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The Few Ways To Fund Your Blockchain Project

The Few Ways To Fund Your
Blockchain Project

The success or failure of an entrepreneurial venture

is closely tied to how much liquidity the startup has. That is no different in the bitcoin economy. You can be developing the most innovative world-changing technology but if you run out of funding you will have to close shop no matter what. Fortunately, nowadays, there are several ways to fund your blockchain project that does not involve begging your bank for a loan.

Here, you will be introduced to these popular alternative ways to fund your blockchain venture that could make the difference between your project failing or succeeding.

Bootstrapping

The easiest and most hassle-free way to fund your startup venture is by bootstrapping it, if you and your team of developers are in the position to pool your own funds together to get the project off the ground. The benefits of funding your startup yourself is that you have no outside shareholders or private investors to answer to. Furthermore, by bootstrapping your project you are not diluting your share in the company, which may one day be worth a lot of money.

Venture Capital

One of the more traditional ways for startups to receive funding is to pitch their idea to venture capital funds that are looking to invest in promising startups. Access to venture capital funding for tech firms, especially fintech firms, has been relatively easy in the last few years. Not only because there has been in a boom in both tech and fintech, but also because investors are looking for higher returns than they can currently get in the stock and bond markets.

Venture capital funding from leading blockchain VCs such as the Digital Currency Group, Blockchain Capital, Union Square Ventures, and Ribbit Capital, would not only give your project a financial boost but would also give your startup a certain degree of industry approval. This, in turn, can help to secure further funding down the road. Having said that, having venture capitalists as investors also means that you will have to generate a profit sooner than later as investors want to see returns. Also, some VCs like to take a more hands-on approach with their investments, which could mean you as a founder may not be calling all the shots anymore.

Crowdfunding

If your own funds will not suffice to get the project off its feet, however, then you need to look at other options. One of these options is crowdfunding. Crowdfunding refers to the raising of capital from a number of private individuals who contribute small amounts to the project, usually through the use of an online crowdfunding platform. When it comes to crowdfunding, there are three main types: reward-based crowdfunding, donation-based crowdfunding, and equity-based crowdfunding.

Rewards-based crowdfunding as the name suggests rewards those who fund the project or startup with rewards. Rewards can come in the form of a handwritten thank you letter to a mention on the startups websites to early access to the startups upcoming product. One of the most popular rewards-based crowdfunding platforms is U.S.-based Kickstarter. Donation-based crowdfunding is usually found in the non-profit sector and is a way for individuals or NGOs to fund a charitable project that they are launching. In the for-profit space, donation-based crowdfunding is rather rare.

Equity-based crowdfunding rewards investors with a small share in the company that they are funding. Hence, instead of having to go public to raise money from private investors, startups can leverage online equity-based crowdfunding platforms such as Crowdfunder, CircleUp, and WeFunder. Interestingly, the crowdfunding platform WeFunder has started to accept bitcoin as a payment method for making contributions to crowdfunding campaigns, which makes it an interesting funding source for those looking to tap into the bitcoin community to raise capital.

Peer-to-Peer Loans

If you do not like the idea of giving away a share of your company to outside investors and are comfortable to take on debt to fund your project, you could apply for a peer-to-peer loan. Peer-to-peer loans are a form of debt financing that involves several individuals lending money to a startup or an SME via an online peer-to-peer lending platform.

To secure a peer-to-peer loan you have to apply to have your funding requirements listed on a peer-to-peer lending platform such as LendingClub and Prosper. Once your funding requirements and terms and condition are agreed upon by both the startup and the P2P lending platform, the loan is listed and individual investors can fund it. Once the loan is fully funded, the startup receives the funds and repays the money plus interest over the term of the loan in monthly installments. All payments are handled through the peer-to-peer lending platform. Peer-to-peer loans are an excellent form of financing for those who are struggling to receive a bank loan, which is the case for many bitcoin startups, and for those who prefer not to give away equity in their new company.

Initial Coin Offerings

Finally, probably the most popular method of funding a new blockchain project today is through an initial coin offering. Initial coin offerings, also known as token sales, crowd sales, and initial public coin offerings, are a new way of funding startup ventures through the sale of a digital token. These digital token, also known as cryptocurrencies or cryptoassets, then act as an indirect stake in the project and, therefore, indirectly tracks the performance of the startup. In that sense, ICOs are similar to stock IPOs with the key difference being that the investors do not hold actual equity in the company. Instead, a digital token that is indirectly linked to the project’s performance.

