The South Korean stock exchange ProBit spent the IEO in five seconds

Trading platform ProBit held a fast-track initial exchange offer (IEO) project LINIX.

Just five seconds after the start of the IEO investors bought all the tokens of the project LINIX (2,625,000 LNX) at a price of $0.02. After that, South Korean exchange announced the second phase of licensee, during which organizers have planned to implement LNX 5,500,000 for the same price. Accepts the cryptocurrency bitcoin, Ethereum, XRP, stablein USDT native token exchanges ProBit (PROB).

Soon after successful tocancel new type ProBit announced several IEO planned for the next few days:

It is noteworthy that the primary supply of coins (ICO) is prohibited in South Korea from 2017. Thus, the local exchange considering the IEO as a kind of alternative to the usual takesall, circumventing regulatory restrictions.

Note that by far the most popular IEO platform is Binance Launchpad. Soon this platform will be tocancel project Celer Network.

We will remind, about starting their own platforms for conducting the IEO has also announced exchange Bittrex and OKEx.


New alternative ICO — initial exchange offer, or IEO


Maria Stankiewicz, Director of business development and communications cryptocurrency exchanges EXMO, in a newspaper column told about the benefits and prospects of the primary exchange distribution (Initial Exchange Offering, IEO) — a new financing instrument blockchain projects offered by leading crypto currency exchange market.

The main sensational news of the end of February, was the success of the project Fetch.AI, which in the framework of the IEO on the stock exchange Binance 22 seconds grossed $6 million. Previously unprecedented hype helped to sell the entire volume of BitTorrent token in the amount of $7.2 million for 18 min using the same tool. And on 19 March the company Celer Network (CELR) will hold tocancel to users of the platform Launchpad from Binance, which will be able to purchase tokens new project for BNB. Understand what is IEO and what is its key difference from the traditional ICO.

Last year, the main method of fundraising was ICO — initial coin offer. Today we can not say that the interest has subsided at all, but the situation is, of course, is completely different than the end of 2017, when only a day was conducted on 50-60 new ICO. This is partly due to the fact that, according to the study Statis Group, about 80% of the ICO projects turned out to be a Scam, and they attracted one-tenth of all investors funds (collected for 2017 of $11.9 billion $1.34 billion of funding went to the fraud). In addition, legislation in most countries has not reached a new level — investors are still vulnerable to fraud.

But as the demand for financing has not disappeared, the projects can now go two ways. The first is for private placements when the project collects the required amount in the closed mode (the most striking example — Telegram), which implies a rather high initial interest in the project. The second way is the agreement with the exchanges on the initial offering on the stock exchange or IEO.

What is IEO?

The key difference from traditional IEO ICO or closed sales — the emergence of exchange as a mediator of the process. Team exchange conducts a preliminary audit and technical examination of the project and token, evaluates the investment attractiveness and potential of the project, then announces the start of licensee on the exchange. Those wishing to purchase the tokens are not being sent to the smart contract (as it is in ICO) and are recorded on the exchange and buy coins directly from your personal account.

What is the project?

The main advantage of this tool for projects — a large number of existing customers who automatically become potential investors.

What is the benefit for investors?

A key advantage of the IEO for investors, in addition to confidence in the exchange, as to a safe mediator, is the simultaneous listing on the exchange because the exchange is a key partner-the organizer of the sale tokens. In the case of some exchanges presents investors the opportunity to come to the project with Fiat money.

What are the benefits of IEO gives exchanges?

For exchange the main advantage is getting a big influx of new users and their contributions. Some of them may eventually become loyal users of the exchange.

How is the distribution of coins?

Most often, the distribution of coins is on the same principle as in ICO. But both projects and the exchange may impose additional restrictions. For example, developers may require you to set a fixed price for the sale of tokens during the entire process IEO or to set limits on the amount of tokens for each investor. Exchange, in turn, can ask to adjust hard — or softcap if they see potential threats or the success of licensee.

How to take part in the IEO?

Rules of participation in IEO at each exchange may be different, but the basic steps for the same:

To register on the stock exchange;

Go through the procedure KYC/AML (if needed);

Find out what currency will be accepted the funds, exchange them at the exchange or directly enter the required currency on the account and wait for the beginning of tocancel.

As projects are selected on the exchange?

