7 Deadly ICO Sins That Will Scare Away Your Investors

ICO funds have poured in at record levels and in 2017 the overall market capitalization grew to over $US130 billion. It seems you can just add the words “blockchain, cryptocurrency, token” and investor dollars will hunt you down. Every day multiple new ICO launches promote their “ERC-20, industry first and get in before we get listed on the exchange” propaganda.

Across the tech world people want to be “the first” to disrupt and revolutionize” some old-school industry. These dinosaurs have missed the opportunities of information democratization. FOMO (Fear of Missing Out) is rampant and “low-information investors” are screaming “take my money”. It all seems almost too good to be true.

And that is the actual case. Executing a successful ICO is difficult. A lot of things have to fall in place. This is why the majority of these ideas will fail and you will never see an actual working product or service on the market.
According to a recent article in Fortune magazine “Nearly Half of 2017’s Cryptocurrency ‘ICO’ Projects Have Already Died“. And Bitcoin.com found another 113 projects that it calls “semi-failed,” because their teams have gone off the radar or their community has withered away. Add those to the mix and the failure rate jumps to 59%. Nervous yet?

As investors grow wary and scared the flow of funds will begin to shrink.

People are getting smarter, earlier. They’re doing more research, sharing information, getting the facts and exposing the schemes, scams and con artists behind these projects. Regulators are getting more involved in cryptocurrencies and they are starting to prosecute scammers. This will make it more difficult for new ICO projects to achieve PRE-ICO and ICO success.

“The token sale was a blatant rip-off” is what the US Securities and Exchange Commission (SEC) said about PlexCoin, a Canadian digital startup. The company founders, Dominic Lacroix and Sabrina Paradis-Royer, have repeatedly broken securities laws in the past. But thousands of investors traded $US15 million for the tokens which had no purpose other than to be swapped between people hoping for tremendous returns. The old saying goes “a fool and his money are lucky to get together in the first place.”

Bitcoin.com went through the wreckage of failed ICOs and painted a dark picture. Imagine “a digital graveyard” of “abandoned Twitter accounts, empty Telegram groups, websites no longer hosted, and communities no longer tended.” Welcome to the field of undelivered ICO promises.

Anyone thinking about supporting a crypto-tech startup with their money, enthusiasm or commitment is going to be more cautious.

But what do you do if you are not the next “Shitcoin of the Week”? Your project has solid technology, a tangible product and a global team of experts working together. How can you increase your chances of ICO success in the tough global marketplace?

Be Aware of These 7 Deadly Sins That Will Scare Away Your Investors

1. WACKY WEBSITE
Poor visuals and graphics, confusing navigation and error-filled text/copy are definite red flags. Is the website current and up-to-date? Does it provide the information potential investors need? If your online hub screams “Leave this site now!” to investors then you’re going to have a problem achieving your revenue goals.

2. BUSTED BUSINESS
Is an ICO the best route for your business? What role does blockchain play? What problem does your project solve? How can the application be used to save time or make money? Is there any infrastructure? Show me the real-world marketplace and business examples. Without a valid business case the creation of a new token is meaningless.

3. CRUMBLED CODE
When someone creates a new cryptocurrency it has to be implemented through software. The tech solution has to be translated into computer code. Is there an alpha version, beta version, or GitHub repository? Is tokenization necessary? How much testing has been done? Is the platform secure? If the potential miners and coders are hiding so should investors.

4. WEAK WHITEPAPER
This is the backbone of the ICO project. It should be well-structured and easy to understand. A good whitepaper explains the business details and the technology solution. It should include the roadmap that must be followed and the business strategy. Investors should be afraid if this document contains errors, bad logic and is generally confusing. Find someplace else to put your money.

5. CONFINED COMMUNITY
An ICO depends on a robust community for investment and that audience needs to be well defined and engaged with the project from the beginning. There should be hype and buzz about the project before the ICO is available. In fact some projects are so exciting they hit their financial goals PRE-ICO. Smart investors check the forums, Bitcointalk.org, Reddit, Telegram and the industry press.

6. TERRIBLE TEAM
Who are these people? What are their strengths? Investors want to see actual professional profiles and proven experience related to the project. If you can’t find them on Google, LinkedIn, GitHub and at industry events they probably won’t impress investors. We know it’s crypto but your team should not appear to have been in a government Witness Protection Program.

7. MINIATURE MARKETING

A beautiful coin with a memorable name, attractive logo and a hook for a tagline is a powerful branding message that will take you a long way with investors. If a team is seeking to raise $US5 million or more, and not willing to spend at least 5% on marketing and PR efforts then stay away. Promotions is one of the hardest and most important jobs for the long-term success of the project. Vaporware is the new snake oil.

