AdHive launches AI-powered platform to promote ICOs

AdHive launches AI-powered platform to promote ICOs

Regardless of the buzz around ICOs and other blockchain token generation events,

one thing remains true. If you want people to invest in your project and hit your targets, you need to attract a large community. AI-controlled influencer marketing platform AdHive today announced an ICO-focused marketing solution designed specifically for this purpose. The product itself is a combination of influencer marketing and AI-powered campaign management. On the influencer marketing side, AdHive’s platform identifies individuals who have sway in the blockchain technology space and helps your engage with them. The chosen influencers then produce content in the form of reviews, AMAs, interviews, technical and white paper analysis, or native product placement.

“We have our own analytical tool, which allows us to analyze influencers’ accounts and find out the quality of the content, their base of subscribers, their organic traffic, and comments,” AdHive cofounder Alexandr Kuzmin told me. “There are several categories of influencers in our base — micro-influencers with no more than 10,000 subscribers, a middle category with 10,000 to 50,000 subscribers, and macro-influencers with more than 50,000. Such classifications allow brands to take a ‘soft dip’ into our platform — make the first campaign among micro-influencers to see how it works and warm up the market, and then after that launch a big advertising campaign and create a buzz on the crypto market.”

AdHive categorizes influencers not just by size, but by content type and area of expertise, helping marketers and advertisers choose the right people to partner with. “It should be noted that very few influencers are highly specialized,” Kuzmin said. “Most of them prefer to combine several categories in one channel, as they make reviews on the news, crypto projects, and interviews in order to cover as many projects as possible.”

The platform also ensures that these influencers are not gaming the system in return for engagements. “We choose those who show organic growth without any cheating,” Kuzmin said. “All influencers are selected depending on the customer’s needs by targeting. Most often, advertisers prefer to work with influencers from the U.S., Central Europe and Asia (including Japan, India, South Korea, Hong Kong), and Australia.” In addition to the influencer marketing tool, the platform offers a campaign management system that uses AI to optimize campaign delivery, although it isn’t an AI-only system.

“Our platform is highly automated, and we are proud to offer our clients a service that allows them to create a campaign by pressing just one button,” Kuzmin said. “After receiving a request for a campaign, our manager will contact the advertiser and propose an optimal offer. Our artificial intelligence will be monitoring how the task is being completed, which allows us to significantly speed up and automate the process of collecting analytics for the output of commercials so that a full-scale advertising campaign could be launched in one day.”

The crypto space is, famously, awash with money right now. While that’s good news for those launching projects, it has also meant that service providers have raised their prices, which puts pressure on the entire ecosystem. So how much does AdHive’s platform cost? “At the moment, we are offering an individual approach to each client based on their needs, KPIs, and marketing strategy,” Kuzmin said. “However, an average advertising campaign with approximate coverage of more than 80,000 views would cost about $10,000. This price includes our commission. We accept BTC, ETH, and our own ADH tokens as a means of payment. Since we have been actively working with a global network of influencers, we can offer much more favorable prices for brands than if they contact the influencer directly.”

AdHive is aware of the challenges blockchain marketers face right now and hopes its offering will appeal to startups despite current conditions. “It is worth noting that the drop in average caps has also affected companies’ marketing policies,” Kuzmin said. “ICO marketers nowadays are trying to optimize their costs and prefer to use the most efficient channels with maximum output in the short term. We’ve created our service as the answer for such companies, since traditional marketing tools have significantly sagged in efficiency due to market volatility and government restrictions, and crypto projects need non-standard methods.”

So what’s next for AdHive?

“AdHive is not just about crypto and ICO project promotion,” Kuzmin said. “In essence, our main audience is traditional brands. We are hard at work as we prepare to release a massive protocol concept in late July. Among the additions are a mobile app and some new AI products, such as an AI Mobile SDK, Cloud Knowledge Base, and others.”

Article Produced By
Stewart Rogers
Director, Marketing Technology

I’ve been involved in sales, marketing and running software companies since computers had black screens with the ‘wide choice’ of green or orange text. Those were the days… When I’m not speaking, writing or reading about marketing technology, sales force automation, web tools and awesome processes you’ll find me helping to make VB Insight the best analysis and reports resource on the planet – one where every expert can finally have their words read and their voices heard. If you’re a subject-matter champion in any area of sales or marketing technology, you should probably let me know.