From the company’s point of view, ICOs are an excellent way to raise funds without actually having to give away equity in the company while not having to resort to debt financing.  While launching your own digital token may seem daunting to some, there are platforms such as TokenMarket that will handle the entire process for you for a fee. Thereby, making fundraising via an ICO accessible to anyone looking to launch a new blockchain project.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about -Bitcoin.

Stockholm will Host the First Large Conference on Cryptocurrency and Blockchain

Stockholm will Host the First Large Conference on
Cryptocurrency and Blockchain

On September 7, for the first time,

the Swedish capital will host a large conference dedicated to blockchain technology and cryptocurrency.
The event is a part of Blockchain & Bitcoin Conference, which is the first and the largest network of crypto conferences in Europe. Organizer is Smile-Expo that holds similar events in the Czech Republic, Estonia, Russia and Ukraine. Key topics include implementation of blockchain technology in business, legal regulation of cryptocurrencies (practices of various jurisdictions), increase of living standards using new technologies, development of smart contracts in the decentralized economy.

Special attention will be paid to the blockchain development in FinTech. Participants will analyze already existing blockchain-based projects in the banking sector; there will be a lot of analytics and discussions. In autumn 2016, the Central Bank of the country announced its plans for the development of a national crypto currency. These plans may be implemented in two years. The Swedes use traditional money more rarely; since 2009 the amount of coins and cash in Sweden was reduced by 40 percent.

Blockchain development in the country is supported by the government; in 2016, there was an experiment on transferring records on land ownership right in the digital format. The project involved the blockchain-based technology of smart contracts. In addition, Nasdaq Stockholm exchange issued the first bitcoin-based security. The Bitcoin Tracker One asset received a certificate of the governmental financial regulator and was accepted for trading. In June, the Swedish project on blockchain implementation in energy sector was launched. A department of government corporation Vattenfall together with 20 European companies started the development of a blockchain platform for electricity trading.

These and other blockchain projects will be discussed by the participants of Blockchain & Bitcoin Conference. According to the organizers, participation in the conference is already confirmed by Eric Benz, the Managing Director at the Bitcoin debit cards issuing company Cryptopay, Frank Schuil, CEO at Safello bitcoin exchanges and Karolina Marzantowich, the Leading Developer of Polish branch of IBM. Together with the conference, there will be an exhibition of crypto hardware, software and services for the industry.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about -Bitcoin.

Bitcoin-Ethereum Flippening Fervor “Makes No Sense,” Claims Vinny Lingham

Bitcoin-Ethereum Flippening Fervor “Makes No Sense,” Claims Vinny Lingham

    

Both bitcoin and ether prices fell today,

putting off what many traders consider inevitable—the “Flippening.” The Flippening, of course, refers to the potential future date when Bitcoin could lose its status as the largest cryptocurrency by market cap. Many coins have tried to usurp Bitcoin through technical innovations, corporate partnerships, and marketing strategies, but Bitcoin has continued to reign supreme.

Only recently has the Flippening become a real possibility. As the ether price has surged to a high of more than $400, Ethereum has become the first cryptocurrency to get within striking distance of Bitcoin’s market cap. Many crypto-pundits have begun to ponder what will happen if the Flippening does occur. Will it be the beginning of the end for Bitcoin? Will the Ethereum platform finally take the blockchain mainstream?

The Flippening “Makes No Sense”

Others, such as Gyft co-founder and Civic CEO Vinny Lingham, believe those questions are meaningless and irrational.

As he stated on Twitter:

Bitcoin is better money, deflationary & scarce. Ether is not really money, inflationary & abundant. The flippening makes no sense[.]

What Lingham’s tweet alludes to is that, strictly speaking, Bitcoin and Ethereum are not competitors. Bitcoin is designed to function as a currency (which is why Bitcoin nodes validate addresses), while ether is meant to serve as fuel for Ethereum’s decentralized smart contracts platform; this is why the developers of Ethereum refer to ether as a “token” and advise it is not intended to be used as a currency. However, that warning has not stopped people from treating ether like a currency.

