity, volume, active addresses, cryptocurrency age etc, number of available exchanges, available wallets, portfolio tools, watchlist tools, blockchain explorers, number of exchanges, on-chain metrics, website, project whitepaper etc, social media and more, can be used for proper fundamental analysis before making any investment decisions.

Market data tools - Coinmarketcap/Coingecko

These are two of the most popular and reliable market data tools. Coingecko and coinmarketcap provide valuable information about a project like the brief description of the project, overview, statistics of the cryptocurrency like market capitalization, circulating supply, number of available exchanges, total and max supply, volume and liquidity, number of active addresses, etc. This information are part of fundamental analysis and are key factors that investors consider when carrying out fundamental analysis so as to make the right investment decision.

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Screenshot of coinmarketcap

Portfolio tools – Blockfolio

Blockfolio is a very popular portfolio tool and investment tool. It is basically a tool that is used for portfolio tracking that is available for mobile devices. Blockfolio has amazing features that make portfolio management easy. Investors can make use of this tool to create and manage their portfolio and track the performance of the assets in the portfolio.

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Screenshot of blockfolio

Wallets

As far as crypto investment is concerned wallets are one of the most important crypto investment tools. Without the availability of a secure and reliable wallet, it is impossible to store the cryptocurrency asset. A wallet serve as a tool for storing cryptocurrency asset. A good example of a secure and reliable wallet is trustwallet. This is important for investors as it means that they can have full control of their investment assets. The availability of secure and reliable wallets is key when it comes to making the right investment decision. No investor would want to invest in a cryptocurrency asset that doesn’t have a wallet to store the cryptocurrency asset. That is why investors carry out fundamental analysis to ensure that there are available wallet tools to store and hold the investment assets.

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Screenshot of trustwallet

Charting tools – Tradingview

Charting tools are tools for technical analysis. A great charting tool is tradingview which is a very popular charting tool used by a lot of investors to perform technical analysis on any cryptocurrency asset before investing. Tradingview comes with a lot of quality features such as drawing tools, indicators, alerts, and more. Investors can make use of charting tool such as treadingview to perform thorough analysis on any cryptocurrency asset in order to make the right investment decision.

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Screenshot of tradingview

Calendar tools – CoinMarketCal

Calendar tools are important as far as crypto investment is concerned. A great calendar tool is coinmarketcal which is a very popular calendar tool used by a lot of investors to have insights on dates of event, airdrops, launches, burns, listings, releases and more. These information are valuable to investors so as to make the better investment decisions.

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Screenshot of coinmarketcal website

Watchlist tools

Watchlist tool play important roles when it comes to crypto investment. A watchlist tool is basically a tool that allows an investor to monitor different cryptocurrency asset before making any investment decisions. A lot of platforms like coinmarketcap, coingecko, tradingview, blockfolio incorporate the watchlist tool as part of the features to make it easy for investor to monitor specific assets closely before making the decision to invest. Investors can make use of a watchlist tool to monitor the performance of specific cryptocurrencies that they want to invest in, so as to make the right investment decision.

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Screenshot of coinmarketcap watchlist

Block explorer tools

Block explorers are also very important tools when it comes to making investment decisions. A block explorer is basically a tool that allows users to interact with blockchain networks and view details such as transactions, number of active addresses and holders, top coin holders etc. This details can play a key role in whether an investment will be profitable or not. A lot of investors visit the block explorers of the cryptocurrency asset they want to invest in to view valuable details like number of holders, addresses with the largest coins and the transactions.

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Screenshot of etherscan


Question 2 - Talk extensively about the following. Also, highlight the benefits and risks associated with each. Private Sale, Presale, and Public Sale in Cryptocurrency

Private sale

Private sale is basically the first sale phase initial coin offering (ICO) that is done privately. The private sale in cryptocurrency is most times carried out during the development stage. The purpose of the private sale is for the team behind the project raise funds for the continued development of the project by carrying out a private sale without announcing to the general public. This allows the selected investors such as individual investors, institutional investors, corporate entities who belief in the idea of the project and after reviewing the documentation of the project, the purpose of the project, the solutions it offers, to invest in the project in exchange of the project’s cryptocurrency at a much discounted rate.