I live in the UK, follow football (that’s soccer, not ‘throwball’), Formula 1, ice hockey, and play video games. I respect and subscribe to the VentureBeat statement of ethics. I drink coffee, yerba mate, white tea and water as if I’m getting paid to do so (I’m not). In my spare time, I run a few multi-author blogs that give all the revenue they generate to worthy causes. When they produce a wireless Internet connection that plugs directly into the medulla oblongata, I’ll be first in line.

https://venturebeat.com/2018/07/16/adhive-launches-ai-powered-platform-to-promote-icos/

 

Bermuda Government to Introduce New Regulations on ICOs, Address ‘Legal Ambiguity’

Bermuda Government to Introduce New Regulations on ICOs, Address ‘Legal Ambiguity’

The Premier and Minister of Finance of Bermuda David Burt

introduced new regulations on initial coin offerings (ICOs) speaking before the House of Assembly, the Royal Gazette news reports July 13. The regulatory framework describes minimum required information for ICO projects and establishes compliance measures for companies to conduct an ICO.

Addressing the lower house of the Bermudian Parliament, Burt outlined regulations that would require Bermudian ICO issuers to provide detailed information about “all persons involved with the ICO.” Issuers must also disclose a review of the project, including such key aspects as the product or service, the market audience, financing system, the amount of money that is planned to be raised, and technical aspects associated with software and blockchain specifications.

Burt stated that a group of new bills would be tabled before the end of summer that would expand existing laws against money laundering and terrorism financing. The Premier added that Bermuda has developed a legal environment “expeditiously” that addresses the “legal ambiguity” plaguing the fintech and blockchain industries. The Premier stated that, in response to “market demand,”  the Bermuda government set out to develop a legal framework for distributed ledger technology (DLT) firms, passing the Digital Asset Business Act 2018. The new regulatory regime sets visible boundaries for blockchain and crypto-related businesses and protects the rights of their existing and potential clients.

Earlier this month, the government of Bermuda announced plans to release amendments to the Banking Act to establish a new class of bank to provide services to local fintech and blockchain organizations. After local banks refused to offer services to blockchain companies, the government consulted with them to create the new classification. In April, Premier Burt signed a memorandum of understanding (MOU) with Binance, the world’s largest cryptocurrency exchange by trade volume, to establish funding for educational programs on blockchain and fintech. Burt said that a new Binance “global compliance base” would create 40 new jobs, 30 of which would go to Bermudians.

Article Produced By
Helen Partz

Helen is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2017, she joined Cointelegraph as a writer.

https://cointelegraph.com/news/bermuda-government-to-introduce-new-regulations-on-icos-address-legal-ambiguity

American Express Files Patent for Blockchain-Powered Proof-of-Payment System

American Express Files Patent for Blockchain-Powered Proof-of-Payment System

Financial services giant American Express (Amex)

has filed a patent for a blockchain-based proof-of-payment system, according to filing published by the U.S. Patent and Trademark Office (USPTO) Thursday, July 12. The patent’s applicant is listed as American Express Travel Related Services Co., Inc., Amex’s travel arm. The proposed system would automate proof-of-payments by encrypting payment payload data with a public key on an initial node of the blockchain –– the data in question comprising the merchant’s identifying information and the transaction amount.

According to the patent filing, the encrypted data could then securely be propagated to a second blockchain node. In one proposed embodiment of the system, the data could then be fetched by a connected smart device that would decrypt the payment payload data and match it with a second identifier, the customer. In this way, the blockchain-secured system could enable smart devices to detect proof-of-payments and initiate actions

to service paying customers:

“A payment processing entity (e.g., a credit card network, bank, debit, bitcoin, rewards points, or ACH) provides evidence of a payment in a tamper-proof manner by writing the proof of payment to a blockchain. A smart device connected to the blockchain may detect the proof of payment, and can extract relevant information. The information may be encrypted on the blockchain such that access is restricted to entities having the correct cryptographic keys. “

The patent then outlines various use cases for such a secured system, suggesting hotel reservations, real estate rental, and ticketless access to events and venues. All of the proposed use cases would potentially facilitated by customers’ uniquely identified smart devices that could retrieve and decrypt proof-of-payments stored on the blockchain. Amex has already indicated its interest in blockchain technology by becoming a member of the Hyperledger Blockchain consortium, a collaborative effort to define and develop standard blockchain technology for use across industries.