Lingham notes bitcoin derives its value from its scarce and deflationary nature. Ether, in contrast, is inflationary. Ether issuance is capped at 18 million per year (the move to Casper should decrease that number further), so the rate of inflation will decrease every year, but the token will remain inflationary to some degree. Ether’s inflationary nature has proved unpopular with some Bitcoin proponents, many of whom were first attracted to cryptocurrency because of Bitcoin’s “digital gold” nickname. Flippening numbers on Thursday.Additionally, as Lingham points out, there are already far more ether in circulation than bitcoins (~92.5 million ETH to ~16.4 million BTC).

What is Money?

Lingham’s tweet triggered a litany of replies (more than 130 at the time of writing). Lightning co-founder Elizabeth Stark ascribed the Flippening to short-term ether speculation. She stated that “Users and real use cases are what will matter,” not short-term market cap rankings.

Before long, the thread had devolved into arguments about the fundamental nature of money. BitPoint CEO Aaron Foster, for instance, argued that Ethereum will surpass Bitcoin’s market cap and that to deny that ether is money is “stupid,” even though Ethereum nodes do not validate addresses. “What is money?,” he asked. Olivier Janssens rejected the assertion that Ethereum cannot serve as a store of value.  Others compared ether to the U.S dollar (both favorably and unfavorably) and pushed back against Lingham’s assertion that deflation is a positive attribute for a currency to have. In any case, the Flippening frenzy should serve has a reminder that no matter how technologically-advanced humanity becomes, it will likely never reach consensus on one of the society’s most fundamental questions: “What is money?”

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about -Bitcoin.

It’s a Cryptocurrency Bloodbath

It’s a Cryptocurrency Bloodbath

 

    

The market correction that a number of analysts have predicted

has hit, with leading cryptocurrencies losing in double digits in the last 24 hours. Market leaders bitcoin and Ethereum were not among the biggest losers, dropping 12.81% and 16.04% in the last 24 hours, respectively, but their market cap losses were in the billions, falling to $37.4 billion and $28.9 billion, respectively.

Ripple, a distant number three in market capitalization at just under $10 billion, lost over 12%. NEM, number four, lost over 17%, while Ethereum Classic, number five, lost 13.77%. Litecoin, number 6, suffered the least among thbillion-dollarar players, losing just over%. Eighth placed IOTA was the biggest loser among the cryptocurrencies with more than $1 billion in market capitalization, falling 36.5% when its price fell to $0.38.

Survivors A Few

All top 100 cryptocurrencies tumbled in the last 24 hours, according to marketcap.com, except for four: Quantum Resistant Ledger, the number 41 cryptocurrency with $81.4 million market capitalization, jumped 19.43%; LBRY Credits, number 57, posted an 18.24% gain; Xarum, number 62, gained 10,4%, and ZCoin, number 69, gained 9.58%. The correction that began Monday continued after a breather yesterday, as bitcoin failed to launch a new rally towards all-time highs and rolled over after the bounce. Correlations are high once again, as is usual for a correction, and it’s likely that bitcoin and Ethereum will dictate the trend of the coming days, with small cap coins following the majors lower.

Further Losses Expected

Bitcoin continues to trade near its lows from Monday, and it will likely head for a test of the $2375 level, as it clears its overbought momentum readings. The rising long-term trendline is found near $2200, providing further strong support. The long-term picture remains bullish, but there is room for further correction after the strong rally since the end of March.

A 30%-50% correction, that has been the normal for bitcoin in the past, is a huge psychological burden that makes a panic sale likely, usually just before the bottom. Because of this, buyers are advised to wait for the correction and oversold readings, even for those planning to buy it at a higher price later on. Analyst Nicola Duke of Forex Analytix predicted hefty price corrections for both bitcoin and Ethereum in late May. Duke said bitcoin could experience a 46.5% price correction at $2,800 after witnessing a record $2,791.70 high in late May. After reaching $2,800, Duke predicted it would fall and reach as low as $1,470, marking a 46.5% drop from the late May price.

Duke expects the correction to be temporary, with the price recovering, and continue its upward movement through 2018. An analysis called the Fibonacci retracement examines the peaks through different periods of up and down movements to determine future asset prices. In “wave two,” in the fall of 2013, bitcoin bottomed out in January 2015 before rebounding for several months and then declining again. It rebounded again in January of 2015. Duke said bitcoin is now in a third wave.

Recovery Expected

Duke expects the fourth wave will see bitcoin stay at 61.8% of the time the second wave lasted. This means the rally following the correction will begin in January. Short-term traders are advised to wait until the correction runs its course and the short-term trend turns higher again, while long-term investors should prepare to add to their holdings heading towards the targets of the move, and buying opportunities emerge. This holds true for long-term investors who plan on holding on to the coins and adding to their core holdings on the dips. Short-term traders should still wait for the short-term trend to turn higher before buying.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to Learn more about
-Bitcoin.

