The impact of Code Security Audit on your IEO project

 

What turns out to be a vital aspect of a smoothly functional business today is security. An attack on your enterprise can negatively impact your productivity, resources, credibility and, most importantly, profit. You might be wondering as to what makes code Security Audit a must in the ICO/IEO/STO environment. It is because majority of current threats are directed towards the software program and its vulnerabilities. This is why IEO Consulting Services and IEO launch services incorporate code Security Audit as one major aspect of the services they render towards ieo challenges and solutions. Therefore it is always commendable that you give your undivided attention to this security aspect either by directing ample priority towards it or by outsourcing the job to the best ieo development services out there. While the desired impacts of Code Security Audit could be many, some of the most desirable ones are as follows

Credibility Challenges Solution

Be it an ICO, STO or IEO, the project naturally comes with development of blockchain, Coin/Token and Dashboard. Analysing the code and functionality of these three components is always a must. It will ensure that each part is secure and any vulnerability is solved. It will go a long way in solving IEO credibility challenges since it will boost the confidence of investors with regards to the process and funds stored. Investors and traders have one preference in common, that is, to invest in tokens and coins which possess zero vulnerability. 

Mention may also be made that an audit enables you to showcase that your product licenses are up-to-date and the code steer clear of copyright infringement. The incorporation of a high-quality code will furnish you with the proof required to scale up potential bids from buyers and therefore enhance the company’s valuation. As it provides buyers a chance to have their questions answered regarding their purchase they will find value in a manual audit. As such it gives rise to transparency and buyers can determine how much of the codebase was done by in-house developers, how much is from a third party, what methodologists did the developers employ to write the code. It allows buyers to be aware, if any, of security vulnerabilities or functional loopholes that can attract hacking or leakage of trade secrets/data.

Liability Exposure Minimization

Code Security Audit scans your blockchain platform and makes for a fully functional product that is bug-free, thereby minimizing and obliterating a potential future hacking event once your blockchain platform moves into the market. Hackers on the prowl will target vulnerabilities and functional gaps, and a successful hacking event could prove detrimental to your company since it will result in significant loss of capital and depletion of customers’ trust. 

Customers’ trust is everything. How far you go with your project will be determined by the level of trust you have with your customers. Losing a bulk of capital is one thing, losing your customers’ trust is another.  But both have the potential to deal a heavy blow to your project. Code vulnerabilities have the potential to sabotage your blockchain venture and cost billions of losses. This is where the importance of a code security audit comes into play. A code security audit can secure your system by carrying out verification, identification of failure spots and weak cryptography. The technical team in action will audit the entire code against rigid security protocols and thereby thwart future liability. 

A proper audit of smart contract codes will help you avoid hacks that have the potential to cost your company a loss in terms of millions. A hacking is the last thing you want to experience because the damage that a hacking will deal to your company will go beyond loss of money. The years of efforts that went into building your brand reputation would go wasted. With reputation gone everything is gone.  Indeed there is no doubt you are navigating an anonymous digital world, but a thorough code audit will see you through. This is to say that prioritizing code security will always pay off.

Read Full Article

Market opportunity in the exchange business

 

It’s been several years; the first very initial coin offering for master coin was launched. With this amazing groundbreaking idea, a new funding opportunity was raised in the world of block chain technology. This technology helped the investors around the world to contribute in the projects with decentralized or Centralized Crypto Exchanges currencies. Additionally, it also helped a lot in encouraging the entrepreneurs to raise money for their companies. There are several crypto investment firms including the crypto marketing agencies, law firms, anti-money laundering services firms and others that get indulged in the game. The exchange market is simply growing and moving towards the right direction. And also the market opportunities in the exchange business are not getting slow down. Exchange business is not only about ICO but also the stocks, tokens and other bonds. Here we have discussed about the market opportunities in the exchange business and also have stated the major facts that why ICO will become a multi trillion dollar market.