In May, Cointelegraph reported on Amex’s announcement that it would be integrating Hyperledger into its Membership Rewards program. The initiative, in partnership with online merchant Boxed, would enable merchants to design customized offers for Amex cardholders in order to incentivize customer engagement. Back in October 2017, American Express Travel Related Services Co., Inc., filed an earlier patent for a personalized rewards system that would also harness blockchain technology to incentivize its customers.

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Marie Huillet

Marie Huillet is an independent filmmaker, with a background in journalism and publishing. Nomadic by nature, she’s lived in five different countries this decade. She’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives.

https://cointelegraph.com/news/american-express-files-patent-for-blockchain-powered-proof-of-payment-system

Korean Lawmakers Hasten to Regulate Cryptocurrency, Legalize ICOs

Korean Lawmakers Hasten to Regulate Cryptocurrency, Legalize ICOs

Lawmakers in South Korea, one of the world’s biggest cryptocurrency trading markets,
are set to submit draft bills to legislate regulations for burgeoning sector.According to a report by the Korea Times, a number of lawmakers across different political spectrums are seeking to fast-track cryptocurrency regulations that could plausibly lead to lifting the current ICO ban in the country. The drafts will be submitted during ‘an extraordinary session of the National Assembly from July 13 to 16’ to address the legal status of cryptocurrency and regulatory guidelines for crypto exchanges, Notably, the report suggests that the submitted regulatory drafts are expected to play the role of a ‘catalyst’ in triggering discussions toward regulation and the subsequent the legislative process of turning bills into law.

Representative Park Yong-jin, a lawmaker and member of the country’s ruling Democratic Party, is perhaps the most prominent politician pushing for regulations, alongside Rep. Chung Tae-ok of the primary opposition Liberty Party Korea (LPK) and Rep. Choung Byoung-gug of the Bareun Mirae Party, a minor opposition camp.

As reported previously by CCN in July 2017, Park proposed at least three new bills to build a regulatory framework for cryptocurrencies despite previously comparing last year’s surging prices to Europe’s tulip mania in the 17th century. Rep. Hong Eui-rak, also of the political camp in power, is notably pushing for the legalization of ICOs after authorities enforced a ban on the radical new form of fundraising in September last year.

Further, Rep. Song Hee-kyung of the opposition LPK party is set to host a policy debate on the security framework at domestic cryptocurrency exchanges on July 19, in a year of noteworthy major security breaches and thefts at Korean exchanges. Last month, domestic exchange Coinrail was the victim of a hack with a reported 40 billion won ($37 million) in cryptocurrency stolen. A little over a week later, Seoul-based Bithumb – the country’s biggest crypto exchange – suspended Unlinktransactions after losing $30 million in cryptocurrency following another hack.

The proposed draft regulations coincide with a previously-set deadline by G20 nations that aims to enact a uniform regulatory framework for the cryptocurrency sector among member nations.

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CNN

https://www.ccn.com/korean-lawmakers-hasten-to-regulate-cryptocurrency-legalize-icos/

Already More ICOs in 2018 Than All of 2017: $6.3B

The amount of money raised in initial coin offerings (ICOs)

in the first quarter of 2018 has blown past the amount raised throughout all of 2017, according to data from Coindesk. In the first three months of the year, a total of $6.3 billion raised from digital coin offerings represented 118% more than that of last year's total, suggesting that despite increased scrutiny on the cryptocurrency space, ICOs aren't going anywhere soon.

ICOs have been a major source of controversy in the cryptocurrency space as regulators struggle to combat illegitimate business and protect investors against buying into the frenzy without proper consideration. Since just about anyone can create digital currency: Over 15,000 cryptocurrencies have been launched. Often, the means by which crypto-related startups raise money is by selling virtual coins as an alternative to raising stock. Regulators have tried to crack down on the surge in fraudulent ICOs, which prompt many to buy in due to false advertising and other schemes. Many investors have also fallen victim to "FOMO," or fear of missing out, getting into crypto-investing simply because others have bought in, and not in response to the actual details of the startups that they are funding. 

Digital Token Projects Continue to Gain Popularity 

Of course, not all ICOs are schemes, and many are legitimate. On Wednesday, Basis (formerly Basecoin), landed $133 million in an ICO, with participation from high-profile investors such as Alphabet Inc.'s (GOOGL) GV, Andreessen Horowitz, former Federal Reserve governor Kevin Warsh and billionaire hedge fund manager Stanley Druckermiller. The funding round marked the first time that venture capital firms Bain and Lightspeed had ever bought a digital token.

