Crypto World Opportunities
Let’s talk today about new fast emerging Crypto World that will change everything and will have more impact on daily life people since the internet was made.
Maybe you see some of this news titles in social networks or other media:
- Bitcoin soaring more than 400% this year.
- The market for cryptocurrencies has exploded from $17 billion to $170 billion since January.
- Volumes per day for bitcoin are up from $57 million at the beginning of the year to $628 million.
- Pantera Capital to Raise $100 Million in Investment for ICO Hedge Fund
Let’s understand why everybody start talking about Bitcoin, cryptocurrencies and ICO’s.
What is Bitcoin?
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros — they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
Bitcoin was started in 2009 year and it’s starting price was $ 0.05. Today it’s price hit $ 6000.
It is mean, if you invested in Bitcoin $1000 in 2009, today your investments worth $300 000. If you invested $10 000 in 2009, today worth will be $3 000 000 and so on.
So, today technologies allow for startups to create own cryptocurrency (token) that they can use in tech platform/marketplace for some purpose. Also this token allow startups and investors to make funding of the project this is called ICO (Initial Coin Offering).
What is ICO? And why startups and “Smart Money” is going in it?
According to Wikipedia, ICO is crowdfunding via use of cryptocurrency, which can be a source of capital for startup companies. In an ICO a percentage of the newly issued cryptocurrency is sold to investors in exchange for legal tender or other cryptocurrencies such as Bitcoin.
Today a lot of “Smart Money” — venture funds are going to ICO:
The Altana Digital Currency Fund rose 413% year to date as of the end of August, compared to the 5.5% average for all hedge fund strategies, Financial Times writes. Some of these funds have attracted attention from well known Silicon Valley venture capitalists, such as Polychain Capital, whose CEO tells the publication that it has a $250 million fund investing in initial coin offerings (ICOs) and cryptocurrencies.
The number of funds investing in digital assets like bitcoin has grown rapidly to 124 and estimates that the “crypto-funds” have about $2.3 billion in total assets under management, according to CNBC
According to a Bank of America Merrill Lynch survey of 200 fund managers around the world cited by the Financial Times. At least 68 hedge funds invest in cryptocurrency in some way, according to Autonomous NEXT research cited by the publication.
Right now, there’s an incredibly dynamic market in its early days.
What is the advantages of ICO rather than Traditional Venture Deals with investing in equity?
When you invest in startup equity you are locked with your investments on 5 years and more until company that you invest don’t become public and you can sell your stock’s on the stock exchange such as NYSE, Nasdaq, etc. Even if startup that you invest is grow rapidly and your equity stocks worth millions dollars you can’t cash out them. You are only millionaire on the paper, not in real money.
ICOs solve this issues and allow to deal Win-Win collaboration between investors and startups.
After startup make ICO and make fundraising — founders list the cryptocurrency token on the cryptoexchanges and investors can trade their new digital assets in some month after ICO, not years like in traditional equity venture deals. It is mean, that you can add your investments in startup or sell part/all investments in any time you want. You are not locked on paper you are free in your investments decisions and can make it in any time in any amount.
In same time startups have enough financing for global growth. Usually funding with ICO is more than in traditional venture capital deals 10x, 20x and startup after launching platform can start growing global, not only on local market in any country. Founders can focus on development platform and global expansion and don’t waste time to founding sources for next investment round. Also founders don’t feel pressure from investors that want have cash out and move company go public (IPO) for returning their investments.
That’s why every day more and more startups and Smart Money are going in Crypto World.
Total market cap of cryptocurrencies climb more than 800% this year, according to Forbes.
People are realizing that crypto assets are safer, more secure, and easier to use and that crypto assets are a long term play and not a short term fad.
Hope, I can a little bit more open for you a new Crypto World and advantages of it’s win-win collaboration model between investors and startup founders.
In next meet, I will talk more about our new verified cryptocurrency Setcoin. Why it is interesting for investment and have growth potential with ROI for investors even much higher rather the well known Bitcoin.
Also here you can find article about Opportunities of Early Stage Investments
I’m waiting with excitement our next e-meet!
If you have any questions or want to talk about this article, please don’t hesitate to contact me via LinkedIn
Inserviss Decentralized Mobile Platform Marketplace
Service Exchange Token is new cryptocurrency issued by Inserviss.inc mobile marketplace for transaction payment between Service Providers and customer