Cryptocurrency News & ICO Alerts

Cryptocurrency News Blog – ICO News Feed

  • News - 24 May 2022, 12:10 pm

    Legislators in the lower house of Russia’s parliament also dropped the notion of a special register for mining operators. In less than a month, the draft of a crypto mining bill in the Russian parliament has lost several key points, such as the obligation for mining operators to join a special registry and a one-year tax amnesty for all those who’ve registered. As the reasoning goes, the previous draft would lead to federal budget losses. The fresh draft of the law “On mining in Russian Federation,” dating to May 20, appeared in the database of the lower chamber of the Russian parliament, the State Duma. The document bears several significant changes from the past version, presented…Read More

  • News - 24 May 2022, 11:42 am

    In partnership with Sumitomo Mitsui Trust Holdings, crypto exchange Bitbank revealed plans to establish JADAT, a crypto-specialized custodian. In a new development for East Asia, Japanese crypto exchange Bitbank announced a partnership with financial holding company Sumitomo Mitsui Trust Holdings with the goal of establishing Japan Digital Asset Trust (JADAT). According to an announcement sent to Cointelegraph on Tuesday, JADAT will be created to offer custodial services along with auditing and wallet insurance. The company is designed to facilitate the entrance of institutional players into the Japanese digital asset market.Once established, the firm will specialize in custody services for digital asset holdings including cryptocurrency, security tokens on public blockchains, stablecoins and nonfungible-tokens (NFTs). Bitbank is one…Read More

  • Bitcoin News - 24 May 2022, 11:30 am

    The Department of the Interior of Uruguay is taking steps to warn users about the danger they face when investing in certain crypto projects that could be scams. The campaign is called “Fake Coins: Cryptocurrency Scams” and seeks to educate the population about the most common kinds of crypto scams. Uruguay Educates on Crypto-Related Scams […]Read More

  • News - 24 May 2022, 11:18 am

    Don’t hold your breath for a return to $69,000 this year or next, one commentator says. Bitcoin (BTC) stuck to “rangebound movements” into May 24 as price action avoided expected volatility.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewNo joy for BTC bulls after DXY downmoveData from Cointelegraph Markets Pro and TradingView showed BTC/USD returning to circle $29,000 after failing to hold $30,000 support.On hourly timeframes, the pair thus continued a familiar pattern of swings between the two zones, refusing to explore more extreme territory either up or down.”The crucial breaker for Bitcoin is again the $29.4K area. If that breaks -> next test at $30K,” Cointelegraph contributor Michaël van de Poppe summarized in his latest Twitter update.…Read More

  • Bitcoin News - 24 May 2022, 9:30 am

    Sumitomo Mitsui Trust, one of the major banking institutions in Japan, will reportedly enter the cryptocurrency custody business. The company is entering a partnership with Bitbank, a Tokyo-based cryptocurrency exchange, to launch a new company that will focus on offering institutional-grade custody for digital assets and NFTs. Sumitomo Mitsui Trust Bank to Enter Digital […]Read More

  • News - 24 May 2022, 9:00 am

    ADDX uses blockchain technology and smart contracts to tokenize and fractionalize private markets, including pre-IPO equity, private equity, and hedge funds and bonds. ADDX, a blockchain and smart contract-based digital securities platform from Singapore raised $58 million from mainstream financial institutions to fund its goal of reducing minimum private investment sizes via tokenization and fractionalization.The Monetary Authority of Singapore regulates ADDX as a digital securities exchange that aims to democratize private markets. The Pre-Series B funding round saw participation from the Stock Exchange of Thailand (SET), UOB, Nasdaq-listed Hamilton Lane and Thailand’s Krungsri Bank, which has brought total funds raised by ADDX to around $120 million. As explained in the announcement, ADDX uses blockchain technology…Read More

  • News - 24 May 2022, 8:44 am

    The third day of WEF 2022 will see the OECD secretary-general share his thoughts on a reimagined global tax system and industry experts discussing DeFi as the future of decentralized governance. Disclaimer: This article is being updated all day long. All timestamps are in the UTC time zone, with updates in reverse order (the latest update is placed at the top).WEF 2022, the first in-person World Economic Forum event since the pandemic started, continues to bridge traditional finance with the future of money on its third day. The Cointelegraph ground team, including editor-in-chief Kristina L. Corner, head of video Jackson DuMont and news reporter Joseph Hall, is deployed in Davos, where the event is held,…Read More

  • Bitcoin News - 24 May 2022, 7:30 am

    With the approaching tsunami of central bank digital currencies (CBDCs) looming ever closer, it shouldn’t come as a surprise when central banks shill their coins at the expense of sounder assets. Recently, European Central Bank president Christine Lagarde went so far as to say that cryptocurrency is “worth nothing.” According to Lagarde, crypto has “no […]Read More

  • News - 24 May 2022, 6:00 am

    Officials from all over the world continue discussing the solutions for stablecoins’ risks It’s been two weeks since the shock of the TerraUSD (UST) depegging, but the long waves of this event are still coming in. The Congressional Research Service described the UST crash as a “run-like” scenario and claimed that the crypto industry has not reached the same level of “adequate regulating” as the traditional finance market. Michael Barr, former advisory board member of Ripple Labs and United States President Joe Biden’s pick for a vice chair for supervision at the Federal Reserve, definitely agrees with that. During the confirmation hearing, he mentioned “some significant risks” that innovative technologies and cryptocurrencies, in particular, bring along. It’s…Read More

