What is an ICO?

What is an ICO?

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Greetings Everybody    I am back the Crypto Crow here    to answer a quick question I’m  not going over any updates as I just  sent out a newsletter with 543 people on  it to kind of update everybody on  exactly what’s going on so I kind of  wanted to answer a question that I see  often surprisingly enough and before I  get to that question I just wanted to  show everybody the urban dictionary  definition for crow your coins to buy  cryptocurrency and hold for a minimum of  one year to avoid 39% capital gains tax  crow your coins boys let the money roll  in so this is actually just kind of a  funny thing that I did I thought you  know what what better than to legitimize  the crow your coin phrase on urban  dictionary I had some people from the  crypto crow telegram group thank you  guys to help out and kind of upload this  a little bit you’re welcome to look it  up give it some plus signs or some  thumbs up let the world know that you  adopt that phrase as your own so here’s  what we’re going to discuss we’re gonna  basically talk a little bit about what  the hell is an ICO

and I know this  sounds basic for quite a few of you this  is a very basic topic this is all I’m  gonna talk about in this video so feel  free to skip ahead but basically you  know that ICO is is it’s an abbreviation  for an acronym for an initial coin  offering okay now prior to the  blockchain you know space companies  would issue IPOs which was for an  initial public offering typically a  company that wanted to initiate and  initiate an IPO excuse me typically  those companies had you know solid  revenue already they’ve been in business  for quite a while they’re doing you know  hi seven figures in revenue but they  want to go public and grow further you  know they have you know Boyd or Board of  Directors CEO a whole executive chain  all that fun stuff  as well-established long before they  even start an IPO and you could only get  into it now excuse me you could only get  into an IPO if you are an accredited  investor which basically meant you were  already filthy rich you didn’t need the  money but it was just something fun for  you to get into so that you could get  richer and the common man was often left  out of the equation because unless you  had you know a million dollars in net  worth that you made I think at least two  hundred thousand dollars a year for a  period of several years in a row

you  couldn’t play play ball with the bigwigs  so you weren’t able to get into the  ground floor of some of these technology  applications like snapchat that you  coulda did one point bought for like  three cents a share or something  ridiculous had you’ve already been  filthy rich so I think you know in in  like kind with you know against the you  know what I what I refer to you know  when I think of the blockchain I think  of you know this revolution of  disruption right and not only has you  know cryptocurrency disrupted already so  many different business models and  mindsets but it also disrupted the  financial system substantially in that  you know an ICO is something that prior  to FCC regulation is a it’s ultimately a  mechanism used for establishing funds  whether it be startup funds marketing  funds whatever the case might be  depending on where a particular project  is and its development course or  milestones so what was happening I think  ripple was actually the first ICO if I’m  not mistaken but it wasn’t even like I I  hate to say this but you know to me  riffle is not a cryptocurrency I mean it  is I guess but it’s it’s it’s not  decentralized

it was a pre mined coin  and a bunch of bankers you know put  together and started getting all their  buddies to pump money into you know it’s  like oh what what show was i watching  where they basically did that with evil  company should I can’t remember it was  something I was watching I think it was  on Netflix if I’m not mistaken it was a  series where all  Oh Packer those hackers a TV show called  hacker on Hulu really good show but in  that show there’s a company called evil  company and they come up what they come  out with their own coin to kind of help  you know increase their profits and  ultimately save themselves from dying  and I thought it was very symbolic of  what’s happening to the financial system  today in cryptocurrency it’s like their  big last effort to try and be  competitive in a new space they know  very little about and so you know that  ultimately that’s that’s kind of what an  ICO is so you know prior to FCC  regulation you could ultimately launch  an IC o—- of your own with nothing  more than an idea

