The ICO: A Quick Way to Raise Capital But….
In the cryptocurrency world, altcoin founders assert that ICOs (Initial Coin Offerings) are all-but-necessary for coin development. And ICOs are an effective way to raise needed capital. Their setup offers a few investors a quick way to make a tremendous amount of money. Of course, this feature also makes ICOs susceptible to fraud and potential legal problems. Sophisticated criminal groups are already involved in the ICO world. Not incidentally, governments are starting to take notice and have begun to either ban or heavily regulate these ICOs (and who knows if the SEC will get involved or not). Is there a better way? Yes, a Community Coin.
XTRABYTES: An Emerging Community Coin
Altcoins that don’t rely upon an ICO for fundraising must necessarily incur a much longer timeframe for development. Funds simply do not exist to pay developers and get a major project up-and-running (although recent ICOs have raised millions with little more than a white paper and a website- much like EOS). Investors seeking a quick ROI also get impatient and look elsewhere. Is there a silver lining here?
Enter the community coin. Community coins are just that. They allow the community to have some say in the coin’s direction (generally through an organized forum like Slack or Telegram). Patient investors who strongly believe in the coin’s mission are typically given more say over its direction. Working in conjunction with the founder, they’re also eager to participate in its marketing and development.
This is the template the XTRABYTES team has followed. One of the founders of XTRABYTES (CCRevolution) had invested in Bitmox, a coin whose developer had left everyone holding the bag. Rather than chucking it up as an unfortunate and costly loss, CCRevolution sought out someone to help regenerate interest and stumbled upon founder/lead developer (Borzalom) who had also invested in Bitmox and was seeking assistance with language and marketing to help save the project. The two of them aligned and then set out to restart and radically reconfigure the coin. Over time, they secured the help of several developers and helpers in a bid to create a blockchain platform which was more secure, scalable, and faster than current offerings. With the help of interested parties, word about their project gradually spread. As the project has advanced, interested investors have stepped up to help with additional marketing, management, and other aspects of development (including yours truly)..
The XTRABYTES model has resulted in a more equitable distribution of coins (the largest holder currently only holds just 4% of the total). Being that the coin is less vulnerable to price volatility, investors don’t feel as if their investments are at the mercy of a few whale operators. And those investors seeking to move the coin forward via marketing have more cause for confidence.
Those seeking to discern the risk/reward ratio with regard to XTRABYTES might also consider the intangible rewards volunteers experience with team participation. Working with other investors on a project designed to truly advance blockchain technology is exceptionally rewarding.