Why do people invest in exchange market ?

The major reasons that investors attract and entered in the exchange market are making profits. Yes, the investor purchase shares or tokens are coins for specific reasons of getting profits. This investment actually includes a number of risks but however it also includes a lot of good returns for a long term. The investors get the dividend from the overall profits that the company owns. Investing in the exchange market or in the shares helps the investors in getting easy access to the money in case of any urgent expense. This trading plays an important role in giving the investors and opportunity to hit their own company. Apart from this, the ownership in a particular company is also related to the percentage of the stocks you are having. Being the owner of the company you are actually bound to receive the performance reports, news and all the latest updates about the company.

Three facts why ICO will become a multi-trillion dollar market: major opportunities

• Venture capital firms will turn into ICO powerhouses
• Security token offerings are the ICO 2.0
• Regulated exchanges will bring a new ICO boom

Regulated exchanges will bring a new ICO boom

It will not be wrong to state that ICO is actually here to stay and it will definitely shake up the conventional capital markets to the core. There are several virtual capital found that will potentially re-invent their business models and turn into the initial coin offering issuing houses so that they can easily capitalize on the opportunity of short investment cycles with the help of these services. Apart from this, the security tokens are also becoming more prevalent in the market as the investment proportion to retail. Additionally, other main boost is coming from the regulated exchanges. People are continuously investing their money in the exchange market just with the motive to earn higher profits. This is actually going to be a breakthrough for a multi trillion dollar market in the next 5 years. Even at the White Label Crypto Exchange Platform, there is available a lot more to know about the same.

It is necessary to know about the best investment opportunities in the market

In the exchange market, there are tremendous investment opportunities available. There are actually two ways of earning money through exchange or shares one is getting the part of profit of the company that is dividend, Other is the company expense then the share becomes more valuable it actually give the investment and additional work. The shares, to close all coins can easily get traded with the help of a traditional stock broker, online broker or an investment manager as well. 

You also get the divisibility where you can easily sell out the part of your token shares in case you are in need of some finance. People actually like to invest in the companies that are earning profit and wealth. It helps them in having a sense of ownership regarding the same. Additionally, it also plays an important role in creating the diverse investment portfolio. With the help of Crypto Trading Software Development, it also becomes easier for the users to take right decisions regarding the investments in the exchange market. 

Read Full Article

Impact of STO Project Website on the Investors

 

Security Token Offerings is a profitable, reliable, and regulated method of fundraising which has recently gained the trust amongst potential investors and businesses. Gone are the days when start-ups were not able to get many ways to raise funding for projects. STOs ensures high transparency, faster execution, credibility, increased liquidity, reduced cost, and smart contacts. STOs are now backed by real assets, which make them an effective fundraising tool in 2020. 

The year of 2018 began with just three main STOs, after which a boom was being observed in the infrastructure build-out. The year 2019 has witnessed the technology for STO coming on bounds and leaps – where there was an enhancement in the infrastructure technology. Plus, the costs have fallen to a greater extent. 2020 is expected to see an acceleration in the STO trends that links incumbent financial service providers with emerging security token agencies to tokenize institutional grade assets. Tokenization platforms are also seemed to emerge provided by some of the most popular technology companies like Microsoft and issuances from trusted investment asset managers and firms. 

Currently, there are several Security Token Offering platforms available in 2020, including Polymath, Swarm, Securitize, and Harbor. STOs have the potential to transform the investment landscape significantly. 

Today, you can find many Security Token development companies that can help you launch your security token project in the market. Since the concept of STO is new in the market, it is a bit overwhelming to attract potential customers. Some basic prerequisites are needed to be followed to make it reach investors around the world. 

To reach a vast investor base, you should have an effective STO marketing plan. It is important to market your STO project if you expect more future benefits and profits on the shares by attracting more investors worldwide.