In 2018, the size and speed of ICO funding rounds have also accelerated, according to the Coindesk report. Q1 saw 59% as many ICOs raise capital as all of 2017. The report noted that without Telegram's record-breaking $1.7 billion token sale, ICOs in the first three months of 2018 would amount to $4.6 billion, or 85% of last year's total. Coindesk notes that given most ICOs in Q1 have garnered less than $100 million, "a number of projects are still eager to sell tokens, despite the regulatory risk." The report pointed to a recent ruling from the Securities and Exchange Commission (SEC), which acknowledged some ICOs as securities offerings and required that they be registered with the agency.

Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns cryptocurrency.

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As a digital nomad based out of New York City, Shoshanna enjoys reporting on business and finance, with a focus on consumer products and technology companies. Shoshanna is passionate about enhancing the future of work by harnessing productivity and adopting transparent, flexible work cultures.

After graduating from UNC Chapel Hill with a B.A. in Economics and International Relations, Shoshanna worked in international business advisory at KPMG. When she’s not writing, you can now find Shoshanna leading yoga, mindfulness and creative workshops around the world. Shoshanna’s enthusiastic about forward-driving projects that advance social entrepreneurship, conscious consumerism and sustainability movements.

https://www.investopedia.com/news/already-more-icos-2018-all-2017-63b/

 

Liechtenstein’s Blockchain Law, Crypto Banking and ICOs, Interview With Prime Minister

Liechtenstein’s Blockchain Law, Crypto Banking and ICOs, Interview With Prime Minister

Adrian Hasler, the Prime Minister of Liechtenstein,

is certain that blockchain technology will have an impact on a variety of areas and is preparing a new blockchain law to provide essential requirements in order to establish a regulatory base for blockchain businesses. The blockchain law — so called Blockchain Act — was announced by Adrian Hasler at this year’s Finance Forum on March 21. According to Adrian Hasler, the new act is about integrating current business models in regulatory terms in order to give companies and their clients a legal base. The planned act is expected to be circulated for consultations this summer. Cointelegraph spoke with the prime minister about blockchain regulation, the politics regarding this technology and cryptocurrencies, ICOs and the business climate in Liechtenstein.

About Lichtenstein’s blockchain law

Cointelegraph: In your greetings at the Finance Forum you announced a new blockchain law. What makes this regulation special?

Adrian Hasler: We see great potential in blockchain technologies that go far beyond what we can observe today. Our law is designed to serve as the legislative basis for such a token economy and thereby provide regulatory certainty for all participants and overall further

positive development [in this space].

Blockchain can serve as an important base for a variety of economic applications, covering not only payment transactions but broader financial solutions, industry use cases and general applications.

CT: Could you specify the implications of such a regulation when put into place for blockchain businesses and the average citizen? How can they profit from it?

AH: We expect many more rights and assets put into blockchain systems in the future. One example: in order to effectively capitalize on the advantages of these efficient transaction systems we need a lawfully secure connection with the physical world, which we aim to achieve with state regulatory oversight. This will create trust, which is important for blockchain businesses and citizens.

CT: Why is blockchain an interesting topic for Liechtenstein?

AH: We have dealt with possibilities and risks associated with blockchain in the past. We view some opportunities here but also certain challenges for all economic sectors, especially the financial sector. It is important for the state of Liechtenstein that the government and authorities deal intensively with the consequences in practices to be able to treat companies fairly and competently. We aim to actively accompany this development.

About the future of cryptocurrencies

CT: Are you optimistic about the future of blockchain and cryptocurrencies?

AH: We observe a remarkable, globally oriented, and well-educated scene that is very much involved in the advancement of blockchain technology, and we believe that we are only at the beginning of an exciting and long-term development. Cryptocurrencies for me represent merely a fraction of possible use cases of blockchain in a tokenized economy. I believe we have to distinguish between payment traffic, stable coins representing legal means of payments and self-sustaining cryptocurrencies. It goes without saying that payments within a token economy are executed via blockchain. In this context, it can be assumed that stable coins, which are linked to legal currencies, will play an

important role.

Cryptocurrencies can play a significant role in the future once they become widely accepted.

CT: Do you see an interest in blockchain projects and demand for cryptocurrencies from the citizens of Liechtenstein?