The main purpose of private sales is for the project to raise funds for the continued development of the project. Depending on the project and the amount of tokens set aside for the private sale, projects who hold private sales can raise a lot of funds needed to complete the project and make it ready for the general public. The Investors who are also known as early investors invest in private sales expecting to make a return on investment when the project gains popularity and adoption.

Benefits

  • The private sale investors have the privilege to acquire the coins at a much cheaper price which means that they stand the most chance to make the most ROI when the project gains popularity.

  • A great opportunity for the investors to make huge profits from their investment because they invested at the bare minimum price.

  • Investors in the private sales can acquire more as much coins as possible based on the percentages allocated for the private sales

  • Investors have the opportunity to have a close communication with the team behind the project they want to invest in.

  • Investors in private sales stand a chance of receiving bonuses and other privileges for investing in the private sales.

Risk involved

  • Investors who invest in private sales stand the most risk of losing their investment capital if the project doesn’t fulfil its potential.

  • Investors in private sale cannot sell their assets acquired in the private sale if there are no available market for the assets.

  • There are no refunds in private sales which means that investors cannot get their capital back if the project fails even before achieving any growth

  • Depending on the private sale, investors might have their coins or bonuses received locked up for a certain period of time before it can be unlocked.

  • The assets acquired in the private sale can become worthless due to some negative factors

Presale

Presale is basically the second phase and preliminary sale phase initial coin offering that is held before the main public sale kicks off. The presale phase in cryptocurrency is one of the various fundraising activities that projects hold to raise funds mostly during the latter stages of the project development to complete and finalize the project and get it ready for public use. The main purpose of the presale to allow other group of investors who were not part of the private sale to participate in the presale and invest in the project and acquiring the presale asset at a much cheaper price.

Presales are not made open for the general public to participate, however, the presale isn’t private as the public is aware of the presale since the information is on the different channels of the project like launchpads, social media channels and website. Presales are mostly carried out publicly, however, the number of investors required in the presale phase is limited to a certain number, and also there are specific percentage that is allocated to the presale. Most presale have a minimum amount of investment capital needed to partake in the presale and also a max amount that a single investor can invest with. Aside from fundraising, the presale is also a great way for projects to create the much needed awareness for the main public sale and also to provide the initial liquidity for exchanges.

Benefits

  • investors in the presale have the opportunity to acquire the presale coins very early in the project’s lifecycle at a much cheaper price.

  • A great opportunity for the investors to make huge profits from their investment due to acquiring the coins or tokens are a cheaper price in the presale phase.

  • Investors in presales also stand a chance of other privileges or benefits for becoming early investors.

Risk involved

  • Investors who invest in presales stand a high risk of losing their investment capital if the project doesn’t fulfil its potential.

  • The assets acquired in the presale can become worthless quickly when listed on an exchange due to other investors dumping.

  • There is no guarantee that the presale coins will gain value in the future

  • There is a possibility that presale investors would purchase at a higher price compared to the price of the coin after getting listed on exchanges

Public Sale

Public sale is basically the last phase sale initial coin offering that is held as the main crowd sale and is much bigger than the private sale and presale. The public sale phase in cryptocurrency is one of the various fundraising activities that projects hold to raise funds mostly after the project development has been completed and finalized and ready for public use.

The main purpose of the public sale is to allow the general public and other investors to participate in the public sale and invest in the project by acquiring the coins at a discounted price that is higher than the private sale and presale price, before the coin get listed on exchanges. Unlike the private sale and presale that has minimum investment amounts, investors in public sale can invest any amount in the project. Aside from fundraising, the public sale creates awareness for project and is very critical when it comes to initial coin offerings because the success of the ICO can greatly push the value of the project up.

Benefits

  • Investors in the public sale have the opportunity to acquire the coins very early in the project’s lifecycle before the coin gets listed on top exchanges.

  • The risk level in investing in public sale is lower compared to private sale and presale since the project is already completed and finalized.

  • A great opportunity for the investors to make huge profits from their investment due to acquiring the coins or tokens are a cheaper price in the public sale phase.

  • Most public sale does not require the know your customer verification making easier for anyone to become an investor in the public sale.