Promoting STO Project

To reach a massive audience base, promoting your STO project digitally is quite important. Doing this can help you build an optimistic brand impression in the marketplace. Nowadays, online marketing is dominating the business world. Be it a start-up or well-established business organization, promoting products and services is quite an essential thing. In the crypto market, many start-ups are promoting their project online with a common aim – attracting potential investors.

Building STO Project Website

One of the most thing aspects that come under the domain of STO project marketing is to build a business website. This website can bridge the gap between general users and the website owner. This will be the perfect place where different investors will come to know about your STO project. This website will showcase complete information about your STO project. For example, key features, benefits of investing in your project, and the services that your STO provides will be displayed on that website. 

Apart from creating a website, it is also important for you to create a landing page for it. Make sure the landing page is eye-catchy and uniquely designed. This will help in attracting many investors and can also compel to take interest in your STO project.

Things That Must Have On Your STO Project Website

When building an STO website, you should add some of the most important things on your site like a detailed whitepaper, optimized website loading speed, mobile-friendly web pages, well-structured web design, high-quality, and uniquely written content, enhanced user experienced and a FAQ section. Ensuring all these things are available on your website will help you gain better results in the future.

Impact of STO Project Website on the Investors

Before getting professional STO Consulting Services to start the security token offering sale, you should be prepared for the same. This includes security integration, initial marketing, and website building.  Regardless of where the investor comes from, your website will be the medium of their first interaction with them. Therefore, it is important that you should focus on making this interaction a success. Make your website attractive so that it can speak for your brand. The homepage of your website should be designed carefully since it acts as the face of your STO project. If you create an informative homepage, you will come one step closer to gain the trust of potential investors. Now, let’s discuss the impact of the STO project website on the investors. 

Read Full Article

Influence of Social Media and Community in ICO Project

 

For the success or failure of ICO project, ico development services and ICO Consulting Services are always not responsible. There are many other factors that come into the picture like your marketing strategies. What did you do in social media for better community building. Any business, especially an ICO project runs on trust that is built around you. Community building through social media or any other platform is a crucial part of it. 

ICO Launching Service needs a foolproof marketing plan for a successful ICO project launch from the initial stage that is the right time to get appeared with a good image in the market otherwise later it is quite difficult to change the perception about you and your motives no matter how much transparent or efficient your ICO software development is. 

Using the right kind of different marketing strategies, methodologies, and tools, an ICO project can mark the real success. In such a crucial segment, it is unwise not to use social media for this cause and the project can lag behind. 

Social media and community building is a place from where investors can notice the smoke easily. Without these, they are unable to find the hidden flame and its intensity of the idea.

Community and Social Media

Community is one of the invaluables that helps to generate the buzz around your ICO project so that the idea can outreach the market. Community building is an organic way to reach out the potential investors in no matter of time. You can show your presence and build the community through various social media platforms available in the market which include Facebook, twitter, telegram, Instagram, blogging, Reddit, Quora, LinkedIn, and medium. Be active and try to address the issues and sceptics of your project on these platforms. Only then you can earn the trust of various potential investors in the community. 

In all these social media platforms, you can meet the prevalent communities relevant to your ICO project, you need to spread the awareness by sharing the informative contents, updates, whitepapers, and solution to their queries.

If you don’t have time to build your community on your own, you can outsource the community building work. It is an excellent option for many reasons. 

1. You will get a perfect and proven place as they are experts. 
2. You need not to spend much of your time
3. The hectic and mind boggling strategy portion can be taken care by them
4. These agencies have a number of communities relevant to your project, so you need not to start from the scratch. 

So, enjoy the easiest method of building the community and save your time and energy. You can do another thing that is leveraging the strength of community which is already in action. And follow the programs and instruction as these are proven and tested to increase the ICO communities strength.