some flashy drawings  and a nice well-written white paper and  and because of the newness of the space  and the fact that all these people at  the time have been mining Bitcoin mining  a theory of mining all these crypto  currencies and ultimately creating money  out of thin air they were just growing  all this money at these new projects and  these grand ideas and so that’s  ultimately we created this ICO craze now  today Nico is much more difficult to get  involved with especially if you live  within excuse me the United States of  America because the ICC is basically  said you know the majority of crypto  currencies today at ICO are considered  securities and the reason for that and I  and I get there I get their reasoning  for this basically what they’re saying  is look you can be a utility token but  and if you are utility token it’s not  considered a security and therefore  you’re free to you know run your token  sale it’s not an ICO if it’s a utility  token it’s a token sale and the way you  word your campaign and your marketing  are very different and have different  meanings to them so if you’re running a  token sale that’s fine

you don’t have to  go through all the regulatory issues and  so forth as you would have you know  issuing a security however in order for  that coin hmm I hate it when I do that  sorry in order for that coin to be sold  at a token sale without it being  considered a security it has to be a  to an already existing platform in other  words that token has to have an  immediate use or its or its purchase is  based off a pure speculation so that’s  kind of the SEC stance on the difference  between a security and a utility token  outside of that you then have to like  let’s say if you were gonna launch an  ICO you have to SEC how we test I don’t  remember  fine so there are examples of passing  the Howey test I don’t know if this is  where it’s located I actually found that  how we test online I take it I took it  for moon runner and I’ve scored really  really really really low in terms of it  you know it’s not even really anywhere  close to being a security but the reason  why I took away all the links and  everything else out of you know I  basically I don’t want anybody buying  moon around right now because  technically according to the SEC it’s  considered a speculative coin because  the platform hasn’t launched

so the  token has no direct use and therefore  and he purchased that token it’s based  off of speculative you know it’s a  speculative point people are buying it  because solely because they think it’s  gonna go up in value almost like because  you don’t have a platform you’re  assuming that the value is going to rise  which is you know the reason for the  sale whatever so so yeah that kind of  cut my legs out as far as you know  helping get some development funding for  moon runner but that’s okay I mean my  developer we were it’s still well under  way he’s actually started had a really  good milestone yesterday as a matter of  fact so anyway but the how we test it  you know ultimately what constitutes a  security in an ICO is if you well one of  the big things is does your coin pay a  dividend in other words if if I’m buying  your coin and whatever you’re doing to  generate revenue profit for your company  you’re sharing those profits through you  know as a dividend to the coin like like  cost coin like the exchange coin I  talked about earlier which I like  ultimately they’re paying a dividend

they’re basically saying hey buy into  our  change and depending on how many of our  cost coins you own you’re going to get a  fragment of of all of the transaction  fees associated with all the coins that  are traded on our exchange which I’ve  never seen before and it’s pretty solid  so and the coins only like it was like a  buck eighty-five this afternoon when I  posted a video out it’s gone up yet but  I will go look just out of sheer  curiosity come on dollar eighty one so  it’s gone down a couple cents today  which is totally fine by the dead folks  so anyway so that’s ultimately what an  ICO is so you know anybody with a white  paper and an idea could potentially  generate millions of dollars but but and  you know I rag on the FCC a lot because  I feel it the way that they kind of  handle the crypto space is you know it’s  like a double-edged sword right it’s  like yeah part of it does protect people  you know no offense to any of you I love  you all but how many of you are begging  to give me money to help you guys invest  in icos and you don’t even really know  what the hell it is so the FCC is  ultimately trying to protect you from  icos that have no business

even being in  the space you know got guys running  Ponzi schemes got you know these  high-yield programs that are basically  promising you all these old this return  and that’s another thing you know if you  promised a return on the coin that’s a  security like they’re saying look you’re  you’re promising you give me money I  promise to give you money back that  becomes a security so there are a lot of  different things so that’s what the how  he test is for I did have one I’ve taken  it I don’t remember where it is and I  didn’t have a bookmark for this video  but if you’re curious you can find it  somewhere just plug in the Howey test  I’m sure you can find a link to exactly  where it is so you know now because of  the regulations and you know the SEC  they basically stepped in and they’re  they’re just kind of just cleaning house  like you know as much as the SEC annoys  the hell out of me and I feel like  really have cut my legs out in terms of  some of the cave  abilities I have and just kind of making  me lose sleep because I want to make  sure that I’m doing everything right  based off of a whole bunch of  regulations that really don’t even exist  for the space yet

