The interest in the Crypto Money Industry, which started with Bitcoin and reached a market size of $ 110 Billion, is increasing day by day.. However, there are some details we need to know before investing in the sector.
Our guest writer, Ahmet ARSLAN, who has been in the advertising technology industry since 2011, is currently working on a blockchain-based project.
With cryptocurrencies. The number of news we read about it is increasing day by day, although there are multiple reasons for this, I think it would not be wrong to show the successful fundraising (ICO – Initial Coin Offering) campaigns of blockchain-based projects as the most important reason.
Last month, Firefox co-founder and JavaScript creator Brendan Eich’s Ethereum-based Basic Attention Token (BAT) project has raised $36 million in less than 30 seconds.
Basic Attention Token, for now (again, Brendan) It runs on a browser called Brave (founded by Eich). Brave blocks all ads that spoil the user experience and consume battery and data pack.
If Brave users agree to see ads, they gain BAT by seeing fewer ads that do not disrupt the user experience.. At first glance, this project, which reminds of “make money by watching ads” companies, is blockchain-based and combined with the history of the founding team, it resulted in a very successful ICO.
From the ICO price determined as 1 Ethereum = 6400 BAT, on May 31. an investor has increased his money approximately *5 times as of today (30 June). (On May 31st, when 1 Ethereum is calculated as $220.)
So what is this ICO?
Blockchain-based projects, in order to bring their roadmaps to life, are exchanged with cryptocurrencies (usually BTC and BTC) from individual investors. they sell their assets to the public by raising funds (with ETH). This process is called Initical Coin Offering (ICO) because it resembles an Initial Public Offering (IPO-).
For example;
We are making 1 Million WebrazziCoins (WBZ) and saying 1,000 WBZ = 1 ETH, We are launching an ICO with a total target of 1,000 ETH.
We are sending WBZ tokens in the amount of ETH they sent to people who participated in the ICO. With this step, the ICO is completed.
The biggest reason why investors are in demand for ICOs is to increase their money several times in the short term, however, the organizers of the ICO offer special opportunities to their investors (For example: Webrazzi Store to users who have WBZ. ..)
You can see the current status of some ICOs in the past in the table above.. (Source: IcoStats.com)
I would like to state that at this point, the tokens you receive by participating in the ICO do not have the same characteristics as the shares purchased in the IPOs.. The stock may pay you dividends, but the only way to profit from a token is to dispose of it at the right time.
How big is the cryptocurrency ecosystem?
Especially platforms like Ethereum, Litecoin, Ripple With the emergence of Bitcoin, the market share of traded Bitcoins fell below 50%.. However, the increase in the number of brokerage houses and the rapid opening of these brokerage houses to process newly released cryptocurrencies positively supported the growth in the market.. As of the end of last year, the crypto money ecosystem, which was $ 18 billion, grew more than 5 times to $ 110 billion in June 2017.
Although the crypto money industry is still in its infancy in our country, the Turkish Forum on Bitcointalk.org is very active. On the other hand, it is possible to see a large number of Turks in the channels of crypto money projects on Telegram and Slack.. You can also buy Bitcoin in exchange for Turkish Lira from companies established in Turkey and use these coins to buy altcoins at intermediary institutions.
What does our government think about the crypto money industry? not very clear. Namely, the CMB published a report in December 2016, which includes the press release of the BRSA in 2013.. Since there is no more up-to-date information, this statement made in 2013 should be taken as a basis in order to express an opinion for the future.. I don’t know if this would be very healthy, but the BRSA says in summary; As of today, it is not considered as electronic money within the scope of the Law, and therefore its surveillance and control is not considered possible within the scope of the Law in question.
The company’s articles of association that I mentioned above, one of the brokers selling Bitcoin in exchange for Turkish Lira, was downloaded from the Official Gazette. when i read that i realized they set up the company as a hosting service provider. We can say that it is obvious that the entrepreneurs and individual investors in our country will adapt to this field in a short time, even if not very quickly.
Things to consider when investing in cryptocurrencies;
As we finish the article, there are a few short words for those who will invest in crypto money. I would like to make a warning and reminder;
- Investing in cryptocurrencies is at least as risky as any other investment.
- All brokerage houses (almost) where you will invest in cryptocurrencies will ask you to provide your identity & passport information.
- Do your research on the assets you will invest in on the BitcoinTalk forum, Slack & Telegram channel, and don’t settle for that, but also check out the team behind the project. Consult information resources such as Reddit, Quora, but do not take the speculators there too seriously.
- Try not to work with brokerage firms with poor customer service (like Poloniex).. Your assets may be stuck, your account may be blocked.
- It will be in your best interest to generally disregard those who say, “Buy this asset outright, sell this asset outright, that asset will not be bought”.. Do your research, do your own reading, and mostly make your own decisions.. (I wrote a short guide for beginners before.)
Finally; To view blockchain only as a financial investment opportunity would be to look at the big picture from a very shallow vantage point.. In the coming years, we will be seeing and using blockchain-based projects in almost every aspect of our lives such as education, banking, health, and public administration.. I hope that the developers and entrepreneurs in our country will work in this field and form rapidly growing companies, and we will share their success as individual investors in the ICOs they will make ?
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