Read Full Article

Initial coins offering – beneficial for an investor

 

ICO, also referred to as an initial coin offering, is a crowdfunding model that is based upon the cryptocurrencies to help the startups and entrepreneurs in raising capital funds for their business and its growth. The entire process of raising funds through the investors, gets done by implementing smart contracts, tokens, along with the proper white paper launch. In ICO startups, there is a great role of investors as they are the ones who invest their funds in the projects and help the businesses to lead towards growth. Similarly, the ICO is also beneficial for the investor. Yes, it is a vice versa process. Considering the same and in order to help you in understanding the benefits of ICO for an investor, we have started the details here. Let’s get started.

Benefits of issuing an ICO to an investor

Offering a new product to the customers and raising funds for it through an ICO proves to be an easy and faster source for investors. There are some major advantages and benefits of an ICO for an investor. These advantages encourage the investors to invest their money in the initial coin offering. To know about such benefits, just have a look at below given points:

Liquidity

Usually, when people look for new investment options, then they usually feel the liquidity factor missing. In several opportunities, the capital gets inaccessible for several years. However, initial coin offering, the investors will have high liquidity, and also the real-time pricing will be based on the current value of the project.

Decentralization

It will be available for everyone. The major factor is that the money is decentralized and is not controlled by a single body rather it can be accessed by everyone and anyone can see the changes done in the project.

Openness

Along with the investors, the contributors can also invest in ICO anytime. As compared to the traditional models of funding startups; the whole process is quite different. In traditional startups, it becomes quite difficult to become an early investor if you are not having any close contacts with the founders. But I see the situation is quite different. In order to become an early investor, the contributors just need to pay attention to the upcoming ICO and purchase the tokens soon after it gets launched.

Variation in cost

tokens of a project can vary from project to project and vale to value. This increases the chances of earning profits and reduces great risks and liability. Also, the ability of the investors to invest makes many new startups successful and thus benefits the investors to use the ICO funds any time.

Lower competition

There exist many new startups or projects which struggle a lifetime to attract funds and investment through traditional methods. This occurs more in case they do not have a strong reason to appeal to the customers. This can be the lack of proper location such as projects based on any center out of the city, type of offering, especially in non-profit organizations and many more. More the procedure is simple to invest; more is the funds available for the project. This only requires having complete knowledge about the competitors and their way of funding in the tokens. This gives a clear picture of the competition already prevailing in the market for the ICO project you are focusing upon.

Read Full Article

Make Your Investment Count With STO

 

What makes an investor a winner in the pool of competition? Their smart move.

 A smart move defines the investor strategy.

A winning game

To have the edge over competitors, investors need to turn the table of the game. They believe a perfect market player always invests in profitable projects.

What’s the mystery behind the achievement of the great investors? Their success key is to place a big and safe bet to play. Security plays a crucial role in investment. Isn’t it? Investors can take a leap of faith in STO (security token offering).

Ready to get abundant benefits of STO. Stay connected to increase your cup of knowledge about Security token offering.

How STO is the game-changer?

Three years back in 2017, ICO (Initial coin offering) was booming. Most of the people have generated a high revenue by investing in ICO. The leading and influential way to raise funds for the cryptocurrency entrepreneurs and founders.

But have you heard if good is close than bad will soon approach you? That happened with the investors, ICO had trapped them badly in the vicious circle and stole millions from people.

Finally, the law and authority gave birth to STO ( the safest type of investment that provides ten times more security than ICO. The golden opportunity for investors. The security token development is a safe haven for the investors as well as the companies.

In this blog, you will get to know the five significant benefits of STO. The investor will surely explore STO as an investment vehicle.

Say goodbye to middlemen

What is the biggest hurdle in investing in the stock market? You have to take advice from a broker-dealer. Right? 

Sometimes a long communication with intermediaries becomes tiresome and time-consuming. We need to pay massive bucks for their time and services. Isn’t it? By investing in STO, Investors need not have to deal with intermediaries. Without weeding through advisors, they can invest in security tokens.