  • There is an increased liquidity due to the large number of investors who acquired the coins.

Risk involved

  • Investors who invest in public sale stand a high risk of losing their investment capital if the project doesn’t fulfil its potential.

  • The assets acquired in the presale can become worthless quickly when listed on an exchange due to other investors dumping or rugpulls.

  • Even though the public sale is successful, there is still no guarantee that the coins will gain value in the future due to many negative factors.

  • Sometimes it is better to invest much later after the ICO and after getting listed on exchanges as many large investors from the private sales, presale and public sale might dump, causing the price to drastically fall below the public sale price.


Question 3 - What are the mediums used for Public/Pre/Public Sales in Cryptocurrency?

Website of the project

The website of the project is one of the mediums that is used for initial coin offerings in cryptocurrency. Depending on the project, the website for the ICO might contain signups, useful information about the project ICO and also a section where investors can exchange acquire the coins or tokens by exchanging the accepted cryptocurrencies like USDT, BTC, ETH to the project coins. This is be done by sending the required or desired amount to the address provided on the website. Depending on the set price, the conversion will be done and the investors will receive their ICO assets.

Launchpads

Exchanges is also another medium that is used for coin offerings through what is known as launchpads. The Launchpad programs basically allows the projects to be listed at their early stage and act as an incubator for the project before it becomes available for the masses. Binance Launchpad is very when it comes to exchange launchpads. Launchpads have a very strong credibility because of the level of scrutiny that is done before a top exchange like binance lists the project in its Launchpad. This makes it much easier and less risky for investors to participate in the coin offering.

Through social media

Social media still remains one of the powerful mediums used in coin offerings. Social media channels such as telegram, zoom, discord, private facebook groups can be used by project for the coin offerings. Social media channels is more common for private sale and presale and is seen as a cost effective way of reach out to a large number of early investors at the same time.

Meetups

Meetups have proven to be another effective medium that is used for fund raising especially for private sales. Since meetups require physical attendance of investors and project team, it gives the project team a closer connection with the investors to pitch the idea and concept of the project and for investors to have a closer insight of the project before making the commitment to invest in the project.


Question 4 - Research about any recent (2021) successful ICO or IEO and give detailed information about the project. (Note: BETA token is excluded)

The Solanax IEO

Solanax kickstarted its IEO on 28th June 2021 after holding a private sale that has a sale period from 6th June, 2021, to 25th June, 2021. Solanax chose ExMarkets as its IEO partner. The Solanax IEO had 10 million SOLD tokens as the initial number of SOLD tokens available for the IEO. Solanax held three rounds of IEO. The first two rounds which was completed saw a total 8 Million SOLD offered. The third round had 2 Million SOLD offered which was open for 3 days, to complete the 10 million SOLD tokens set aside for the IEO.

The first round which took place on the 28th Jun, 2021 and ended on 4th Jul, 2021 had an available supply of 5,000,000 SOLD tokens at a price of $0.20. The second round which took place on the 7th Jul, 2021 and ended on 11th Jul, 2021 had an available supply of 3,000,000 SOLD tokens at a price of $0.25. The third round which took place on the 14th Jul, 2021 and ended on 16th Jul, 2021 had an available supply of 2,000,000 SOLD tokens at a price of $0.30.

Solanax

Solanax is a basically a blockchain-based decentralized exchange DEX that runs on the Solana blockchain network. Solanax is an automated market maker AMM that aims to provide solutions and drive adoption in the DeFi space by offering fast transactions, low transaction fees and scalability. Solanax takes advantage of the features of the solana blockchain such as super-fast transactions, low fees, scalability and decentralization, making it have a strong potential to become one of the top decentralized exchanges to drive adoption.

The main aim of the Solanax project is to offer an improvement to some of the weaknesses and drawbacks of ethereum and other blockchains, providing a platform that is capable of driving adoption. This is done by providing advanced DEX features, secured transactions, fast transaction speeds, and low fees.

