Why the ICO whales are getting richer, and we are not

No matter what happens in the market is the rise of the ICO or cryptoseal, whales continue to prosper and accumulate cryptocurrencies due to conscientious and inexperienced investors.

This started out as a dream, a great dream to destroy the traditional system of financing new projects in which only a few could benefit from investment in the early stages of business. Mastercoin and Ethereum have called this dream the initial range of coins (ICO) and promised full transparency, simplicity of access to funding and accessibility for all.

Two years later, boom ICO, someone is raising funds for their projects, someone acted as an investor. Money began to pour in millions. Then, in the blink of an eye, millions turned into billions, all we dreamed of exponential return on investment.

For the lucky few exponential ROI became a reality. However, the majority watched as their investments began to aspire to zero.

A beautiful dream turned into a nightmare. The profit disappeared. The company that started the ICO closed down, taking with them the collected funds. The cryptocurrency market has turned into a bloodbath.

Nevertheless, whales still on the market and still looking for any opportunity to hunt for captainvalor, which, unfortunately, continue to repeat the same mistakes that appeared at the end of 2016.

13 November 2016 Golem, a project of decentralized global supercomputer is a lot like Ethereum, has raised about $ 8.6 million in less than 30 minutes. The original price of a token was approximately $ 0.01 and not much has changed after listing on the major exchanges.

At the time of excitement ICO in 2017, the price rose sharply and reached in June a value of $ 0,68. 6800% huge profit for the investor ICO. Those who held their investment for another six months, doubled their. 2 January 2018 GNT has reached a historic high of $ 1,16.

If we look at the current price and compare it to the price ICO, Golem (GNT) remains one of the few leaders in terms of profitability. The coin is trading at around $ 0.05, which is 500% of the price of ICO.

However, the overall market situation was quite different: the price of Bitcoin was about $ 700, and Ethereum was only $ 10.

Shortly after ICO Golem Bitcoin broke $ 1000, and Ethereum confidently began to move to the “Tu ze moon”. Spring 2017 was indeed impressive, in terms of raising funds and return on investment.

24 April 2017 Gnosis, a project to forecast events, built on the Ethereum blockchain, assembled in ten minutes for about $ 12.5 million cost of the token at that time was $ 30.

After the GNO has been added to the major exchanges of cryptocurrency, its price immediately soared, allowing the whales to make huge profits. The price quickly reached $ 100 and at the end of may approached $ 275, which is about 900% more than the price in the period of the ICO. Later in July 2017 the price exceeded $ 300.

During the boom in altcoins in January of 2018, GNT reached a record high of more than $ 390.

A month after Gnosis, may 31, 2017, cryptocurrency project Brave Browser has set a new record. After about 30 seconds, Brave sold all their Basic token Attention Token (BAT) for a total of $ 36 million Later, the reports showed that only 130 ETH addresses become investors of the ICO. Five of them were almost half of all tokens sold.

At the time of excitement ICO whales pay higher transaction fees to first purchase the smart-contract. ICO (there is evidence that one user paid $ 6000 at a time).

Soon enough the price of the BAT soared on the stock exchanges. Five days after the ICO token has already cost $ 0,28, and the price at the time ICO was $ 0,036. In the end, the BAT has reached a historic high of more than $ 0,86 per token, which is a 2500% profit.

Interestingly, the price of the BAT never fell below two-fold increase in comparison with the price of ICO.

The total drop of the market in 2018 slowed ICO-whales, but it certainly didn’t stop them. In 2019, the whales once again proved that they still control the business of the ICO.

28 Jan 2019 Tron and Binance 15 minutes has sold about 60 billion BitTorrent Token (BTT). Tron, owner of BitTorrent, has raised $ 7.2 million price of a BTT during the ICO was $ 0,00012.

As in many other cases, the majority of investors are unable to buy a single BTT due to various technical problems. Subsequently, they received a consolation prize in the amount of 5 000 BTT during airdrop from Tron. However, this doesn’t change the fact that whales are again the only real holders BitTorrent Token (BTT).

