[Investment through Private and Public Sales] - Crypto Academy / S4W6 - Homework Post for professor @fredquantum

Hello everyone, I welcome all and sundry to this week’s crypto academy with our noble professor @fredqantum. I would like to give many thanks for the wonderful lecture and resources given for the week. I would like to make my submission.

Question 1

What can you say about Crypto Investment and how to properly utilize the investment tools available to make the right decisions?

First and foremost, I would like t to explain what the term investment is; as used under the centralized place of work, investment can be defined us the allocation of resources which could be money anticipating to making good income or profit in the future.

Investment is always viewed in so many channels, one could which to invest into starting up a business, or someone could decide to invest into assets and this could be buying and reselling of real estate for higher price and profits in the future. Investing always comes in two forms, thus the risk and that of the return, so definitely having a low risk could mean that it would come with a low expected return and for higher returns mostly will be followed by a higher risk as in the field of investment.

Although investing in crypto comes with little challenges and technical, but it is of the same motive just as I explained.
Cryptocurrencies are digital assets that stand in place of fiat which could also be used in the exchange of goods and services. Just like we use the Nigerian naira in rendering service. Cryptocurrencies perform the same function but, in this case, it is not physical but digital.

So basically Crypto Investment can be referred to as the act of purchasing these digital currencies for the purpose of yielding profits in the future. Cryptocurrencies are not stable, there are always variations and volatilities in the market, unlike the USDT that has to maintain a specific price for a while now, cryptocurrencies seem different because there are always ups and downs, prices moving up and getting down. This is the more reason that would always pull investors into investing in these currencies with the intention of making profits.

Just like in the banking system which is purely centralized, people will always invest their monies for a particular time duration or timeframe. One could for instance invest 1000000 Naira for two years with the intention of making profits, here in crypto investment, this is solely left onto the trader, there are people who are mind-focused on longer-term periods while others are the shorter timeframe investors.

For the short timeframes, investors always buy for a very short timeframe and are willing to make profits within those short durations. Bitcoin could be one of such coins as a result of the ups and downs. It is currently ranked the number one coin with high growth so therefore, making profits with such coin can yield you the profit you anticipated. For longer timeframes could be coined like Dogecoin and other related, although this has a lower growth, but surely for those with the longer-term investment plan would like to invest into such.

Let us now talk about crypto investment tools

Talking about the tools in crypto investment, there are so many of them that can make you make all your fundamental and technical analysis in other to always be on the safer side of investing. Although in the world of crypto, everyone is always at a stake of danger because anything can happen as a result of these volatilities.

But there are tools that could always make you carry out information about the crypto asset you dealing with. Tools like the coinmarketcap, coingecko, and coinbase are platforms that have a lot of information about all crypto assets available in the world (most relevant).

Also, the availability of places where you can perform your trading analysis before investing like Goodcrypto which I used just this week, and also TradingView are such platforms that could enhance your investment ability. This could reduce the chance of making losses when investing in cryptocurrencies.

Platforms like Coinmarketcap or Coingecko gives all the necessary information about the crypto assets as I mentioned earlier.

Screenshot taken fromCoinmarketcap.com

Platforms like Tradingview or Goodcrrypto can also help you perform all your fundamental technical analysis before making an investment shown in the screenshot below.

Screenshot taken fromTradingview.com

As I already mentioned, there are so many issues with regards to investing in cryptocurrencies, any mistakes made leading to loss of funds are always at your own discretion since it is decentralized. So, using all these tools mentioned will always help you make your analysis before investing which can as well reduce the chances of making many losses. You can not be 100% sure of not making lose, but these tools will help the investor.

Question 2

Talk extensively about the following. Also, highlight the benefits and risks associated with each. i. Private Sale in Cryptocurrency. ii. Presale in Cryptocurrency. iii. Public Sale in Cryptocurrency

Private Sales in Cryptocurrency

In the cryptocurrency, private sale as the name suggests, this kind of sale involves the sale to some kind or targeted group of individuals. This sale of tokens or coins is mostly geared towards attracting people of high class or prominent people into investing in the crypto asset at the early stages of it.