AH: Liechtenstein accounts for a relatively large blockchain scene with a very big interest in blockchain projects and cryptocurrencies. For a layperson however, it seems relatively hard to accurately assess the risks of such an investment. Partaking in an ICO alone can be quite difficult. For this reason, there are increasingly more financial products entering the market that make investments easier. However, these are currently only approved for qualified investors.

CT: The Liechtenstein family bank Bank Frick allows direct investments in cryptocurrencies. Do you support the idea of crypto-banking as an alternative to

traditional banking?

I really do not see a contradiction between crypto banking and traditional banking.

AH: I rather expect to see an integration of blockchain technology and cryptocurrencies in the financial sector. I do applaud this development because it introduces high standards und legislative security for investors of the traditional finance sector on blockchains. Of course, we need to make sure that the advantages of the crypto world are sustained as best as possible.

CT: Are you yourself dealing with cryptocurrencies or investing in blockchain projects?

AH: No, in my function as head of the government, I keep a low profile here.

About Liechtenstein as a location for ICOs

CT: Liechtenstein has become a favourite location in the world, to start ICOs. What are the reasons?

AH: One important reason is the openness of the authorities and the government for the new technologies and the subsequently acquired knowledge on how to use them. Surely it helps that you have very little response time as a company. It is relatively quickly possible to schedule a meeting with the ministry of the FMA [financial authority of Liechtenstein]. Furthermore we introduced a so-called regulatory laboratory at the FMA, which is a competent contact for innovative companies. Especially Fintech and blockchain companies seem to use this option intensively.

CT: Liechtenstein is subject to certain European Union regulations. Have those furthered the advancement of innovative ICOs or rather hindered it?

AH: Liechtenstein is a member of the European ecosystem und complies with all EU regulations in his financial service area. This is why companies in Liechtenstein also benefit from the so-called ‘EU-Pass’, hence the access to the European market. In our experience, however, it depends heavily on the specific design of an ICO, whether financial market law issues are affected. To my knowledge, many ICOs in Liechtenstein have already been successfully implemented within the framework of the financial market rules.

Article Produced By
Veronika Rinecker

https://cointelegraph.com/news/liechtenstein-s-blockchain-law-crypto-banking-and-icos-interview-with-prime-minister

SEC Cracks Down: Fraudulent ICO’s Accounts Frozen

SEC Cracks Down: Fraudulent ICO’s Accounts Frozen


With cryptocurrency growing more prevalent in the mainstream,

the SEC is taking action to regulate ICOs as securities. On June 18, 2018, the SEC received a court order to freeze the assets of the PlexCoin founders under allegations of false marketing and fraudulent activity.

Wild West of ICOs Coming to an End

Reported by Crowdfund Insider on June 20, the SEC received an emergency court order to freeze the assets of PlexCorps founders, Dominic Lacroix and Sabrina Paradis-Royer, as part of an ongoing enforcement action initiated in December 2017. According to the initial report, the original court order to freeze the assets of Lacroix and Paradis-Royer was received in December 2017 and unsealed on June 18. It is alleged that Lacroix used fake accounts, including that of his brother’s, to liquidate investor funds for personal use received in the PlexCoin ICO. Both Lacroix and Paradis-Royer are being charged with violating anti-fraud provisions regarding the PlexCoin ICO and will be receiving penalties for false marketing and fraudulent activity.

According to the initial press release by the SEC:

“The complaint seeks permanent injunctions, disgorgement plus interest and penalties.  For Lacroix, the SEC also seeks an officer-and-director bar and a bar from offering digital securities against Lacroix and Paradis-Royer.”

PlexCorps raised nearly $15 million from thousands of investors through their PlexCoin ICO, which untruthfully claimed the coin would yield a 1,354% profit in under 29 days.

SEC Cyber Unit Taking Action

Formed in September 2017, the SEC Cyber Unit pursued the PlexCoin ICO misconduct as their first case since inception and made clear that such activity would not be tolerated. In the December 2017 press release,

Chief of SEC Cyber Unit Robert Cohen states:

“This first Cyber Unit case hits all of the characteristics of a full-fledged cyber scam and is exactly the kind of misconduct the unit will be pursuing. We acted quickly to protect retail investors from this initial coin offering’s false promises.”

In the press release, the SEC dubbed PlexCorps founder, Dominic Lacroix “a recidivist Quebec securities law violator” and revealed that they were working with the Office of International Affairs and Quebec’s Autorité Des Marchés Financiers to uncover the full extent of the PlexCoin ICO fraud. As cryptocurrency grows more prevalent, it’s becoming clear that regulatory bodies are finally catching on to the global impact and influence of initial coin offerings, distributed ledger technology, and cryptocurrency exchanges on retail investors still new to the scene.