Real Value

Often Security tokens are mixed up with the utility tokens; however, that is not the case. Utility tokens in most cases are designed specially to enable access to a service or product that already exists on the blockchain platform, having no other valuation in their own right. On the other hand, security tokens are an actual financial instrument that designates the token asset. Similar to any prevalent traditional market instrument, the security token may grant rights in:

• Direct or indirect assistance in the administration of the company
• Dividend payments
• Financial commitments
• Profit-sharing
• Virtual or physical assets ownership

Enhanced Credibility

More than often, STOs are referred to as “the new version of ICO” which is not valid. ICO is a fundraising approach via the application of cryptocurrency, which can be a source of funding for startup companies. The principal issue with ICOs and the primary concern for the entire crypto market is a lack of regulation. 

Consequently, no investor protection mechanism is in occupation. Lack of regulation has previously resulted in the loss of billions of dollars by investors. It encompasses both assets stolen from centralized crypto exchanges and fraudulent ICOs. 

The fact with Security Token Offerings is totally different as security tokens are managed as “Tokenised Securities” by most of the regulators that have a certain form of crypto regulation in position. 

Therefore the same traditional securities laws apply for security tokens. This implies that a firm that issues security tokens has to comply with all applicable securities regulations thoroughly.

Read Full Article

Detailed Analysis And Information On Price Calculator

 

Well, I am sure the thought might have crossed in your mind while buying the future of any cryptocurrency – why is the price of future higher than the normal market price? It is just not you but many traders get confused about why Futures price tends to be in premium to the spot price. Traders are aware that the premium will be higher when the market is bullish and vice versa. 

The article will help you in calculating the fair value of these contracts. It will be of great help to you in your next trade. Let us start!

What is the Fair Price/ Mark Price?

The fair price or mark price is an estimate of a true value of a contract (fair price) in comparison to its actual trading price (last price). Futures contract is marked according to the Fair Price Marking Method. This price is used to find out unrealized PNL and liquidations. Realized PnL is calculated using actual trading prices and is not affected by the fair price.

What is realized and unrealized PnL?

PnL in futures contract calculation is an abbreviation for profit and loss. It can be either realized or unrealized. When the trader has an open position on a particular derivative, his/her profit is unrealized. It means that there is variation in the profit/loss as per the market movement. Once the trader chooses to close his/her positions, the unrealized PnL gets transform into realized PnL. 

Since the realized PnL refers to the profit or loss arising from the closed position, it has nothing to do with the mark price. On the contrary, the unrealized PnL is constantly changing and is the prime factor for liquidations. Hence, the fair price is used to assure that the unrealized PnL calculation is accurate and just. 

Why is Fair Mark Pricing Used?

• Avoid Liquidations

Fair Mark Pricing can be used to optimize the liquidations. Consider a trade between trader A and B. While carrying on the trade, trader A is quite distracted and executes an order to buy 1,000,000 BTCUSD contracts instead of 100,000. Before executing the order, the BTCUSD order book was:

Bid/ask on Espay Exchange is between $7310-$7312

Fair Mark Price – $7309.8

Last Traded Price – $7302.0

Liquidation Price for Trader B – $7350

Now due to this error, the last traded price appreciated to $7360 for fraction of time and then depreciated back to the original last price – $7302

In such a scenario, if the exchange has used the last traded price instead of fair price, traded B would have been liquidated. But since they use fair price, trader B is covered and is not liquidated.

• Avoid Price Manipulations

If the market is very liquid, then the last traded price can be used instead of mark price. However, when the market is not liquid and lacks depth, there are high chances of its manipulation.

Read Full Article

Essentials to a successful STO

 

Even after a decade, cryptocurrencies are still receiving the same kind of love and popularity it got in the beginning. With Cryptocurrencies coming into existence, a majority of people are reaping its benefits. Cryptocurrencies (or popularly known as digital currencies) have become the money 2.0. 

It all started with a bitcoin and today, more than 2,322 cryptocurrencies being traded in the crypto sphere. These digital currencies utilize cutting-edge cryptography to verify and secure transactions with the help of a technology known as Blockchain.