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Screeshot of solanax

Main Features of Solanax

  • On Solanax, users have full control of their transactions
  • Fast transactions speed
  • Fully decentralized
  • High transactions per second
  • Next-level liquidity
  • DeFi protocol and Open-source Liq
  • Friction-less yields
  • Simple interface and less complex
  • Smart contract
  • Censorship resistant
  • Cross-blockchain Bridge

SOLD token is a utility token that is used in the Solanax platform. The SOLD token has a market cap of $3,121,610, circulating supply of 14,191,259.70 SOLD, fully diluted market cap of $17,371,972, 24hr volume of $942,671, total and max supply of 80,000,000 SOLD and a current price of $0.2164. SOLD is currently ranked number 3067 on coinmarketcap and can be traded on ExMarkets.

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Screenshot of coinmarketcap

SOLD Token Distribution

The SOLD token has a total supply of 80,000,000 SOLD, 15% for Liquidity, 15% for Staking, 25% for Staking, 40% for Platform Incetives and 5% for Team.


Question 5 - Create an imaginary token. Write about the project including its use case. Develop an ICO which includes Private sales (3 stages) and Public sales (1)…

Zuntredium - ZUN Token

Zuntredium is a fully decentralized prediction exchange protocol with a censorship resistant chat platform that rewards users and an NFT capabilities. Zuntredium runs on the binance smart chain to take advantage of fast transaction fees, low fees, security and scalability. Users make predictions against other users on the platform, on the future price direction of the selected cryptocurrency asset by setting an end date and time. The user who got the prediction right wins the bet. Aside from predictions, users can also earn from the transaction fees by interacting with other users in the chat platform with advance chat features to increase the user experience and make chatting with other users fun.

On the Zuntredium decentralized prediction exchange platform, each user can set their own odds and create what is known as an “Order” with a timer and an end date. Any user can match the order and accept the bet based on the set odds. If the order isn’t matched after the timer runs out, the order is automatically closed. Once the date and time is reached, the total bet amount automatically goes to the winner. Since the transactions are stored on the blockchain, it increases trust and ensures that everything is transparent and secure.

The main purpose and benefit of Zuntredium is to provide a platform for users who are not able to get into futures trading due to various factors like not meeting up to the requirements needed to trade futures or the complexities involved in futures trading, to earn ROI by predicting the future price directions of any cryptocurrency asset. On Zuntredium, users don’t have to make predictions to earn. Users can also make use of the censorship resistant decentralized chatting platform to earn rewards. The more impressions a chat has, the more rewards the user gets.

ZUN token is a utility token of the Zuntredium platform. The main use case of the ZUN token is that users earn ZUN by making use of the chat platform. Predictions are made with ZUN tokens an also the ZUN token is used for transaction fees. Users can also stake their ZUN token in the platform to earn rewards based on the APY. Users can also purchase specialized NFT cards using the ZUN tokens. These specialized NFT cards allows special features to be unlocked and gives users certain privileges on the platform.

Zuntredium ICO

The Zuntredium team have created a full documentation and detailed whitepaper that contains what the project is about, the purpose of the project, the concept of the project, what makes the project unique, the use cases, and more. After a full cost analysis have been done, a total sum of $3 Million is needed to fund the completion of the project. The minimum investment target is $3 million.

The Zuntredium ICO comprised of a private token sale which was carried out in three stages and a public sale. Below is the summary of the ICO;

Token name: Zuntredium Token
Token symbol: ZUN
Total supply: 80,000,000 ZUN
ICO token allocation: 25.000,000 ZUN

ZUN has a total of 80,000,000 ZUN with 25,000,000 ZUN tokens allocated for the ICO sales. 15,000,000 ZUN tokens allocated for the private sales and 10,000,000 ZUN tokens for the public sales.

First Private Sale

Date = 25th Sep 2021
ZUN Token Price = $0.15
Available supply = 5,000,000 ZUN
Raised funds = $750,000

Second Private Sale

Date = 28th Sept 2021
ZUN Token Price = $0.2
Available supply = 5,000,000 ZUN
Raised funds = $1,000,000

Third Private Sale

Date = 31st Sept 2021
ZUN Token Price = $0.25
Available supply = 5,000,000 ZUN
Raised funds = $1,250,000

After the successful private sales, a total of $3,000,000 was raised.

