For those who have not been following the saga of Crypto Currency, Bitcoin and Litecoin, it may come as Crypto Exchange Website surprise that currencies with no intrinsic value remain a volatile commodity for investors. For those who have been keeping up with conversion rates for digital currency it is clear that the very volatility that has defined pseudo-currency is what is keeping investors interested in this field. Recent changes in the value of such currency as well as the bankruptcy of one of the biggest platforms in the world exchanging Bitcoins has called into question the future of this digital money. However, experts reassure those who want to use Crypto Currency, Litecoin and Bitcoin that the “fad” that led to digital money is probably here to stay.
A Short History of Bitcoin, Litecoin and Crypto Currency
Bitcoin and other forms of pseudo-currency are used as payments for transaction fees, products and services. Bitcoins or Litecoins can be exchanged for “real” currency at a given rate. Experts were concerned that Bitcoins and other digital currency might be used for illegal activity as they are much easier to exchange and “launder” than other forms of money. Bitcoin use was implicated in an illegal drug website, for example, and there may also be other examples of illegal use that have not yet been reported.
The value of these currencies has also been the subject of debate. Bitcoin values rose 90-fold in 2013, creating a “Bitcoin bubble” that deflated quickly in 2014. The sudden drop in value by about 50 percent has led to speculation that the pseudo-currency field is dying and soon will go the way of the dodo.
However, is it too soon to declare Bitcoin and Litecoin a failure? Experts disagree on the subject, but some claim that there is a place in tomorrow’s financial market for digital currency.
Bitcoin Problems and Solutions
The recent bankruptcy of Mt. Gox, the Tokyo-based exchange for Bitcoin and the largest Bitcoin exchange platform in the world, took most investors by surprise. Even more puzzling was the news that the equivalent of $400 million worth of coin had gone missing.
However, even the disappearance of six percent of the total Bitcoins in the world does not seem to have slowed the giant currency down much. Bitcoin continues to battle certain companies such as Apple due to the perception that the currency may not be legal, but a growing number of apps and programs accept Bitcoin with no problem.
Some experts see the bankruptcy of Mt. Gox as a step forward for Bitcoin. The underlying software is unchanged and many vendors are eager to get into the business of buying and selling using the digital currency. Further, these vendors claim that Mt. Gox was the problem and that most of the illegal activities related to Bitcoin stemmed from this organization, not from legitimate vendors and customers.
Check Your Values
No matter what happens in the future with Bitcoin, Litecoin and other forms of digital currency, one thing will not change: the need to find an instant answer to the question, “How much is my money worth?”
In order to learn this important fact, customers will have to have access to a reliable platform that updates the value of Bitcoins, Litecoins and other forms of Crypto Currency in real time.
ICO is short for Initial Coin Offering. When launching a new cryptocurrency or crypto-token, the developers offer investors a limited number of units in exchange for other major crypto coins such as Bitcoin or Ethereum.
ICOs are amazing tools for quickly raining development funds to support new cryptocurrencies. The tokens offered during an ICO can be sold and traded on cryptocurrency exchanges, assuming there is sufficient demand for them.
The Ethereum ICO is one of the most notable successes and the popularity of Initial Coin Offerings is growing as we speak.
A brief history of ICOs
Ripple is likely the first cryptocurrency distributed via an ICO. At the start of 2013, Ripple Labs began to develop the Ripple payment system and generated approximately 100 billion XRP tokens. These were sold through an ICO to fund Ripple’s platform development.
Mastercoin is another cryptocurrency that has sold a few million tokens for Bitcoin during an ICO, also in 2013. Mastercoin aimed to tokenize Bitcoin transactions and execute smart contracts by creating a new layer on top of the existing Bitcoin code.
Of course, there are other cryptocurrencies that have been successfully funded through ICOs. Back in 2016, Lisk gathered approximately $5 million during their Initial Coin Offering.
Nevertheless, Ethereum’s ICO that took place in 2014 is probably the most prominent one so far. During their ICO, the Ethereum Foundation sold ETH for 0.0005 Bitcoin each, raising almost $20 million. With Ethereum harnessing the power of smart contracts, it paved the way for the next generation of Initial Coin Offerings.
Ethereum’s ICO, a recipe for success
Ethereum’s smart contracts system has implemented the ERC20 protocol standard that sets the core rules for creating other compliant tokens which can be transacted on Ethereum’s blockchain. This allowed others to create their own tokens, compliant with the ERC20 standard that can be traded for ETH directly on Ethereum’s network.
The DAO is a notable example of successfully using Ethereum’s smart contracts. The investment company raised $100 million worth of ETH and the investors received in exchange DAO tokens allowing them to participate in the governance of the platform. Sadly, the DAO failed after it was hacked.
Ethereum’s ICO and their ERC20 protocol have outlined the latest generation of crowdfunding blockchain-based projects via Initial Coin Offerings.