Is the marketing approach a “Pump And Dump” scheme or an actual strategic plan with a mix of platforms, channels and paid and organic techniques?

SUMMARY
Some investors and traders believe when bitcoin prices rise, the life of fast money, Lambos and crypto millionaire stardom cannot be far behind.

1.More potential ICO investors are wising up and doing their homework. They may ignore your bonuses and discounts and wait to see if you actually get listed on an exchange.

2. With the entire crypto-startup market down ICOs appear overvalued and more risky.

3.Trying to bring your ICO project to success will require a strategic approach that includes avoiding each of the 7 Deadly ICO Sins.

Crypto Market newd

Is 2019 the year for crypto regulations?

Former Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo, voiced his opinion during an interview with industry news outlet The Block published on Oct. 9, stating:

“I would say 2019 is the year in which there's a growing recognition that regulators and policy makers need to do more than just be aware of these, but may actually need to look at some policy responses.”

Multiple factors could have spurred regulators to take action, such as more businesses and central banks looking to develop their own digital currencies.

In Singapore, for example, the MAS (Monetary Authority of Singapore) has Project Ubin, which explores the use of Distributed Ledger Technology (DLT) for the clearance and settlement of payments and securities. Their stance is that regulations will not front-run innovation. This week, they emphasised that financial institutions, or FIs, should ensure that the fundamental elements of their AML/CFT framework are strong while developing new tools and capabilities. We think that these are great for innovations to flourish.

Across the globe, the US SEC is re-looking into another proposed exchange-traded fund (ETF) based around bitcoin and Treasury bonds. Federal Reserve Bank of Dallas President Rob Kaplan also said that the U.S. central bank is “actively looking at and debating” issuance of a digital currency.

The Bank of Canada is thinking about developing a digital currency while Facebook’s Libra faces new hurdle from G7 nations.

How much the cost for mining BTC?

How much does it cost to mine bitcoin in 2019?
How long does it take to dig a bitcoin?
Bitcoin's mining cost is getting higher and higher. For miners, the amount of mining depends on the price of Bitcoin. If Bitcoin is not good, they will consider reducing mining.

What is the hash value?

How long does it take to dig out a bitcoin block? Miners use hash values ​​to solve encryption math problems during mining, so it is necessary to understand the hash value. Hash is a set of binary values ​​obtained by encrypting the contents of a file. It is mainly used for file verification or signature. It is calculated according to the size, time, type, machine, etc. of the file. It is easy. It will change, no one can predict how much the next number is, nor change his software. Therefore, we usually use it to check whether the two files are the same. Due to the monopoly of large mining sites, the accumulated hash value of Bitcoin is increasing almost every day, which makes the mining of mines more difficult.

How long does a bitcoin have to dig?

A bitcoin is split into 8 decimal places based on the current data structure, which is 0.00000001BTC. The smallest unit mined by miners to bitcoin is 0.00000001BTC. With more and more people mining, the difficulty of mining is also getting bigger. Before 2014, a person can also mine with ordinary computers, and now it is almost impossible for a person to mine. If Bitcoin’s computing power reaches 236 trillion hash collisions per second, which is equivalent to the number of water droplets in more than 200,000 50-meter-long swimming pools, even with such a large amount of computing power, it takes about 10 minutes to collide. The hash value, according to the current speed, if the computer is turned on 24 hours, it takes about 3 months to dig a bitcoin.

How much does it cost to dig a bitcoin?

Digging bitcoin is excavated by high-power computer-specific encryption algorithms, so the speed of digging bitcoin depends on the computing power of your computer.
For example: The cost of the ant mining machine S9 is 800 US dollars, the calculation power of the mining machine is 13TH/S, and it can only dig up 0.02 bitcoin in one month without interruption, and dig out according to the operation method of this mining machine. Bitcoin will take longer, and it takes 50 months to dig a bitcoin.

Let's take a look at the cost of the electricity bill. According to the power of the bitcoin mining machine, the power consumption of the bitcoin mine is 1350W. The power consumption of the mine machine is about one kilowatt hour per hour of operation. The electricity is 24 kilowatts per day. The electricity fee is 8 cents per minute (in China). The monthly electricity cost is 576 yuan, so the cost of digging a bitcoin is about 28,800 yuan.

The total network computing power of Bitcoin has been continuously increasing.

According to Tokenview data, the real-time computing power of Bitcoin's entire network reached 75.17EH/S as of September 2, 2019, which indicates the time for digging a bitcoin. Longer, the cost will increase a lot. In fact, the process of digging bitcoin depends on many factors.
The biggest cost is in electricity bills. In many countries, the electricity bill is different, which also causes the cost of bitcoin mining to be different.