 

India Hits 10 Percent Of Global Monthly Bitcoin/Dollar Trades

India Hits 10 Percent Of Global Monthly Bitcoin/Dollar Trades

    

India contributed more than 10 percent of last month’s USD/BTC trade volumes

according to data from ARK’s Blockchain Products Lead Chris Burniske. Reproducing a graph of major trade markets via Twitter on Thursday, Burniske highlighted India’s growing role in the exchange market, which accounted for over 10 percent of the total for the month to June 15.

Burniske added he was “curious” what this would mean for Bitcoin going forward. India’s story of consumer trading activity is one of constant growth. Despite mixed signals given out by the country’s central bank and government figures, increasing uncertainty surrounding the rupee has given Bitcoin a firm foothold among Indian investors seeking a safe haven.

Marketplace data from Coin Dance shows a broad upward trend week on week, a recent surge linked to Bitcoin’s brief downturn at the end of May, which saw prices dip below $2,000. Individual Indian Bitcoin exchanges preempted the positive figures, Zebpay reporting milestone downloads of its app, helping it reach number seven on Apple’s App Store in the local financial category. India’s banking industry, meanwhile, is also waking up to the benefits of Blockchain technology, having successfully piloted a joint scheme known as “Bankchain” last month.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about
-Bitcoin.

COs “High On Radar” Of US SEC – Regulator Source

COs “High On Radar” Of US SEC – Regulator Source

    

As markets wait for the US Securities and Exchange Commission

(SEC) to address ICOs, a source has confirmed that ICOs remain “high on their radar.” Quoted by Reuters on Wednesday, a regulator who asked to remain anonymous confirmed the Commission was eyeing the wildly popular fundraising instrument. “I know that this is something that’s high on their radar,” the source confirmed.

The speed and unprecedented success of ICO campaigns have brought both joy and sorrow to cryptocurrency and Blockchain investors. Such are the sums involved in the now $90 bln market that many began fearing early on that it would not be long before regulators became involved. “It's like painting a target on yourself. Because, what does an organization like the SEC regulate? They regulate IPOs,” Coin Center’s Peter Van Valkenburgh told a recent conference panel.

In a guidance Van Valkenburgh published with Coin Center in May, he had noted US authorities should give more concrete statements regarding the legal status of ICOs. “FinCEN should clarify that certain token sales are not currently subject to regulation under the BSA,” he wrote. “Should there be a desire to regulate these activities, FinCEN must engage in a formal rulemaking.” Recent examples of ICOs notably include Bancor, which needed less than four hours to raise $153 mln in its sale on June 12.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about
-Bitcoin.

World’s First Blockchain Insurance Marketplace To Launch Ambitious ICO

World’s First Blockchain Insurance Marketplace To Launch Ambitious ICO

  

The world’s first Blockchain-based insurance marketplace,

InsureX, is set to launch an ICO in July 2017 in a bid to raise at least 2200 ETH. The first in a large number of token sales set to launch in the next few weeks, London-headquartered InsureX intends to use the funds to create a trading platform specifically for insurance products.

“Blockchain technology presents an exciting opportunity to disrupt the insurance industry,” CEO Ingemar Svensson said in a press release Thursday. Citing Allianz insurance data, he continued: “Preliminary estimates are that gross written premiums generated by insurers contribute 3.5 trillion or 5.7 percent of the global GDP – that is a massive opportunity.”

In addition to finding products themselves, InsureX will offer a secure exchange of confidential documents and other data on the platform, which operates in the Software-as-a-Service (SaaS) format. The insurance industry is already slated for change, thanks to Blockchain solutions with products such as IBM Blockchain built on a hyperledger seeking to streamline common processes.

“Currently, insurance is traded and processed in traditional ways, often manually and with layers of intermediaries,” Svensson continues. “As part of the typical insurance deal, a large amount of documents and data have to be exchanged, which in a manual system introduces cost, delays and errors to the process.” The ICO will go live on July 11, with IXT tokens initially sold at an ambitious rate of 1.125 IXT per ETH, increasing to 1.757 per ETH as the sale continues through until July 31.

Chuck Reynolds


Marketing Dept Contributor
Please click either Link to Learn more about
-Bitcoin.