Blockchain is one of the most promising technologies that support cryptocurrencies, utility tokens as well as security tokens. The crypto assets offer hundreds of opportunities to bring transformation to the online financial marketplace.

So far so, ‘Security Token Offering’ has been the most searched keyword online. Clearly, it reflects that the future holds a lot of scope for security token offerings (STO).

Are security tokens the next big thing? What are the benefits of STOs? Can I launch a successful STO? This article will walk you through everything you need to know to launch a successful STO. 

Scroll to unlock the doors to the future of finance.

First thing first

STO is an acronym for Security Token Offering. It refers to a type of token sale where new tokens are created and traded under regulated conditions. 

Unlike ICOs, STOs are secure and reliable. The chances of fraud are nil. The key benefit of security tokens is the improved liquidity of physical assets which allows more and more users to trade them digitally on sto exchange platform.

These digital tokens are generally backed by real, physical assets such as high stocks, gold or something more valuable. The securities and exchange commission regulations of a security token vary according to the country. 

Let’s move on to know what makes security tokens attractive to investors.

Benefits of STO

A security token is just like any other cryptocurrency that can pay shares, interest, generate interest or invests in any other asset to produce a profit. Some of the other advantages that security tokens offer are: 

• Credibility: STOs abide by all the rules and allow blockchain and cryptocurrencies to restore credibility.
• Improved traditional finance: Unlike traditional securities, security token offerings facilitate their services at a lower cost.
• Computerized: Security tokens are programmable and can be carried out by smart contracts. 
• Open source: Security tokens are available to anyone online unlike the traditional security that deals only with local individuals.
• Low market manipulation: Free and open market, with fewer mediators, lessen the risk of market manipulation.
• High liquidity: Investors would be able to liquidate their assets easily using specialized security exchanges offered by STOs. Besides, being borderless, the blockchain space turns the post STO liquidity greater than the token confined to a single jurisdiction.
  

Given the immeasurable benefits, if you are planning to create a successful STO, you need to market it well. A good STO marketing plan is something you need to adhere to in order to gain more returns and profits from it.

Read Full Article

Products Of Crypto Derivatives Trading And Trading Strategies

 

The cryptocurrency trading sector is gradually evolving into a complete ecosystem. Gone are the days when only conventional trading of coins was encouraged. The market has matured and has bestowed the traders with sophisticated and mature financial instruments – Crypto derivatives. 

If you are looking to start trading derivatives, then this is the only article you need to read to get up to speed. I have used the Q&A format to cover most of the key concepts for the crypto derivatives.

What Are Cryptocurrency Derivatives?

Mathematics and financial markets walk on similar paths when derivatives come into the picture. The concept of derivatives was introduced in Mathematics. It referred to a value or a variable which has been derived from another variable. Similarly in financial markets, the derivative is an instrument that is derived out of some market products. Its price is dependent on the value of the underlying asset from which it is derived. The underlying asset can range from stocks, currencies, commodities, indices, etc.

When the underlying asset is a cryptocurrency, the derivative is referred to as cryptocurrency derivatives. It is a financial contract between two or more parties based on the future price of the cryptocurrency.

Futures Contract

What is a futures contract?

It is a derivative contract between two parties to buy or sell the underlying at a pre-defined price and on a pre-defined date in the future. The underlying in this case is the cryptocurrency. One who buys the contract is said to be in a long position and one who sells it is said to be in a short position. The pre-defined price is the price of the futures contract and the pre-defined date is termed as the maturity date of the contract. Such contracts are standardized and are traded on exchanges. 

Let us understand the effect of changes in the price of the underlying cryptocurrency on the returns of the two parties. The buyer of the contract gains profit when the price of the underlying goes up because the contract allows him/her to buy the underlying at a cheaper price. In the same way, the seller is at the profit when the price of the underlying declines. 