  • Bitcoin News - 24 May 2022, 5:30 am

    Several crypto firms, including Binance and Circle, have launched a new crypto scam reporting platform. The tool “empowers anyone in the crypto economy to warn others about scams, hacks or other fraudulent activity as they encounter it.” New Crypto Scam Reporting Platform Launched A number of crypto firms have joined forces and launched a […]Read More

  • Bitcoin News - 24 May 2022, 3:30 am

    India’s central bank, the Reserve Bank of India (RBI), has warned about investing in the crypto market following the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST). “We have been cautioning against crypto and look at what has happened to the crypto market now,” said Governor Shaktikanta Das. RBI’s Governor on Crypto Market […]Read More

  • Bitcoin News - 24 May 2022, 1:30 am

    Renowned investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, says he has “optimism about the future of crypto money.” However, he is skeptical of central bank digital currencies and warned that the world is looking for something to replace or compete with the U.S. dollar. Jim Rogers on Bitcoin, Crypto, […]Read More

Cryptocurrency News: An initial coin offering (ICO) is the cryptocurrency industry’s equivalent to an initial public offering (IPO). A company looking to raise money to create a new coin, app, or service launches an ICO as a way to raise funds.

Interested investors can buy into the offering and receive a new cryptocurrency token issued by the company. This token may have some utility in using the product or service the company is offering, or it may just represent a stake in the company or project (Cryptocurrency News).

Invest Safely In Cryptocurrency - Cryptocurrency News Blog - ICO News Alerts

How an Initial Coin Offering (ICO) Works

When a cryptocurrency startup wants to raise money through ICO, it usually creates a whitepaper which outlines what the project is about, the need the project will fulfill upon completion, how much money is needed, how many of the virtual tokens the founders will keep, what type of money will be accepted, and how long the ICO campaign will run for.

During the ICO campaign, enthusiasts and supporters of the project buy some of the project’s tokens with fiat or digital currency. These coins are referred to the buyers as tokens and are similar to shares of a company sold to investors during an IPO (Cryptocurrency News).

If the money raised does not meet the minimum funds required by the firm, the money may be returned to the backers; at this point, the ICO would be deemed unsuccessful. If the funding requirements are met within the specified timeframe, the money raised is used to pursue the goals of the project.

Although ICOs aren’t regulated, the Securities and Exchange Commission (SEC) can intervene. For example, the maker of Telegram raised $1.7 billion in an ICO in 2018 and 2019, but the SEC filed an emergency action and obtained a temporary restraining order due to alleged illegal activity on the part of the development team.1 In March 2020, the U.S. District Court for the Southern District of New York issued a preliminary injunction, and Telegram had to return $1.2 billion to investors and pay a civil penalty of $18.5 million. Cryptocurrency News Blog

Special Considerations (Cryptocurrency News Blog)

Investors looking to buy into ICOs should first familiarize themselves with the cryptocurrency space more broadly. In the case of most ICOs, investors must purchase tokens with pre-existing cryptocurrencies. This means that an ICO investor will need to already have a cryptocurrency wallet set up for a currency like bitcoin or ethereum, as well as having a wallet capable of holding whichever token or currency they want to purchase.

How does one go about finding ICOs in which to participate? There is no recipe for staying abreast of the latest ICOs. The best thing that an interested investor can do is read up about new projects online. ICOs generate a substantial amount of hype, and there are numerous places online in which investors gather to discuss new opportunities. There are dedicated cryptocurrency news sites that aggregate ICOs, allowing investors to discover new ICOs and compare different offerings against one another.

Initial Coin Offering (ICO) vs. Initial Public Offering (IPO)

For traditional companies, there are a few ways of going about raising the funds necessary for development and expansion. A company can start small and grow as its profits allow, remaining beholden only to company owners. However, this also means they may have to wait a long time for funds to build up. Alternately, companies can look to outside investors for early support, providing them a quick influx of cash—but typically coming with the trade-off of giving away a portion of ownership stake. Another method is to go public, earning funds from individual investors by selling shares through an IPO.

While IPOs deal purely with investors, ICOs may deal with supporters that are keen to invest in a new project, much like a crowdfunding event. But ICOs differ from crowdfunding in that the backers of ICOs are motivated by a prospective return on their investments while the funds raised in crowdfunding campaigns are basically donations. For these reasons, ICOs are referred to as “crowd sales.”

ICOs also retain at least two important structural differences from IPOs. First, ICOs are largely unregulated, meaning that government organizations like the Securities and Exchange Commission (SEC) do not oversee them.3 Secondly, due to their decentralization and lack of regulation, ICOs are much freer in terms of structure than IPOs.

ICOs can be structured in a variety of ways. In some cases, a company sets a specific goal or limit for its funding, which means that each token sold in the ICO has a pre-set price and that the total token supply is static. In other cases, there is a static supply of ICO tokens but a dynamic funding goal—this means that the distribution of tokens to investors will be dependent upon the funds received (i.e., the more total funds received in the ICO, the higher the overall token price).

Still, others have a dynamic token supply which is determined according to the amount of funding received. In these cases, the price of a token is static, but there is no limit to the number of total tokens (save for parameters like ICO length).