It also made it very easy to invest in other ERC20 tokens. You simply transfer ETH, paste the contract in your wallet and the new tokens will show up in your account so you can use them however you please.
Obviously, not all cryptocurrencies have ERC20 tokens living on Ethereum ‘s network but pretty much any new blockchain-based project can launch an Initial Coin Offering.
The legal state of ICOs
When it comes to the legality of ICOs, it’s a bit of a jungle out there. In theory, tokens are sold as digital goods, not financial assets. Most jurisdictions haven’t regulated ICOs yet so assuming the founders have a seasoned lawyer on their team, the whole process should be paperless.
Even so, some jurisdictions have become aware of ICOs and are already working on regulating them in a similar manner to sales of shares and securities.
Back in December 2017, the U.S. Securities And Exchange Commission (SEC) classified ICO tokens as securities. In other words, the SEC was preparing to halt ICOs they consider to be misleading investors.
There are some cases in which the token is just a utility token. This means the owner can simply use it to access a certain network or protocol in which case they may not be defined as a financial security. Nevertheless, equity tokens whose purpose is to appreciate in value are quite close to the concept of security. Truth be told, most token purchases are made specifically for investment purposes.
Despite the efforts of regulators, ICOs are still lingering in a grey legal area and until a clearer set of regulations is imposed entrepreneurs will attempt to benefit from Initial Coin Offerings.
It’s also worth mentioning that once regulations reach a final form, the cost and effort required to comply could make ICOs less attractive compared to conventional funding options.
For now, ICOs remain an amazing way to fund new crypto-related projects and there have been multiple successful ones with more to come.
However, keep in mind everyone is launching ICOs nowadays and many of these projects are scams or lack the solid foundation they need to thrive and make it worth the investment. For this reason, you should definitely do thorough research and investigate the team and background of whatever crypto project you might want to invest in. There are multiple websites out there that list ICOs, just do a search on Google and you’ll find some options.
If you are one who has been badly defrauded by binary options scams, then you are not the only one. There are thousands like you who have badly scammed from such situations and the worst thing is that you can’t do anything at all. This is the very reason why you should be starting to think twice if you want to do a binary options trading in the very first place.
How do you find out that a binary options scam is taking place?
1) Deceptive brokers
The most common among the lot, deceptive brokers, and at the same times, they successfully endorsing an ICO being a part of quick fabrication owing to the limited rules and regulations laid out there for them as a result of the leniency of the financial authorities have recently been a significant hype for the last a couple of years. Copying someone else’s whitepaper and working extremely hard on Multi-Level Marketing via social media impersonations and celeb real reviews, ICO’s are the scam to buy in today’s financial world. Major people end up signing up for these ICO’s for this particular broker and soon enough, you lose all the money.
In case properly scrutinized, there are particular signs that let one know about a fake broker such as no definite roadmap and the founding directors having no trace whatsoever in the crypto market. Also, if the members belonging to the broker are inquiring about you to commit in a hurry, there is a high likelihood of it being a binary options scam.
2) Fake Wallets and Stupid exchanges
If you want to store your crypto, take the help of a wallet, be it hardware finances or an e-wallet. The majority of the investors choose an e-wallet over hardware finances, mainly because of its low fees and durability.
Sadly, a lot of crypto wallets that you see on the Play Store or App store are fake ones that seek to grab your private crypto key and grab you out of your money. It is highly suggested to do your research about the wallets and get to know about the ins and outs before adding your money into it. Also, it’s always advised to take help from some professional firm that is going to guide you in the proper direction.
The FCA has banned a lot of brokers who perform such unscrupulous activities but there are still a lot that remains.
Fake brokers, however, are still available.
3) Fraudulent Binary Deals
Remember the days where our teacher used to give us homework and we hated carrying it out. However, the change needs to be done while deciding to invest your cash in some binary options exchange. Digital foreign currency exchanges have increased in number over the past several years, giving rise to a lot of shady ones in the lot.
So as to determine whether an exchange is genuine or not, it is extremely suggested to do a complete quality check on the site. Some of them include confirming the requirements and withdrawal methods, the security status of the websites, phrases, and conditions, and proper office address and founder details.
Be it a direct trading trade, a complete all in one trading platform, or via brokers, it is extremely important to follow the above steps if you wish to save your hard-earned money.
So, don’t you wait and never fall for such binary options scams. Stay safe from such scams and invest your money wisely.
First Option Recovery is the number one choice when it comes to fund recoveries across the globe. They have the best in class attorneys and legal advisors who help them solve financial frauds including Binary Options Scams on a daily basis. Owing to the many years in service, they have solved all kinds of financial problems and recovered the money from major scams across the world. Numerous scams come and go but First Option Recovery always stays, thus always helping their clients recover their money in the quickest, fastest and most effective way possible. You can contact them for a free consultation anytime.