In fact, the process is no different from the traditional due diligence of coins that have passed the ICO. Because, as we noted above, the collection of money for the ICO does not guarantee the future success of the project. Usually exchange consider projects from the point of view of the work done is interesting and promising idea, at what stage is the product and so on. The second important point — the team and the community. Important also are such factors as the value for the market and the readiness of the project to carry out joint marketing actions (ranging from Andropov coins on the exchange, to joint projects in the media).

What trading platforms offer IEO?

Today only a few exchanges offer a similar service. Among them Binance, EXMO, GBE and OKcoin.

The most well-known in the information space became the Launchpad platform exchange Binance, where in 2017 seconds were takencare BREAD ($6 million) and GIFTO ($3.4 million). In 2019 tokens BitTorrent project sold out in 18 minutes, received $7.2 million of investments, and the project raised $6 million in 22 seconds.

Cryptocurrency platform EXMO launched IEO in February 2019. The first project partner will be Paytomat. IEO coins PTI scheduled for early March. Given the quality audit and high trust to the coins on the exchange (never had one delisting), the launch of the instrument aroused great interest among market participants. In addition, because the exchange is Fiat money (USD, EUR, RUB, TRY, UAH, PLN) and a large number of payment methods, projects can immediately after the sale of tokens to withdraw Fiat, and investors — to purchase tokens for Fiat money.

Already 7 tomenselo held Gibraltar on blockchain exchange (GBE). Is the tool on the platform how GBX Grid Token Launch Centre.

OK Group has invested more than $100 million in the creation of the company to raise capital for start-up projects that closely cooperates with the leading foundations of digital assets industry.

In conclusion

Risks of buying tokens project with IEO is significantly lower than purchasing in the ordinary course of the ICO, as the majority of the projects coming to ICO, do not have any agreements with stock exchanges on listing. But, of course, no one is immune to hacker attacks, the possible subsequent delisting of the coin exchange and the low quality of projects due to which the price of an asset will decline.


In what areas will be created the first mass services on the blockchain


Haseeb Qureshi is a developer and designer working on the Airbnb platform, and also last well-known professional poker player is told about four types of killer applications (Killer apps) on the blockchain, which will contribute to further development and promotion of the technology to the masses.

This year we witnessed explosive growth in the popularity of cryptocurrencies. This is evidenced by the capitalization of this market, which already exceeds the $615 billion, $3.7 billion raised through ICO, and more than 125 cryptocurrency exchange offices entered the market.

But despite this, work with cryptocurrencies is a chaotic mess for the end user. They are not so easy to buy, transactions in the network are time consuming and have a high Commission in cryptosuite full of trolls, cheaters and hackers, but their own funds are easy to lose because of the complexity of the storage system or the potential hacking of the robbers. And even if you manage to keep your cryptocurrency safe, yet on the market very little trading platforms that are willing to accept them for payment.

Not to mention the developer tools, where things are much worse, the whole cryptocurrency ecosystem is fragmented and divided on site. And educational information regarding the tools, documentation, and design rules can be considered at all. Cryptocurrency is terrible for users and developers alike. But despite the obvious problems, the demand for them is greater than ever and will only grow.

Although acne Buterin predicts that «killer» applications are never on the blockchain will not appear (otherwise, they would have been actively discussed and developed), I don’t agree with it, and Vice versa, believe that it is this vector of development is the only true one. Moreover, I think that the areas in which these applications will prove the Supreme value of the blockchain, not so much, namely four:

«Dark web» and payments on black markets;

Digital gold;

Macro — and micropayments;

The tokenization.

Killer app No. 1: the «Dark web» and payments on the black market

First the application need to those who are interested in anonymous payments. In particular, users of the «Dark web» — the part of the Internet, access to which is possible only with special anonymity protocols such as Tor, I2P and Freenet. Here you can buy wide range of products from prescription drugs and up to hacking your accounts, purchase items and even services of hired killers. Bitcoin was the first cryptocurrency that is used in the markets of the «Dark web», and this led to the first miners and users who helped to breathe life into this ecosystem.

The overall estimate of the gross revenue of all sellers in the «Dark web», a network is about $1 billion annually. And popular not only bitcoin, but cryptocurrencies are anonymous as monero and Sikes, which have all chances to become the cryptocurrency «Dark web» de facto.