The public sale took place and token allocation of 10,000,000 ZUN tokens was made available for the public sale

Public Sale

Date = 10th Nov, 2021 – 13th Nov, 2021
ZUN Token Price = $0.4
Available supply = 10,000,000 ZUN
Available supply sold = 3,830,855 ZUN
Raised funds = $1,532,342

After the successful private sales and public sales, the Zuntredium team raised a total of $4,532,342 in investment from the different ICO stages. This was above the required investment sum needed which meant that the ICO fundraising was successful.


Question 6 - What are the criteria required for listing a token on CoinMarketCap. Is there a criteria for listing an asset on a Centralized Exchange? If Yes, use an exchange for your explanation in response to the question

Coimmarketcap Token Listing

Coinmarketcap is a reputable and reliable platform that has its own criteria before any cryptocurrency gets listed on the platform. Before any cryptocurrency is listed on coinmarketcap platform, it must meet at one of the listing criteria before it gets listed on the platform. Coinmarketcap support page provides all the needed information when it comes to listings on coinmarketcap.

On coinmarketcap, the listing criteria are categorized into different sections;

The online submission: This allows project owners to request for listing on coinmarketcap.

Tracked Listings: Before any cryptocurrency asset is considered for tracked listing on the coinmarketcap platform, it has to meet the requirements such as;

  • It has to operate on leveraged cryptography, consensus algorithms and/or smart contracts which functions as a medium of exchange, store of value or decentralized application.
  • There must be an available functional website and block explorer.
  • The cryptocurrency asset must be traded publicly, and also traded actively on a minimum of one exchange
  • The project must have a representative for communication between both parties and also for any clarifications purposes.

Listing tiers: The listing tiers on coinmarketcap is categorized into 4 different sections;

  • Inactive Listing: crypto assets on coinmarketcap with inactive listing are considered inactive due to the fact that there isn’t any market data from at least one exchange that is supported on coinmarketcap that can be tracked.

  • Unverified Listing: crypto assets on coinmarketcap with unverified listing are considered unverified due to the fact that the price data that show up are from oother processes that are not reviewed and verified by coinmarketcap.

  • Untracked Listing: crypto assets on coinmarketcap with untracked listing are considered untracked due to the fact that project did not meet the guidelines and criteria needed to ensure that the market data is tracked.

  • Tracked Listing: crypto assets with tracked listing have met all the needed requirements, guidelines and criteria for a tracked listing.

Evaluation Framework: The evaluation framework is basically the process taken by coinmarketcap to properly and carefully perform their evaluation based on their system and standards and also focus on a variety of factors before the listing is considered. Some of the factors considered are;

  • Market Pairs and Trading Volume
  • Community Interest and Engagement
  • Progress
  • Team
  • Product
  • Impact and Practicality
  • Uniqueness and Innovation
  • Project Longevity and Activity

House Rules: The house rules are basically rules, dos and don’ts that coinmarketcap adheres to and also must be strictly followed during the application/listing process.

Listing on OKEX

The Okex exchange is ranked as one of the top crypto exchanges by volume and also considered as one of the best exchange in terms of features, security and crypto asset listing. Before a crypto asset is listed on the okex exchange, there are criteria and requirements that must be met before being considered for listing on Okex. The listing requirements on Okex can be found on the support page. Before a crypto asset is considered for listing on Okex, an application needs to be submitted with some required documents. Once the listing requirements and criteria are all met, the Okex team would get in touch with the project to begin the listing process. Some of the Okex requirements are;

  • Application must be submitted
  • A detailed information about the project and the crypto asset must be submitted
  • The project must have a whitepaper and the whitepaper of the project has to be submitted during the application phase.
  • The project must have a letter of legal advice that must be submitted during the listing application.
  • The project must have a social media account(s) and also contact mediums such as telephone and email that must be submitted during the listing application.

Conclusion

When it comes to cryptocurrency, investment is one of the main activities that is carried out. The term investment is basically the act of putting in a set capital into a particular asset(s) with the sole aim of making profit. At the moment, there are a lot of investment tools that offers a lot of benefits in helping investors make the right investment decisions. As far cryptocurrency investment is concerned, it is important for investors to have a clear understanding of the different ICO stages such as private sales, presales and public sales so as to make the right investment decisions.

@fredquantum

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