Article Produced By
Jonathan Kim

Jonathan Kim is a University of Washington student of Finance and cryptocurrency investor with a deep interest in the emerging industry of blockchain applications and cryptocurrency trading. Involved with a recently launched ICO, Jonathan is familiar with the internal process of crowdsale funding and the workings of a blockchain startup. His past experiences involve publishing original daily content for blockchain startups and trading cryptocurrency using technical analysis principles.

https://cryptoslate.com/sec-cracks-down-fraudulent-icos-accounts-frozen/

John McAfee Will No Longer Promote ICOs, Cites ‘SEC Threats’

John McAfee Will No Longer Promote ICOs, Cites ‘SEC Threats’

Anti-virus pioneer and crypto evangelist John McAfee

tweeted that he will no longer work with initial coin offerings (ICOs) or promote them due to “threats” from the U.S. Securities and Exchange Commission (SEC). The SEC declined to comment on his statement. In April, McAfee revealed that he charges $105,000 per tweet to promote cryptocurrency projects and products. McAfee claimed that if you divided the cost by his total number of Twitter followers, the “cost per investor reached” is only $0.13, to which he added, “This is orders of magnitude less than any other approach.” In January, Cointelegraph asked McAfee in an interview whether anyone had tried to pay him for promoting a project or product, and if so, which projects.

McAfee replied:

“I would say definitely they tried to pay me. I'm not going to talk about my personal finances where I make my money or from who. I set up on stage as it’s my business and it should be everybody's business. And actually, I think it's rude to even ask such questions of people. No offense.”

When asked whether he felt responsible for the pump-and-dump schemes that sometimes follow his endorsement, he said, “Absolutely not.” Last month, McAfee announced plans to release his own “fiat” currency backed by cryptocurrency, which will be redeemable for face time with him. He said that the  McAfee Promissory Note will be connected to a blockchain by tokens and can be redeemed for up to 100 minutes of personal time with him at a location anywhere in the world.

The crypto advocate also hit headlines earlier this month when he announced a 2020 presidential bid as a way to serve the crypto community. McAfee then tweeted about the run, noting that although he doesn’t think he actually has a “chance of winning,” the bid will give him a platform to tell the “truth.”

Last month, the SEC launched a fake ICO website to increase awareness of the typical warning signs of scam ICOs and to promote investor education. The website includes such details as a misleading and blurry white paper, guaranteed returns claims, celebrity endorsements, and a countdown clock that is “quickly running out on the deal of a lifetime.” In April, SEC Commissioner Robert Jackson criticized ICOs, stating that the crypto space “has been full of troubling developments that we’ve seen at the SEC, and especially the ICO space.”

Article Produced By
Ana Alexandre

Total change in her career took Anastasia into the world of analytics and business information as a researcher and translator in 2010. Some time later she got into FinTech, a dynamically developing segment at the intersection of the financial services and technology. Ana joined Cointelegraph in September 2017.

https://cointelegraph.com/news/john-mcafee-will-no-longer-promote-icos-cites-sec-threats

South Korea to Develop ‘Crypto Beach’, Modelled After Switzerland’s ‘Crypto Valley’

South Korea to Develop ‘Crypto Beach’, Modelled After Switzerland’s ‘Crypto Valley’

South Korea has revealed plans to launch a blockchain center

in Busan city modeled on the Swiss Crypto Valley, local news outlet Edaily reported June 14. At a recent blockchain event in Seoul “2018 Global Blockchain Conference,” chairman of the Korea ICT Financial Convergence Association Oh Jung-geun claimed that the organization seeks to build a space similar to the “Crypto Valley” located in the Swiss canton of Zug. "We need a place to concentrate on the cryptographic industry in Korea like the Crypto Valley in Switzerland," Oh said at the event.

The association reportedly plans to launch the “Crypto Beach” space at Haeundae, Busan. Located in eastern Busan, South Korea, Haeundae is an affluent beachfront community that attracts thousands of tourists each summer. The space has also been classified as a commercial development center by the government in recent decades. The Association reportedly plans to discuss the project with Busan authorities on Aug. 30. Oh pointed out that many South Korean companies must launch initial coin offerings (ICOs) overseas due to the government’s current ban on ICOs. Oh expressed concern about the lack of understanding of the new technology and its benefits by local authorities and their strict regulations.

