How do I invest in an ICO/IOE and not lose?
Has anyone ever received a message like this, either from a friend, colleague or even a family member, how would you respond? This is how we would respond.
Friend: I found you in one of the crypto-chats. I am looking for someone to talk about this topic. I want to start investing but I’m interested in the opinion from the side. I’ve been thinking about starting trading. But I get advice to invest in ICO/IOE. They say that investing in ICO/IOE is more profitable. Did you have any experience investing in ICO/IOE?
We can all admit when once upon a time we were newcomers to the crypto-economy & we can also admit that we have received a message like this or fairly similar. The crypto market is complicated and keeps changing. The answer is experience, let us share ours with you.
Today let’s discuss some of the problems with ICO/IOE investing, like news headlines.
Most projects start by with an Initial Coin Offering. Startups offer their future customers the tokens to represent functionality in their product for an attractive price. While the success of the startup relies on the development of a successful blockchain utility, the value of the token can increase as well. Success for the project team is the product and token holders enjoy the increase in value of the token. This is what creates a successful investment.
Looks good in theory. Everyone can become a small venture investor and multiply their capital. However the reverse is also true and tokens can lose value.
Who is responsible for your money? Or the problems of blockchain crowdfunding.
This is the nature of blockchain. When you transfer your money to any wallet, any tokens become property of the wallet owner. No one can refund your investment. This is the main problem of investing in ICO/IOE.
There a few solutions to this situation. Some ICO’s have an escrow service to ensure investor funding. Governments discuss ICO/IOE regulation, but the downside to this is how can they be represented inside blockchain ecosystem.
This about putting wood wheels from horse carriage on brand new sports car, it won’t work.
Blockchain solutions for blockchain problems. Or how to take back control of your money.
To address this appropriately, we need to look for blockchain solution, that can handle blockchain specific problems that can be implemented within the ecosystem.
Some crypto projects made attempts but it were situational moments. One global decision was proposed by ZEON. It is a community driven project with smart blockchain.
ZEON has come up with a concept called Atlas. Atlas makes ICOs more secure by involving investors during the initial project development process. It provides a level of accountability to developers and gives token holders additional peace of mind that their investment is safe. With Atlas ZEON is able to guarantee their tokenholders a minimum viable product or get their money back.
How does it work?
The ZEON platform allocates each developer an individual wallet address at no cost to collect investments. All funds are locked on a wallet where both the contributors and developers have access. Developers can only withdraw at a rate agreed upon by both parties. This is the Atlas protocol.
2 types of interaction with the ICO/crypto project:
1. ZEON tokenholders are issue secured purchases. This will be more popular initially as ICO/crypto project teams become familiar with the ZEON Network.
2. ICO/crypto project itself issues secured purchases.
Once ZEON token is purchased as a part of a particular ICO project, the user receives the tokens in the ZEON Multi Wallet (including ETH sub-tokens, altcoins, or other assets). This allows the project funds to be monitored and enables voting by both parties to either reduce or increase the daily financing of the team (DAO principle). Each user can be sure that their purchase is reliably protected by the ZEON.
Secured investments are made possible by the ZEON main blockchain, smart-contracts, Hyperion oracle and smart blockchains (sharding).
The Hyperion system is continuously receiving data from exchanges. Once a startup coin is issued on an exchange, the initial rate is stored via Hyperion protocol for subsequent analysis.
The initial analysis utilizes 3 consecutive days worth of data to standardize the profile for that coin.
The Hyperion protocol then analyzes the profile and determines an “average arithmetic value of the current value of the ICO token” (hereinafter “New Price”) using a proprietary formula.
The presence of well known crypto advisers or a flashy and beautiful project site does not guarantee invested funds could be returned or have any effect on the growth of a coin or token.
In a lot of cases the divergence of vision between founders or the departure of the main developers lead to failure or scandal.
The Crypto industry needs projects such as ZEON and others as they will outperform others from the strength of an open and efficient community.