It is mostly not announced or made public. It is always dependent on the blockchain company to find and choose the kind of investors they would like to partake in the event. As I mentioned, the main aim of hosting a private sale mostly is to have some kind of fund that could fund the project in a return for a digital asset (cryptocurrency) that will be able to yield you more returns.

A Deeper Look at The Benefits and Risk involved

There are always numerous opportunities involved in this kind of sale, thus to the companies involved and also the investors involved as well as some form of risk associated. Definitely, anything with opportunities will always come at a cost.

Benefits

1. In this kind of sale, there is always the chance of winning or getting big bonuses and of course very great discounts rates. These are done just to draw closer the attention of the investors.

2. Another benefit is that you stand the chance to get a very quick return at a discount once there is a purchase at the stages of the ICO as soon as trading of the token or coin starts

3. Another benefit is that there is more chance of buying the token at a less amount comparing to public and presale allowing the investor to own a huge part of the coin as already its target is the investor.

Risk Involved

1. There is no form of possibility to receive a form of refund should incase the ICO fails to meet the target during the public and presales.

2. Another risk here is that there is a higher minimum contribution compared to either public or presales.

3. Careful KYC and also background investigations and checks, this act does not allow everyone to be part with regards to your high status acquired.

4. Also, there is less liquidity of the token as the release of the token or coin mostly takes a longer time period.

Presale in Cryptocurrency

This phase of sales in cryptocurrency is carried just before public sales are done. But here, it is showcased through different forms of websites, social media platforms for publicity.
So, investors here are mostly given the chance to invest in the asset through assets like the major once which are Bitcoin and of course Ethereum.

There is always a greater possibility of getting opportunities here as there are also higher discounts and bonuses given to investors. But as a matter of fact, the discount is solely dependent upon the level of contribution.

Benefits

1. There is a more beneficial discount on the coin compared to public sales

2. Another benefit is that you can buy more of the tokens as presale watch out for bigger investors

3. Another valuable benefit is that you stand the chance to get a quick return as soon as the coin purchased at a discount is sold at the ICO price

Risk Involved

1. There is a higher minimum investment when compared to the public sale of the cryptocurrency.

2. There is a possibility of the token reappreciating which of course can devalue your token

3. There is a lack of token liquidity as you await trading

4. The success of the token is not quiet difficult to evaluate as the sale of the crypto is based on presale

Public Sales in Cryptocurrency

This is said to be the most important and last stage of an ICO. Here, the promotional activities are done more extensively and widely as compared to that of the presale. In here in public, there is a provision of lower risk comparing to private and presale.
At this stage of development, there are now more investors to the token which is known publicly.

However, there are chances of getting lesser discounts when it is compared with the other type of sales. Here the discounts level and bonus levels is the same to the others but this is dependent on how early you were able to make contributions and of course how large the investment you made.

Benefits

1. Since the project is more developed and more realistic here, there is lower risk

2. There is also less minimum acquisition of the token compared to presale

3. Another benefit is the fact that, there is a greater liquidity as there is little time to make a trade of the token.

4. There is also an easier KYC verification as public sales does not depend on accredited investors.

Risk Involved

1. There is low discount encountered here compared to the other form of sales

2. There is also a possibility of token dumping once you buy the token at a discount.

3. There is also a possibility of public sale cancelation if the tokens are sold all out at the presale

Question 3

What are the mediums used for Public/Pre/Public Sales in Cryptocurrency?

In this chapter, I would like to talk on mediums that are used for public/pre/private sales in cryptocurrency, such mediums I mentioned in my summary, basically, they are:

1. Developers Website

2. Through Interviews and meetings

3. Through social media

4. And on Exchange platforms

Through social media

The first medium I would talk about is the social media platforms, we know how majority of the world’s population has embraced social medium platforms which is the best way of advertising your products or services you are rendering to the general public. As a result, social medium serves as a best or medium through which sales of cryptocurrencies can be done at its initial development stages. Below is an example.