So while trading futures, all you need to know is – go long when the price is predicted to increase and go short when the price is expected to fall. 

The futures contract in which the underlying is the cryptocurrency coin, then it is known as a cryptocurrency futures contract. For example, if the underlying is the Bitcoin, then it is called Bitcoin future contract and if it is XRP, then it is called a ripple futures contract.

Do I need to have cryptocurrency to trade cryptocurrency futures?

It is not important to have a cryptocurrency to trade cryptocurrency futures. The gains and losses of the futures contract are independent of the underlying. Let me explain it through example. Consider a Bitcoin futures contract. Assume there are two types of the futures contract on this coin:

Bitcoin settled: The gains or losses of this contract are in terms of Bitcoin and hence one needs Bitcoins to trade this contract.

USDC settled: The gains or losses of this contract are in terms of USDC and hence one needs USDC to trade this contract. 

Thus, the Bitcoin future contract can have its profit or loss in potentially any fiat or cryptocurrency. So there is no need to have a particular cryptocurrency to trade futures of that cryptocurrency.

Example of a cryptocurrency futures trade

Assume that the current price of Bitcoin is $4000. Trader A thinks that the price will go up to approximately $4500 in a month’s time. He buys the contract from trader B that will allow him to buy Bitcoin at $4100 one month hence. In this case, trader A goes long the Bitcoin futures at $4100. 

Profit/loss for Trader A = Current_BTCFutures_Price – $4100

Profit/loss for Trader B = $4100 – Current_BTCFutures_Price

As a matter of fact, the price of the Bitcoin futures typically tracks the current price of the Bitcoin. Also, at the time of maturity, the price of futures equals the price of Bitcoin. So if trader A holds the position till maturity and at that time the price of Bitcoin is $4300, then:

Profit/loss for Trader A = $4300-$4100=$200

Profit/loss for Trader B = $4100-$4300=-$200

Note that, we are considering the changes in the price of the futures contract and not the price of Bitcoin. 

Espay’s crypto futures derivatives contract development can help you in developing a competitive platform for futures trading.

Options

What are Options?

Options are the types of financial derivatives that give the holder the right but not the obligation to buy or sell a certain number of an underlying asset at a pre-defined price at a pre-defined time. They are extremely useful to hedge the risk and protect the portfolio. As a matter of fact, if they are traded with precision, one can earn outsized trading gains. 

Let us now understand what are crypto options.

Crypto Options are the options contract that has specific cryptocurrency as the underlying asset. Options enable traders to short the market (i.e. gain profit even though the price is declining). Thanks to options, crypto traders can now reap benefits from both bull and bear markets.

What are the types of Options?

Options are of two types namely call option and put option. These options consist of similar basic components – underlying asset, strike price, expiration date, and order size.

A call option is the right to buy an underlying asset (e.g. BTC or XRP) at a certain price (strike price) at a certain date (expiration date). A put option is the opposite of the call option, it is the right to sell the underlying instead.  

Options are also classified into two more types namely European and American options. European options can only be executed at the expiration date. While the American options can be exercised anytime or on prior.

Examples of Cryptocurrency Options trade

Call Option Example

Underlying Asset – BTC

Strike Price – US $8000

Expiration Date – July 30, 2020

Order Size – 1 BTC

The option mentioned above gives the trader the right to buy 1 BTC at the US $8000 on July 30, 2020, no matter what the price of BTC is at that point in time. As of today, the price of BTC is $4500. 

If the price of BTC does not cross the US $8000 at the expiration date, then it makes no sense to execute the option. It will be worthless (out of money – OTM) option. 

But, if the price of BTC crosses the strike price, then it makes sense to execute the option and buy 1 BTC at a price (the US $8000) which is lower than the then market price. This will help the trader gain profit (in the money – ITM option).

Read Full Article

IEO the current trendsetter and a brief comparison between 2018 and 2019 IEO

 

What is and IEO?

