What are Initial Coin Offerings | Platinum Trading Institute

1
CRYPTOCURRENCY

• What are Initial Coin Offerings (ICOs)?

2
Initial Coin Offerings (ICOs)

• Initial Coin Offerings (ICOs) is akin to offering
  shares to crowdfund a Blockchain or
  cryptocurrency based project.
• At Platinum Trading Institute (PTI), we are
  excited to offer this primer on ICO Investment,
  fundamentals.

3
IPOs versus ICOs.

• Compared with Initial Public Offerings (IPOS),
  ICOs differ from IPOs in many respects.
• IPOs are not truly Crowd Funding mechanisms.
• ICO Investment is TRUE crowdfunding mechanisms.
•  IPOs are issued for an existing technology,
  product, or an idea. For example, say an APPLE
  device was developed and sold using private
  investors funds before it was ever sold to the
  public. The pre-existence of technology is thus
  less risky and breeds confidence among
  investors. 
• ICOs are issued prior to the technology or the
  product being developed. Thus, they are riskier
  and often investors have to rely on the promise
  of the underlying technology for making ICO
  investment decisions.

4
Is ICO Investment Legal?

• The legality of ICO Investment is still an open
  question. They are new and still unregulated
  financial instruments. In addition, they do not
  follow any traditional pathways for generation,
  sale, and dissemination among the investors.
• However, SEC has recently issued a series of
  opinions that lead to its acceptance by the
  traditional investment communities. For example,
  some applications of these tokens are just only
  that they are utility tokens and used for a
  specific use. Some of the gaming tokens fall
  under that category.
• On the other hand, some of the reputed ICOs allow
  the purchaser to own them for some future gain in
  their values. In that case, these tokens are
  viewed as an investment or a security for
  example, Ripple or Ethereum.

5
How are ICOs Priced and Issued?

• Recall that ICOs are the mechanisms to crowdfund
  a given project, contract, or a product.
• Thus, an inventor or an entrepreneur sets up a
  protocol or a Blockchain for the product that he
  envisions to launch.
• Once the Blockchain is established, his next step
  is to mine coins in support of that product or
  the contract.
• At a given point in this mining process, the
  miner names the coin and establishes its initial
  offering price. This could be 0.10 or 1.00 at
  the discretion of the miner. In addition, the
  miner can offer a low price to initial investors
  increasing it gradually for later investors.
• The next step is to facilitate its sale and
  dissemination. A coin can be offered for weeks or
  a month, though there have been instances where
  initial offering has been exhausted in a matter
  of minutes raising hundreds of Millions of
  dollars. 
•  The ICO issuer also resorts to social media
  outlets, his own website, and other digital
  marketing approaches to make Initial Coin
  Offering more accessible to the public.

6
How to Make ICO Investment Decisions?

• Just like any other ICO Investment decision a
  due diligence of a given ICO product is almost a
  must. Thus, researching an ICO is a critical
  element prior to investing in any offering. There
  are several ways to research a given ICO.
• Evaluate Top ICO list,
• Follow ICO watch lists as advertised by major
  exchanges,
• Acceptance by a major exchange, and finally
• We, the Platinum Trading Institute (PTI) experts
  invite you to subscribe to our Cryptonnaire
  weekly.

7
THANK YOU.

• If you want to stay on the top of the crypto
  technologies, innovative trading strategies, or
  simply like to be financially successful, please
  sign up for a two-day course on cryptocurrency
  trading.