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.

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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.

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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.

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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.

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