Killer app # 2: the Digital gold

The value of gold lies in its economic parameters — the rare cases of inflation, it does not corrode, and is a desirable means of capital accumulation. Moreover, no state or market has a monopoly over gold, so its price does not depend on events occurring in the country.

However, gold is not a perfect method of capital accumulation, as the bars are large and weigh a lot, gold is hard to store and even harder to ensure its safety, not to mention transportation. Gold can be stolen, they can be manipulated, saying that you have it, or hiding the information about the purity of this precious metal.

Therefore, experts have long been trying to develop the best version of digital gold, for example, in the form of such payment systems backed by gold, like e-gold and e-Bullion or centralized cryptocurrency DigiCash. But they all failed, and only bitcoin could become the first cryptocurrency which have coped with this mission. Even though the standard kollebaniya prices of cryptocurrencies in 15% (and that’s on a good day), in five or ten years the price of bitcoin stabiliziruemost and will be understandable to all financial assets. As noted analyst at ARK Investment Management Chris Burniske, the volatility of bitcoin is comparable to the volatility of oil and at the same time, it is lower than the volatility of many stocks from listing S&P 500.

Now the volatility of bitcoin is 5-6 times higher than the volatility of gold, but this gap is gradually narrowing.

I have several reasons to believe that even with the high volatility of bitcoin is an effective form of digital gold.

First, the value of bitcoin is not determined by any government or by the market. Moreover, bitcoin has already proved that its cost is virtually independent from any other asset class, including gold. Second, bitcoin can be bought and redeemed from anywhere in the world, regardless of local market, or the banking infrastructure. And, thirdly, bitcoin, like gold, is resistant to external changes. Bitcoin also has a stable road map and Melnitsa with predictable speed — one unit is added to the network approximately every ten minutes. These qualities make bitcoin predictable, making it an ideal «digital gold». Traditional gold by nature is also predictable and does not change.

Due to the high level hashing bitcoin is one of the most secure cryptocurrencies. And one of the most versatile, liquid and widespread. Like gold, bitcoin is easy to understand and has a high level of recognition as a brand. And despite the fact that bitcoin as a payment means has slow transactions, high commissions and scalability problems in the network, these aspects will help the perception of the cryptocurrency as a digital analog of gold. It is in the simplicity of gold is its huge potential for the future. On the same principle bitcoin is the simplest cryptocurrency, as bitcoin is restricted in use — it has great programming, but that makes it an excellent means of capital accumulation.

And the argument against money support of complex technical solutions, ultimately is incorrect. Take, for example, credit cards. The first credit card was issued in 1950, and a magnetic strip for them was developed in 1970. By the mid-70’s, credit cards became commonplace for American companies, which is widely used in daily life. However, as many holders of such cards can explain how this magnetic strip? Not to mention, how is their credit rating. The same can be said about smartphones ten years ago, they were something unique and outlandish, but now they have become an everyday device essential for modern life.

If bitcoin is going to be cheap, easy to use and accessible, it will meet the same fate — people will stop paying attention to it as something strange and will be taken for granted, as happened with the amazing technologies in smartphones and credit cards. Moreover, for the future generation, who grew up in the digital world, bitcoin wallets would be a more logical solution than huge safes filled with useless metal extracted from the earth.

Bitcoin in comparison with the world gold market

To date, the capitalization of the global gold market is variously estimated at $3-6 trillion, and daily trading volume is at $70-200 billion a day. Let’s take the most conservative estimate, where the capitalization of the gold market is $3 trillion, with daily trading on the $70 billion on 1 January this year, bitcoin was 0.5% of the market capitalization of the gold market, while daily trading volume was at the level of 0.1% of the volume of gold. However, by the end of the year, the market capitalization of bitcoin has reached $256 billion, and the volume of daily trading is $12.5 billion, Respectively, of its market capitalization is 8.5% from the same indices gold and trading volume of bitcoin is 17.9% of the gold.

It is likely that this trend will continue, and I think when bitcoin will start to rise to the same levels as the gold, the following will occur four things:

The state will panic and they will start to actively speak out against the cryptocurrency.

On the gold markets will be marked by a significant decline.

The financial authorities will try to impose rules to regulate bitcoin in an attempt to protect the interests of investors in gold.

