The initial public offering is the classic IPO, in which a company receives equity with the issue of shares. With an IPO, you can usually assume that the paper you buy is also based on a value or a certainty - if you are not in a bubble like at dotcom times. The blockchain technology on which the two financing options, ICO and STO, are based, has now provided a comparatively inexpensive and quick way to raise capital. A classic IPO swallows up costs for consultants, lawyers and bankers. An ICO, on the other hand, bypasses the banks and speeds up the process of corporate financing considerably.
In the past, utility tokens were mostly issued under the term ICO in order to avoid classification as a security. In return for their capital, investors receive tokens. They can serve as currency or as a right to the company's products or services. Depending on the type of tokens, these can also include the right to dividends or the right to vote.
ICOs are still hardly regulated and have attracted many gold diggers and gamblers who hoped for quick money thanks to the hype about blockchain and bitcoin. Past ICO buyers often only had short-term success in mind: the price increase of the coins / tokens. Such “pump-and-dump investors” on the one hand and “entrepreneurs” on the other, who often had neither a functioning business model nor a finished product, have severely damaged the reputation of the ICOs. Even though there have been some ICO unicorns, such as the messenger service Telegram, there is a trend towards more regulation and consolidation of the market. And meanwhile, the state regulators in leading countries of blockchain technology such as the USA, Switzerland.
Bitcoin is a digital form of payment, a so-called cryptocurrency. The name is derived from cryptography, which is used to secure transactions carried out via the associated online database blockchain. The acronym for Bitcoin is BTC , comparable to USD (US Dollars) and EUR (Euros). The currency pair Bitcoin Euro is abbreviated as BTCEUR, the pair Bitcoin Dollar as BTCUSD.
Bitcoin can also be paired with other currencies. In this case, the name of the currency pair would be structured analogously to the forex market.
Who Invented Bitcoin?
Satoshi Nakamoto is believed to be the creator of Bitcoin. He announced the invention of the popular cryptocurrency on October 31, 2008 in a paper called "Bitcoin: A Peer-to-Peer Electronic Cash System". The interesting thing is that this name is most likely an alias used by the person (s) who originally designed Bitcoin. In 2016, Australian entrepreneur Craig Wright declared himself the inventor of Bitcoin, a claim that is widely recognized in the prominent circles of the Bitcoin community.
When was Bitcoin created?
Bitcoin history begins on May 22, 2010 with the purchase of a pizza. What was special about this transaction was not the pizza, but the currency used for this purchase. The meal then cost 10,000 bitcoins. This order is the first real-world purchase to be paid in virtual currency. Nowadays, this date is celebrated annually by Bitcoin fans worldwide - May 22nd is "Bitcoin Pizza Day".
Things have changed since then. The value of cryptocurrency has skyrocketed. If the pizza shop had decided at the time to keep the 10,000 bitcoins, it might not have made history, but would be richer today by around 80 million euros (as of January 2020, when the bitcoin price was around 8,000 euros).
Ethereum is a decentralized software platform (open source) based on blockchain technology. It enables the creation and execution of so-called smart contracts and decentralized applications (dApps), which can be executed without the influence and control of third parties.
Ethereum is an open source software platform that focuses on dynamic and decentralized computing . The proprietary cryptocurrency that uses this system is called Ether (ETH).
Ethereum is based on a so-called Blockchain and thus on the same technical foundation as Bitcoin. However, Ethereum is not a pure cryptocurrency, but serves with expanded functions such as smart contracts as a decentralized ecosystem for blockchain projects of all kinds. Therefore Ethereum can also be called an open protocol or kit for decentralized applications.
Ethereum is the opposite of the classic client-server concept, which is widespread on the Internet, in which data is stored centrally on servers of large Internet companies or in the cloud and, if necessary, requested and accessed from various devices. As is usual for blockchain technology, the data at Ethereum is distributed decentrally on devices around the world, is publicly viewable and traceable. This ensures data integrity and makes Ethereum and the data virtually tamper-proof.
Ethereum has its own cryptocurrency: Ether (ETH). It is a digital currency that works similarly to the most prominent example of Bitcoin and is suitable for payments within the network or as an investment. The Ethereum blockchain now offers the basis for countless other cryptocurrencies that emerged from so-called "Initial Coin Offerings" (ICOs) and as "ERC-20 token"are implemented on the Ethereum blockchain.
What are the benefits of Ethereum?
The big advantage of Ethereum is the programmability, with which the project stands out from Bitcoin, Litecoin and many simple representatives. Ethereum is therefore also known as "cryptocurrency 2.0", whereby Ethereum is much more than a pure cryptocurrency. The ability to organize initial coin offerings (ICOs) for crowdfunding projects, to program a wide variety of decentralized applications (dApps) and to build smart contracts (intelligent contracts) on the basis of Ethereum is what makes the technology so special.
Over the years, cryptocurrencies are gaining an ever-growing fan base, many of which are attracted by the commercial possibilities that they offer, and by the expectation of obtaining large profits in the very short term thanks to the strong volatility of many of the digital assets.
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