Developer’s Website

We all know how important it is for a product to have a website that particular has information or is created purposely for the idea at hand. Own websites create a direct channel between the investors and of course the owners of the project to attend to issues with regard to the token. This type of medium is very key in the sales of cryptocurrency. The developer or owner is able to render down all mistaken concepts about the token.

On Exchange Platforms

Selling cryptocurrency through exchange platforms is also another medium I will explain. There are series of processes the token undergoes here, series of checks are made to make sure this token is up to task by the exchange platforms and of course, we have seen the number of people that uses exchange platforms, this way when it is listed will enhance the sales of the coin. But under exchange mediums, programs such as Launchpad will gives assistance and guidance to the owners as to how good coaching cab be done to give a better boost in the exchange platform.

Interview and Meetings

The last part I would like to talk about is through meetings and interviews. This is best used at the stage of the private sales cause we know that private sales deals with some specific targeted clients. In this medium, the plan and roadmap of the project is given to the clients to draw good attention for them to make investments into the project

Question 4

Research about any recent (2021) successful ICO or IEO and give detailed information about the project. (Note: BETA token is excluded)

Since the introduction of blockchain, there has always been new developments coming all time, all year. According to the question, we are researching about a successful ICO or IEO project created just in recent times (2021). In this regard I choose to talk about the token Solanax.

This token Solanax, is created on its own blockchain, the Solana blockchain which has an AMM (Automated Market Maker) this paves way for it to use a decentralized exchange order book in order to facilitate affairs like fast trades, pooled liquidity and of course, other type of features in order to get some income. The fact that is an underlying blockchain guarantees makes it permissionless, working on the POH mechanism with high-performance.
Lets check some statistics of the token on Coingecko

Market Cap Rank #1490
SOLD Price - $0.209071
Market Cap - $4,140,713
Market Cap Dominance - 0.00%
Trading Volume - $789,903
Volume / Market Cap 0.1908
24h Low / 24h High - $0.200461 / $0.226304
7d Low / 7d High - $0.136519 / $0.226294
All-Time High $0.752754 -72.0% Aug 27, 2021 (about 2 months)
All-Time Low $0.092553 127.8% Aug 12, 2021 (2 months)

The price of token today is at $0.210417 as at the time I was submitting my task, also with a 24-hour volume trading at $790,725. It had about a 1.4% sold price within the last 24hrs. A circulating supply of 20,000,000 sold coins and lastly a total supply of 80,000,000. The current market (More active) available for the selling an buying of Solanax is ExMarkets

Providers of liquidity with regards to this token are encouraged give or provide liquidity a very abysmal volume of the asset in other to attain higher rewards for the liquidity they provide to the pool. So, in order for this to take place, there is a DEX fee which is at 3% for the collector and of course a 0.2% for the creator.

As Wormhole is not a blockchain network since it is generated through AMM and DEX, so it is solely dependent on the finalization and consensus of the chains of which it bridges. AMM and DEX is from the provision of the fastest DeFi protocol.

Affiliate disclosures

The 7-day price history of Solanax (SOLD) to USD

Solanax to USD Chart

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Question 5

Create an imaginary token. Write about the project including its use case. Develop an ICO which includes Private sales (3 stages) and Public sales (1). Note that: You are expected to explain what the funds are intended to be used for, your Private sale should have 3 stages, and specify the initial supply available, and the price you are issuing the token in each stage. Also, specify the price you are issuing the token at the Public sale phase (including the supply).

The SWAN Token

The SWAN Token is created on the POH consensus mechanism for validating and verification of transactions that would be made since it is one of the best consensus mechanisms. The SWAN token came into existence to solve the issues

The SWAN Token is said to be a blockchain game where users are given the liberty to control their own NFT’s as in the form of characters. The game is built on Smart chain network on Binance which gives it that unique feature and allows users to control their characters, equip them with weapons and also make some form of upgrades. SWAN token means the Silencewan token and of course, users use the or get rewarded by the SWAN token while they play the game.

