Why a coin and not a token? What was the ICO and what should it be?

Photo by Johann Walter Bantz on Unsplash

For the last ten years, I’ve been observing the cryptocurrency industry. We have bull markets behind us, bear markets, holders are winning, exchanges appear and disappear. More scams, tokens, protocols, and other nonsense, built on the hype of blanks are created.

ICO — Initial Coin Offering

ICO — Initial Coin Offering, a long time ago it was a form of presale of coins, the capital of which was to be allocated for development. The project was growing, more utilities were added, and Today?

How is it Today?

70% of the money is spent on marketing, influencers, building hype, even after reaching the budget, which is enough for development. Another powerful drawback — most of these projects are not a cryptocurrency but a token.

There are hundreds of groups formed on Telegram and ‘Facebook millionaires’, interested in selling you another breakthrough, ‘to the moon’-animal/celeb quasi-crypto.

What drives such projects?

Greed?

The actual implementation of the mission of saving the world?

Are you solving a real technological or process problem?

The creation of ERC20, BSC, and other related carriers made the cryptocurrency possible to click — some time ago, it was for free, but nowadays, for a total rookie, it costs $500. It is the level of complication that total lamers have to pass to build a new ‘crypto’ project.

But what I am aiming for — if the token is a way for capital acquisition for a specific purpose, not to build another crypto chain, then it is ok. But if such token-based fundraising is done to make blockchain technology, then something is wrong here.

Is the ICO based on token build to raise money for competent developers to build the real blockchain? If yes, then you should avoid such projects. The creators should have at least enough competence to create something independently with a blockchain tech behind.

… why not build an ICO on a coin. To fundraise to do the genuine service where money is earned — in real life, for an honest service or product — all this supported by the coin created in the project, which is the carrier of the essential functions and can be listed on exchange platforms.

It makes the actual value of a blockchain project.

A value is created by the services the project will deliver. Its coin listed on exchange platforms should be read as a coin that represents the company’s value, like market shares. This way, such a coin has a real value because it is backed by construction or ready to be used as a service.

ICO on a real blockchain has a much more difficult adaptation with exchange platforms because it turns out that most of them will list with super ease token-based projects but not real coin-based ones.

When asking for a listing, it turns out that it will cost 100–200 thousand dollars. In our case, the technical department of the exchange informs us that adding AJN requires them to have a node [shocker there], and you hit the wall because it also looks like there is no person/people who know how to do it. Stock exchanges are focused on easy profit, dredged by alleged costs of the necessity of marketing on their part, influencers, costs of AMA’a they will do, interviews, video materials, and so on.

As a result, good, valuable projects are hidden behind a whole lot of bullshit ‘coins’ or other animals/celeb-based shitcoins, used only for pump & dump.

Why was AJN a coin and not a token?

AJN has its blockchain, an independent chain with a generated genesis block, pre-mining master nodes. A moderately conscious monkey would create a token, but setting up a blockchain requires knowledge, at least minimal, c ++.

I want to take this opportunity to highlight one more problem that I have recently observed. Avoiding transaction fees, be it on BTC or ETH, by sending crypto data, e.g., after BSC, you no longer have cryptocurrency, only a token on a given chain … But this is material for another article. 😉

Author:

Patryk Kozicki,

Chief Blockchain Officer at

PonoPrime.io

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Knowledge, relations and communication based on blockchain

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PonoPrime

PonoPrime

Knowledge, relations and communication based on blockchain

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