Initial Coin Offerings (ICO) is very similar to initial public offerings – a company’s initial emergence on the stock exchange. Decentralized apps, or Dapps, are used as a fundraiser for tech companies to receive public appraisal. However, instead of using shares, in ICO, coins, and tokens, are used. The purchase of the coins are made, instead of the purchase of shares, and then traded on private exchanges that are similar to NASDAQ.
The main difference between coins and tokens are that tokens are used to invest into a betting service. Coins can be accepted as a form of payment for the betting service. Coins are used for simple transactions as they have a specific value. Tokens are programmable and multifunctional, while being generated instead of offered.
Companies building Dapps are the ones that organize ICOs by creating, and announcing, an event that will take place during a certain period of time. During this event stakeholders will be allowed to purchase a certain amount of tokens. For certain privileged investors, a pre-sale event, often discounted, is made available before the ICO date so certain investors may purchase tokens in advance and at a cheaper rate.
There are several steps you must take in order to participate in an ICO. First you must own bitcoins (BTC) or ethereum (ETH). BTC are most accepted, and, in some cases, the only currency accepted. You will not be able to acquire coins, or tokens, using regular money, or what they call FIAT currencies in the way that most investors are. However, there is a method you can use to buy in an ICO that will be discussed shortly. The token owner will usually provide instructions on how to put your BTC, or ETH, on a wallet compatible with the owner’s operation. Because ICO happen only during a short period of time, and only last until the allowed amount of tokens run out, you have to make sure you are available exactly on time for the event. If you are on time, with correct wallet compatibility, you can send in your contributions. The only problem with this step is that you will not know if your contributions were received until the ICO is over. There is such a small amount of time from the start of the ICO that it can close within minutes of it starting. If your contributions have successfully been sent, and received, once the ICO is finished you will receive notification and the tokens you obtained will be in the wallet you initially used.
For those who want to participate in an ICO, but do not have BTC or ETH, only have FIAT currency, there is good news. Organizations, like BitcoinSuisse, allow investors will do the work for your using your FIAT currency for a fee. This is an easy way to get into an ICO. The only downside is, due to regulations, this organization does not offer this service to customers in the United States.
There are tournaments that take place all over the world with the best of the best online gamers. These tournaments take place in stadiums and arenas, are televised in many locations, and can also be seen online. During the tournaments, while you see the characters played, you also see the gamer playing with the characters. At these competitions, eSports competitors can play solo or on a team as fans sit back and watch the action. When it comes to betting on eSports, the competition is very real. In the tournaments, thousands enter the arenas to watch the competitions, the winner walks away with a large amount of money, and the investors who are betting stand a chance of either winning or losing. As you can see, eSports, online gaming, and ICOs created for betting to happen are all very important.
Even though BTC is accepted in most ICOs, when it comes to eSports, an Ethereum blockchain-based token is what you need. Skincoin, based on ETH platform, is a cryptocurrency – a digital currency in which techniques of encryption are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. It has been developed to use for eSports: placing bets online, trading digital goods inside the game, and purchasing skins for various games. A cryptocurrency driven ecosystem is in the process of being created with the formation of partnerships between Skincoin and the eSports and online gaming industry. For Skincoin, the purpose of these partnerships is to become the main cryptocurrency used for online gaming purposes.
Another ETH blockchain-based token is the Unikoin, from the company Unikrn. Unikoin is also used for betting in eSports and online gaming. It comes in two levels: UnikoinGold and UnikoinSilver. UnikoinGold has many more perks than silver, even though both have its special perks. Unlike other ICOs, the pre-sale of Unikoin ICO accepts the US Dollar along with BTC and ETH. Once the pre-sale finishes, ETH is the only way to obtain Unikoin.
Since companies want to make their Initial Coin Offering events public, it is important to keep your eyes open on their websites, or even public forums, as to when the ICO event is – of course, this is if you are interested in getting involved. Remember, if you are in the United States, finding an organization that will do the heavy lifting for you during an ICO may be challenging, and will cost you more if you are using US Dollars and you were not invited to the pre-sale. Obtaining BTH for ICOs is more important than ETH, unless you are obtaining tokens for eSports. In this case, ETH is your only option. Always be ready with your contribution and make sure your wallet is compatible with the event. This will increase your success rate in each ICO.