Bitcoin will no longer be taken seriously as a means of payment on the blockchain.

Killer app No. 3: Macro — and micropayments

While using cryptocurrency means impeccable management of keys, the blockchain cannot serve as a reliable solution to the problems of peer-to-peer payments. The security of the blockchain should be not only theoretical but also such that a simple man from the street could easily use the tools in the network, without exposing themselves to danger.

In many world economies have made steps towards the simplification of traditional payments: Venmo in the US, M-Pesa in Kenya and Tanzania, AliPay and WeChat Pay in China. Traditional FINTECH is moving so quickly that its advantages would soon overtake the technology of the blockchain in the short and medium term.

Despite the fact that the adaptation and use of crypto-currencies are far behind from the traditional banking systems, they have two vectors of development in which they have gone far ahead:

International payments — make international transfer, you need to go to the Bank to pay the Commission to wait a few days until the transaction is approved by all parties involved in the process, and moreover, if need to exchange for local currency to pay banks a Commission for it. Alternative was to send, for example, esters on the required amount via the Ethereum blockchain. The average transaction of the network takes about 10 minutes, and the Commission will be 50 cents. And this despite the fact that Ethereum is not bloccano optimized for the payments, or the timing and the fee could be significantly less. Despite the technical and legal problems, massive introduction of blockchain networks for international payments prevents by and large, only lack of knowledge, trust, perception of transactions with cryptocurrencies.

Micropayments — the traditional financial networks (such as Visa), any money transfer costs at least 20 cents. Thus, if a business wants to take, for example, 25 cents to view a web page, or 1 cent for the transition to the ad page, they have to macrobudgetary within the company and to pay monthly accumulated amount, as does Google. The blockchain and cryptocurrency optimized for payments solve these problems. For example dash takes 1-3 cents per transaction and processes it for three seconds. Thus, from 25 cents to view only 10% will go to pay for the transaction.

These areas still have to go through a series of improvements, and it is hard to predict what will be the end result, however, banks clearly have nothing to be afraid of. Of course they are trying to protect their own market share and to adapt the blockchain in the framework of projects such as Ripple, R3, Hyperledger and others. However, cryptocurrencies are preparing a full attack against traditional banks and their position in the market. I’m sure the next few years will be very interesting.

Killer app # 4: Tokenization

There are two types of tokenization protocols and assets.

Token protocols such as Filecoin serve to encourage certain actions of users. If incentives are the same as the purpose and functions of the tokens, it will be possible to build such a Protocol, where the right action users will receive a reward, but for the wrong penalty. If correctly programmed methods such incentives and provide a good payoff matrix, such a Protocol may include rules and strategies from Economics and game theory, to adjust the user behavior to produce a desired result. With the right incentives, like magic, everything will fall into place, and economy within such a Protocol will work perfectly.

In the second case — tokenization assets — converts traditional liquid assets equal in digital assets stored in the blockchain. New assets can be exchanged on the trading floors that do not require the trust to third parties, making them more liquid. In this case, one of the main advantages of such markets is the lack of centralized intermediaries. This will be relevant aspect for the citizens of those countries where financial and institutional instances are unreliable and corrupt. To participate in sustainable and liquid global market licenzirovanie assets will need only Internet access.

Another advantage is that thanks to the blockchain, you can avoid the high cost of creating an optimal trading platform. Releasing the tokens-the shares on the blockchain, you will automatically receive infrastructure for management and support of their trading platform. And the use of a standard ER20 will be available to smart contracts by which it is possible to create financial instruments for a number of tokens and use automatic pricing mechanisms. The exchangers will be able to add such tokens in the listing, and to buy the client will need only a few lines of code. Moreover, given the insurance of the ability of the blockchain, it will be possible to take a loan, for example, to buy a car providing information about its portfolio of digital assets.

Thus, the tokenization and the protocols and assets is an important vector of development of blockchain. Of course, you first need to decide a number of legislative and technical issues that will take several years before we can use such tokens. However, behind them enough developers to promote such forms of tokenization, which is a huge potential.

