Common Terms You Should Know to Understand Cryptocurrency (3)
OZEX team is fully aware of the fact that the cyrptocurrency industry is full of new technical jargons by which people new to cryptocurrency world may get confused. So, we OZEX team have planned special articles exploring the most common crypto terms used in cryptocurrency market to help our users to become the best participants in cryptocurrency market they can be.
This article is the third of our three part series and explains the terms related to ICO.
3. ICO Related Terms
ICO
An unregulated means by which a cryptocurrency venture, typically early stage, can raise money from supporters by issuing tokens. It is often referred to as a crowdsale as ICO participants may potentially earn a return on their investments (as opposed to crowdfunding, where supporters donate money to a project or cause). Ethereum is currently the most popular platform for launching ICOs.
KYC
Know Your Customer(KYC) is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship. Know your customer processes are employed by companies of all sizes for the purpose of ensuring their proposed agents, consultants, or distributors are anti-bribery compliant. Banks, insurers and export creditors are increasingly demanding that customers provide detailed anti-corruption due diligence information.
Private Sale
Also called Institutional Round. Typically defined as a sale of tokens to early investors that is not open to the public or not announced. If private sale is announced, ICOs usually have stricter requirements for participation and are very picky with who they let into private sale with some doing video calls or interviews to ascertain if investor is aligned with the ICOs goals. Bonuses or discounts may be offered based on how big the contribution is.
Pre-Sale
Pre-sale refers to a token sale conducted before main public sale. Pre-sales are announced and promoted on the website, social media and possibly through advertising. An ICO pre-sale provides a good middle ground for investors wanting a higher discount or bonus compared to main sale without the drawbacks or the high risks associated in participating in private sale. Various bonuses or discounts may be offered based on how early you contribute and how large the contribution is.
Main Sale / Public Sale
An ICO main public sale is the main token sale of the ICO. It sometimes goes by several names like Token Generation Event (TGE) and Initial Token Offering (ITO). A main sale is more widely promoted and advertised than pre-sale. The public sale also usually offers the least risk of the 3 ICO sales but usually lesser bonuses or discounts compared to private sale or pre-sale. Various bonuses or discounts may be offered based on how early you contribute and how large the contribution is.
White Paper
An informational document that generally informs readers on the philosophy, objectives and technology of a project or initiative. White papers are long-form content designed to promote the products or services from a specific company. As a marketing tool, these papers use selected facts and logical arguments to build a case favorable to the company sponsoring the document. Whitepapers are often provided before the launch of a new coin or token.
White list
A list of registered and approved participants that are given exclusive access to contribute to an ICO or a pre-sale.
Smart Contract
An automated mechanism involving two or more parties where digital assets are put in and redistributed at a later date based on some preset formula and triggering event. The contract can run as programmed without any downtime, censorship, fraud or third party interference.
MEW
My Ether Wallet. A free site that can generate Ethereum software wallets for you.
Token
Referring to the ‘currency’ of projects built on the Ethereum network, which are given to investors in exchange for Ethereum.
i.e. OZEX — OZX
ERC-20 Token
A type of token standard for Ethereum which ensures the tokens perform in a predictable way. This allows the tokens to be easily exchangeable and able to work immediately with decentralized applications that also use the ERC-20 standard. Most tokens released through ICOs are compliant with the ERC-20 standard.
Token Lock-up
Locking up tokens is a mechanism that does not allow some token owners (usually the founders and core team) to transact, move the tokens, or in other words sell the tokens for a specific period of time. This ensures that they will work in order to increase the value of the tokens so at the end of the lock period, the tokens will still have value. It prevents raising funds in the ICO and selling the tokens right away. That’s why it applies to people whose work is very important in making the company a success.
Token Burn
An ICO will normally define the amount of tokens that it intends to sell before the sale begins. However, not all ICOs will necessarily sell all the tokens that they have made available to investors. In this scenario many ICOs will burn the unsold tokens. The alternative to this being that the founders keep the remaining tokens for themselves or possibly airdrop them. However, the disadvantage of doing so is that it could lower the value of the tokens that have been bought and are in circulation, especially the former which is also doing so to the sole benefit of the founders.
