Sun 13 Aug 2017 8:31AM

Creating our own cryptocurrency to crowd fund the Internet Party

SD Suzie Dawson Public Seen by 145

Research thread on how to create our own coin and issue it
Please attach related links below


Suzie Dawson Sun 13 Aug 2017 8:41AM

"cryptocoin dependent on a small network of nodes running their blockchain."

What do you get:
"An ICO is in some ways similar to an initial public offering. Both are done to raise funds, but, instead of stock, your ICO purchase gets you a new type of coin or token, an asset rather than a security.... The token can represent some sort of value or be of value itself. An ICO might involve attributing equity to a token so that ownership gives you voting privileges and access to dividends, which is what the now infamous fund raising effort of The DAO did. Their use case for a token is the most similar to that of an IPO, however, the majority of use cases are for something different. The typical use case of a token issued in an ICO is the creation of an asset that gives you access to the features of a particular project. Instead of having cash or Bitcoin as the way to pay for goods and services from the ICO offerer, you use their token."


Suzie Dawson Sun 13 Aug 2017 8:42AM

recruitment via word of mouth:

"As such, these loyalty points now have a variable value, based off of market perception and growing use of the platform. This creates a very interesting incentive mechanism because now the users of the platform who are receiving the tokens have incentives to bring other users to the platform in order to increase the value of their tokens."


Suzie Dawson Sun 13 Aug 2017 8:44AM

Here's why mining is important:

"Bitcoin represents a decentralized monetary system, whereby users have direct control of their money and can send money to one another in a peer to peer fashion. No one company owns Bitcoin or verifies the legitimacy of transactions, instead, this is done in a decentralized way by stakeholders called miners, and to a lesser extent, user nodes. Everyone is incentivized to maintain the system through transaction fees directly from the users and the creation of new tokens, which in this case is the mining of Bitcoin. This mix of incentives and decentralization make it such that, for the first time, users no longer need to rely on a third party to issue, hold or transact with funds digitally."


Suzie Dawson Sun 13 Aug 2017 8:46AM

Why big business and traditional investors are getting involved with bitcoin:

"Terpin explains that “as a angel investor, you can put 25k into company equity, then the company goes through many more rounds of funding, and perhaps sells for $300m, but your stake has been diluted to almost nothing if there's a down round anywhere along the way. With tokens, you can do the same kind of analysis of team and technology, but because it's a trading token and not private equity, you can get out whenever you want. Even though tokens are typically not securities, they act more like gold or public stock from day one in terms of liquidity. This alone, coupled with the current bull market for ICOs, means a lot of investors are saying ‘I’ll take my chances with tokens’. Investors like it. Companies like it. Companies don’t give up any equity, just tokens, which in most cases are their product. Because it's a product, it's more akin to wine futures than stock. It’s a product with a resale value.”


Suzie Dawson Sun 13 Aug 2017 8:50AM

One expert says these are the 6 questions to ask ourselves:

  1. Is your technology a platform, really?
  2. What will your platform add to the crypto/blockchain community that isn’t already being served by someone else?
  3. Does your technology need it’s own token?
  4. How will you offer your token? — voucher, direct token distribution, or convertible note?
  5. How will you issue and accept contributions: Bitcoin, Ethereum, or both
  6. How big is your network, is it dense and engaged, or sparse and quiet?

Suzie Dawson Sun 13 Aug 2017 8:52AM

Important to label as a donation:

"The more appropriate nomenclature for this emerging process can be better expressed as a “Token Generating Event”, or a “Token Donation”, as under certain jurisdictions, this is a specific and distinct definition, that aligned with the proper structure, provides clarity to the authorities on what exactly you are doing with your proposed endeavour."


Blake Bedford-Palmer Sun 13 Aug 2017 8:54AM

DEFINITELY something we should look in to


Suzie Dawson Sun 13 Aug 2017 8:58AM

Legal considerations:

Corporate formation
KYC , AML, and Compliance
Securities law
Data privacy
Tax law

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