IEO stands for Initial Exchange Offering. It is like an ICO run through an exchange. In ICO, instead of shares, utility crypto tokens are sold at a discount in return of cryptocurrencies to fund the project. Here the tokens are sold via a crypto exchange. It is more reliable than an ICO as it is regulated and listed. Instead of an ICO where only two parties are involved, IEO involves three parties, i.e. Projects – Exchanges – Investors.

Why IEOsare currently trending?

• Trustworthy: As it is listed on crypto exchanges, the chance of fraud is very slim. The exchange’s reputation is on the line, so they study each project very carefully before listing.
• Open to all exchange users: It is open to all the investors on the exchange as there are no eligibility criteria.
• Security: The exchange makes sure there are no frauds like hacking and theft. It is more secure than ICO, as it is regulated.
• Regulation: The exchange conduct KYC for its users to make sure it is genuine. The issuing company does not need to conduct its own regulation, as it is done by exchanges.
• Token liquidity: After the IEO ends the investor can easily sell their tokens through exchanges to liquidate the money. It is one of the major factors which makes IEO much better than ICO.
• Not restricted: It is not restricted in many countries like ICO. China and many other countries have restricted cryptocurrency trading and ICOs. IEOs doesn’t face this problem.
• Reward programs: It includes distribution of airdrops and bounties for the investors. Exchanges are airdrop friendly, and it encourages more investors to invest in the project.
• The benefit to exchanges: The exchanges receive listing fees from the issuing company. They also benefit from new users.
• IEO development: There are many IEO development and marketing companies which help the users to develop and market tokens. They provide IEO development services for a new project from scratch as well as an existing project. An IEO development company, thus is extremely beneficial for investors looking for one point solution.
• IEO solutions: There are marketing companies which provide IEO solutions to its users. If at any point, you need to start an IEO project, you can simply approach an IEO solutions company.

These are all the factors which makes IEO so much better than ICO and still trending despite all the odds.

Famous IEO Exchanges and Platforms

Binance was the first exchange to launch a successful IEO platform called Binance Launchpad. After this, all the other exchanges started launching their own IEO platforms and provide Initial Exchange Offering Services. Some of the famous exchanges launching IEO platforms are as follows,

Exchange	Platform
Binance	Binance Launchpad
Bittrex	Bittrex International IEO
BitMax	BitMax Launchpad
Huobi	Huobi Prime
KuCoin	KuCoin Spotlight
OKEx	OKEx IEO

IEOs in 2018

ICOs started collapsing in 2017 and 2018due to scams and frauds. People started losing hope in the Cryptocurrency market. However, it was saved by IEOs, which provided a much safer and trustworthy market for investment. Binance was the first exchange started in 2017. Coineal exchange was started after Binance in April 2018. It focused on advanced development. It has launched ten successful start-ups like ZeroBank, IPWeb and GTEX. In 2018 Bread raised $6 million through IEO. IEO gave investors a nice platform to invest their money in. IEOs became quite profitable and famous in late 2018.

IEOs in 2019

The first quarter of 2019 was very profitable for IEOs. But later the market started collapsing. Bitmaxlaunchpad was started on 10 March 2019. It raised $1.5 million. Celar raised $7.5 million in 2019. Matic raised $4.5 million. Top raised $3.3 million. Newton raised $ 4.8 million. VeriBlock raised $7 million. Binance raised about $17.5 million followed by Huobi raising $8 million in 2019. IEOs raised a total of $1.474 billion in 2019. However, in late 2019, IEOs investors lost up to 98% of their money due to scam. Early 2019 gave a boost to IEOs buy by the end of the year many people lost their money. 

Successful IEOs launched in 2019:

• BITTORRENT – $7.2 million
• VERIBLOCK – $7 million
• OCEAN PROTOCOL – $6 million
• FETCH.AI – $6 million
• MATIC – $5 million

Read Full Article