In conclusion

I have listed four key areas in which killer app will contribute to the development of the blockchain, but I don’t want to reject other promising ideas. There are many applications in which considerable potential, for example, social media such as Steemit, where customers have internal cryptocurrency for participation. Or platforms such as Gnosis and Augur that serve decentralized market predictions on the stock market or the above-mentioned storage platform Filecoin. Such projects very much and they develop at a staggering pace. However, if you believe the stories, the biggest killer app will come from the area where you least expect it.


IBM launched a blockchain platform IBM Food Trust

After 18 months of testing, the IBM Corporation presented on a platform created Hyperledger Fabric blockchain IBM Food Trust, which will allow you to track the supply chain of products for a monthly fee ranging from $100 to $10 thousand. It is expected that the platform will actively use retail and wholesale merchants, and product suppliers.

The first major party-the founder of the project was the French chain Carrefour stores, operating in 33 countries in Europe and considering innovation as a basis for its CSR program Act for Good. Until 2022 the company intends to transfer on the blockchain all of their units. With her platform began to develop the company Topco Associates and Wakefern, BeefChain, Smithfield and Dennick Fruit Source. In addition, the initiative was joined by multinational company Unilever, Walmart, Nestle, etc.

According to IBM, by increasing transparency in the supply of food platform will benefit its participants and more high-quality and safe products to consumers. In IBM’s Food Trust introduced three modules: the tracking of supplies, certification, charting, and access to them. The latter module is free.

Napomnim that in September, Walmart gave its suppliers the green year introduction tracking of their products on the blockchain.




Analysis of prices BTC, ETH, XRP, EOS, LTC (18.03.19)

Over the weekend in the cryptocurrency market due to the technological factors there has been a slight increase in the range of from 2 to 4% for the most liquid instruments. The main indicator of the market gets to higher highs since the beginning of this year. Now the value cap of $139 billion, an increase of this index since Friday by 2.9%. The news background is neutral, the number of tools growing trading volumes.


Dynamics of exchange rate of Bitcoin to USD (BTC/USD)

BTC after the breakout of the resistance at $3900 got some momentum, with the result that quotations could test the level of $4050. That followed a two per cent correction marked a new level to transfer the protective stop order ($3955). Now the price is in the region of values a month ago and from a technical point of view, after consolidation at current levels, the high probability of further upward movement.


The dynamics of the course Ethereum to US dollar (ETH/USD)

ETH on Friday tried to break through the resistance line. In accordance with the trading plan, triggered signal on the input, however, the first time price failed to consolidate above $142, bringing the quotes back into the trading range, and the position was eliminated at the exposed short foot. Now to resume trade from buying this coin is likely to require the confirmation of the breakdown of newly formed maximum at $144. We believe that until that time, it makes sense again to wait.


Dynamics of Ripple rate to the US dollar (XRP/USD)

In XRP bulls also attempted breakdown of local resistance. We continue to see in this coin is nothing interesting, because we believe that the current movement to have a high level of market noise and on a number of grounds contain a high percentage of random fluctuations. Price has long been trading sideways and, with high probability, the trend will continue. Therefore, as we wrote earlier, it may make sense to temporarily review their transaction limits with this tool.


The dynamics of the course EOS to the US dollar (EOS/USD)

In the EOS, as expected, the movement to the level of $3,68 was quite fast, but the buy signal gets triggered only on a break of $3.7. This technical situation is treated uniquely and we believe that it makes sense to remain in the position with a stop below the red line. Thus, in the case of updates of Friday’s highs, we will increase the share of coins in the portfolio.


The dynamics of the exchange rate Litecoin to USD (LTC/USD)

In LTC, as expected, the old highs near the resistance of $59, the price touched $62. Now, when the price is near the trend line and near support, the risk is low, and there is a possibility to increase position volume. Stop below $58, but given the high probability of increased volatility, better to wait for the close candle where the couple will come to a stop and do it manually.


Head EOS: in 20 years bitcoin will replace gold

The first cryptocurrency for 20 years, will replace gold as the leading means of store of value. About this in his Twitter said the co-founder and head of EOS Brendan Blumer.

He added that after the extraction of all bitcoins Commission will inevitably increase, but the decision to scale, such as Lightning Network, will provide users with cheaper options of the transfer cryptocurrencies.

«Activity moves to a second decision level for network scalability. However, the adoption of bitcoin and its liquidity will increase,» – said Brendan Blumer.