In September 2017, South Korean financial authorities announced a ban on ICOs, claiming they should be strictly controlled and monitored. The government has ostensibly realized the risks associated with banning the practice, such as displacement of talent and investment  overseas, as South Korean lawmakers are reportedly working on legislation that aims to lift the existing ban on ICOs. As Cointelegraph reported earlier, Switzerland is the most blockchain-friendly country in the world. Swiss Crypto Valley, a state-backed blockchain consortium was launched in March 2017 to support the development of blockchain and cryptography-related technologies and businesses. Last week, the city of Zug announced it will trial blockchain-powered municipal voting this summer.

Article Produced By
Helen Partz

Helen is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2017, she joined Cointelegraph as a writer.

https://cointelegraph.com/news/south-korea-to-develop-crypto-beach-modelled-after-switzerland-s-crypto-valley

Initial Coin Offering (ICO)

Initial Coin Offering (ICO)

DEFINITION of 'Initial Coin Offering (ICO)'

An unregulated means by which funds are raised for a new cryptocurrency venture. An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.

BREAKING DOWN 'Initial Coin Offering (ICO)'

When a cryptocurrency startup firm wants to raise money through an Initial Coin Offering (ICO), it usually creates a plan on a whitepaper which states what the project is about, what need(s) the project will fulfill upon completion, how much money is needed to undertake the venture, how much of the virtual tokens the pioneers of the project will keep for themselves, what type of money is accepted, and how long the ICO campaign will run for. During the ICO campaign, enthusiasts and supporters of the firm’s initiative buy some of the distributed cryptocoins with fiat or virtual currency. These coins are referred to as tokens and are similar to shares of a company sold to investors in an Initial Public Offering (IPO) transaction. If the money raised does not meet the minimum funds required by the firm, the money is returned to the backers and the ICO is deemed to be unsuccessful. If the funds requirements are met within the specified timeframe, the money raised is used to either initiate the new scheme or to complete it.

[ Initial coin offerings are appealing to traders for the same reason that initial public offerings – they offer a high level of volatility as the market comes up with an appropriate price for the asset. If you're interested in learning how to trade cryptocurrencies, Investopedia's Crypto Trading Course provides a comprehensive overview of the subject taught by a Wall Street veteran. You'll learn cryptocurrency basics, how to setup a wallet, and how technical analysis can be used to identify opportunities. ]

Early investors in the operation are usually motivated to buy the cryptocoins in the hope that the plan becomes successful after it launches which could translate to a higher cryptocoin value than what they purchased it for before the project was initiated. An example of a successful ICO project that was profitable to early investors is the smart contracts platform called Ethereum which has Ethers as its coin tokens. In 2014, the Ethereum project was announced and its ICO raised $18 million in Bitcoins or $0.40 per Ether. The project went live in 2015 and in 2016 had an ether value that went up as high as $14 with a market capitalization of over $1 billion.

ICOs are similar to IPOs and crowdfunding. Like IPOs, a stake of the startup or company is sold to raise money for the entity’s operations during an ICO operation. However, while IPOs deal with investors, ICOs deal with supporters that are keen to invest in a new project much like a crowdfunding event. But ICOs differ from crowdfunding in that the backers of the former are motivated by a prospective return in their investments, while the funds raised in the latter campaign are basically donations. For these reasons, ICOs are referred to as crowdsales.

Although there are successful ICO transactions on record and ICOs are poised to be disruptive innovative tools in the digital era, investors are cautioned to be wary as some ICO or crowdsale campaigns are actually fraudulent. Because these fund-raising operatives are not regulated by financial authorities such as the Securities Exchange Commission (SEC), funds that are lost due to fraudulent initiatives may never be recovered.

The rapid ICO surge in 2017 incurred regulations from a series of governmental and nongovernmental In early September, 2017, the People's Bank of China officially banned ICOs, citing it as disruptive to economic and financial stability. The central bank said tokens cannot be used as currency on the market and banks cannot offer services relating to ICOs. As a result, both Bitcoin and Ethereum tumbled, and it was viewed as a sign that regulations of cryptocurrencies are coming. The ban also penalizes offerings already completed. In early 2018, Facebook, Twitter, and Google all banned ICO advertisements. 

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https://www.investopedia.com/terms/i/initial-coin-offering-ico.asp