ICO: All you need to know
Ranchi Mall ICO
“ My passion stems from the fact that these technologies have the potential to positively impact every single human being. They have the potential to change every sector. For example, incorporating blockchain technology into the financial sector — which impacts everyone’s lives — would change the way financial bodies work and empower the common people. Systems enabled by blockchain are conducive to faster economic development as they afford freedom from the bureaucracy of current financial systems.
Blockchain, the technology behind cryptocurrencies, is backed by mathematics and not by the monopoly of a few people. Blockchain enables transparency, autonomy from external governing organisations and full privacy during a transaction. In addition, cryptocurrencies are limited in supply. This enforces their value.”
— Gautam Gupta (A blockchain, cryptocurrency and 3D printing enthusiast)
This is part of a conversation I had with Gautam about ICOs. Gautam happens to be an admirer of Ranchi Mall’s ideas & products.
- What is an an ICO?
An ICO (initial coin offering) is a process startups use for raising funds. It is similar to an IPO (initial public offering) or crowdfunding. A whitepaper is written to explain the project, the amount of money required to initiate it, the quantity of tokens to be released, the amount of tokens to be kept by the creators, the medium of exchange such as legal tender money or cryptocurrency like bitcoin, the tenure of the project and, the projected returns on investment upon completion of the project. The coins are exchanged by the means established by the project creators or via an already existing IOC exchange. The money raised by the project during the initial offering is decided from the start and, if the ICO is unable to fulfil its initial required funds, the money is returned to the investors. ICOs are released into the market over a certain time frame as per the whitepaper. Investors invest in ICOs because the rate of these tokens tends to increase as they gain popularity. This brings the exponential financial benefit to investors that make cryptocurrencies a much talked about phenomenon.
2. Are ICOs risky? How is Ranchi Mall’s ICO unique?
ICO’s are risky! They are backed only by a whitepaper and not regulated by any financial authorities such as the SEC (Securities Exchange Commision). Therefore, anyone can offer an ICO no matter what their intention and what they convey to investors. The hard and painful fact is, once money is lost it cannot be recovered. Ranchi Mall is an example of a viable ICO. It’s first product, Bitcoin Bonds, was very successful. Ranchi Mall’s ICO is backed by 70% of the profit from their Bitcoin bonds The token also comprises 1% of Ranchi Mall FZE (Free Zone Enterprise) and is dynamically adding future products ensuring the increase in token value. The offering is backed by a blockchain process on the Flo Blockchain.
3. What steps should potential coin buyers take to avoid market risk when participating in an ICO?
While participating in an ICO, the investor should go through the whitepaper, join the community, get familiar with the project and look at the other products offered by the project owners, since they will provide security to the ICO. Ranchi Mall tokens are a good example of a viable ICO because its tokens are backed by the profit made by its other products. Investors should get a sense of the network’s game theory and learn to evaluate the token separately from the business model, so that they don’t get stuck holding a token that won’t appreciate, irrespective of how popular its platform gets!
You can write to :