Recall that in late February, chief investment officer at Newscape Capital of the company Charlie Morris said that in a military conflict, investors will prefer gold bitcoin.


IBM: quantum computing is a threat to the blockchain and cryptocurrency

Top executives technology giant IBM said that quantum computing threaten digital currencies and cryptography used in blockchain systems. It is reported Coindoo.

So, the head of the blockchain-direction IBM Jess Lund stated the following:

«Through reverse engineering can be achieved for private keys that provide access to the wallets. I think this is a real and significant threat. Bitcoin is a public registry. Thus, you can see which wallets hold the highest balances, and then to attack them»

He also noted that over time, the threat of the quantum computer will become more and more relevant. In particular, Lund said that in the future quantum computing will be able to compute private keys using public as the template. Thus, according to him, more than half of the existing blockchain will be susceptible to this threat.

In addition, under the blow can be almost all systems that use encryption, including communications, private and government databases, etc.

«Companies need to know about quantum computers and the potential risks they may carry. They need to take action today so that their products are not compromised in one day», — said the technical Director of data protection services IBM Neuve, Zunich.

The opinion of their colleagues was supported by the Swiss Manager of the IBM Research Michael Osborne. He expressed the opinion that the era of quantum computing will set the framework for the life cycle of modern cryptographic systems.

We will remind, in the beginning of the year IBM introduced the first quantum computer for commercial purposes Q System One.


Justin San sure Tron will overtake Ethereum and EOS

Chapter cryptocurrency project Tron Justin San (Justin Sun) said that today’s update ON Odyssey to version 3.1 will allow its network to run 200 times faster Ethereum and cost 100 times cheaper than EOS.

He also noted that the release functions of the Committee and the virtual machine Tron (Tron Virtual Machine) will enable developers to test smart contracts before their launch in the core network and in General will mark the advent of smart contracts.

On the background of this message, TRX rate today has risen almost 11%, and at the moment, according to CoinMarketCap, the price is $0,02650 per unit.

Recall that the San presented to the virtual machine Tron at the end of August, stating that the development project will lead to nlway phase in the industry. Previously, the project acquired the company BitTorrent and hopes to use «to enable all content creators and their communities the opportunity to cut out the middleman and directly allow you to distribute content among users.»


Co-founder of EOS Brendan Blumer: Bitcoin will replace gold for the next 20 years

Co-founder and head of EOS Blumer Brendan (Brendan Blumer) expressed the opinion that bitcoin will inevitably displace gold and become the world’s main asset for storing wealth.

«Over the next 20 years bitcoin will replace gold as the leading asset for valuables,» wrote Blumer on his page on the social network Twitter.

Note that the capitalization of the gold is about $7 trillion. If bitcoin will replace gold and its market capitalization reaches this limit, the first price of cryptocurrencies will be about $330 000 per coin.

Blumer also noted that after mining all bitcoins transaction fees in the network will be significantly increased. On the other hand, thanks to the development of solutions to scale the Bitcoin network, such as Lightning Network, users will be able to get cheaper options for the transfer and exchange of the first cryptocurrencies.

«Most of the activity moves to a second decision level for network scalability. However, the adoption of bitcoin and its liquidity will increase,» – said the co-founder of EOS.

We note that recently the experts of the world gold Council (WGC) has expressed the opposite opinion, stating that cryptocurrencies will not replace gold.


Joseph Lubin: the adoption of the blockchain will contribute to the growth of the world economy

The head of the blockchain startup ConsenSys Joseph Lubin during the SXSW conference expressed the view that due to the widespread introduction of the technology of the blockchain, the world economy will grow 10-fold over the next 10-20 years.

He noted that in present days not many «normal» people use the systems based on the blockchain. Explaining this phenomenon, Lubin drew an analogy with e-mail, which few people knew in the 80-ies of the last century:

«In 1983 there were not many «normal» people that use e-mail»

In addition, in his speech, Lubin turned to the subject of Ethereum 2.0. According to him, the updated version of the network of the second capitalization of the cryptocurrencies will be deprived of many shortcomings. Also the head of the ConsenSys forgot to mention about bitcoin:

«Bitcoin and the current version of Ethereum requires special equipment that burn a huge amount of power, only to ensure network synchronization. After 18 months with Ethereum 2.0, we will be more powerful and scalable blockchain system that consume many times less energy»