The Owner of this project is Silencewan, along with two other developers Fredquantum who is the Blockchain Developer and Tymes2 the Front-end developer

The SWAN token has its rank on the coinmarketcap as part of the top 100 tokens listed with a Total token supply of 150,000,000 SWAN* and market cap of $19,231,630. It has a current price of $o.6443 a very more reason users enjoy to play this particular NFT game.

Through observation, this project has gone through series of investigations and will be a great project if the demands of the team are highly met through research conducted by the team.

The SWAN Token Team

An estimation of $ 3,900,000 is needed to fully fund this project as feasibility study of the project has been carried out.

First Private Sales
SWAN token price: $0.75
ICO Date: December 3rd to 5th
Total supply of token: 2,000,000
Fund Raised: $ 850,000

Second Private Sales
SWAN token price: $0.88
ICO Date: December 7th to 9th
Total supply of token: 2,000,000
Fund Raised: $980,000

Third Private Sales
SWAN token price: $1.01
ICO Date: December 10th to 12th
Total supply of token: 2,000,000
Fund Raised: $1,001,000

Public Sales
SWAN token price value= $1.10
ICO Date: December 14th to 17th
Total supply of token: 2,000,000
Fund Raised: 1,200,000

The total sum of fund raised for the token is about $ 4,031,000 and it has conformed to the anticipation of the SWAN token project team. This fund will help the team as we have plan on the tsk to carry out.

Question 6

What are the criteria required for listing a token on CoinMarketCap. Is there a criterion for listing an asset on a Centralized Exchange? If Yes, use an exchange for your explanation in response to the question.

We all already know that, with regards to cryptocurrencies, some particular tokens are much performing than others and of course there is a need to rank them. But how can this ranking be done. It is not just done by picking what you want and then putting it where you want. A more reason we will be discussing how or what the criteria is required for listing a token on Coinmarketcap

Before a coin is listed on the coin market, it must go through some serious of verification and validation before. The coinmarketcap are group of people working together so we can say it is a company and before a token is listed, it should meet the demands and standards of the company before it an be taken and added to their official website and phones versions of the platform.

1. So, the first thing considered here is that, they should be a submission of request online and also a track listing policy governing it. Here other factors like algorithms, the leverage cryptography as wells as the ledger are all considered. Other factors like a working website built on the basis of the token is looked at and how actively it is traded in any exchange at least just one. The last thing here considered is the referees. Who to contact for any support and assistance with regards to the token?

2. Other factors withing the token project are also checked to make sure necessary information about the token can be publish for others to benefit. Details like the agenda of the project, how it is trending in current terms and also the trading volume.

3. Rules stated by the coinmarketcap must be followed and worked with in other to get listed. So the team of the token project must work with the rules given in other for the success of the listing to take place.

Listing tokens on Centralized Exchange

Just like we did in the coinmarket cap, it is the same process in the centralized exchange. You will have to go through series of processes. I will illustrate this task by using Binance.

Listing on Binance

1. First of all visit Binance through their website Binance and then scroll down to Listing Application.

2. The next step is to fill out the name of the project and its Initials and the project full name before you can proceed to the next page.

3. As soon us you are done submitting your information, then you can make submission. Lets look at the steps stated in my screenshots.

CONCLUSION

This week task brought about wonderful ideas since we were creating imaginary projects. This was a wonderful task and I enjoyed doing it.
Crypto investments in the crypto world is very necessary since it broadens your opportunities. But mind you, it requires some skills to at least always be on the safer side.

Also, I had to create an account quite apart from my verified so I could demonstrate how the listing is done on the platform. The steps have been stated and the processes shown on screenshot.

Thank you for reading my post…..!!!!!!

Lecture Note
Reference-1
Reference-2
Solanax
Coinmarketcap
Coingecko