Hard Cap
The maximum amount that an ICO will be raising. If an ICO reaches its hard cap, they will stop collecting any more funds. See also: soft cap.
Soft Cap
The amount received at which the sale will be considered a success. It is the minimal amount required by a project.
Gas price
A term used in the Ethereum platform that refers to the price you are willing to pay for a transaction. Setting a higher gas price will make miners more incentivized to prioritize and validate that particular transaction ahead of those set with a lower gas price. Gas prices are typically denominated in Gwei.
Wei
The smallest denomination of ether. 1 Ether = 1000000000000000000 Wei (10¹⁸)
Gwei
Another denomination of ether. Gas prices are most often measured in Gwei. 1 Ether = 1000000000 Gwei. (10⁹)
The Flippening
A potential future event wherein Ethereum’s market cap surpasses Bitcoin’s market cap, making Ethereum the most ‘valuable’ crypto-currency
Solidity
One of the most popular languages that smart contracts can be written in. Has some similarities to Java script.
SAFT
A SAFT is a form of fundraising, intended for digital-currency startups and directed at accredited investors, which promises tokens when the project or company becomes operational. While a SAFT sounds very similar to a standard ICO, the difference is that under an ICO the tokens are issued immediately; under a SAFT it is a promise to deliver tokens.
Referral Code
A referral code is a unique number assigned to every participant. They can use this code to refer their friends to ICO related programs and get rewarded.
Tiers
Grades. Some ICOs grade participants based on their contribution and distribute various bonuses or discounts accordingly.
Meetup
Formal and informal events to build knowledge, share experience and create a community around ICOs.
Without extensive knowledge and experience in cryptocurrency, investing in cryptocurrency market demands a significant amount of time and effort in order to understand the nuances of businesses and market operations, and identify the right investment opportunities.
Participating in cryptocurrency market should be properly assessed by reviewing managerial structure, growth plans, etc., so it is advisable to consult with experts who are familiar with this field and are able to raise fund in the right direction.
OZEX can be your advisor in this new cryptocurrency market.
The dedicated OZEX platform has been designed by a team of experts in cryptocurrency industry. OZEX is a project that automatically airdrops 80 NEW TOKENS that are prospective and verified by the experts to OZX holders (Minimum 1,000,000 OZX) over three years. Therefore, OZEX will play a role in providing convenience, stability and profitability for cryptocurrency market as your advisor.
OZEX, as an investment coin, is currently conducting its ICO in 3 rounds. OZEX will be airdropping 3 different new tokens to every OZEX ICO participant, regardless of the amount of OZX you are holding. Simply join OZEX ICO and guarantee that you will receive verified and prospective extra new tokens.
The OZEX ICO will proceed for two months from June 20, 2018 to August 28, 2018. The first round started on June 26 has successfully ended only in 25 hours. The first-round new airdrop token was ‘LegalBlock’.
The second round will commence on 16th of July, 2018 and the free airdrop token, ‘KICKCOIN’ will be airdropped at a 1 KICK to 100 OZX ratio after the end of OZEX ICO. The hard cap for 2nd ICO round is 200 million OZX and the value of 1 OZX is 0.01 USD.
The OZX token will be listed on an exchange by the end of August 2018 and will be listed on other global exchanges over the next months.
For further information about OZEX ICO, please check out OZEX official channels below.
Webpage : https://ozex.io
Whitepaper : https://github.com/ozexproject/OZEX-Whitepaper
Bounty promotion : https://bitcointalk.org/index.php?topic=4459199.0;all
Twitter : https://twitter.com/ozex_official
Facebook : https://www.facebook.com/OZEXproject
Medium : https://medium.com/ozex
Steemit : https://steemit.com/@ozexproject
Telegram (Global) : https://ozex.io/telegram
Instagram : https://www.instagram.com/ozex_official/
Bitcoinforum : https://bitcointalk.org/index.php?topic=4355099.0
OZEX white paper v1.1 — https://github.com/ozexproject/OZEX-Whitepaper
Official OZEX email address : info@ozex.io
