The “ICO” space is expanding at an unprecedented rate, as a result of the widespread adoption of new technologies. These technologies will enable distributed applications (Apps), such as Web wallet, Platform as a Service (PaaS) and Platform as a Service for Payments (PSP) to interact with each other and with the underlying public and private network infrastructure. As these apps become more mature and their respective users gain more confidence, the collective Institutional Investors will become more likely to participate in the mining profitability of these distributed applications.
With more institutional money making its way into the ICO, a new potential problem has been created. That problem is called the “ICO scam,” where a group of smart investors pump thousands of dollars into an unproven and still emerging ecosystem, wait for it to flourish and then dump everything they’ve got – sometimes leaving behind a mountain of worthless ethereal. While this isn’t quite the same as a Ponzi scheme, it sure sounds like one to me.
By now, most people familiar with the Waves Platform have either heard about it or have done business with it. But for those who are unfamiliar with how a typical ICO works, here’s a quick overview: The instigators of an ecosystem – usually entrepreneurs or technically talented enthusiasts with an entrepreneurial mindset – create a standard ICO, which they then use to “ICO” a specific digital currency.
Since there’s no central regulator, everyone within the system – including the individual investors who created it – is susceptible to having their capital wasted. This is due to the inherently high risk associated with ICO fundraising, combined with the fact that most ICOs fail to deliver on their promises.
Now let’s look at how we can analyze the potential use of Ethereum price at https://www.webull.com/quote/ccc-ethusd in a decentralized online marketplace. As mentioned above, we’ve been hearing increasing talk about Ethereum and litecoin being used as a” deflation hedge” by global currency investors. For example, this will make sense if you think about the fact that digital currencies are not closely tied to any one physical asset – like gold, oil, or silver – which means that there’s nowhere for these assets to go when the value of them plummets. Investors who use cryptosporms as a hedge can simply transfer their assets to it, thus protecting themselves from harsh market drops. So how can we analyze this potential use of thorium and litecoin in a decentralized web environment?
Simple! In our current implementation of the trade cryptos, we include thorium and litecoin as trading commodities in a sort of “ICO-for-ico” swap. This swap functions exactly as it does in centralized trading systems, where you’d first put money into a centralized company or autonomous system, then deposit your trades into an off-site inventory.
When the value of your deposited fund declines, you make a call to your centralized company or autonomous system to buy back your tokens. As is true of all smart contract-based strategies (which we discuss at length in another article), the entire process is completely transparent and foolproof.