U.S Judge Upholds Vote To Confiscate Family’s $80mln Gold Coins

U.S Judge Upholds Vote To Confiscate Family’s $80mln Gold Coins

 

The family who found ten gold coins allegedly worth $80 mln

has again lost the battle to stop the US government confiscating them. Acc Mag reported on Wednesday June 14 that Judge Legrome Davis of the Eastern District Court of Pennsylvania upheld the position of the state: the coins originally belonged to the state, therefore the discoverers would not be offered compensation.

The story is a timely reminder about the lack of control over state-issued means of exchange in an age where decentralized assets are flourishing. Ten 1933 Saint-Gaudens double eagle coins were found by the Langbord family, descendants of a U.S cashier, locked in a safety deposit box. Originally coined by the Philadelphia Mint, most were destroyed when the US abandoned the gold standard. However, the few that have slipped through the net have fetched huge sums; in 2002 an identical coin went for $7.5 million at auction.

Nevertheless, when the cache was handed over to the Mint for verification, lawmakers said that they were originally illegally removed from circulation and therefore still belonged to the state. The Langbords have appealed the original decision from 2011 several times without success, yet will continue to challenge the ruling after their latest setback. Cryptocurrency’s rise has seen attempts to increase state control of its value in recent months. The European Union, for example, is attempting to pass legislation obliging wallet holders of Bitcoin and other assets to link these to their real identity.

Chuck Reynolds


Marketing Dept Contributor
Please click either Link to Learn more about
-Bitcoin.

Bitsquare: Our Support For UASF Requires Trading Halt

Bitsquare:
Our Support For UASF
Requires Trading Halt

    

P2P marketplace Bitsquare has confirmed support

of a user-activated soft fork (UASF) and signalled its opposition to Bitmain. In a blog post on Wednesday, Bitsquare reiterated its desire for SegWit activation while condemning Bitmain’s user-activated hard fork (UAHF) proposal. “This announcement of Bitmain is great news for Bitcoin, as it removes a lot of uncertainty and gives a lot of support for the UASF side,” founder Manfred Karrer said.

Karrer announced that as part of the process of supporting UASF, Bitsquare would “halt trading” until the issue of a hard fork was resolved. “We can expect that Bitmain will use its hash power to attack the UASF chain if they feel the need for that. This might lead to all kind of unpleasant situations like long confirmation times, an unclear amount of confirmations to be considered safe, very volatile tx fees and more,” stated Karrer. He continued, “For an exchange that means undefined and uncontrollable risks … there would likely be a huge effort for support and arbitration which would kick us back with our road map. For all those reasons, we need to halt trading on Bitsquare.”

In what he labelled as an ‘exit strategy’ for users, Karrer added that support for alternative base currencies for Bitsquare – Dogecoin and Litecoin, perhaps with Dash and others to follow – would appear ‘with the next release’ of the project. Despite the problems facing the community due to the escalating debate, Bitsquare nonetheless saw new weekly trading highs in several markets, according to data from Coin Dance.

Chuck Reynolds


Marketing Dept Contributor
Please click either Link to Learn more about
-Bitcoin.

Litecoin’s Charlie Lee Quits Coinbase, Receives $12,000 Donation

Litecoin’s Charlie Lee Quits Coinbase, Receives $12,000 Donation

    

A $12,000 donation has accompanied Litecoin creator Charlie Lee leaving Coinbase

to work on his creation full-time. After Lee announced he was stepping down from Coinbase duties to dedicate himself to Litecoin development, his Litecoin Foundation received a donation of 438 LTC – around $12,000 at Tuesday’s rates. The donor, known by his handle JoeyBTC, made himself known following a Twitter request. Litecoin proceeded to come down from circling $35 per coin as Bitcoin itself slumped, with Lee’s optimistic announcement having little effect on investor opinion.

The move is the first major event for the Litecoin community since SegWit activation caused a giant price rise in May. While a long time ago in terms of 2017’s cryptocurrency price action, Litecoin just six weeks ago was the star of altcoin markets, regularly outperforming other top 10 assets and bucking downward trends. Responses to Lee on Twitter were therefore keen to forecast a new surge upwards in a market currently dominated by Ethereum (ETH). Last week, Trezor became the first Litecoin hardware wallet to support SegWit.

Chuck Reynolds


Marketing Dept Contributor
Please click either Link to Learn more about
-Bitcoin.