No wonder the price on the stock exchanges increased sharply, and many investors have started to buy BTT at a premium. Three days after ICO BTT has already cost more than $ 0,0005, which is 400% more than the initial price. February 5, the price reached $ 0,001, and whales dumped their tokens, receiving a whopping 1000% profit.

If Keith during the ICO bought BTT in the amount of $ 20 000, the maximum available amount on the account, in just a few days was able to sell these tokens for $ 200 000.

Golem, Gnosis, BAT and BTT are just a few examples of how whales make money at the expense (largely) of all the others.

Whether Bitcoin is $ 700 or $ 19 000, no matter whether the market is bullish or cryptoseal, ICO-whales will always have a great advantage over the ordinary investor. They will make sure to buy most of the available inventory of tokens/coins and then dump them on the exchanges at the highest price. What happens next is not their problem.

To win a small number of whales most of us have to lose.

The post Why the ICO whales are getting richer, and we are not appeared first on FineCrypto.




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Getting Started With Crypto

Investing in the Crypto Currency market space can be a little daunting for the traditional investor, as investing directly in Crypto Currency (CC) requires the use of new tools and adopting some new concepts. So if you do decide to dip your toes in this market, you will want to have a very good idea of what to do and what to expect.

Buying and selling CC’s requires you to choose an Exchange that deals in the products you want to buy and sell, be they Bitcoin, Litecoin, or any of the over 1300 other tokens in play. In previous editions we have briefly described the products and services available at a few exchanges, to give you an idea of the different offerings. There are many Exchanges to choose from and they all do things in their own way. Look for the things that matter to you, for example:

– Deposit policies, methods, and costs of each method

– Withdrawal policies and costs

– Which fiat currencies they deal in for deposits and withdrawals

– Products they deal in, such as crypto coins, gold, silver etc

– Costs for transactions

– where is this Exchange based? (USA / UK / South Korea / Japan…)

Be prepared for the Exchange setup procedure to be detailed and lengthy, as the Exchanges generally want to know a lot about you. It is akin to setting up a new bank account, as the Exchanges are brokers of valuables, and they want to be sure that you are who you say you are, and that you are a trustworthy person to deal with. It seems that “trust’ is earned over time, as the Exchanges typically allow only small investment amounts to begin with.

Your Exchange will keep your CC’s in storage for you. Many offer “cold storage” which simply means that your coins are kept “offline” until you indicate that you want to do something with them. There are quite a few news stories of Exchanges being hacked, and many coins stolen. Think about your coins being in something like a bank account at the Exchange, but remember that your coins are digital only, and that all blockchain transactions are irreversible. Unlike your bank, these Exchanges do not have deposit insurance, so be aware that hackers are always out there trying everything they can to get at your Crypto Coins and steal them. Exchanges generally offer Password protected accounts, and many offer 2-factor authorization schemes – something to seriously consider in order to protect your account from hackers.

Given that hackers love to prey on Exchanges and your account, we always recommend that you use a digital wallet for your coins. It is relatively easy to move coins between your Exchange account and your wallet. Be sure to choose a wallet that handles all the coins you want to be buying and selling. Your wallet is also the device you use to “spend” your coins with the merchants who accept CC’s for payment. The two types of wallets are “hot” and “cold”. Hot wallets are very easy to use but they leave your coins exposed to the internet, but only on your computer, not the Exchange server. Cold wallets use offline storage mediums, such as specialized hardware memory sticks and simple hard copy printouts. Using a cold wallet makes transactions more complicated, but they are the safest.

Your wallet contains the “private” key that authorizes all the transactions you want to initiate. You also have a “public” key that is shared on the network so that all users can identify your account when involved in a transaction with you. When hackers get your private key, they can move your coins anywhere they want, and it is irreversible.

Despite all the challenges and wild volatility, we are confident that the underlying blockchain technology is a game changer, and will revolutionize how transactions are conducted going forward.

If you are ready to make a speculative investment into this disruptive technology, and want to receive all current and future recommendations from Crypto TREND Premium, we are keeping our Early Bird Special offer open for a little longer, to give our readers the opportunity to get started at a 5 discount. Stay tuned!

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