We get it. It’s complicated! But you found yourself on icoalert.com and now you have no idea what to do next. No worries, we have you covered. Think of ICO Alert’s FAQ as your home for crypto education. Here, we’ll not only cover how ICO Alert works, but also some basic crypto questions and definitions to get you comfortable.
Crypto terminology can be complicated – but don’t worry! This is why at DC Forecasts/ICO, we will help you better understand the basics. This FAQ is your go-to crypto booklet for education – where you will find out how our website works as well as gain valuable insights and definitions in the crypto terminology.
An ICO is a term that is short for ‘’initial coin offering’’. An ICO project involves the creation of digital tokens and their sale. Every ICO project has digital tokens created through the use of smart contracts and later sold to the public.
The projects are commonly made with the use of existing cryptocurrencies such as Bitcoin and Ethereum and it is currently one of the best methods of crowdfunding. ICOs allow startups to easily raise funds while purchasing the right to use a certain digital platform in the future.
Usually, ICO projects are announced on ICO listing websites so they attract potential investors. Very often, investors who get interested in a certain project, decide to send cryptocurrencies such as Bitcoin and Ethereum to the given smart contract address for the project.
Then, the smart contract automatically returns the native crypto asset of the ICO directly to the investor’s wallet.
Smart contract is a form of a self-executing agreement that translates a contract into a computer code. This helps to get rid of counterparty risks because all of the assets get stored in the smart contract. When the product is finished and delivered, the funds get automatically sent to the belonging party via the smart contract.
A utility token is essentially a digital asset that helps you to gain access to a specific service or product. Many of the investors get these tokens because their value is likely to increase over time. It is not considered as an investment but grants you a position in the form of a membership.
STO (Security Token Offering) is a term that is pretty similar to ICO. The only difference lies in the tokens – which here actually represent an ownership interest in the company that is responsible for issuing the token. It is much closer to common stock and offers plenty of advantages.
Another thing worth mentioning is that most of the STOs require a closed period of 12 months for locking up early-stage venture capital – over the course of a few years. Companies can get the capital they need quickly without the need for venture capital companies or investment banks.
Stablecoin is a cryptocurrency that is pegged to a stable asset such as the US Dollar, gold or any other fiat currency. Very often, stablecoins are connected to a decentralized autonomous organization that oversees and controls how stablecoins are issued and priced.
As with any investment, the ICO market can be tricky for the unsophisticated investor. This is why it is recommended that investors do broad and extensive research before investing their capital. If you are an investor, make sure to consider the following questions:
- How can I verify the team behind the ICO project?
- How is a quality whitepaper produced?
- How much time does it take for a whitepaper to be created?
- Is the Github code repository active?
The crypto space is among the newest industries out there. Because of that, the regulation around the world differs. There are plenty of grey legal areas especially in the part where tokens need to be legally classified as securities.
Decentralized application or a dApp consists of a back-end code that runs fully on a peer-to-peer decentralized network. The dApp can have a simple user interface created with a frontend code. There is no need for a central authority to run the dApps and direct interaction between users and providers is possible.
A whitelist ICO is the initial process of registration for participation in a certain ICO. Usually, investors that want to participate need to sign up on the ICO’s website (and sometimes fulfill certain forms) to register for such whitelist.
A venture capitalist is an investor who provides capital to a startup or supports other small companies that do not have the ability to enter an equity market. Venture capitalists are willing to invest in these companies because they get a bigger opportunity to earn massive returns on their investment.
If you are willing to learn more about ICOs, you can subscribe to our website DC Forecasts. You can find a lot of information under our ‘Education’ section.
Also, you can look up different online courses, videos, and articles that will help you comprehend all of the questions you have about a certain issue.
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