it’s really really  mind-numbing and really it kind of it’s  just frustrating so anyway you know with  an IPO it’s all based around stocks ICO  it’s all based around cryptocurrency and  an ICO is in a nutshell if you get  anything else out of this whole video of  rambling and ICO is ultimately the  ability to purchase into a new company  before it’s hit the mainstream before  it’s hit the main market before it’s hit  exchanges or anything else you’re  basically saying look I believe enough  in your startup company to buy into it  at the ground floor at a discount hoping  that once you’ve achieved XYZ that the  value of that coin goes up and I’m  rewarded so the later in the game and  that’s how you see presale private sale  tokens say a public tokens sale all  these different kind of stages of token  sale it’s because the sooner you get in  that’s the less you know you know it’s  kind of like you know okay like you know  how many guys have you out there like I  know there’s so many of you guys out  there you find this amazing woman when  you’re nothing like you’re you’re  nothing okay and here you’re just like  you’re trudging along trying to live  your life and make yourself somebody and  you want to accomplish a whole lot of  things

and then you find this amazing  beautiful woman who just accepts you for  you right and you’re just kind of like  man she is investing in you at the  ground floor hoping to get a return  she’s hoping you don’t get fat ie turned  out to be an ICO scam  she hopes you’re you know gonna treat  her right be good to her you know ie  communicate with you you know let you  know updates milestones things like that  I mean you could really compare an ICO  to a marriage in a lot of ways so but  that’s that’s ultimately what it is like  she’s investing on the ground floor of  you and hoping that everything goes  really well and you have a fantastic  life together well that’s exactly what  an ICO is you’re getting in on the  ground floor you’re buying it in cheap  before you’ve proven yourself there well  for before the ico is proven itself and  the further along that IC o—- or that  token seal goes the different  development stages the lesson discount  you’re gonna get because they know that  their coin odds already started  establishing value among the public and  so those the prices start going up so IC  o—- ultimately is your ability to go  into a token say or go into the startup  company whether it’s as a brand new idea  or an already completely established  platform

whatever the case may be you’re  getting in cheap ultimately before that  coin has hit the exchanges and you know  the value continues it starts to rise  ultimately so that’s it where am I at  13 minutes that’s not too bad right  hopefully that wasn’t terrible and I  gave you a pretty good explanation but  you can Google what is an IC o—-  you’ll get a lot of different a lot of  different examples and and and you know  information associated with y IC OS and  what they are and how they started what  was the other one I read something on  this article that was yeah history yeah  the Dao Dao I guess was oh and that’s  one that’s another point that I forgot  to make ultimately these I cos that  you’re seeing I would say 90% of them  are Forks of the etherium er c20  blockchain that’s important to know so  you know a lot of the coins that you see  because I CLI get a lot of questions  like where can I store this coin where  can I store that coin if it’s an e rc 20  blockchain like if you’re looking at an  IC o—- and it says ER c 20 token ER c  20 coin that means you can store that  coin on a my ether wallet because my  ether-wall it’s basically an ER c 20  blockchain wallet

it’s an aetherium  wallet so any Forks off of aetherium can  be stored onto my ether wallet so  hopefully that helps you because that  you know i used to struggle with that  early on to like wow this is a totally  different coin where can I store this  one where can I store that one 90% of  them can be stored on my ether wallet  you cannot store Bitcoin on my ether  wallet you cannot store litecoin on my  ether wallet you cannot store card ATO  on my ether wallet every one of those  coins has its own proprietary wallet  because it’s  on its own blockchain so it has to have  it has to be a fork of another coin  so and I don’t even remember offhand  what what Forks there are of Bitcoin I  know there are quite a few but like knio  knio is another one that you know I  really wish I would have gotten in on  the I co-op because it’s like over 100  bucks now I got in at 30 bucks which  isn’t terrible I expected to go quite a  bit higher soon but yeah neo it’s it’s  own blockchain and now you’re starting  to see other ICS launching on the neo  blockchain as well so all right folks    Crow Your Coins    and I will be back soon  after this knees .

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